Table of Contents |
| Preface | xv |
| About the Authors | xx |
Chapter 1 | Data and Statistics | 1 |
| | Statistics in Practice: Business Week | 2 |
| 1.1 | Applications in Business and Economics | 3 |
| | | Accounting | 3 |
| | | Finance | 4 |
| | | Marketing | 4 |
| | | Production | 4 |
| | | Economics | 4 |
| 1.2 | Data | 5 |
| | | Elements, Variables, and Observations | 5 |
| | | Qualitative and Quantitative Data | 6 |
| | | Cross-Sectional and Time Series Data | 7 |
| 1.3 | Data Sources | 7 |
| | | Existing Sources | 7 |
| | | Statistical Studies | 10 |
| | | Data Acquisition Errors | 11 |
| 1.4 | Descriptive Statistics | 12 |
| 1.5 | Statistical Inference | 14 |
| 1.6 | Statistical Analysis Using Microsoft Excel | 15 |
| | | Data Sets and Excel Worksheets | 16 |
| | | Using Excel for Statistical Analysis | 17 |
| | Summary | 18 |
| | Glossary | 19 |
| | Exercises | 20 |
Chapter 2 | Descriptive Statistics: Tabular and Graphical Methods | 25 |
| | Statistics in Practice: Colgate-Palmolive Company | 26 |
| 2.1 | Summarizing Qualitative Data | 27 |
| | | Frequency Distribution | 27 |
| | | Using Excel's COUNTIF Function to Construct a Frequency Distribution | 28 |
| | | Relative Frequency and Percent Frequency Distributions | 28 |
| | | Using Excel to Construct Relative Frequency and Percent Frequency Distributions | 30 |
| | | Bar Graphs and Pie Charts | 30 |
| | | Using Excel's Chart Wizard to Construct Bar Graphs and Pie Charts | 32 |
| | | Exercises | 34 |
| 2.2 | Summarizing Quantitative Data | 37 |
| | | Frequency Distribution | 37 |
| | | Using Excel's FREQUENCY Function to Construct a Frequency Distribution | 38 |
| | | Relative Frequency and Percent Frequency Distributions | 40 |
| | | Histogram | 40 |
| | | Using Excel's Chart Wizard to Construct a Histogram | 41 |
| | | Cumulative Distributions | 42 |
| | | Ogive | 44 |
| | | Exercises | 46 |
| 2.3 | Exploratory Data Analysis: The Stem-and-Leaf Display | 49 |
| | | Exercises | 52 |
| 2.4 | Crosstabulations and Scatter Diagrams | 54 |
| | | Crosstabulation | 54 |
| | | Using Excel's PivotTable Report to Construct a Crosstabulation | 56 |
| | | Scatter Diagram | 60 |
| | | Using Excel's Chart Wizard to Construct a Scatter Diagram | 61 |
| | | Exercises | 64 |
| | Summary | 66 |
| | Glossary | 67 |
| | Key Formulas | 67 |
| | Supplementary Exercises | 68 |
| | Case Problem: Consolidated Foods | 73 |
| Appendix 2.1 | Using Excel's Histogram Tool to Construct a Frequency Distribution and Histogram | 74 |
Chapter 3 | Descriptive Statistics: Numerical Methods | 78 |
| | Statistics in Practice: Small Fry Design | 79 |
| 3.1 | Measures of Location | 80 |
| | | Mean | 80 |
| | | Median | 81 |
| | | Mode | 82 |
| | | Using Excel to Compute the Mean, Median, and Mode | 83 |
| | | Percentiles | 84 |
| | | Quartiles | 85 |
| | | Sorting Data and Using Excel to Compute Percentiles and Quartiles | 87 |
| | | Exercises | 88 |
| 3.2 | Measures of Variability | 91 |
| | | Range | 92 |
| | | Interquartile Range | 92 |
| | | Variance | 93 |
| | | Standard Deviation | 94 |
| | | Using Excel to Compute the Sample Variance and Sample Standard Deviation | 95 |
| | | Coefficient of Variation | 96 |
| | | Using Excel's Descriptive Statistics Tool | 97 |
| | | Exercises | 99 |
| 3.3 | Measures of Relative Location and Detecting Outliers | 101 |
| | | z-Scores | 101 |
| | | Chebyshev's Theorem | 102 |
| | | Empirical Rule | 103 |
| | | Detecting Outliers | 104 |
| | | Exercises | 104 |
| 3.4 | Exploratory Data Analysis | 106 |
| | | Five-Number Summary | 106 |
| | | Box Plot | 107 |
| | | Exercises | 108 |
| 3.5 | Measures of Association between Two Variables | 110 |
| | | Covariance | 111 |
