Business Statistics : A Decision-Making Approach and Student CD Update Package

by Groebner, David F.

• ISBN13: 9780131545885
• ISBN10: 0131545884
• Edition: 6th
• Format: Package
• Copyright: 2008-01-01
• Publisher: Pearson College Div

Summary

For the 1 or 2 semester course in Business Statistics. This comprehensive, 17 chapter hardcover text builds student confidence by incorporating a step-by-step system for examples, exercises, and special review sections. This step-by-step framework allows students to learn by example, practice with extensive exercises that step-up in level of difficulty, and solidify their understanding of the concepts with special review sections as they prepare for their exams. It presents descriptive and inferential statistics with a rich assortment of business examples and real data with an emphasis on decision-making. There is emphasis on using statistical software as a tool, (featuring Excel and Minitab) with many examples presented in a software environment. A briefer version is also available called A Course in Business Statistics 4e.

Table of Contents

Preface	xxi
The Where, Why, and How of Data Collection	1	(26)
What Is Business Statistics?	2	(5)
Descriptive Statistics	2	(1)
Charts and Graphs	3	(2)
Inferential Tools	5	(1)
Estimation	5	(1)
Hypothesis Testing	6	(1)
Tools for Collecting Data	7	(6)
Data Collection Methods	7	(1)
Experiments	7	(1)
Telephone Surveys	8	(1)
Mail Questionnaires and Other Written Surveys	9	(1)
Direct Observation and Personal Interviews	10	(1)
Other Data Collection Methods	11	(1)
Data Collection Issues	11	(2)
Populations, Samples, and Sampling Techniques	13	(7)
Populations and Samples	13	(1)
Parameters and Statistics	14	(1)
Sampling Techniques	14	(1)
Nonstatistical Sampling	14	(1)
Statistical Sampling	15	(1)
Simple Random Sampling	15	(1)
Stratified Random Sampling	16	(1)
Systematic Random Sampling	17	(1)
Cluster Sampling	18	(2)
Data Types and Data Measurement Levels	20	(7)
Quantitative and Qualitative Data	20	(1)
Time-Series and Cross-Sectional Data	20	(1)
Data Measurement Levels	21	(1)
Nominal Data	21	(1)
Ordinal Data	21	(1)
Interval Data	22	(1)
Ratio Data	22	(1)
Summary and Conclusions	23	(2)
Key Terms	25	(1)
Chapter Exercises	25	(1)
General References	26	(1)
Graphs, Charts, and Tables--Describing Your Data	27	(46)
Frequency Distributions and Histograms	28	(19)
Frequency Distribution	28	(3)
Grouping Data by Classes	31	(2)
Steps for Grouping Data into Classes	33	(3)
Histograms	36	(2)
Issues with Excel	38	(2)
Relative Frequency Histograms and Ogives	40	(1)
Joint Frequency Distributions	41	(6)
Bar Charts, Pie Charts, and Stem and Leaf Diagrams	47	(10)
Bar Charts	47	(5)
Pie Charts	52	(1)
Stem and Leaf Diagrams	53	(4)
Line Charts and Scatter Diagrams	57	(16)
Line Charts	57	(3)
Scatter Diagrams	60	(5)
Summary and Conclusions	65	(1)
Equations	66	(1)
Key Terms	66	(1)
Chapter Exercises	66	(3)
Case 2-A: AJ's Fitness Center	69	(1)
Case 2-B: Westbrook Graphic Arts	70	(1)
General References	70	(3)
Describing Data Using Numerical Measures	73	(54)
Measures of Center and Location	74	(20)
Parameters and Statistics	74	(1)
Population Mean	74	(3)
Sample Mean	77	(2)
The Impact of Extreme Values on the Mean	79	(1)
Median	79	(1)
Skewed and Symmetric Distributions	80	(2)
Mode	82	(1)
Applying the Measures of Central Tendency	83	(1)
Issues with Excel	84	(1)
Other Measures of Location	85	(1)
Weighted Mean	85	(1)
Percentiles	86	(2)
Quartiles	88	(1)
Issues with Excel	88	(1)
Box and Whisker Plots	88	(3)
Data Level Issues	91	(3)
Measures of Variation	94	(10)
Range	95	(1)
Interquartile Range	95	(2)
Population Variance and Standard Deviation	97	(2)
