Principlev1
Set thresholds at approximately three standard deviations
Set thresholds at approximately three standard deviations from measured baseline to balance detection sensitivity against false alarm rate.
Why This Is a Principle
Derives from Signal detection involves independent dimensions of (signal detection tradeoff) and Process variation consists of two fundamentally different (common vs. special cause variation). The Shewhart principle prescribes specific statistical threshold placement. Actionable and empirically validated.