Modern Business Statistics (with CD-ROM and InfoTrac)

by Anderson, David R.; Sweeney, Dennis J.; Williams, Thomas A.

• ISBN13: 9780324233223
• ISBN10: 0324233221
• Edition: 2nd
• Format: Hardcover
• Copyright: 2005-05-05
• Publisher: South-Western College Pub

Summary

This comprehensive introduction to business statistics text balances a conceptual understanding of statistics with the real-world application of statistical methodology. The latest version of Microsoft? Excel is integrated throughout the text, showing step-by-step instructions and screen captures to enhance student learning. The authors have been writing market-leading business statistics textbooks for over 20 years, and this new edition contains the same student learning features that have made ASW products best sellers for more than two decades.

Table of Contents

Preface	xxi
About the Authors	xxxi
Data and Statistics	1	(27)
Statistics in Practice: Businessweek	2	(1)
Applications in Business and Economics	3	(2)
Accounting	3	(1)
Finance	3	(1)
Marketing	4	(1)
Production	4	(1)
Economics	4	(1)
Data	5	(3)
Elements, Variables, and Observations	5	(1)
Scales of Measurement	6	(1)
Qualitative and Quantitative Data	7	(1)
Cross-Sectional and Time Series Data	7	(1)
Data Sources	8	(4)
Existing Sources	8	(1)
Statistical Studies	9	(3)
Data Acquisition Errors	12	(1)
Descriptive Statistics	12	(2)
Statistical Inference	14	(2)
Statistical Analysis Using Microsoft Excel	16	(12)
Data Sets and Excel Worksheets	16	(1)
Using Excel for Statistical Analysis	16	(3)
Summary	19	(1)
Glossary	20	(1)
Supplementary Exercises	20	(6)
Appendix 1.1 An Introduction to SWStat+	26	(2)
Descriptive Statistics: Tabular and Graphical Presentations	28	(59)
Statistics in Practice: Colgate-Palmolive Company	29	(1)
Summarizing Qualitative Data	30	(9)
Frequency Distribution	30	(1)
Using Excel's Countif Function to Construct a Frequency Distribution	31	(1)
Relative Frequency and Percent Frequency Distributions	32	(1)
Using Excel to Construct Relative Frequency and Percent Frequency Distributions	33	(1)
Bar Graphs and Pie Charts	34	(1)
Using Excel's Chart Wizard to Construct Bar Graphs and Pie Charts	34	(5)
Summarizing Quantitative Data	39	(17)
Frequency Distribution	39	(2)
Using Excel's Frequency Function to Construct a Frequency Distribution	41	(2)
Relative Frequency and Percent Frequency Distributions	43	(1)
Histogram	43	(1)
Using Excel's Chart Wizard to Construct a Histogram	44	(2)
Cumulative Distributions	46	(3)
Using Excel's Histogram Tool to Construct a Frequency Distribution and Histogram	49	(7)
Exploratory Data Analysis: The Stem-and-Leaf Display	56	(5)
Crosstabulations and Scatter Diagrams	61	(26)
Crosstabulation	61	(3)
Using Excel's PivotTable Report to Construct a Crosstabulation	64	(3)
Simpson's Paradox	67	(1)
Scatter Diagram and Trendline	68	(2)
Using Excel's Chart Wizard to Construct a Scatter Diagram and a Trendline	70	(6)
Summary	76	(2)
Glossary	78	(1)
Key Formulas	78	(1)
Supplementary Exercises	79	(6)
Case Problem Pelican Stores	85	(2)
Descriptive Statistics: Numerical Measures	87	(66)
Statistics in Practice: Small Fry Design	88	(1)
Measures of Location	89	(12)
Mean	89	(1)
Median	90	(1)
Mode	91	(1)
Using Excel to Compute the Mean, Median, and Mode	92	(1)
Percentiles	93	(1)
Quartiles	94	(1)
Using Excel's Rank and Percentile Tool to Compute Percentiles and Quartiles	95	(6)
Measures of Variability	101	(10)
Range	102	(1)
Interquartile Range	102	(1)