| | | Interpretation of the Covariance | 113 |
| | | Correlation Coefficient | 115 |
| | | Interpretation of the Correlation Coefficient | 116 |
| | | Using Excel to Compute the Covariance and Correlation Coefficient | 117 |
| | | Exercises | 118 |
| 3.6 | The Weighted Mean and Working with Grouped Data | 120 |
| | | Weighted Mean | 121 |
| | | Grouped Data | 122 |
| | | Exercises | 124 |
| | Summary | 126 |
| | Glossary | 127 |
| | Key Formulas | 128 |
| | Supplementary Exercises | 129 |
| Case Problem 1 | Consolidated Foods, Inc. | 132 |
| Case Problem 2 | National Health Care Association | 133 |
| Case Problem 3 | Business Schools of Asia-Pacific | 134 |
Chapter 4 | Introduction to Probability | 137 |
| | Statistics in Practice: Morton International | 138 |
| 4.1 | Experiments, Counting Rules, and Assigning Probabilities | 139 |
| | | Counting Rules, Combinations, and Permutations | 140 |
| | | Assigning Probabilities | 144 |
| | | Probabilities for the KP&L Project | 146 |
| | | Exercises | 148 |
| 4.2 | Events and Their Probabilities | 149 |
| | | Exercises | 151 |
| 4.3 | Some Basic Relationships of Probability | 153 |
| | | Complement of an Event | 153 |
| | | Addition Law | 154 |
| | | Exercises | 157 |
| 4.4 | Conditional Probability | 158 |
| | | Independent Events | 162 |
| | | Multiplication Law | 162 |
| | | Exercises | 164 |
| 4.5 | Bayes' Theorem | 166 |
| | | Tabular Approach | 170 |
| | | Using Excel to Compute Posterior Probabilities | 170 |
| | | Exercises | 171 |
| | Summary | 173 |
| | Glossary | 173 |
| | Key Formulas | 174 |
| | Supplementary Exercises | 175 |
| | Case Problem: Hamilton County Judges | 179 |
Chapter 5 | Discrete Probability Distributions | 181 |
| | Statistics in Practice: Citibank | 182 |
| 5.1 | Random Variables | 183 |
| | | Discrete Random Variables | 183 |
| | | Continuous Random Variables | 183 |
| | | Exercises | 185 |
| 5.2 | Discrete Probability Distributions | 186 |
| | | Exercises | 188 |
| 5.3 | Expected Value and Variance | 191 |
| | | Expected Value | 191 |
| | | Variance | 191 |
| | | Using Excel to Compute the Expected Value, Variance, and Standard Deviation | 192 |
| | | Exercises | 193 |
| 5.4 | Binomial Probability Distribution | 196 |
| | | A Binomial Experiment | 197 |
| | | Martin Clothing Store Problem | 198 |
| | | Using Excel to Compute Binomial Probabilities | 202 |
| | | Expected Value and Variance for the Binomial Probability Distribution | 204 |
| | | Exercises | 205 |
| 5.5 | Poisson Probability Distribution | 207 |
| | | An Example Involving Time Intervals | 208 |
| | | An Example Involving Length or Distance Intervals | 208 |
| | | Using Excel to Compute Poisson Probabilities | 209 |
| | | Exercises | 211 |
| 5.6 | Hypergeometric Probability Distribution | 212 |
| | | Using Excel to Compute Hypergeometric Probabilities | 214 |
| | | Exercises | 214 |
| | Summary | 215 |
| | Glossary | 216 |
| | Key Formulas | 216 |
| | Supplementary Exercises | 217 |
Chapter 6 | Continuous Probability Distributions | 220 |
| | Statistics in Practice: Procter & Gamble | 221 |
| 6.1 | Uniform Probability Distribution | 222 |
| | | Area as a Measure of Probability | 223 |
| | | Exercises | 225 |
| 6.2 | Normal Probability Distribution | 226 |
| | | Normal Curve | 227 |
| | | Standard Normal Probability Distribution | 229 |
| | | Computing Probabilities for Any Normal Probability Distribution | 234 |
| | | Grear Tire Company Problem | 235 |
| | | Using Excel to Compute Normal Probabilities | 237 |
| | | Exercises | 240 |
| 6.3 | Exponential Probability Distribution | 242 |
| | | Computing Probabilities for the Exponential Distribution | 243 |
| | | Relationship between the Poisson and Exponential Distributions | 244 |
