Business Statistics

by Levine, David M.; Krehbiel, Timothy C.; Berenson, Mark L.

• ISBN13: 9780131536890
• ISBN10: 0131536893
• Edition: 4th
• Format: Paperback
• Copyright: 2005-03-01
• Publisher: Pearson College Div

Table of Contents

Preface	xxiii
Introduction and Data Collection	1	(20)
Using Statistics: Good Tunes	2	(1)
Basic Concepts of Statistics	2	(2)
The Growth of Statistics and Information Technology	4	(1)
How This Text Is Organized	5	(2)
Collecting Data	7	(1)
Identifying Sources of Data	7	(1)
Types of Data	8	(13)
Summary	9	(1)
Key Terms	10	(1)
Chapter Review Problems	10	(1)
Introduction to the Web Cases	11	(1)
Introduction to Using Statistical Programs	12	(1)
Using Windows	13	(2)
Introduction to Microsoft Excel	15	(2)
Introduction to Minitab	17	(4)
(CD-ROM Topic) Introduction to SPSS
Presenting Data in Tables and Charts	21	(50)
Using Statistics: Comparing the Performance of Mutual Funds	22	(1)
Tables and Charts for Categorical Data	22	(7)
The Summary Table	22	(1)
The Bar Chart	23	(1)
The Pie Chart	24	(1)
The Pareto Diagram	25	(4)
Organizing Numerical Data	29	(3)
The Ordered Array	30	(1)
The Stem-and-Leaf Display	30	(2)
Tables and Charts for Numerical Data	32	(11)
The Frequency Distribution	32	(2)
The Relative Frequency Distribution and the Percentage Distribution	34	(1)
The Cumulative Distribution	35	(2)
The Histogram	37	(1)
The Polygon	38	(2)
The Cumulative Percentage Polygon (Ogive)	40	(3)
Cross Tabulations	43	(4)
The Contingency Table	43	(2)
The Side-by-Side Bar Chart	45	(2)
Scatter Diagrams and Time-Series Plots	47	(4)
The Scatter Diagram	47	(1)
The Time-Series Plot	48	(3)
Misusing Graphs and Ethical Issues	51	(20)
Summary	54	(1)
Key Terms	55	(1)
Chapter Review Problems	55	(7)
Managing the Springville Herald	62	(1)
Web Case	62	(1)
Using Software for Tables and Charts	63	(1)
Microsoft Excel	63	(3)
Minitab	66	(5)
(CD-ROM Topic) SPSS
Numerical Descriptive Measures	71	(50)
Using Statistics: Evaluating the Performance of Mutual Funds	72	(1)
Measures of Central Tendency, Variation, and Shape	72	(22)
The Mean	73	(2)
The Median	75	(1)
The Mode	76	(1)
Quartiles	77	(2)
The Geometric Mean	79	(1)
The Range	80	(1)
The Interquartile Range	81	(1)
The Variance and the Standard Deviation	82	(3)
The Coefficient of Variation	85	(1)
Z Scores	86	(2)
Shape	88	(1)
Microsoft Excel Descriptive Statistics Output	88	(1)
Visual Explorations: Exploring Descriptive Statistics	89	(1)
Minitab Descriptive Statistics Output	89	(5)
Numerical Descriptive Measures for a Population	94	(5)
The Population Mean	94	(1)
The Population Variance and Standard Deviation	95	(1)
The Empirical Rule	96	(1)
The Chebyshev Rule	97	(2)
Exploratory Data Analysis	99	(4)
The Five-Number Summary	99	(1)
The Box-and-Whisker Plot	100	(3)
The Covariance and the Coefficient of Correlation	103	(6)
The Covariance	103	(2)
The Coefficient of Correlation	105	(4)
Pitfalls in Numerical Descriptive Measures and Ethical Issues	109	(12)
Ethical Issues	110	(1)
Summary	110	(1)
Key Formulas	111	(1)
Key Terms	111	(1)
Chapter Review Problems	112	(6)
Managing the Springville Herald	118	(1)
Web Case	118	(1)
Using Software for Descriptive Statistics	118	(1)
Microsoft Excel	118	(1)
Minitab	119	(2)
(CD-ROM Topic) SPSS
Basic Probability	121	(32)
Using Statistics: The Consumer Electronics Company	122	(1)
Basic Probability Concepts	122	(9)
Events and Sample Spaces	124	(1)
Contingency Tables and Venn Diagrams	125	(1)
Simple (Marginal) Probability	125	(2)
Joint Probability	127	(1)
General Addition Rule	128	(3)
Conditional Probability	131	(8)
