Business Statistics

Tolerance Interval

Tolerance Interval

Tolerance Interval use in manufacturers frequently to detect excessive variation by comparing client requirements to tolerance limits that cover an acceptable proportion of the population.This procedure calculates one-, and two-, sided tolerance intervals based on either a distribution-free method or a method based on a normality assumption. A two-sided it consists of two limits between which a given proportion β of the population falls with a given confidence level 1−α . A one-sided tolerance interval is similar, but consists of a single upper or lower limit.