| | | Using Excel to Compute the Exponential Probabilities | 245 |
| | | Exercises | 246 |
| | Summary | 247 |
| | Glossary | 247 |
| | Key Formulas | 248 |
| | Supplementary Exercises | 248 |
Chapter 7 | Sampling and Sampling Distributions | 251 |
| | Statistics in Practice: Mead Corporation | 252 |
| 7.1 | The Electronics Associates Sampling Problem | 253 |
| 7.2 | Simple Random Sampling | 254 |
| | | Sampling from Finite Populations | 254 |
| | | Using Excel to Select a Simple Random Sample | 256 |
| | | Sampling from Infinite Populations | 258 |
| | | Exercises | 259 |
| 7.3 | Point Estimation | 261 |
| | | Exercises | 263 |
| 7.4 | Introduction to Sampling Distributions | 264 |
| 7.5 | Sampling Distribution of x | 267 |
| | | Expected Value of x | 268 |
| | | Standard Deviation of x | 268 |
| | | Central Limit Theorem | 270 |
| | | Sampling Distribution of x for the EAI Problem | 272 |
| | | Practical Value of the Sampling Distribution of x | 272 |
| | | Relationship between the Sample Size and the Sampling Distribution of x | 274 |
| | | Exercises | 276 |
| 7.6 | Sampling Distribution of p | 278 |
| | | Expected Value of p | 278 |
| | | Standard Deviation of p | 278 |
| | | Form of the Sampling Distribution of p | 279 |
| | | Practical Value of the Sampling Distribution of p | 280 |
| | | Exercises | 281 |
| 7.7 | Other Sampling Methods | 283 |
| | | Stratified Random Sampling | 283 |
| | | Cluster Sampling | 284 |
| | | Systematic Sampling | 284 |
| | | Convenience Sampling | 285 |
| | | Judgment Sampling | 285 |
| | Summary | 286 |
| | Glossary | 286 |
| | Key Formulas | 287 |
| | Supplementary Exercises | 288 |
Chapter 8 | Interval Estimation | 290 |
| | Statistics in Practice: Dollar General Corporation | 291 |
| 8.1 | Interval Estimation of a Population Mean: Large-Sample Case | 292 |
| | | CJW Problem | 292 |
| | | Sampling Error | 293 |
| | | Constructing an Interval Estimate | 294 |
| | | Interpreting an Interval Estimate | 294 |
| | | The General Procedure | 296 |
| | | Constructing an Interval Estimate: Large-Sample Case with [sigma] Unknown | 297 |
| | | Using Excel to Construct a Confidence Interval: [sigma] Unknown | 298 |
| | | Exercises | 300 |
| 8.2 | Interval Estimation of a Population Mean: Small-Sample Case | 301 |
| | | Using Excel to Construct a Confidence Interval: [sigma] Unknown | 305 |
| | | Exercises | 308 |
| 8.3 | Determining the Sample Size | 309 |
| | | Exercises | 311 |
| 8.4 | Interval Estimation of a Population Proportion | 312 |
| | | Using Excel to Construct a Confidence Interval | 313 |
| | | Determining the Sample Size | 314 |
| | | Exercises | 316 |
| | Summary | 318 |
| | Glossary | 319 |
| | Key Formulas | 320 |
| | Supplementary Exercises | 320 |
| Case Problem 1 | Bock Investment Services | 323 |
| Case Problem 2 | Metropolitan Research, Inc. | 323 |
Chapter 9 | Hypothesis Testing | 326 |
| | Statistics in Practice: Harris Corporation | 327 |
| 9.1 | Developing Null and Alternative Hypotheses | 328 |
| | | Testing Research Hypotheses | 328 |
| | | Testing the Validity of a Claim | 328 |
| | | Testing in Decision-Making Situations | 329 |
| | | Summary of Forms for Null and Alternative Hypotheses | 329 |
| | | Exercises | 330 |
| 9.2 | Type I and Type II Errors | 330 |
| | | Exercises | 332 |
| 9.3 | One-Tailed Tests about a Population Mean: Large-Sample Case | 333 |
| | | Use of p-Values | 337 |
| | | Steps of Hypothesis Testing | 338 |
| | | One-Tailed Tests: Large-Sample Case with [sigma] Unknown | 338 |
| | | Using Excel to Conduct a One-Tailed Hypothesis Test | 340 |
| | | Summary: One-Tailed Test about a Population Mean | 342 |
| | | Exercises | 343 |