Variance	103	(1)
Standard Deviation	104	(2)
Using Excel to Compute the Sample Variance and Sample Standard Deviation	106	(1)
Coefficient of Variation	106	(1)
Using Excel's Descriptive Statistics Tool	106	(5)
Measures of Distribution Shape, Relative Location, and Detecting Outliers	111	(7)
Distribution Shape	111	(2)
z-Scores	113	(1)
Chebyshev's Theorem	114	(1)
Empirical Rule	114	(1)
Detecting Outliers	115	(3)
Exploratory Data Analysis	118	(5)
Five-Number Summary	118	(1)
Box Plot	119	(4)
Measures of Association Between Two Variables	123	(10)
Covariance	123	(2)
Interpretation of the Covariance	125	(2)
Correlation Coefficient	127	(1)
Interpretation of the Correlation Coefficient	128	(2)
Using Excel to Compute the Covariance and Correlation Coefficient	130	(3)
The Weighted Mean and Working with Grouped Data	133	(20)
Weighted Mean	133	(1)
Grouped Data	134	(5)
Summary	139	(1)
Glossary	139	(1)
Key Formulas	140	(2)
Supplementary Exercises	142	(5)
Case Problem 1 Pelican Stores	147	(1)
Case Problem 2 National Health Care Association	148	(1)
Case Problem 3 Business Schools of Asia-Pacific	149	(1)
Appendix 3.1 Constructing a Box Plot Using SWStat+	149	(4)
Introduction to Probability	153	(45)
Statistics in Practice: Morton International	154	(1)
Experiments, Counting Rules, and Assigning Probabilities	155	(10)
Counting Rules, Combinations, and Permutations	156	(4)
Assigning Probabilities	160	(2)
Probabilities for the KP&L Project	162	(3)
Events and Their Probabilities	165	(4)
Some Basic Relationships of Probability	169	(6)
Complement of an Event	169	(1)
Addition Law	170	(5)
Conditional Probability	175	(8)
Independent Events	179	(1)
Multiplication Law	179	(4)
Bayes' Theorem	183	(15)
Tabular Approach	186	(1)
Using Excel to Compute Posterior Probabilities	187	(3)
Summary	190	(1)
Glossary	190	(1)
Key Formulas	191	(1)
Supplemental Exercises	192	(4)
Case Problem Hamilton County Judges	196	(2)
Discrete Probability Distributions	198	(40)
Statistics in Practice: Citibank	199	(1)
Random Variables	199	(3)
Discrete Random Variables	200	(1)
Continuous Random Variables	201	(1)
Discrete Probability Distributions	202	(6)
Expected Value and Variance	208	(5)
Expected Value	208	(1)
Variance	208	(1)
Using Excel to Compute the Expected Value, Variance, and Standard Deviation	209	(4)
Binomial Probability Distribution	213	(11)
A Binomial Experiment	214	(1)
Martin Clothing Store Problem	215	(4)
Using Excel to Compute Binomial Probabilities	219	(2)
Expected Value and Variance for the Binomial Probability Distribution	221	(3)
Poisson Probability Distribution	224	(5)
An Example Involving Time Intervals	224	(1)
An Example Involving Length or Distance Invervals	225	(1)
Using Excel to Compute Poisson Probabilities	226	(3)
Hypergeometric Probability Distribution	229	(9)
Using Excel to Compute Hypergeometric Probabilities	231	(2)
Summary	233	(1)
Glossary	233	(1)
Key Formulas	234	(1)
Supplementary Exercises	235	(3)
Continuous Probability Distributions	238	(31)
Statistics in Practice: Procter & Gamble	239	(1)
Uniform Probability Distribution	240	(4)
Area as a Measure of Probability	241	(3)
Normal Probability Distribution	244	(15)
Normal Curve	244	(2)
Standard Normal Probability Distribution	246	(5)
Computing Probabilities for Any Normal Probability Distribution	251	(1)
Grear Tire Company Problem	252	(2)
Using Excel to Compute Normal Probabilities	254	(5)
Exponential Probability Distribution	259	(10)
