Fundamentals of Business Statistics

Cover
Fundamentals of Business Statistics
	Copyright
Content
Preface
About the Author
Statistics: An Overview
	Reasons for Learning Statistics
	Growth and Development of Statistics
	Statistics Defined
	Types of Statistical Methods
	Importance and Scope of Statistics
		Statistics and the State
		Statistics in Economics
		Statistics in Business Management
		Statistics in Physical Sciences
		Statistics in Social Sciences
		Statistics in Medical Sciences
		Statistics and Computers
	Limitations of Statistics
		Statistics Does Not Study Qualitative Phenomena
		Statistics Does Not Study Individuals
		Statistics Can Be Misused
		Conceptual Questions
	Need for Data
		Types of Data
	Sources of Data
		Primary Data Sources
		Secondary Data Sources
	Chapter Concepts Quiz
	Glossary of Terms
Data Classification, Tabulation and Presentation
	Introduction
	Classification of Data
		Requisites of Ideal Classification
		Basis of Classification
	Organizing Data Using Data Array
		Frequency Distribution
		Methods of Data Classification
		Bivariate Frequency Distribution
		Types of Frequency Distributions
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Tabulation of Data
		Objectives of Tabulation
		Parts of a Table
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Graphical Presentation of Data
		Functions of a Graph
		Advantages and Limitations of Diagrams
		General Rules for Drawing Diagrams
	Types of Diagrams
		One-Dimensional Diagrams
		Two-Dimensional Diagrams
		Three-Dimensional Diagrams
		Pictograms or Ideographs
		Cartograms or Statistical Maps
		Conceptual Questions
		Self-Practice Problems
	Formulae Used
	Chapter Concepts Quiz
	Review Self-Practice Problems
	Glossary of Terms
Measures of Entral Tendency
	Introduction
	Objectives of Averaging
	Requisites of a Measure of Central Tendency
	Measures of Central Tendency
	Mathematical Averages
		Arithmetic Mean of Ungrouped (or Raw) Data
		Arithmetic Mean of Grouped (or Classified) Data
		Some Special Types of Problems and Their Solutions
		Advantages and Disadvantages of Arithmetic Mean
		Weighted Arithmetic Mean
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Geometric Mean
		Combined Geometric Mean
		Weighted Geometric Mean
		Advantages, Disadvantages, and Applications of G.M.
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Harmonic Mean
		Advantages, Disadvantages, and Applications of H.M.
	Relationship among A.M., G.M., and H.M.
		Self-Practice Problems
		Hints and Answers
	Averages of Position
		Median
		Advantages, Disadvantages, and Applications of Median
	Partition Values—Quartiles, Deciles, and Percentiles
		Graphical Method for Calculating Partition Values
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Mode
		Graphical Method for Calculating Mode Value
		Advantages and Disadvantages of Mode Value
	Relationship Between Mean, Median, and Mode
	Comparison Between Measures of Central Tendency
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Formulae Used
	Chapter Concepts Quiz
	Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Measures of Dispersion
	Introduction
	Significance of Measuring Dispersion
		Essential Requisites for a Measure of Variation
	Classification of Measures of Dispersion
	Distance Measures
		Range
		Interquartile Range or Deviation
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Average Deviation Measures
		Mean Absolute Deviation
		Variance and Standard Deviation
		Mathematical Properties of Standard Deviation
		Coefficient of Variation
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Formulae Used
	Chapter Concepts Quizss
	Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Skewness and Kurtosis
	Introduction
	Measures of Skewness
		Relative Measures of Skewness
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Kurtosis
		Measures of Kurtosis
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Formulae Used
	Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Probability and Probability Distributions
	Introduction
	Concepts of Probability
		Random Experiment
		Sample Space
		Event Types
	Definition of Probability
		Classical Approach
		Relative Frequency Approach
		Subjective Approach
		Fundamental Rules of Probability
		Glossary of Probability Terms
	Combinations and Permutations
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Rules of Probability and Algebra of Events
		Rules of Addition
		Rules of Multiplication
		Self-Practice Problems
		Hints and Answers
	Bayes’ Theorem
		Self-Practice Problems
		Hints and Answers
	Probability Distributions
	Expected Value and Variance of a Random Variable
		Properties of Expected Value and Variance
			Conceptual Questions
			Self-Practice Problems
			Hints and Answers
	Discrete Probability Distributions
		Binomial Probability Distribution
			Conceptual Questions
			Self-Practice Problems
			Hints and Answers
		Poisson Probability Distribution
			Conceptual Questions
			Self-Practice Problems
			Hints and Answers
	Continuous Probability Distributions
