Business Statistics: An Applied Orientation

Cover
About the Author
Foreword
Preface
Contents
Chapter 1: An Overview of Statistics
	Learning Objectives
	Introduction
	Chapter Outline
	1.1 Why Should I Study Statistics?
	1.2 What is Statistics?
	1.3 Some Typical Application Areas
		Quality Management
		Finance
		Materials Management
		Marketing
	1.4 Types of Statistics
		Example for Descriptive Statistics
		Example for Inferential Statistics
	1.5 Some Key Terms and Definitions
		Population (Universe)
		Sample
		Variable
		Parameter
		Statistic
	1.6 Types of Data
	1.7 Data Measurement Scales
	1.8 Sources of Data
	1.9 Step-by-Step Approach to Statistical Investigation
		1. Problem Identification
		2. Objectives of the Study
		3. Type of Study
		4. Sampling Plan
		5. Data Collection
		6. Data Analysis and Interpretations
		7 Findings of the Study
	1.10 Chapter Summary
	Glossary
	Review Questions
	Case Study-Savvy Fast Food
	Questions
	Answers to Review Questions
Chapter 2: Classifying Data to Convey Meaning
	Learning Objectives
	Introduction
	Chapter Outline
	2.1 Meaning and Examples of Raw Data
	2.2 Frequency Distribution
		Guidelines for Constructing a Frequency Distribution Table
		Construction of a Frequency Distribution - An Example
	2.3 Histogram
		Uses of Histogram
		Computer and Histogram
		Some Fine Tuning
		Some Fine Tuning
	2.4 Cumulative Frequency Distribution and Ogive Curve
	2.5 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
		1. Case Study -Waiting Time in ATM Counters
		2. Case Study-Shaft Diameter
		3. For problems 1) and 2), construct the cumulative distribution curves and give your comments
		4. Case Study-Electricity Charges
		5. Case Study- Money Spent On Fast Food
Chapter 3: Measures of Central Tendency and Dispersion
	Learning Objectives
	Introduction
	Chapter Outline
	3.1 Measures of Central Tendency
		What is Central Tendency?
		Measures of Central Tendency
		Arithmetic Mean
		Solution for Mean
		Comparative Picture of Mean, Median, Mode
	3.2 Measures of Dispersion (Variation)
		Measures of Dispersion (Spread)
	3.3 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
Chapter 4: Probability—A Conceptual Framework
	Learning Objectives
	Introduction
	Chapter Outline
	4.1 Meaning and Concepts of Probability
		An Example
		Progressive Test Question
	4.2 Types of Probability
		Relative Frequency Probability
		Subjective Probability
	4.3 Mutually Exclusive Events
	4.4 Independent Events
	4.5 Rules for Calculating Probability
		Example Problem for Addition Rule
		Solution to the Problem
	4.6 Use of Probability Tree
		Probability Tree-Example Problem
		Comprehensive Example
	4.7 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
Chapter 5: Probability Distributions
	Learning Objectives
	Introduction
	Chapter Outline
	5.1 What is a Probability Distribution?
		Another Example for a Probability Distribution
	5.2 The Binomial Distribution
		Example for Mean and Standard Deviation
		Example from Quality Control Function
		Questions
		Solution
	5.3 The Poisson Distribution
		Application in Airlines
	5.4 The Normal Distribution
		Example Problem for the Normal Distribution
		Critical Thinking Skills
		The Normal Approximation to the Binomial Distribution
	5.5 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
		1. Case Study: Business Statistics Course
		2. Case Study: Automobile Components
		3. Case Study: Credit Cards
		4. Case Study: Motorcar Accidents
Chaptert 6: Basics of Sampling and Sampling Distribution
	Learning Objectives
	Introduction
	Chapter Outline
	6.1 What is Sampling and Why Do You Need Sampling?
		Why do you need Sampling?
	6.2 Types of Sampling
		Probability Sampling (Random Sampling)
	6.3 Sampling Distribution -A Conceptual Pramework
		Sampling Distribution -Definition
	6.4 The Concept of Standard Error
	6.5 Sampling Distribution of the Mean from Normal population
	6.6 Sampling Distribution of the Mean - Non-Normal Population
		Diagram depicting the Central Limit Theorem
	6.7 Chapter Summary
	Glossary
	Review Questions
	Mini Case
	Answers to Review Questions
	Practice Problems
		1. Case Study - Tire Life
		2. Case Study - Book Exposure on Students
	Questions
		4. Case Study- Fallacy in Sampling
	Questions
Chapter 7: Estimation
	Learning Objectives
	Introduction
	Chapter Outline
	7.1 Point Estimation
		Point Estimation - Population Mean
		Point Estimation-Population Proportion
	7.2 Interval Estimation
	7.3 Confidence Interval for Population Mean and Proportion-
Large Sample
	7.4 Confidence Interval for Population Mean - Small Sample (‘t’-Distribution)
		Characteristics of the t Distribution
		Confidence Interval for Mean using t Distribution
	7.5 How to Determine Sample Size Using Confidence Interval
		Sample Size Determination - Population Mean
		Sample Size Determination - Population Proportion
	7.6 Chapter Summary
	Glossar
	Review Questions
	Answers to Review Questions
	Practice Problems
Chapter 8: Hypothesis Testing
	Learning Objectives
	Introduction
	Chapter Outline
	8.1 Statistical Hypothesis-A Conceptual Framework
		What is a Statistical Hypothesis?