Computing Conditional Probabilities	131	(2)
Decision Trees	133	(1)
Statistical Independence	134	(2)
Multiplication Rules	136	(1)
Marginal Probability Using the General Multiplication Rule	137	(2)
Bayes' Theorem	139	(4)
Counting Rules	143	(3)
Ethical Issues and Probability	146	(7)
Summary	147	(1)
Key Formulas	147	(1)
Key Terms	148	(1)
Chapter Review Problems	148	(2)
Web Case	150	(1)
Using Software for Basic Probability	151	(1)
Microsoft Excel	151	(2)
Some Important Discrete Probability Distributions	153	(24)
Using Statistics: The Accounting Information System of the Saxon Home Improvement Company	154	(1)
The Probability Distribution for a Discrete Random Variable	154	(4)
Expected Value of a Discrete Random Variable	155	(1)
Variance and Standard Deviation of a Discrete Random Variable	156	(2)
Binomial Distribution	158	(8)
Poisson Distribution	166	(11)
Summary	171	(1)
Key Formulas	171	(1)
Key Terms	171	(1)
Chapter Review Problems	172	(2)
Managing the Springville Herald	174	(1)
Using Software for Discrete Probability Distributions	175	(1)
Microsoft Excel	175	(1)
Minitab	176	(1)
The Normal Distribution	177	(28)
Using Statistics: Download Time for a Web Site Homepage	178	(1)
Continuous Probability Distributions	178	(1)
The Normal Distribution	179	(15)
Visual Explorations: Exploring the Normal Distribution	188	(6)
Evaluating Normality	194	(11)
Evaluating the Properties	194	(1)
Constructing the Normal Probability Plot	195	(4)
Summary	199	(1)
Key Formulas	199	(1)
Key Terms	199	(1)
Chapter Review Problems	199	(2)
Managing the Springville Herald	201	(1)
Web Case	202	(1)
Using Software with the Normal Distribution	202	(1)
Microsoft Excel	202	(1)
Minitab	202	(3)
(CD-ROM Topic) SPSS
Sampling Distributions	205	(32)
Using Statistics: Cereal-Fill Packaging Process	206	(1)
Sampling Distributions	206	(1)
Sampling Distribution of the Mean	207	(10)
The Unbiased Property of the Sample Mean	207	(1)
Standard Error of the Mean	208	(2)
Sampling from Normally Distributed Populations	210	(3)
Sampling from Nonnormally Distributed Populations---The Central Limit Theorem	213	(2)
Visual Explorations: Exploring Sampling Distributions	215	(2)
Sampling Distribution of the Proportion	217	(3)
Types of Survey Sampling Methods	220	(6)
Simple Random Sample	221	(2)
Systematic Sample	223	(1)
Stratified Sample	224	(1)
Cluster Sample	224	(2)
Evaluating Survey Worthiness	226	(11)
Survey Errors	226	(2)
Ethical Issues	228	(1)
Summary	229	(1)
Key Formulas	229	(1)
Key Terms	230	(1)
Chapter Review Problems	230	(3)
Managing the Springville Herald	233	(1)
Web Case	233	(1)
Using Software for Sampling Distributions	234	(1)
Microsoft Excel	234	(1)
Minitab	234	(3)
Confidence Interval Estimation	237	(34)
Using Statistics: Auditing Sales Invoices at the Saxon Home Improvement Company	238	(1)
Confidence Interval Estimation for the Mean (σ Known)	239	(4)
Confidence Interval Estimation for the Mean (σ Unknown)	243	(7)
Student's t Distribution	243	(1)
Properties of the t Distribution	244	(1)
The Concept of Degrees of Freedom	245	(1)
The Confidence Interval Statement	246	(4)
Confidence Interval Estimation for the Proportion	250	(4)
Determining Sample Size	254	(6)
Sample Size Determination for the Mean	254	(2)
Sample Size Determination for the Proportion	256	(4)
Confidence Interval Estimation and Ethical Issues	260	(11)
Summary	260	(1)
Key Formulas	260	(1)
Key Terms	261	(1)
Chapter Review Problems	261	(4)
Managing the Springville Herald	265	(1)
Web Case	266	(1)
Using Software for Confidence Intervals and Sample Size Determination	267	(1)
Microsoft Excel	267	(1)
