Basic Business Statistics: Concepts and Applications, 12th Edition

Cover......Page 1
Title Page......Page 6
Copyright Page......Page 7
About the Authors......Page 9
Contents......Page 14
Preface......Page 24
Acknowledgments......Page 30
1 Introduction......Page 33
USING STATISTICS: @: Good Tunes & More......Page 34
1.2 Statistics in Business......Page 35
1.3 Basic Vocabulary of Statistics......Page 36
1.4 Identifying Type of Variables......Page 38
1.5 Statistical Applications for Desktop Computing......Page 41
1.6 How to Use This Book......Page 42
CHAPTER REVIEW PROBLEMS......Page 44
LEARNING WITH THE DIGITAL CASES......Page 46
REFERENCES......Page 47
CHAPTER 1 EXCEL GUIDE......Page 48
CHAPTER 1 MINITAB GUIDE......Page 53
2 Organizing and Visualizing Data......Page 57
USING STATISTICS: @ Choice Is Yours, Part I......Page 58
2.1 Data Collection......Page 59
ORGANIZING DATA......Page 60
2.2 Organizing Categorical Data......Page 61
2.3 Organizing Numerical Data......Page 64
2.4 Visualizing Categorical Data......Page 72
2.5 Visualizing Numerical Data......Page 80
2.6 Visualizing Two Numerical Variables......Page 87
2.7 Organizing Multidimensional Data......Page 91
2.8 Misuses and Common Errors in Visualizing Data......Page 94
USING STATISTICS: @ Choice Is Yours, Part I Revisited......Page 97
KEY EQUATIONS......Page 98
CHAPTER REVIEW PROBLEMS......Page 99
MANAGING ASHLAND MULTICOMM SERVICES......Page 105
REFERENCES......Page 106
CHAPTER 2 EXCEL GUIDE......Page 107
CHAPTER 2 MINITAB GUIDE......Page 118
3 Numerical Descriptive Measures......Page 125
USING STATISTICS: @ Choice Is Yours, Part II......Page 126
3.1 Central Tendency......Page 127
3.2 Variation and Shape......Page 132
VISUAL EXPLORATIONS: Exploring Descriptive Statistics......Page 141
3.3 Exploring Numerical Data......Page 144
3.4 Numerical Descriptive Measures for a Population......Page 151
3.5 The Covariance and the Coefficient of Correlation......Page 156
USING STATISTICS: @ Choice Is Yours, Part II Revisited......Page 162
KEY EQUATIONS......Page 163
CHAPTER REVIEW PROBLEMS......Page 164
REFERENCES......Page 169
CHAPTER 3 EXCEL GUIDE......Page 170
CHAPTER 3 MINITAB GUIDE......Page 172
4 Basic Probability......Page 175
USING STATISTICS: @ M&R Electronics World......Page 176
4.1 Basic Probability Concepts......Page 177
4.2 Conditional Probability......Page 186
4.3 Bayes’ Theorem......Page 194
THINK ABOUT THIS: Divine Providence and Spam......Page 197
4.4 Counting Rules......Page 198
4.5 Ethical Issues and Probability......Page 202
KEY EQUATIONS......Page 203
CHAPTER REVIEW PROBLEMS......Page 204
DIGITAL CASE......Page 206
REFERENCES......Page 207
CHAPTER 4 EXCEL GUIDE......Page 208
CHAPTER 4 MINITAB GUIDE......Page 209
5 Discrete Probability Distributions......Page 211
USING STATISTICS: @ Saxon Home Improvement......Page 212
5.1 The Probability Distribution for a Discrete Random Variable......Page 213
5.2 Covariance and Its Application in Finance......Page 216
5.3 Binomial Distribution......Page 221
5.4 Poisson Distribution......Page 228
5.5 Hypergeometric Distribution......Page 232
5.6 Online Topic: Using the Poisson Distribution to Approximate the Binomial Distribution......Page 235
KEY EQUATIONS......Page 236
CHAPTER REVIEW PROBLEMS......Page 237
MANAGING ASHLAND MULTICOMM SERVICES......Page 240
REFERENCES......Page 241
CHAPTER 5 EXCEL GUIDE......Page 242
CHAPTER 5 MINITAB GUIDE......Page 245
6 The Normal Distribution and Other Continuous Distributions......Page 247
USING STATISTICS: @ OurCampus!......Page 248
