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Errors In Six Sigma Process. The six sigma and lean manufacturing process can be very hard to understand for a lot of people. Six is nothing but an indicator, an acceptable error rate. For exemplification, the companies that operate on the Sigma level 1 perform correctly in a 30 percent proportion. The Sigma number grows as the performance ameliorates.
Using my table above (with n = 20 and k = 2) the unbiased estimator of sigma is 1.593. Similarly, the reported standard errors, whose values are 0.499569 and 0.308727 are (downward) biased estimates of the true standard deviations of the OLS estimators of the intercept and slope coefficients.