Business Statistics

Cover
1. Introduction
	1.1 Meaning and Definitions of Statistics
	1.2 The Nature of a Statistical Study
	1.3 Importance of Statistics in Business
	1.4 Limitations of Statistics
	1.5 Misuse of Statistics
	1.6 Subdivisions within Statistics
	Glossary
	Questions
2. Collection of Data
	2.1 Types of Data
	2.2 Secondary Data
	2.3 Primary Data .
	2.4 Editing
	2.5 Coding
	Questions
3. Tabulation of Collected Data
	3.1 Introduction
	3.2 The Data Array
	3.3 The Frequency Table: Discrete Series
	3.4 Formation of a Grouped Frequency Table
	3.5 Relative Frequency and Percentage Distributions
	3.6 Cumulative Frequency Distribution
	3.7 Two-way and Three-way Frequency Distribution
	3.8 Main Parts of a Statistical Table
	3.9 Rules for Tabulation
	Glossary
	Questions
4. Graphic Presentation of Data
	4.1 Introduction
	4.2 Importance of Graphic and Diagrammatic Presentation
	4.3 Limitations of Graphs and Diagrams
	4.4 Guidelines for the Use of Graphs and Diagrams in Presenting Data
	4.5 Which Type of Graph or Diagram to be Used
	4.6 Graphic Devices
	Glossary
	Questions
5. Diagrammatic Presentation of Data
	5.1 Introduction
	5.2 One-dimensional Diagrams
	5.3 Two-dimensional Diagrams
	5.4 Circular or Pie Diagrams
	5.5 Three-dimensional Diagrams
	5.6 Pictograms
	5.7 Cartograms
	5.8 Choice of a Suitable Diagram
	Glossary
	Questions
6. Measures of Central Tendency
	6.1 Introduction
	6.2 The Arithmetic Mean
	6.3 The Median
	6.4 The Mode
	6.5 Comparison of the Mean, Median and Mode
	6.6 The Geometric Mean
	6.7 The Harmonic Mean
	6.8 The Quadratic Mean
	Glossary
	List of Formulae
	Questions
7. Measures of Dispersion
	7.1 Introduction
	7.2 Importance of Dispersion
	7.3 The Range
	7.4 The Interquartile Range or the Quartile Deviation
	7.5 Interfractile Range
	7.6 The Mean Deviation
	7.7 The Standard Deviation
	7.8 Relative Dispersion: The Coefficient of Variation
	7.9 Standardised Variable, Standard Scores
	Glossary
	List of Formulae
	Questions
8. Skewness, Moments and Kurtosis
	8.1 Introduction
	8.2 Skewness
	8.3 Measures of Skewness
	8.4 Moments
	8.5 Kurtosis
	Glossary
	List of Formulae
	Questions
9. Probability
	9.1 Introduction
	9.2 Probability Theory
	9.3 Basic Terminology in Probability
	9.4 Three Types of Probability
	9.5 Probability Axioms
	9.6 Probability under Conditions of Statistical Independence
	9.7 Probability under Conditions of Statistical Dependence
	9.8 Revising Prior Estimates of Probabilities: Bayes' Theorem
	Glossary
	List of Formulae
	Questions
10. Probability Distributions
	10.1 Introduction
	10.2 Random Variables
	10.3 The Binomial Distribution
	10.4 Conditions Necessary for Binomial Distribution
	10.5 Mean and Standard Deviation of Binomial Distribution
	10.6 The Poisson Distribution
	10.7 Calculating Poisson Probabilities
	10.8 Use of Poisson Probabilities' Tables
	10.9 Poisson Distribution as an Approximation of Binomial Distribution
	10.10 The Normal Distribution
	10.11 Characteristics of Normal Probability Distribution
	10.12 Using the Standard Normal Probability Table
	10.13 Normal Approximation to Binomial Distribution
	Glossary
	List of Formulae
	Questions
11. Sampling and Sampling Distributions
	11.1 Introduction
	11.2 Random and Non-random Samples
	11.3 All Possible Random Samples
	11.4 Sampling with and without Replacement
	11.5 Selecting a Simple Random Sample
	11.6 Other Sample Designs
	11.7 Sampling Distribution of a Statistic
	11.8 Sampling Distribution of Mean
	11.9 Sampling and Non-sampling Errors
	11.10 Sampling from Normal Populations
	11.11 Sampling from Non-normal Populations
	11.12 Relationship between Sample Size and Standard Error
	11.13 Sampling Distribution of Sampling Proportion
	Glossary
	List of Formulae
	Questions
12. Estimation
	12.1 Introduction
	12.2 Types of Estimates
	12.3 Criteria of a Good Estimator
	12.4 Method of Maximum Likelihood (ML)
	12.5 Point Estimates
	12.6 Interval Estimates
	12.7 Determining the Sample Size in Estimation
	Glossary
	List of Formulae
	Questions
13. Testing Hypotheses
	13.1 Introduction
	13.2 Procedure in Hypothesis Testing
	13.3 Two Types of Errors in Hypothesis Testing
	13.4 Tails of a Test
	13.5 Hypothesis Test about a Population Mean: Large Samples