Sample Variance and Standard Deviation	99	(5)
Using the Mean and the Standard Deviation Together	104	(23)
Coefficient of Variation	105	(1)
The Empirical Rule	106	(2)
Tchebysheff's Theorem	108	(1)
Standardized Data Values	108	(4)
Summary and Conclusions	112	(1)
Equations	113	(1)
Key Terms	113	(1)
Chapter Exercises	114	(3)
Case 3-A: Wilson Corporation	117	(1)
Case 3-B: Holcome Financial Planners	118	(1)
Case 3-C: AJ's Fitness Center	119	(1)
General References	119	(2)
Special Review Section	121	(1)
Chapters 1--3	121	(3)
Exercises	124	(2)
Review Case 1: State Department of Insurance	126	(1)
Using Probability and Probability Distributions	127	(48)
The Basics of Probability	128	(11)
Important Probability Terms	128	(1)
Events and Sample Space	129	(1)
Using Tree Diagrams	130	(2)
Mutually Exclusive Events	132	(1)
Independent and Dependent Events	133	(1)
Methods of Assigning Probability	134	(1)
Classical Probability Assessment	134	(1)
Relative Frequency of Occurrence	135	(2)
Subjective Probability Assessment	137	(2)
The Rules of Probability	139	(20)
Measuring Probabilities	139	(1)
Possible Values and Sum	139	(1)
Addition Rule for Elementary Events	140	(1)
Complement Rule	141	(4)
Addition Rule for Mutually Exclusive Events	145	(1)
Conditional Probability	146	(2)
Tree Diagrams	148	(1)
Conditional Probability for Independent Events	149	(1)
Multiplication Rules	150	(1)
Multiplication Rule for Two Events	150	(1)
Using a Tree Diagram	151	(1)
Multiplication Rule for Independent Events	152	(1)
Bayes' Theorem	153	(1)
Bayes' Theorem Using a Tree Diagram	154	(5)
Introduction to Probability Distributions	159	(16)
Random Variables	159	(1)
Comparing Discrete and Continuous Probability Distributions Graphically	160	(2)
Mean and Standard Deviation of Discrete Distributions	162	(1)
Calculating the Mean	162	(1)
Calculating the Standard Deviation	162	(1)
Working with Two Discrete Random Variables	163	(1)
Expected Value of the Sum of Two Discrete Random Variables	163	(1)
Covariance of Two Discrete Random Variables	164	(1)
Correlation Between Two Discrete Random Variables	165	(3)
Summary and Conclusions	168	(1)
Equations	169	(1)
Key Terms	169	(1)
Chapter Exercises	170	(3)
Case 4-A: Great Air Commuter Services	173	(1)
Case 4-B: Let's Make a Deal	173	(1)
General References	174	(1)
Discrete and Continuous Probability Distributions	175	(52)
The Binomial Probability Distribution	176	(13)
The Binomial Distribution	176	(1)
Characteristics of the Binomial Distribution	177	(2)
Combinations	179	(1)
Binomial Formula	179	(2)
Using the Binomial Distribution Table	181	(2)
Mean and Standard Deviation of the Binomial Distribution	183	(1)
Mean of a Binomial Distribution	183	(2)
Standard Deviation of a Binomial Distribution	185	(1)
Additional Information about the Binomial Distribution	186	(3)
Other Discrete Probability Distributions	189	(10)
The Poisson Distribution	189	(1)
Characteristics of the Poisson Distribution	189	(1)
Poisson Probability Distribution Table	190	(2)
The Mean and Standard Deviation of the Poisson Distribution	192	(2)
The Hypergeometric Distribution	194	(3)
The Hypergeometric Distribution With More Than Two Possible Outcomes Per Trial	197	(2)
The Normal Probability Distribution	199	(14)
The Normal Distribution	199	(1)
The Standard Normal Distribution	200	(2)
Using the Standard Normal Table	202	(7)
Approximate Areas under the Normal Curve	209	(4)
Other Continuous Probability Distributions	213	(14)
Uniform Probability Distribution	213	(2)
The Exponential Probability Distribution	215	(3)
Summary and Conclusions	218	(1)
Equations	219	(1)
Key Terms	220	(1)