6.2 The Normal Distribution......Page 249
THINK ABOUT THIS: What Is Normal?......Page 259
VISUAL EXPLORATIONS: Exploring the Normal Distribution......Page 260
6.3 Evaluating Normality......Page 261
6.4 The Uniform Distribution......Page 266
6.5 The Exponential Distribution......Page 268
SUMMARY......Page 271
CHAPTER REVIEW PROBLEMS......Page 272
REFERENCES......Page 275
CHAPTER 6 EXCEL GUIDE......Page 276
CHAPTER 6 MINITAB GUIDE......Page 277
7 Sampling and Sampling Distributions......Page 279
USING STATISTICS: @ Oxford Cereals......Page 280
7.1 Types of Sampling Methods......Page 281
7.2 Evaluating Survey Worthiness......Page 286
THINK ABOUT THIS: New Media Surveys/Old Sampling Problem......Page 287
7.4 Sampling Distribution of the Mean......Page 289
VISUAL EXPLORATIONS: Exploring Sampling Distributions......Page 296
7.5 Sampling Distribution of the Proportion......Page 297
7.6 Online Topic: Sampling from Finite Populations......Page 300
KEY EQUATIONS......Page 301
CHAPTER REVIEW PROBLEMS......Page 302
DIGITAL CASE......Page 304
REFERENCES......Page 305
CHAPTER 7 EXCEL GUIDE......Page 306
CHAPTER 7 MINITAB GUIDE......Page 307
8 Confidence Interval Estimation......Page 309
USING STATISTICS: @ Saxon Home Improvement......Page 310
8.1 Confidence Interval Estimate for the Mean (σ Known)......Page 311
8.2 Confidence Interval Estimate for the Mean (σ Unknown)\n......Page 317
8.3 Confidence Interval Estimate for the Proportion......Page 325
8.4 Determining Sample Size......Page 328
8.5 Applications of Confidence Interval Estimation in Auditing......Page 334
8.6 Confidence Interval Estimation and Ethical Issues......Page 341
SUMMARY......Page 342
KEY EQUATIONS......Page 343
CHAPTER REVIEW PROBLEMS......Page 344
MANAGING ASHLAND MULTICOMM SERVICES......Page 348
REFERENCES......Page 349
CHAPTER 8 EXCEL GUIDE......Page 350
CHAPTER 8 MINITAB GUIDE......Page 353
9 Fundamentals of Hypothesis Testing: One-Sample Tests......Page 355
USING STATISTICS: @ Oxford Cereals, Part II......Page 356
9.1 Fundamentals of Hypothesis-Testing Methodology......Page 357
9.2 t Test of Hypothesis for the Mean (σ Unknown)\n......Page 369
9.3 One-Tail Tests......Page 375
9.4 Z Test of Hypothesis for the Proportion......Page 380
9.5 Potential Hypothesis-Testing Pitfalls and Ethical Issues......Page 384
USING STATISTICS: @ Oxford Cereals, Part II Revisited......Page 385
CHAPTER REVIEW PROBLEMS......Page 386
REFERENCES......Page 389
CHAPTER 9 EXCEL GUIDE......Page 390
CHAPTER 9 MINITAB GUIDE......Page 393
10 Two-Sample Tests......Page 395
USING STATISTICS: @ BLK Beverages......Page 396
10.1 Comparing the Means of Two Independent Populations......Page 397
THINK ABOUT THIS: “This Call May Be Monitored ... ”......Page 405
10.2 Comparing the Means of Two Related Populations......Page 408
10.3 Comparing the Proportions of Two Independent Populations......Page 416
10.4 F Test for the Ratio of Two Variances......Page 423
USING STATISTICS: @ BLK Beverages Revisited......Page 428
SUMMARY......Page 429
KEY EQUATIONS......Page 430
CHAPTER REVIEW PROBLEMS......Page 431
MANAGING ASHLAND MULTICOMM SERVICES......Page 435
REFERENCES......Page 436
CHAPTER 10 EXCEL GUIDE......Page 437
CHAPTER 10 MINITAB GUIDE......Page 442
11 Analysis of Variance......Page 445
USING STATISTICS: @ Perfect Parachutes......Page 446
11.1 The Completely Randomized Design: One-Way Analysis of Variance......Page 447
11.2 The Randomized Block Design......Page 461
11.3 The Factorial Design: Two-Way Analysis of Variance......Page 469