Computing Probabilities for the Exponential Distribution	260	(1)
Relationship Between the Poisson and Exponential Distributions	261	(1)
Using Excel to Compute Exponential Probabilities	261	(3)
Summary	264	(1)
Glossary	264	(1)
Key Formulas	264	(1)
Supplementary Exercises	265	(2)
Case Problem Specialty Toys	267	(2)
Sampling and Sampling Distributions	269	(37)
Statistics in Practice: Meadwestvaco Corporation	270	(1)
The Electronics Associates Sampling Problem	271	(1)
Simple Random Sampling	272	(6)
Sampling from a Finite Population	272	(4)
Sampling from an Infinite Population	276	(2)
Point Estimation	278	(3)
Introduction to Sampling Distributions	281	(3)
Sampling Distribution of x	284	(10)
Expected Value of x	284	(1)
Standard Deviation of x	285	(1)
Form of the Sampling Distribution of x	286	(2)
Sampling Distribution of x for the EAI Problem	288	(1)
Practical Value of the Sampling Distribution of x	288	(2)
Relationship Between Sample Size and the Sampling Distribution of x	290	(4)
Sampling Distribution of p	294	(5)
Expected Value of p	294	(1)
Standard Deviation of p	295	(1)
Form of the Sampling Distribution of p	295	(1)
Practical Value of the Sampling Distribution of p	296	(3)
Sampling Methods	299	(7)
Stratified Random Sampling	299	(1)
Cluster Sampling	299	(1)
Systematic Sampling	300	(1)
Convenience Sampling	301	(1)
Judgment Sampling	301	(1)
Summary	302	(1)
Glossary	302	(1)
Key Formulas	303	(1)
Supplementary Exercises	303	(3)
Interval Estimation	306	(39)
Statistics in Practice: Food Lion	307	(1)
Population Mean: σ Known	308	(8)
Margin of Error and the Interval Estimate	308	(4)
Using Excel	312	(2)
Practical Advice	314	(2)
Population Mean: σ Unknown	316	(10)
Margin of Error and the Interval Estimate	317	(3)
Using Excel	320	(1)
Practical Advice	321	(1)
Using a Small Sample	321	(2)
Summary of Interval Estimation Procedures	323	(3)
Determining the Sample Size	326	(3)
Population Proportion	329	(16)
Using Excel	330	(2)
Determining the Sample Size	332	(4)
Summary	336	(1)
Glossary	337	(1)
Key Formulas	337	(1)
Supplement Exercises	338	(3)
Case Problem 1 Bock Investment Services	341	(1)
Case Problem 2 Gulf Real Estate Properties	341	(3)
Case Problem 3 Metropolitan Research, Inc.	344	(1)
Hypothesis Tests	345	(46)
Statistics in Practice: John Morrell & Company	346	(1)
Developing Null and Alternative Hypotheses	347	(2)
Testing Research Hypotheses	347	(1)
Testing the Validity of a Claim	347	(1)
Testing in Decision-Making Situations	348	(1)
Summary of Forms for Null and Alternative Hypotheses	348	(1)
Type I and Type II Errors	349	(3)
Population Mean: σ Known	352	(16)
One-Tailed Test	352	(6)
Two-Tailed Test	358	(3)
Using Excel	361	(1)
Summary and Practical Advice	362	(2)
Relationship Between Interval Estimation and Hypothesis Testing	364	(4)
Population Mean: σ Unknown	368	(10)
One-Tailed Test	369	(1)
Two-Tailed Test	370	(2)
Using Excel	372	(2)
Summary and Practical Advice	374	(4)
Population Proportion	378	(13)
Using Excel	380	(2)
Summary	382	(2)
Summary	384	(1)
Glossary	385	(1)
Key Formulas	385	(1)
Supplementary Exercises	386	(2)
Case Problem 1 Quality Associates, Inc.	388	(2)
Case Problem 2 Unemployment Study	390	(1)
Statistical Inference About Means and Proportions with Two Populations	391	(48)
Statistics in Practice: Fisons Corporation	392	(1)
Inferences About the Difference Between Two Population Means: σ1 and σ2 Known	393	(10)
Interval Estimation of μ1 -- μ2	393	(2)
Using Excel to Construct a Confidence Interval	395	(2)