Minitab	268	(3)
(CD-ROM Topic) SPSS
Fundamentals of Hypothesis Testing: One-Sample Tests	271	(40)
Using Statistics: The Oxford Cereal Company Revisited	272	(1)
Hypothesis-Testing Methodology	272	(6)
The Null and Alternative Hypotheses	272	(2)
The Critical Value of the Test Statistic	274	(1)
Regions of Rejection and Nonrejection	274	(1)
Risks in Decision Making Using Hypothesis-Testing Methodology	275	(3)
Z Test of Hypothesis for the Mean (σ Known)	278	(8)
The Critical Value Approach to Hypothesis Testing	278	(3)
The p-Value Approach to Hypothesis Testing	281	(3)
A Connection between Confidence Interval Estimation and Hypothesis Testing	284	(2)
One-Tail Tests	286	(4)
The Critical Value Approach	286	(1)
The p-Value Approach	287	(3)
t Test of Hypothesis for the Mean (σ Unknown)	290	(7)
The Critical Value Approach	291	(2)
The p-Value Approach	293	(1)
Checking Assumptions	293	(4)
Z Test of Hypothesis for the Proportion	297	(4)
The Critical Value Approach	298	(1)
The p-Value Approach	299	(2)
Potential Hypothesis-Testing Pitfalls and Ethical Issues	301	(10)
Summary	304	(1)
Key Formulas	305	(1)
Key Terms	305	(1)
Chapter Review Problems	305	(3)
Managing the Springville Herald	308	(1)
Web Case	308	(1)
Using Software for One-Sample Tests of Hypothesis	309	(1)
Microsoft Excel	309	(1)
Minitab	309	(2)
(CD-ROM Topic) SPSS
Two-Sample Tests and One-Way Anova	311	(66)
Using Statistics: Comparing Sales from End-Aisle Displays and Normal Displays	312	(1)
Comparing the Means of Two Independent Populations	312	(10)
Z Test for the Difference Between Two Means	312	(1)
Pooled-Variance t Test for the Difference Between Two Means	313	(5)
Confidence Interval Estimate for the Difference Between the Means of Two Independent Populations	318	(1)
Separate-Variance t Test for the Difference Between Two Means	318	(4)
Comparing the Means of Two Related Populations	322	(10)
Paired t Test	324	(5)
Confidence Interval Estimate for the Mean Difference	329	(3)
Comparing Two Population Proportions	332	(6)
Z Test for the Difference Between Two Proportions	332	(4)
Confidence Interval Estimate for the Difference Between Two Proportions	336	(2)
F Test for the Difference Between Two Variances	338	(8)
Finding Lower-Tail Critical Values	340	(6)
Using Statistics: The Perfect Parachute Company	346	(1)
One-Way ANOVA	346	(31)
F Test for Differences Among More Than Two Means	346	(7)
Multiple Comparisons: The Tukey-Kramer Procedure	353	(2)
ANOVA Assumptions	355	(1)
Levene's Test for Homogeneity of Variance	356	(5)
Summary	361	(1)
Key Formulas	362	(1)
Key Terms	363	(1)
Chapter Review Problems	363	(6)
Managing the Springville Herald	369	(1)
Web Case	370	(1)
Using Software for Two-Sample Tests and One-Way ANOVA	371	(1)
Microsoft Excel	371	(2)
Minitab	373	(4)
(CD-ROM Topic) SPSS
Chi-Square Tests	377	(32)
Using Statistics: Guest Satisfaction at T.C. Resort Properties	378	(1)
Chi-Square Test for the Difference Between Two Proportions (Independent Samples)	378	(8)
Chi-Square Test for Differences Among More Than Two Proportions	386	(7)
The Marascuilo Procedure	389	(4)
Chi-Square Test of Independence	393	(16)
Summary	399	(1)
Key Formulas	400	(1)
Key Terms	401	(1)
Chapter Review Problems	401	(4)
Managing the Springville Herald	405	(1)
Web Case	406	(1)
Using Software for Chi-Square Tests	407	(1)
Microsoft Excel	407	(1)
Minitab	407	(2)
(CD-ROM Topic) SPSS
Simple Linear Regression	409	(56)
Using Statistics: Forecasting Sales for a Clothing Store	410	(1)
Types of Regression Models	410	(2)
Determining the Simple Linear Regression Equation	412	(9)
