The strength of this book has been its unerring accuracy and statistical precision. The role of computers and statistical software has been thoroughly integrated throughout.This edition focuses on maintaining the statistical integrity of past editions while modernizing the book by integrating the use of statistical software, adding new examples and exercises (many with real data), and an emphasis on data analysis and interpretation of output. The fifth edition features both Excel and Minitab. Earlier introduction of key topics includes: introduction of statistical thinking (Ch. 1), introduction of processes and systems (Ch. 1), and coverage of bivariate data, scatter plots, regression, covariance, and correlation (Ch. 3).
Table of Contents
Why Study Statistics?
Summarizing Descriptive Relationships
Discrete Random Variables and Probability Distributions
Continuous Random Variables and Probability Distributions
Sampling and Sampling Distributions
Additional Topics in Regression Analysis
Goodness-Of-Fit Tests and Contingency Tables
Analysis of Variance
Introduction to Quality
Time Series Analysis and Forecasting
Additional Topics in Sampling
Statistical Decision Theory
The fifth edition ofStatistics for Business and Economicsprovides an understanding to support good statistical analysis and decision making. The importance of statistical analysis for business and economics has rapidly increased with the expansion of computer capabilities and electronic transfer of data. Data is collected routinely from all business, government, and non-profit activities. Keys to success in this fast paced and expanding world include correct statistical analysis, interpretation of output, an understanding of complex processes, and the use of computer resources. FEATURES RETAINED FROM PREVIOUS EDITIONS The previous editions ofStatistics for Business and Economicswere known for being unerring in accuracy and statistical precision as well as for their position at a mathematically higher level than most business statistics textbooks. The fifth edition of this book retains both the accuracy and level of previous editions. In addition, the authors have maintained the previous emphasis on care and clarity in explanations, reasons that various techniques are used, and the inclusion of a large number of examples and exercises involving real (or realistic) business and economic data. CHANGES IN THE FIFTH EDITION Building on the foundation of historical rigor and careful discussion of statistical concepts from previous editions, the fifth edition includes computer applications and interpretation as integral tools in the decision-making process and realistic examples and exercises with an accompanying CD-ROM that includes data files for all computer based exercises. Computer Integration Previous editions of this book did not include computer applications. One new feature of the fifth edition is the integration of computer applications with emphasis on statistical thinking and interpretation. You will find coverage of the Minitab Statistical System, Microsoft Excel and its Data Analysis ToolPak, and two add-ins to Excel: PHStat2, and TreePlan. Our students use the computer with great success. We see an increase in student comprehension, a more positive attitude toward statistical analysis, and improved oral and written presentations. By using these tools, students are discovering the "fun" of statistics. Minitab and Excel Computer applications are integrated throughout the text on a need-to-know basis. We do not emphasize "how" to use a particular software package, but rather concentrate on theinterpretation of outputleaving instructions to screen shots and callouts. Figure 8.12 and Figure 2.3 illustrate computer output from Minitab and Excel respectively. Suppose that a student wants to estimate the mean fuel consumption for a particular truck model. First, we develop an appropriate confidence interval. Then our approach turns to computer integration by obtaining Figure 8.12 with Minitab. Interpretation begins noting that no evidence of nonnormality exists (Anderson-Darling Normality Test). An icon in the margin with an arrow passing through the word INTREPRETATION indicates basic observations from the graph. Figure 2.3, an Excel output, provides a histogram of the weights of a random sample of 100 bottles of a particular suntan lotion. If independent, random samples of 24 trucks are repeatedly selected from the population and confidence intervals for each of these samples are determined, then over a very large number of repeated trials, 90% of these intervals will contain the value of the true mean Minitab 13.0 is used in this book. Academics and professionals respect the Minitab Statistical System for its power, ease-of-use, outstanding on-line help system, and excellent training opportunities. Minitab is widely used both in education and industry. Most readers are already familiar with Microsoft Excel, the spreadsheet application from the Microsoft Office suite of programs. Keep in mind that Microsoft Excel is a spre