| 9.4 | Two-Tailed Tests about a Population Mean: Large-Sample Case | 345 |
| | | p-Values for Two-Tailed Tests | 347 |
| | | Using Excel to Conduct a Two-Tailed Hypothesis Test | 348 |
| | | Summary: Two-Tailed Tests about a Population Mean | 349 |
| | | Relationship between Interval Estimation and Hypothesis Testing | 350 |
| | | Exercises | 352 |
| 9.5 | Tests about a Population Mean: Small-Sample Case | 354 |
| | | p-Values and the t Distribution | 355 |
| | | Using Excel to Conduct a One-Tailed Hypothesis Test: Small-Sample Case | 356 |
| | | A Two-Tailed Test | 358 |
| | | Using Excel to Conduct a Two-Tailed Hypothesis Test: Small-Sample Case | 359 |
| | | Exercises | 360 |
| 9.6 | Tests about a Population Proportion | 362 |
| | | Using Excel to Conduct Hypothesis Tests about a Population Proportion | 365 |
| | | Exercises | 367 |
| | Summary | 369 |
| | Glossary | 371 |
| | Key Formulas | 371 |
| | Supplementary Exercises | 371 |
| Case Problem 1 | Unemployment Study | 373 |
| Case Problem 2 | Quality Associates, Inc. | 373 |
Chapter 10 | Comparisons Involving Means | 375 |
| | Statistics in Practice: Fisons Corporation | 376 |
| 10.1 | Estimation of the Difference between the Means of Two Populations: Independent Samples | 377 |
| | | Sampling Distribution of x[subscript 1]--x[subscript 2] | 379 |
| | | Large-Sample Case | 379 |
| | | Using Excel: Large-Sample Case | 381 |
| | | Small-Sample Case | 382 |
| | | Using Excel: Small-Sample Case | 385 |
| | | Exercises | 387 |
| 10.2 | Hypothesis Tests about the Difference between the Means of Two Populations: Independent Samples | 390 |
| | | Large-Sample Case | 390 |
| | | Using Excel: Large-Sample Case | 392 |
| | | Small-Sample Case | 394 |
| | | Using Excel: Small-Sample Case | 396 |
| | | Exercises | 398 |
| 10.3 | Inferences about the Difference between the Means of Two Populations: Matched Samples | 400 |
| | | Using Excel | 402 |
| | | Exercises | 404 |
| 10.4 | Introduction to Analysis of Variance | 407 |
| | | Assumptions for Analysis of Variance | 409 |
| | | Conceptual Overview | 411 |
| 10.5 | Analysis of Variance: Testing for the Equality of k Population Means | 411 |
| | | Between-Treatments Estimate of Population Variance | 413 |
| | | Within-Treatments Estimate of Population Variance | 413 |
| | | Comparing the Variance Estimates: The F Test | 414 |
| | | ANOVA Table | 415 |
| | | Using Excel to Test for the Equality of k Population Means | 416 |
| | | Exercises | 419 |
| | Summary | 421 |
| | Glossary | 422 |
| | Key Formulas | 422 |
| | Supplementary Exercises | 424 |
| Case Problem 1 | Par, Inc. | 428 |
| Case Problem 2 | Wentworth Medical Center | 428 |
| Case Problem 3 | Compensation for ID Professionals | 429 |
Chapter 11 | Comparisons Involving Proportions | 431 |
| | Statistics in Practice: United Way | 432 |
| 11.1 | Inferences about the Differences between the Proportions of Two Populations | 433 |
| | | Sampling Distribution of p[subscript 1]--p[subscript 2] | 433 |
| | | Interval Estimation of p[subscript 1]--p[subscript 2] | 434 |
| | | Using Excel to Develop an Interval Estimate of p[subscript 1]--p[subscript 2] | 435 |
| | | Hypothesis Tests about p[subscript 1]--p[subscript 2] | 436 |
| | | Using Excel to Conduct a Hypothesis Test about p[subscript 1]--p[subscript 2] | 438 |
| | | Exercises | 439 |
| 11.2 | Hypothesis Test for Proportions of a Multinomial Population | 441 |
| | | Using Excel to Conduct a Goodness of Fit Test | 444 |
| | | Exercises | 446 |
| 11.3 | Test of Independence: Contingency Tables | 448 |
| | | Using Excel to Conduct a Test of Independence | 451 |
| | | Exercises | 453 |
| | Summary | 456 |
| | Glossary | 457 |
| | Key Formulas | 457 |
