How to Use Confidence Intervals in Selecting a Suitable Time-Dependent Distribution Model for the Process

Authors

  • Milan Terek School of Management, Bratislava

DOI:

https://doi.org/10.12776/qip.v29i1.2095

Keywords:

confidence interval for the mean, confidence interval for the variance, time-dependent distribution model, random sample, normal distribution

Abstract

Purpose: This paper proposes the possibility of using confidence intervals for the mean and variance in selecting a suitable time-dependent distribution model for the process.

Methodology/Approach: The approach describes a characteristic under consideration by the distribution, the location, the dispersion, and the shape, all of which are functions of time. The values of the characteristics under consideration are determined by taking samples from the process flow. Time-dependent distribution models are classified into four groups based on whether the location and dispersion moments remain constant or vary over time.

Findings: The paper explains a method for creating random samples, along with the calculation, presentation, and interpretation of the confidence intervals for the mean and variance in choosing the appropriate time-dependent distribution model of the process.

Research Limitation/Implication: The methods described in this document pertain exclusively to continuous quality characteristics. They can be applied to analyse processes across various industrial and economic sectors. The presented procedures assume that all instantaneous distributions are normal.

Originality/Value of paper: Confidence intervals can improve decision-making when selecting a suitable time-dependent distribution model.

Author Biography

  • Milan Terek, School of Management, Bratislava

    Milan Terek, PhD. works from 2018 as a full professor at the School of Management in Bratislava (course leader on Introduction to Statistics, Statistics, Mathematics for Managers II, Quantitative Methods for Managers, Quantitative Methods in Business Management Research). Prior to this, he worked at the University of Economics in Bratislava (course leader on Statistics, Statistical Quality Control, Decision Analysis, Data Mining, Survey Sampling, Linear Programming, Nonlinear Programming, Operations Research, and System Modelling). His research activities are focused on the applications of statistical methods in economics and management. 

     

    School of Management in Bratislava, Panónska cesta 17
    851 04 Bratislava, Slovakia

     

    e-mail: milan.terek1@gmail.com; mterek@vsm.sk

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Published

2025-03-31

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Articles

How to Cite

How to Use Confidence Intervals in Selecting a Suitable Time-Dependent Distribution Model for the Process . (2025). Quality Innovation Prosperity, 29(1), 25-38. https://doi.org/10.12776/qip.v29i1.2095