Chapter Exercises	220	(4)
Case 5-A: East Mercy Medical Center	224	(1)
Case 5-B: Rutledge Collections	225	(1)
Case 5-C: American Oil Company	225	(1)
Case 5-D: Boise Cascade Corporation	226	(1)
General References	226	(1)
Introduction to Sampling Distributions	227	(38)
Sampling Error: What It Is and Why It Happens	228	(7)
Calculating Sampling Error	228	(3)
The Role of Sample Size in Sampling Error	231	(4)
Sampling Distribution of the Mean	235	(15)
Simulating the Sampling Distribution for x	235	(3)
Sampling from Normal Populations	238	(4)
The Central Limit Theorem	242	(8)
Sampling Distribution of a Proportion	250	(15)
Working with Proportions	250	(2)
Sampling Distribution of p	252	(5)
Summary and Conclusions	257	(1)
Equations	257	(1)
Key Terms	258	(1)
Chapter Exercises	258	(4)
Case 6-A: Carpita Bottling Company	262	(1)
Case 6-B: Truck Safety Inspection	262	(1)
Case 6-C: Houston Nut and Candy Company	263	(1)
General References	263	(2)
Estimating Population Values	265	(38)
Point and Confidence Interval Estimates for a Population Mean	266	(19)
Point Estimates and Confidence Intervals	266	(2)
Confidence Interval Estimate for the Population Mean, σ Known	268	(1)
Confidence Interval Calculation	269	(3)
Impact of the Confidence Level on the Interval Estimate	272	(3)
Impact of the Sample Size on the Interval Estimate	275	(1)
Confidence Interval Estimate for the Population Mean, σ Unknown	275	(1)
Student's t-Distribution	275	(5)
Estimation with Larger Sample Sizes	280	(5)
Determining the Required Sample Size for Estimating the Population Mean	285	(5)
Determining the Required Sample Size for Estimating μ, σ Known	285	(2)
Determining the Required Sample Size for Estimating μ, σ Unknown	287	(3)
Estimating a Population Proportion	290	(13)
Confidence Interval Estimate for a Population Proportion	291	(1)
Determining the Required Sample Size for Estimating a Population Proportion	292	(4)
Summary and Conclusions	296	(1)
Equations	296	(1)
Key Terms	297	(1)
Chapter Exercises	297	(3)
Case 7-A: Duro Industries, Inc.	300	(1)
Case 7-B: Management Solutions, Inc.	300	(1)
General References	301	(2)
Introduction to Hypothesis Testing	303	(42)
Hypothesis Tests for Means	304	(23)
Formulating the Hypothesis	304	(1)
Null and Alternative Hypotheses	304	(2)
The Research Hypotheses	306	(1)
Types of Statistical Errors	307	(1)
Significance Level and Critical Value	308	(1)
Hypothesis Test for μ, σ Known, Large Sample	309	(1)
Calculating Critical Values Test	309	(1)
Decision Rules and Statistics	310	(3)
p-Values	313	(1)
Types of Hypothesis Tests	314	(2)
p-Value for Two-Tailed Tests	316	(2)
Hypothesis Test for μ with σ Unknown, Large Sample	318	(1)
Hypothesis Test for μ, σ Unknown, Small Sample	319	(3)
Using the t-Distribution with Large Sample Sizes	322	(5)
Hypothesis Tests for Proportions	327	(5)
Testing a Hypothesis about a Single Population Proportion	327	(5)
Type II Errors	332	(13)
Calculating Beta	332	(2)
Controlling Alpha and Beta	334	(1)
Power of the Test	335	(2)
Summary and Conclusions	337	(1)
Equations	337	(2)
Key Terms	339	(1)
Chapter Exercises	339	(4)
Case 8-A: Campbell Brewery, Inc., Part I	343	(1)
General References	344	(1)
Estimation and Hypothesis Testing for Two Population Parameters	345	(42)
Estimation for Two Population Means	346	(12)
Estimating the Difference Between Two Population Means When σ1 and σ2 Are Known, Large Independent Samples	346	(2)
Estimating the Difference Between Two Population Means When σ1 and σ2 Are Unknown, Large Independent Samples	348	(1)
Estimating the Difference Between Two Population Means When σ1 and σ2 Are Unknown, Small Independent Samples	349	(3)