The Least-Squares Method	413	(3)
Visual Explorations: Exploring Simple Linear Regression Coefficients	416	(1)
Predictions in Regression Analysis: Interpolation versus Extrapolation	417	(1)
Computing the Y Intercept b0 and the Slope b1	417	(4)
Measures of Variation	421	(7)
Computing the Sum of Squares	421	(3)
The Coefficient of Determination	424	(2)
Standard Error of the Estimate	426	(2)
Assumptions	428	(1)
Residual Analysis	428	(5)
Evaluating the Assumptions	428	(5)
Measuring Autocorrelation: The Durbin-Watson Statistic	433	(5)
Residual Plots to Detect Autocorrelation	433	(2)
The Durbin-Watson Statistic	435	(3)
Inferences About the Slope and Correlation Coefficient	438	(7)
t Test for the Slope	438	(2)
F Test for the Slope	440	(1)
Confidence Interval Estimate of the Slope (β1)	441	(1)
t Test for a Correlation Coefficient	442	(3)
Estimation of Mean Values and Prediction of Individual Values	445	(5)
The Confidence Interval Estimate	445	(2)
The Prediction Interval	447	(3)
Pitfalls in Regression and Ethical Issues	450	(15)
Summary	453	(1)
Key Formulas	454	(1)
Key Terms	455	(1)
Chapter Review Problems	455	(5)
Managing the Springville Herald	460	(1)
Web Case	461	(1)
Using Software for Simple Linear Regression	462	(1)
Microsoft Excel	462	(2)
Minitab	464	(1)
(CD-ROM Topic) SPSS
Multiple Regression	465	(40)
Using Statistics: Predicting OmniPower Sales	466	(1)
Developing the Multiple Regression Model	466	(6)
Interpreting the Regression Coefficients	467	(3)
Predicting the Dependent Variable Y	470	(2)
r2, Adjusted r2, and the Overall F Test	472	(4)
Coefficient of Multiple Determination	472	(1)
Test for the Significance of the Overall Multiple Regression Model	473	(3)
Residual Analysis for the Multiple Regression Model	476	(2)
Inferences Concerning the Population Regression Coefficients	478	(4)
Tests of Hypothesis	478	(2)
Confidence Interval Estimation	480	(2)
Using Dummy Variables and Interaction Terms in Regression Models	482	(6)
Interactions	484	(4)
The Quadratic Regression Model	488	(17)
Finding the Regression Coefficients and Predicting Y	489	(3)
Testing for the Significance of the Quadratic Model	492	(1)
Testing the Quadratic Effect	492	(4)
Summary	496	(1)
Key Formulas	496	(2)
Key Terms	498	(1)
Chapter Review Problems	498	(3)
Managing the Springville Herald	501	(1)
Web Case	501	(1)
Using Software for Multiple Regression	502	(1)
Microsoft Excel	502	(1)
Minitab	503	(2)
(CD-ROM Topic) SPSS
Statistical Applications in Quality and Productivity Management	505	(32)
Using Statistics: Service Quality at the Beachcomber Hotel	506	(1)
Total Quality Management	506	(3)
Six Sigma Management	509	(1)
The Theory of Control Charts	509	(3)
Control Chart for the Proportion of Nonconforming Items---The p Chart	512	(6)
The Red Bead Experiment: Understanding Process Variability	518	(2)
Control Charts for the Range and the Mean	520	(17)
The R Chart	521	(2)
The X Chart	523	(4)
Summary	527	(1)
Key Formulas	527	(1)
Key Terms	528	(1)
Chapter Review Problems	528	(3)
The Harnswell Sewing Machine Company Case	531	(2)
Managing the Springville Herald	533	(2)
Using Software for Control Charts	535	(1)
Microsoft Excel	535	(1)
Minitab	535	(2)
(CD-ROM Topic) SPSS
Appendices	537	(52)
A. Review of Arithmetic, Algebra, and Logarithms	538	(2)
B. Summation Notation	540	(3)
C. Statistical Symbols and Greek Alphabet	543	(1)
D. CD-ROM Contents	544	(5)
E. Tables	549	(25)
F. Using Microsoft Excel with This Text	574	(2)
G. PHStat2 User's Guide	576	(13)
Self-Test Solutions and Answers to Selected Even-Numbered Problems	589	(26)
Index	615