		Normal Probability Distribution Function
			Conceptual Questions
			Self-Practice Problems
			Hints and Answers
		Formulae Used
		Chapter Concepts Quiz
		Review Self-Practice Problems
		Hints and Answers
		Glossary of Terms
Sampling and Sampling Distributions
	Introduction
	Reasons of Sample Survey
	Population Parameters and Sample Statistics
	Sampling Methods
		Probability Sampling Methods
		Non-Random Sampling Methods
	Sampling Distributions
		Conceptual Questions
	Sampling Distribution of Sample Mean
		Sampling Distribution of Mean When Population Has Normal Distribution
		Sampling Distribution of Difference Between Two Sample Means
		Self-Practice Problems
		Hints and Answers
	Sampling Distribution of Sample Proportion
		Sampling Distribution of the Difference of Two Proportions
		Self Practice Problems
		Hints and Answers
	Formulae Used
	Chapter Concepts Quiz
	Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Hypothesis Testing
	Introduction
	General Procedure for Hypothesis Testing
	Direction of the Hypothesis
	Errors in Hypothesis Testing
		Conceptual Questions
	Hypothesis Testing for Single Population Mean
	Hypothesis Testing for Difference Between Two Population Means
		Self-Practice Problems
		Hints and Answers
	Hypothesis Testing for Single Population Proportion
		Hypothesis Testing for Difference Between Two
		Self-Practice Problems
		Hints and Answers
	Hypothesis Testing for Population Mean with Small Samples
		Hypothesis Testing for Single Population Mean
		Self-Practice Problems
		Hints and Answers
	Hypothesis Testing Based on F-Distribution
		Self-Practice Problems
		Comparing Two Population Variances
		Hints and Answers
	Formulae Used
	Chapter Concepts Quiz
		Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Correlation Analysis
	Introduction
	Significance of Measuring Correlation
	Correlation and Causation
	Types of Correlations
		Positive and Negative Correlation
		Linear and Non-Linear Correlation
		Simple, Partial, and Multiple Correlation
	Methods of Correlation Analysis
		Scatter Diagram Method
		Karl Pearson’s Correlation Coefficient
		Probable Error and Standard Error of Coefficient of Correlation
		The Coefficient of Determination
			Self-Practice Problems
			Hints and Answers
		Spearman’s Rank Correlation Coefficient
			Self-Practice Problems
			Hints and Answers
			Conceptual Questions
		Formulae Used
		Chapter Concepts Quiz
		Review Self-Practice Problems
		Hints and Answers
Regression Analysis
	Introduction
	Advantages of Regression Analysis
	Parameters of Simple Linear Regression Model
		Regression Coefficients
	Methods to Determine Regression Coefficients
		Least Squares Normal Equations
		Deviations Method
		Self-Practice Problems
		Hints and Answers
		Conceptual Questions
	Formulae Used
		Chapter Concepts Quiz
	Review Self-Practice Problems
	Hints and Answers
Forecasting and Time Series Analysis
	Introduction
	Forecasting Methods
		Quantitative Forecasting Methods
		Qualitative Forecasting Methods
	Time Series Analysis
		Objectives of Time Series Analysis
		Time Series Patterns
		Components of a Time Series
	Time Series Decomposition Models
		Multiplicative Model
		Additive Model
		Conceptual Questions
	Quantitative Forecasting Methods
		Freehand (or Graphical) Method
		Smoothing Methods
		Self-Practice Problems
		Hints and Answers
	Trend Projection Methods
		Linear Trend Model
		Exponential Trend Model
		Changing the Origin and Scale of Equations
		Self-Practice Problems
		Hints and Answers
	Measurement of Seasonal Effects
		Seasonal Index
		Method of Simple Averages
		Ratio-to-Trend Method
		Ratio-to-Moving Average Method
		Link Relative Method
	Measurement of Cyclical Variations—Residual Method
	Measurement of Irregular Variations
		Conceptual Questions
		Self-Practice Problems
		Hints and Answers
	Formulae Used
	Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Index Numbers
	Introduction
	Index Number Defined
	Types of Index Numbers
	Characteristics and Uses of Index Numbers
		Characteristics of Index Numbers
		Uses of Index Numbers
		Conceptual Questions
	Methods for Construction of Price Indexes
	Unweighted Price Indexes
		Single Price Index
		Aggregate Price Index
		Average Price Relative Index
		Self-Practice Problems
		Hints and Answers
	Weighted Price Indexes
		Weighted Aggregate Price Index
		Weighted Average of Price Relative Index
	Quantity or Volume Indexes
	Value Indexes
		Self-Practice Problems
		Hints and Answers
	Tests of Adequacy of Indexes
		Time Reversal Test
		Factor Reversal Test
		Circular Test
	Chain Indexes
		Self-Practice Problems
		Hints and Answers
	Consumer Price Indexes
		Uses of Consumer Price Index Number
		Construction of a Consumer Price Index
		Conceptual Questions
	Formulae Used
	Chapter Concepts Quiz
	Review Self-Practice Problems
	Hints and Answers
	Glossary of Terms
Appendices
	Table A1: Poisson Probabilities
	Table A2: Binomial Coefficients
	Table A3: Normal Distribution
	Table A4: Critical Values of t-Distribution