Hypothesis Tests About μ1 -- μ2	397	(2)
Using Excel to Conduct a Hypothesis Test	399	(2)
Practical Advice	401	(2)
Inferences About the Difference Between Two Population Means: σ1 and σ2 Unknown	403	(12)
Interval Estimation of μ1 -- μ2	404	(1)
Using Excel to Construct a Confidence Interval	405	(2)
Hypothesis Tests About μ1 -- μ2	407	(2)
Using Excel to Conduct a Hypothesis Test	409	(2)
Practical Advice	411	(4)
Inferences About the Difference Between Two Population Means: Matched Samples	415	(7)
Using Excel to Conduct a Hypothesis Test	417	(5)
Inferences About the Difference Between Two Population Proportions	422	(17)
Interval Estimation of p1 -- p2	422	(2)
Using Excel to Construct a Confidence Interval	424	(2)
Hypothesis Tests About p1 -- p2	426	(1)
Using Excel to Conduct a Hypothesis Test	427	(5)
Summary	432	(1)
Glossary	432	(1)
Key Formulas	432	(2)
Supplementary Exercises	434	(3)
Case Problem Par, Inc.	437	(2)
Inferences About Population Variances	439	(26)
Statistics in Practice: U.S. General Accounting Office	440	(1)
Inferences About a Population Variance	441	(12)
Interval Estimation	441	(4)
Using Excel to Construct a Confidence Interval	445	(1)
Hypothesis Testing	446	(3)
Using Excel to Conduct a Hypothesis Test	449	(4)
Inferences About Two Population Variances	453	(12)
Using Excel to Conduct a Hypothesis Test	458	(3)
Summary	461	(1)
Key Formulas	461	(1)
Supplementary Exercises	462	(1)
Case Problem Air Force Training Program	463	(2)
Tests of Goodness of Fit and Independence	465	(32)
Statistics in Practice: United Way	466	(1)
Goodness of Fit Test: A Multinomial Population	467	(6)
Using Excel to Conduct a Goodness of Fit Test	470	(3)
Test of Independence	473	(8)
Using Excel to Conduct a Test of Independence	477	(4)
Goodness of Fit Test: Poisson and Normal Distributions	481	(16)
Poisson Distribution	481	(4)
Using Excel to Conduct a Goodness of Fit Test	485	(1)
Normal Distribution	485	(4)
Using Excel to Conduct a Goodness of Fit Test	489	(2)
Summary	491	(1)
Glossary	491	(1)
Key Formulas	492	(1)
Supplementary Exercises	492	(4)
Case Problem A Bipartisan Agenda for Change	496	(1)
Analysis of Variance and Experimental Design	497	(62)
Statistics in Practice: Burke Marketing Services, Inc.	498	(1)
Introduction to Analysis of Variance	498	(4)
Assumptions for Analysis of Variance	500	(1)
A Conceptual Overview	500	(2)
Analysis of Variance: Testing for the Equality of k Population Means	502	(11)
Between-Treatments Estimate of Population Variance	503	(1)
Within-Treatments Estimate of Population Variance	504	(1)
Comparing the Variance Estimates: The F Test	505	(2)
ANOVA Table	507	(1)
Using Excel	507	(6)
Multiple Comparison Procedures	513	(5)
Fisher's LSD	513	(3)
Type I Error Rates	516	(2)
Introduction to Experimental Design	518	(3)
Data Collection	520	(1)
Completely Randomized Designs	521	(7)
Between-Treatments Estimate of Population Variance	521	(1)
Within-Treatments Estimate of Population Variance	521	(1)
Comparing the Variance Estimates: The F Test	522	(1)
ANOVA Table	522	(1)
Using Excel	522	(1)
Pairwise Comparisons	523	(5)
Randomized Block Design	528	(7)
Air Traffic Controller Stress Test	528	(1)
ANOVA Procedure	529	(1)
Computations and Conclusions	530	(2)
Using Excel	532	(3)
Factorial Experiments	535	(24)
ANOVA Procedure	537	(1)
Computations and Conclusions	538	(1)
Using Excel	539	(6)
Summary	545	(1)
Glossary	546	(1)
Key Formulas	546	(3)
Supplementary Exercises	549	(7)