KEY EQUATIONS......Page 482
CHAPTER REVIEW PROBLEMS......Page 484
MANAGING ASHLAND MULTICOMM SERVICES......Page 488
REFERENCES......Page 489
CHAPTER 11 EXCEL GUIDE......Page 490
CHAPTER 11 MINITAB GUIDE......Page 495
12 Chi-Square Tests and Nonparametric Tests......Page 497
USING STATISTICS: @ T.C. Resort Properties......Page 498
12.1 Chi-Square Test for the Difference Between Two Proportions......Page 499
12.2 Chi-Square Test for Differences Among More Than Two Proportions......Page 506
12.3 Chi-Square Test of Independence......Page 512
12.4 McNemar Test for the Difference Between Two Proportions (Related Samples)......Page 518
12.5 Chi-Square Test for the Variance or Standard Deviation......Page 521
12.6 Wilcoxon Rank Sum Test: Nonparametric Analysis for Two Independent Populations......Page 525
12.7 Kruskal-Wallis Rank Test: Nonparametric Analysis for the One-Way ANOVA......Page 531
12.8 Online Topic: Wilcoxon Signed Ranks test: Nonparametric Analysis for Two Related Populations......Page 536
SUMMARY......Page 537
KEY EQUATIONS......Page 538
CHAPTER REVIEW PROBLEMS......Page 539
MANAGING ASHLAND MULTICOMM SERVICES......Page 542
DIGITAL CASE......Page 543
REFERENCES......Page 544
CHAPTER 12 EXCEL GUIDE......Page 545
CHAPTER 12 MINITAB GUIDE......Page 549
13 Simple Linear Regression......Page 551
USING STATISTICS: @ Sunflowers Apparel......Page 552
13.1 Types of Regression Models......Page 553
13.2 Determining the Simple Linear Regression Equation......Page 555
VISUAL EXPLORATIONS: Exploring Simple Linear Regression Coefficients......Page 561
13.3 Measures of Variation......Page 564
13.4 Assumptions......Page 569
13.5 Residual Analysis......Page 570
13.6 Measuring Autocorrelation: The Durbin-Watson Statistic......Page 574
13.7 Inferences About the Slope and Correlation Coefficient......Page 578
13.8 Estimation of Mean Values and Prediction of Individual Values......Page 585
13.9 Pitfalls in Regression......Page 589
USING STATISTICS: @ Sunflowers Apparel Revisited......Page 592
SUMMARY......Page 593
KEY EQUATIONS......Page 594
CHAPTER REVIEW PROBLEMS......Page 595
DIGITAL CASE......Page 600
REFERENCES......Page 601
CHAPTER 13 EXCEL GUIDE......Page 602
CHAPTER 13 MINITAB GUIDE......Page 605
14 Introduction to Multiple Regression......Page 607
USING STATISTICS: @ OmniFoods......Page 608
14.1 Developing a Multiple Regression Model......Page 609
14.2 r², Adjusted r², and the Overall F Test\n......Page 615
14.3 Residual Analysis for the Multiple Regression Model......Page 619
14.4 Inferences Concerning the Population Regression Coefficients......Page 621
14.5 Testing Portions of the Multiple Regression Model......Page 624
14.6 Using Dummy Variables and Interaction Terms Regression Models......Page 630
14.7 Logistic Regression......Page 640
SUMMARY......Page 645
KEY EQUATIONS......Page 647
CHAPTER REVIEW PROBLEMS......Page 648
DIGITAL CASE......Page 651
REFERENCES......Page 652
CHAPTER 14 EXCEL GUIDE......Page 653
CHAPTER 14 MINITAB GUIDE......Page 656
15 Multiple Regression Model Building......Page 659
USING STATISTICS: @ WHIT-DT......Page 660
15.1 The Quadratic Regression Model......Page 661
15.2 Using Transformations in Regression Models......Page 669
15.3 Collinearity......Page 673
15.4 Model Building......Page 675
15.5 Pitfalls in Multiple Regression and Ethical Issues......Page 684
USING STATISTICS: @ WHIT-DT Revisited......Page 685
SUMMARY......Page 686
CHAPTER REVIEW PROBLEMS......Page 687
THE MOUNTAIN STATES POTATO COMPANY......Page 689
REFERENCES......Page 690