	13.6 The Power of Statistical Test
	13.7 Hypothesis Test about a Population Mean: Small Samples
	13.8 Hypothesis Test Concerning Proportion
	13.9 Hypothesis Test Concerning the Differences between two Population Means
	13.10 Hypothesis Tests of Differences between Two Proportions
	13.11 F-test for Differences in Two Variances
	13.12 The P-Value ofa Test
	13.13 Comments on the Theory of Hypothesis Tests
	Glossary
	List of Formulae
	Questions
14. Chi-square Distribution
	14.1 Introduction
	14.2 The Goodness-of-fit Test
	14.3 The Test of Independence
	14.4 Chi-square (X2) as a test of Homogeneity
	14.5 Precautions about Using the Chi-square Test
	GlossalY
	List of Formulae
	Questions
15. Analysis of Variance
	15.1 Introduction
	15.2 Assumptions of Analysis of Variance
	15.3 Notations and Basic Concepts
	15.4 One-way Classification
	15.5 Two-Way Classification
	Glossary
	List of Formulae
	Questions
16. Regression Analysis
	16.1 Introduction
	16.2 Regression Model
	16.3 Estimation Using the Regression Line
	16.4 The Method of Least Squares
	16.5 Alternative Approach
	16.6 Use of Deviations from Means of X and Y
	16.7 Use of Deviations from the Assumed Means
	16.8 Regression in Case of Bivariate Grouped Frequency Distributions
	16.9 Regression Coefficient
	16.10 The Standard En'Of of Estimate
	16.11 Hypothesis Tests about Regression Relationship
	16.12 How Good is the Regression?
	Glossary
	List of Formulae
	Questions
17. Correlation
	17.1 Concept and Importance of Correlation
	17.2 Correlation and Causation
	17.3 Types of Correlation
	17.4 Graphic Method of Correlation
	17.5 Algebraic Methods of Correlation
	17.6 Coefficient of Determination
	17.7 Rank Correlation
	17.8 Some Limitations of Correlation Analysis
	Glossary
	List of Formulae
	Questions
18. Multiple Regression and Correlation Analysis
	18.1 Introduction
	18.2 Multiple Regression
	18.3 The Standard Error of Estimate
	18.4 Testing the Significance of Multiple Regression
	18.5 Partial and Multiple Correlation
	18.6 Multiple Correlation
	18.7 Multicollinearity in Multiple Regression
	18.8 Advantages and Limitations of Multiple Correlation Analysis
	Glossmy
	List of Formulae
	Questions
19. Time Series Analysis and Forecasting
	19.1 Introduction
	19.2 Components of a Time Series
	19.3 The Trend
	19.4 Seasonal Variation
	19.5 Cyclical Variation
	19.6 Irregular Variation
	19.7 Forecasting
	Glossary
	List of Formulae
	Questions
20. Nonparametric Tests
	20.1 Introduction
	20.2 Sign Tests
	20.3 The Two-sample and K-sample Median Tests
	20.4 Wilcoxon Matched-pairs Test (or Signed Rank Test)
	20.5 Rank Sum Tests
	20.6 The One-sample Runs Test
	20.7 Tests of Randomness: Runs Above and Below the Median
	20.8 Kolmogorov-Smirnov One"sample Test
	Glossmy
	List of Formulae
	Questions
21. Index Numbers
	21.1 Introduction
	21.2 Uses ofIndex Numbers
	21.3 Problems in Index Number Construction
	21.4 Types of Price Index Numbers
	21.5 Time Reversal, Factor Reversal and Circular Tests
	21.6 Chain Base Index Numbers
	21.7 Splicing and Shifting the Base ofIndex Numbers
	21.8 Deflating Prices and Incomes
	21.9 Quantity Index Numbers
	21.1 0 Value Index Numbers
	21.11 Caution in Using Index Numbers
	Glossmy
	List of Formulae
	Questions
22. DecisionTheory
	22.1 Introduction
	22.2 Steps in the Decision Theory Approach
	22.3 Types of Environments
	22.4 Decision-Making under Certainty
	22.5 Decision-Making under Uncertainty
	22.6 Decisions under Risk
	22.7 Utility as a Decision Criterion
	22.8 Decision Trees
	22.9 Bayesian Analysis
	Glossary
	List of Formulae
	Questions
23. Quality Control
	23.1 Introduction
	23.2 Statistical Process Control
	23.3 x -Charts: Control Charts for Process Means
	23.4 R-Charts: Control Charts for Process Variability
	23.5. Control Chart for C (Number of Defects per Unit)
	23.6 p-Charts: Control Charts for Attributes
	23.7 Additional Examples
	23.8 Benefits of Statistical Process Control
	23.9 Limitations of Statistical Process Control
	23.10 Total Quality Management
	23.11 Acceptance Sampling
	Glossary
	List of Formulae
	Questions
Statistical Package for Social Sciences (SPSS)
Appendix: Tables
Answers to Chapter-end Questions
Bibliography
Index