Case Problem 1 Wentworth Medical Center	556	(1)
Case Problem 2 Compensation for ID Professionals	557	(2)
Simple Linear Regression	559	(89)
Statistics in Practice: Alliance Data Systems	560	(1)
Simple Linear Regression Model	561	(3)
Regression Model and Regression Equation	561	(1)
Estimated Regression Equation	562	(2)
Least Squares Method	564	(12)
Using Excel to Develop a Scatter Diagram and Compute the Estimated Regression Equation	568	(8)
Coefficient of Determination	576	(9)
Using Excel to Compute the Coefficient of Determination	580	(1)
Correlation Coefficient	580	(5)
Model Assumptions	585	(1)
Testing for Significance	586	(10)
Estimate of σ2	587	(1)
t Test	587	(2)
Confidence Interval for β1	589	(1)
F Test	590	(2)
Some Cautions About the Interpretation of Significance Tests	592	(4)
Excel's Regression Tool	596	(6)
Using Excel's Regression Tool for the Armand's Pizza Parlors Example	596	(2)
Interpretation of Estimated Regression Equation Output	598	(1)
Interpretation of ANOVA Output	598	(1)
Interpretation of Regression Statistics Output	599	(3)
Using the Estimated Regression Equation for Estimation and Prediction	602	(8)
Point Estimation	602	(1)
Interval Estimation	602	(1)
Confidence Interval Estimate of the Mean Value of y	602	(2)
Prediction Interval Estimate of an Individual Value of y	604	(2)
Using Excel to Develop Confidence and Prediction Interval Estimates	606	(4)
Residual Analysis: Validating Model Assumptions	610	(12)
Residual Plot Against x	612	(2)
Residual Plot Against y	614	(1)
Using Excel's Regression Tool to Construct a Residual Plot	614	(1)
Standardized Residuals	615	(3)
Using Excel to Construct a Standardized Residual Plot	618	(1)
Normal Probability Plot	618	(4)
Outliers and Influential Observations	622	(26)
Detecting Outliers	622	(3)
Detecting Influential Observations	625	(4)
Summary	629	(1)
Glossary	629	(1)
Key Formulas	630	(2)
Supplementary Exercises	632	(6)
Case Problem 1 Spending and Student Achievement	638	(1)
Case Problem 2 U.S. Department of Transportation	639	(1)
Case Problem 3 Alumni Giving	640	(2)
Case Problem 4 Major League Baseball Teams Values	642	(1)
Appendix 14.1 Calculus-Based Derivation of Least Squares Formulas	642	(2)
Appendix 14.2 Test for Significance Using Correlation	644	(1)
Appendix 14.3 Regression Analysis with SWStat+	645	(3)
Multiple Regression	648	(54)
Statistics in Practice: International Paper	649	(1)
Multiple Regression Model	650	(1)
Regression Model and Regression Equation	650	(1)
Estimated Multiple Regression Equation	650	(1)
Least Squares Method	651	(10)
An Example: Butler Trucking Company	652	(3)
Using Excel's Regression Tool to Develop the Estimated Multiple Regression Equation	655	(1)
Note on Interpretation of Coefficients	656	(5)
Multiple Coefficient of Determination	661	(3)
Model Assumptions	664	(2)
Testing for Significance	666	(7)
F Test	666	(3)
t Test	669	(1)
Multicollinearity	670	(3)
Using the Estimated Regression Equation for Estimation and Prediction	673	(2)
Qualitative Independent Variables	675	(9)
An Example: Johnson Filtration, Inc.	676	(2)
Interpreting the Parameters	678	(2)
More Complex Qualitative Variables	680	(4)
Residual Analysis	684	(18)
Residual Plot Against y	684	(1)
Standardized Residual Plot Against y	684	(4)
Summary	688	(1)
Glossary	689	(1)
Key Formulas	689	(1)
Supplementary Exercises	690	(6)
Case Problem 1 Consumer Research, Inc.	696	(1)
Case Problem 2 Predicting Student Proficiency Test Scores	697	(1)