What If the Population Variances Are Not Equal?	352	(1)
Interval Estimation for Paired Samples	352	(6)
Hypothesis Tests for the Difference Between Two Population Means	358	(15)
Testing for μ1 -- μ2 When σ1 and σ2 Are Known, Large Independent Samples	359	(1)
Using p-Values	360	(1)
Testing μ1 -- μ2 When σ1 and σ2 Are Unknown, Large Independent Samples	360	(2)
Testing μ1 -- μ2 When σ1 and σ2 Are Unknown, Small Independent Samples	362	(6)
What If the Population Variances Are Not Equal?	368	(1)
Hypothesis Testing for Paired Samples	368	(5)
Estimation and Hypothesis Tests for Two Population Proportions	373	(14)
Estimating the Difference Between Two Population Proportions	374	(1)
Hypothesis Tests for the Difference Between Two Population Proportions	375	(5)
Summary and Conclusions	380	(1)
Equations	380	(2)
Key Terms	382	(1)
Chapter Exercises	382	(3)
Case 9-A: Green Valley Assembly Company	385	(1)
Case 9-B: U-Need-It Rental Agency	385	(1)
General References	386	(1)
Hypothesis Tests for One and Two Population Variances	387	(20)
Hypothesis Tests for a Single Population Variance	388	(5)
Chi-Square Test for a Single Population Variance	388	(5)
Hypothesis Tests for Two Population Variances	393	(14)
F-test for Two Population Variances	393	(8)
Additional F-Test Considerations	401	(2)
Summary and Conclusions	403	(1)
Equations	403	(1)
Key Terms	403	(1)
Chapter Exercises	404	(2)
General References	406	(1)
Analysis of Variance	407	(68)
One-Way Analysis of Variance	408	(21)
The Logic Behind One-Way ANOVA	408	(3)
Partitioning the Sum of Squares	411	(1)
The ANOVA Assumptions	412	(3)
Applying One-Way ANOVA	415	(7)
The Tukey-Kramer Procedure for Multiple Comparisons	422	(4)
Fixed Effects Versus Random Effects in Analysis of Variance	426	(3)
Randomized Complete Block Analysis of Variance	429	(10)
Randomized Complete Block ANOVA	429	(4)
Was Blocking Necessary?	433	(3)
Fisher's Least Significant Difference Test	436	(3)
Two-Factor Analysis of Variance with Replication	439	(36)
Two-Factor ANOVA with Replications	439	(2)
Interaction Explained	441	(4)
A Caution about Interaction	445	(3)
Summary and Conclusions	448	(1)
Equations	448	(1)
Key Terms	449	(1)
Chapter Exercises	449	(3)
Case 11-A: Consumer Information Association	452	(1)
Case 11-B: West Coast Bell System	452	(1)
General References	453	(2)
Special Review Section	455	(1)
Chapters 7 to 11	455	(15)
Using the Flow Diagrams	470	(1)
Exercises	471	(4)
Goodness-Of-Fit Tests and Contingency Analysis	475	(26)
Introduction to Goodness-of-Fit Tests	476	(10)
Chi-Square Goodness-of-Fit Test	476	(10)
Introduction to Contingency Analysis	486	(15)
2 x 2 Contingency Tables	486	(4)
r x c Contingency Tables	490	(1)
Chi-Square Test Limitations	491	(4)
Summary and Conclusions	495	(1)
Key Terms	495	(1)
Chapter Exercises	495	(3)
Case 12-A: American Oil Company	498	(1)
Case 12-B: Bentford Electronics, Part 1	498	(1)
General References	499	(2)
Introduction to Linear Regression and Correlation Analysis	501	(50)
Scatter Plots and Correlation	502	(10)
Correlation Versus Regression	503	(1)
The Correlation Coefficient	503	(2)
Significance Test for the Correlation	505	(4)
Cause-and-Effect Interpretations	509	(3)
Simple Linear Regression Analysis	512	(20)
The Regression Model and Assumptions	512	(1)
Meaning of the Regression Coefficients	513	(6)
Least Squares Regression Properties	519	(2)
Significance Tests in Regression Analysis	521	(3)
Significance of the Slope Coefficient	524	(8)
Uses for Regression Analysis	532	(19)
Regression Analysis for Description	532	(3)
Regression Analysis for Prediction	535	(1)
Confidence Interval for the Average y, Given x	536	(1)