| | Supplementary Exercises | 458 |
| | Case Problem: Bipartisan Agenda for Change | 461 |
Chapter 12 | Regression Analysis | 463 |
| | Statistics in Practice: Polaroid Corporation | 464 |
| 12.1 | Simple Linear Regression Model | 465 |
| | | Regression Model and the Regression Equation | 465 |
| | | Estimated Regression Equation | 466 |
| 12.2 | Least Squares Method | 467 |
| | | Using Excel to Develop a Scatter Diagram and Compute the Estimated Regression Equation | 472 |
| | | Exercises | 474 |
| 12.3 | Coefficient of Determination | 478 |
| | | Using Excel to Compute the Coefficient of Determination | 482 |
| | | Correlation Coefficient | 482 |
| | | Exercises | 484 |
| 12.4 | Model Assumptions | 487 |
| 12.5 | Testing for Significance | 488 |
| | | An Estimate of [sigma superscript 2] | 489 |
| | | t Test | 489 |
| | | Confidence Interval for [beta subscript 1] | 491 |
| | | F Test | 492 |
| | | Some Cautions about the Interpretation of Significance Tests | 493 |
| | | Exercises | 495 |
| 12.6 | Excel's Regression Tool | 497 |
| | | Using Excel's Regression Tool for the Armand's Pizza Parlors Problem | 497 |
| | | Interpretation of Estimated Regression Equation Output | 498 |
| | | Interpretation of ANOVA Output | 500 |
| | | Interpretation of Regression Statistics Output | 501 |
| | | Exercises | 501 |
| 12.7 | Using the Estimated Regression Equation for Estimation and Prediction | 505 |
| | | Point Estimation | 505 |
| | | Interval Estimation | 505 |
| | | Confidence Interval Estimate of the Mean Value of y | 506 |
| | | Prediction Interval Estimate of an Individual Value of y | 508 |
| | | Using Excel to Develop Confidence and Prediction Interval Estimates | 509 |
| | | Exercises | 512 |
| 12.8 | Residual Analysis: Validating Model Assumptions | 513 |
| | | Residual Plot against x | 514 |
| | | Using Excel's Regression Tool to Construct a Residual Plot | 516 |
| | | Exercises | 518 |
| 12.9 | Multiple Regression | 519 |
| | | An Example: Butler Trucking Company | 520 |
| | | Using Excel's Regression Tool to Develop the Estimated Multiple Regression Equation | 523 |
| | | A Note on Interpretation of Coefficients | 525 |
| | | Testing for Significance | 526 |
| | | Multiple Coefficient of Determination | 527 |
| | | Estimation and Prediction | 527 |
| | | Exercises | 528 |
| | Summary | 531 |
| | Glossary | 532 |
| | Key Formulas | 533 |
| | Supplementary Exercises | 535 |
| Case Problem 1 | Spending and Student Achievement | 541 |
| Case Problem 2 | U.S. Department of Transportation | 543 |
Chapter 13 | Statistical Methods for Quality Control | 544 |
| | Statistics in Practice: Dow Chemical | 545 |
| 13.1 | Statistical Process Control | 546 |
| | | Control Charts | 547 |
| | | x Chart: Process Mean and Standard Deviation Known | 548 |
| | | x Chart: Process Mean and Standard Deviation Unknown | 550 |
| | | R Chart | 553 |
| | | Using Excel to Construct an R Chart and an x Chart | 555 |
| | | p Chart | 558 |
| | | np Chart | 560 |
| | | Interpretation of Control Charts | 561 |
| | | Exercises | 562 |
| 13.2 | Acceptance Sampling | 564 |
| | | KALI, Inc.: An Example of Acceptance Sampling | 565 |
| | | Computing the Probability of Accepting a Lot | 566 |
| | | Selecting an Acceptance Sampling Plan | 567 |
| | | Multiple Sampling Plans | 570 |
| | | Exercises | 571 |
| | Summary | 572 |
| | Glossary | 572 |
| | Key Formulas | 573 |
| | Supplementary Exercises | 574 |
Appendix A | References and Bibliography | 2 |
Appendix B | Tables | 3 |
Appendix C | Summation Notation | 13 |
Appendix D | Answers to Even-Numbered Exercises | 15 |
Appendix E | Solutions to Self-Test Exercises | 28 |
Appendix F | Excel Functions and the Function Wizard | 44 |
| Index | 1 |