		The Type I and Type II Errors
	8.2 Hypothesis Testing -Univariate Case (One Sample
		Hypothesis Testing - Population Mean (Single Mean)
		P-Value
	8.3 Hypothesis Testing -Bivariate Case (Two Sample
		Hypothesis Testing - Two Population Means
	8.4 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
		1. Case Study- New Product Introduction
		2. Case Study -Test of Analytical Ability
		3. Case Study - Readymade Garment
		4. Case Study - Sales Incentive Scheme
Chapter 9: Chi-Square Test and Analysis of Variance (ANOVA)
	Learning Objectives
	Introduction
	Chapter Outline
	9.1 Chi-Square (x2) Analysis-Basics
	9.2 Chi-Square Test-Goodness of Fit
	9.3 Chi-Square Test of Independence
	9.4 ANOVA-Basics
	9.5 ANOVA-One-Way Classification
		How One-Way Classification Works in Practice?
		Meaning of the formulas
	9.6 ANOVA-Two -Way Classification
		Interpretation of the Results
	9.7 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
		2. Case Study- Ointment to Treat Fungus Problem on Human Skin
		3. Case Study-Do Color and Size of Package Design Boost the Sales?
		4. Case Study-Comparison of Life of Different Brands of Tire
Chapter 10: Correlation and Regression
	Learning Objective
	Introduction
	Chapter Outline
	10.1 What is Correlation?
	10.2 Insights into Correlation
		Properties of Correlation Coefficient
	10.3 Basics of Regression
		Need for Regression
	10.4 Regression Model
		Historical Perspective
		How does Simple Linear Regression work in practice?
		The concept of Coefficient of Determination for Statistical Validity
		Regression with Pleasure from Microsoft Excel
		Explanation on the Output
		Item of interest on the ANOVA output
		Multiple Linear Regression Model
	10.5 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
		2. Case Study-Monthly Sales Forecast
		3. Case Study- Fuel Consumption for Car
	Question
		4. Case Study- Are Sales influenced by Sales Promotion and Advertising?
Chapter 11: Decision Analysis
	Learning Objectives
	Introduction
	Chapter Outline
	11.1 Steps in Systematic Problem Solving
		Case Study-Product Mix Decision
		Steps in Systematic Problem Solving Explained for the Case
		Define and Analyze the Problem
		Determine a Set of Alternative Solutions
		Establish Criteria for Evaluating the Alternatives
		Evaluate the Alternatives
		Choose the Best Alternative
		Implement the Best Alternative
		Evaluate the Results and Check that things are working all right
	11.2 How to Structure a Decision Problem
		Pay off Matrix for the Example:
	11.3 Expected Monetary Value (EMV
		Expected Value of Perfect Information (EVPI)
		Opportunity Loss Table
	11.4 Decision Tree
		Decision Tree - A comprehensive case problem
		Case Study-Product Mix to Maximize Expected Contribution
		Question
	11.5 Value of Sample Information
	11.6 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
	Questions
	Questions
		3. Case Study- Launch or not to Launch
	Questions
Chapter 12: Forecasting
	Learning Objectives
	Introduction
	Chapter Outline
	12.1 Forecasting-Basics
		Forecasting Methods in Practice
	12.2 Qualitative Methods of Forecasting
		Methods Used in Qualitative Forecasting
	12.3 Quantitative Methods of Forecasting
		Time Series Analysis
		Moving Average
		Moving Average using Microsoft Excel
		Exponential Smoothing
		New Forecast = (0.3)(50) + (1-0.3)(55) = 53.5.
		Spreadsheet Showing Basic Calculations
		Smooth Exponential Smoothing Using Microsoft
		Trend Projection
		Forecasting Using Multiple Regression Model
		Case Example-Sales Forecasting
		A Brief Note on Accuracy of Forecast
	12.4 Chapter Summary
	Glossary
	Review Questions
	Answers to Review Questions
	Practice Problems
		1. Case Study-Demand Forecasting
			Questions
		2. Case Study - Sales Forecast Using Time Series
			Questions
		3. Case Study-Commercial Vehicle Sales
			Questions
		4. Case Study- Sales Projection Using Past Data
			Questions
References
Appendix A: Test Your Know ledge on Business Statistics
Appendix B: Binomial Probability Table
Appendix C: Poisson Probability Table
Appendix D: Normal Distribution Table
Appendix E: t Distribution Table
Appendix F: Chi-Square Distribution Table
Appendix G: F Distribution Table