CHAPTER 15 EXCEL GUIDE......Page 691
CHAPTER 15 MINITAB GUIDE......Page 692
16 Time-Series Forecasting......Page 695
USING STATISTICS: @ The Principled......Page 696
16.2 Component Factors of Time-Series Models......Page 697
16.3 Smoothing an Annual Time Series......Page 698
16.4 Least-Squares Trend Fitting and Forecasting......Page 704
16.5 Autoregressive Modeling for Trend Fitting and Forecasting......Page 715
16.6 Choosing an Appropriate Forecasting Model......Page 723
16.7 Time-Series Forecasting of Seasonal Data......Page 727
USING STATISTICS: @ The Principled Revisited......Page 734
KEY EQUATIONS......Page 735
KEY TERMS......Page 736
CHAPTER REVIEW PROBLEMS......Page 737
MANAGING ASHLAND MULTICOMM SERVICES......Page 738
REFERENCES......Page 739
CHAPTER 16 EXCEL GUIDE......Page 740
CHAPTER 16 MINITAB GUIDE......Page 744
17 Statistical Applications in Quality Management......Page 747
USING STATISTICS: @ Beachcomber Hotel......Page 748
17.1 The Theory of Control Charts......Page 749
17.2 Control Chart for the Proportion: The p Chart......Page 751
17.3 The Red Bead Experiment: Understanding Process Variability......Page 757
17.4 Control Chart for an Area of Opportunity: The c Chart......Page 759
17.5 Control Charts for the Range and the Mean......Page 763
17.6 Process Capability......Page 768
17.7 Total Quality Management......Page 773
17.8 Six Sigma......Page 775
USING STATISTICS: @ Beachcomber Hotel Revisited......Page 777
KEY EQUATIONS......Page 778
CHAPTER REVIEW PROBLEMS......Page 779
THE HARNSWELL SEWING MACHINE COMPANY CASE......Page 782
MANAGING ASHLAND MULTICOMM SERVICES......Page 784
REFERENCES......Page 785
CHAPTER 17 EXCEL GUIDE......Page 786
CHAPTER 17 MINITAB GUIDE......Page 790
18 A Roadmap for Analyzing Data......Page 793
USING STATISTICS: @ YourBusiness......Page 794
18.1 Analyzing Numerical Variables......Page 796
18.2 Analyzing Categorical Variables......Page 798
CHAPTER REVIEW PROBLEMS......Page 800
Appendices......Page 804
A.2 Rules for Algebra: Exponents and Square Roots......Page 805
A.3 Rules for Logarithms......Page 806
A.4 Summation Notation......Page 807
A.6 Greek Alphabet......Page 810
B.1 Objects in a Window......Page 811
B.3 Dialog Box Interactions......Page 812
B.4 Unique Features......Page 814
C.4 Details of Downloadable Files......Page 815
D.2 Concise Instructions for Installing PHStat2......Page 823
D.3 Configuring Excel for PHStat2 Usage......Page 824
D.5 Checking for the Presence of the Analysis ToolPak......Page 826
E.1 Table of Random Numbers......Page 827
E.2 The Cumulative Standardized Normal Distribution......Page 829
E.3 Critical Values of t......Page 831
E.4 Critical Values of x²......Page 833
E.5 Critical values of F......Page 834
E.6 Lower and Upper Critical Values, T[sub(1)], of Wilcoxon Rank Sum Test......Page 838
E.7 Critical Values of the Studentized Range, Q......Page 839
E.8 Critical Values d[sub(L)] and d[sub(u)] of the Durbin-Watson Statistic, D......Page 841
E.9 Control Chart Factors......Page 842
E.10 The Standardized Normal Distribution......Page 843
F.1 Enhancing Workbook Presentation......Page 844
F.2 Useful Keyboard Shortcuts......Page 845
F.4 Chart Formatting......Page 846
F.6 Pasting with Paste Special......Page 847
G.2 Excel FAQs......Page 849
G.3 FAQs for Minitab......Page 850
Self-Test Solutions and Answers to Selected Even-Numbered Problems......Page 851
C......Page 881
D......Page 882
L......Page 883
M......Page 884
P......Page 886
R......Page 887
S......Page 888
V......Page 889
Z......Page 890