Case Problem 3 Alumni Giving	698	(2)
Appendix 15.1 Multiple Regression Analysis with SWStat+	700	(2)
Regression Analysis: Model Building	702	(52)
Statistics in Practice: Monsanto Company	703	(1)
General Linear Model	704	(13)
Modeling Curvilinear Relationships	704	(2)
Interaction	706	(4)
Transformations Involving the Dependent Variable	710	(3)
Nonlinear Models That Are Intrinsically Linear	713	(4)
Determining When to Add or Delete Variables	717	(7)
General Case	719	(5)
Analysis of a Larger Problem	724	(4)
Variable Selection Procedures	728	(6)
Stepwise Regression	728	(1)
Forward Selection	729	(1)
Backward Elimination	729	(1)
Using Excel to Perform the Backward Elimination Procedure	729	(2)
Best-Subsets Regression	731	(3)
Residual Analysis	734	(7)
Autocorrelation and the Durbin-Watson Test	735	(6)
Multiple Regression Approach to Analysis of Variance and Experimental Design	741	(13)
Summary	745	(1)
Glossary	746	(1)
Key Formulas	746	(1)
Supplementary Exercises	746	(4)
Case Problem 1 Unemployment Study	750	(2)
Case Problem 2 Fuel Economy for Cars	752	(2)
Nonparametric Methods	754	(41)
Statistics in Practice: West Shell Realtors	755	(2)
Sign Test	757	(8)
Small-Sample Case	757	(2)
Using Excel	759	(1)
Large-Sample Case	760	(1)
Using Excel	761	(1)
Hypothesis Test About a Median	762	(1)
Using Excel	763	(2)
Wilcoxon Signed Rank Test	765	(6)
Using Excel	768	(3)
Mann-Whitney-Wilcoxon Rank Sum Test	771	(9)
Small-Sample Case	772	(3)
Large-Sample Case	775	(2)
Using Excel	777	(3)
Kruskal-Wallis Test	780	(5)
Using Excel	782	(3)
Rank Correlation	785	(10)
Test for Significant Rank Correlation	787	(1)
Using Excel	788	(3)
Summary	791	(1)
Glossary	791	(1)
Key Formulas	791	(1)
Supplementary Exercises	792	(3)
Statistical Methods for Quality Control	795	(35)
Statistics in Practice: Dow Chemical	796	(1)
Philosophies and Frameworks	797	(3)
Malcolm Baldrige National Quality Award	797	(1)
ISO 9000	798	(1)
Six Sigma	798	(2)
Statistical Process Control	800	(17)
Control Charts	801	(1)
x Chart: Process Mean and Standard Deviation Known	802	(2)
x Chart: Process Mean and Standard Deviation Unknown	804	(3)
R Chart	807	(2)
Using Excel to Construct an R Chart and an x Chart	809	(3)
p Chart	812	(2)
np Chart	814	(1)
Interpretation of Control Charts	815	(2)
Acceptance Sampling	817	(13)
KALI, Inc.: An Example of Acceptance Sampling	819	(1)
Computing the Probability of Accepting a Lot	819	(2)
Selecting an Acceptance Sampling Plan	821	(2)
Multiple Sampling Plans	823	(2)
Summary	825	(1)
Glossary	826	(1)
Key Formulas	827	(1)
Supplementary Exercises	828	(2)
Decision Analysis	830	(38)
Statistics in Practice: Ohio Edison Company	831	(1)
Problem Formulation	832	(2)
Payoff Tables	833	(1)
Decision Trees	833	(1)
Decision Making with Probabilities	834	(8)
Expected Value Approach	834	(2)
Expected Value of Perfect Information	836	(6)
Decision Analysis with Sample Information	842	(11)
Decision Tree	843	(1)
Decision Strategy	844	(3)
Expected Value of Sample Information	847	(6)
Computing Branch Probabilities Using Bayes' Theorem	853	(15)
Summary	857	(1)
Glossary	858	(1)
Key Formulas	859	(1)
Case Problem Lawsuit Defense Strategy	859	(1)
Appendix 19.1 Solving the PDC Problem with TreePlan	860	(8)
Sample Survey
Appendix A: References and Bibliography	868	(2)
Appendix B: Tables	870	(11)
Appendix C: Summation Notation	881	(2)
Appendix D: Self-Test Solutions and Answers to Even-Numbered Exercises	883	(44)
Appendix E: Using Excel Functions	927	(6)
Index	933