Prediction Interval for a Particular y, Given x	537	(1)
Residual Analysis	538	(1)
Common Problems Using Regression Analysis	539	(4)
Summary and Conclusions	543	(1)
Equations	543	(1)
Key Terms	544	(1)
Chapter Exercises	544	(4)
Case 13-A: Alamar Industries	548	(1)
Case 13-B: Continental Trucking	548	(1)
General References	549	(2)
Multiple Regression Analysis and Model Building	551	(62)
Introduction to Multiple Regression Analysis	552	(20)
Basic Model Building Concepts	555	(1)
Model Specification	555	(1)
Model Building	556	(1)
Model Diagnosis	556	(3)
Computing the Regression Equation	559	(2)
The Coefficient of Determination	561	(1)
Is the Model Significant?	562	(1)
Are the Individual Variables Significant?	563	(1)
Is the Standard Deviation of the Regression Model Too Large?	564	(2)
Is Multicollinearity a Problem?	566	(2)
Confidence Interval Estimation for Regression Coefficients	568	(4)
Using Qualitative Independent Variables	572	(6)
Working with Nonlinear Relationships	578	(12)
Analyzing Interaction Effects	584	(6)
Stepwise Regression	590	(7)
Forward Selection	590	(4)
Standard Stepwise Regression	594	(1)
Best Subsets Regression	595	(2)
Determining the Aptness of the Model	597	(16)
Analysis of Residuals	597	(1)
Checking for Linearity	597	(1)
Do the Residuals Have a Constant Variance?	598	(2)
Are the Residuals Independent?	600	(1)
Checking for Normally Distributed Error Terms	601	(3)
Corrective Actions	604	(2)
Summary and Conclusions	606	(1)
Equations	607	(1)
Key Terms	607	(1)
Chapter Exercises	608	(3)
Case 14-A: Dynamic Scales, Inc.	611	(1)
General References	612	(1)
Analyzing and Forecasting Time-Series Data	613	(56)
Introduction to Forecasting, Time-Series Data, and Index Numbers	614	(14)
General Forecasting Issues	614	(1)
Components of a Time Series	615	(2)
Trend Component	617	(1)
Seasonal Component	618	(1)
Cyclical Component	619	(1)
Random Component	619	(1)
Introduction to Index Numbers	620	(1)
Aggregate Price Indexes	621	(1)
Weighted Aggregate Price Indexes	622	(1)
The Paasche Index	622	(2)
The Laspeyres Index	624	(1)
Commonly Used Index Numbers	625	(1)
Consumer Price Index	625	(1)
Producer Price Index	625	(1)
Stock Market Indexes	626	(1)
Using Index Numbers to Deflate a Time Series	626	(2)
Trend-Based Forecasting Techniques	628	(24)
Developing a Trend-Based Forecasting Model	628	(3)
Comparing the Forecast Values to the Actual Data	631	(1)
Autocorrelation	632	(5)
True Forecasts	637	(1)
Nonlinear Trend Forecasting	638	(4)
Some Words of Caution	642	(1)
Adjusting for Seasonality	642	(1)
Computing Seasonal Indexes	643	(3)
The Need to Normalize the Indexes	646	(1)
Deseasonalizing	646	(6)
Forecasting Using Smoothing Methods	652	(17)
Exponential Smoothing	652	(1)
Single Exponential Smoothing	653	(4)
Double Exponential Smoothing	657	(5)
Summary and Conclusions	662	(1)
Equations	662	(1)
Key Terms	663	(1)
Chapter Exercises	663	(3)
Case 15-A: Park Falls Chamber of Commerce	666	(1)
Case 15-B: The St. Louis Companies	666	(1)
Case 15-C: Wagner Machine Works	667	(1)
General References	667	(2)
Introduction to Nonparametric Statistics	669	(30)
The Wilcoxon Signed Rank Test for One Population Center	670	(5)
The Wilcoxon Signed Rank Test---Single Population	670	(5)
Nonparametric Tests for Two Population Centers	675	(12)
The Mann-Whitney U Test	675	(3)
Mann-Whitney U Test---Large Samples	678	(2)
The Wilcoxon Matched-Pairs Signed Rank Test	680	(2)
Ties in the Data	682	(1)
Large-Sample Wilcoxon Test	682	(5)
Kruskal-Wallis One-Way Analysis of Variance	687	(12)
Limitations and Other Considerations	690	(3)
Summary and Conclusions	693	(1)
Equations	694	(1)
Chapter Exercises	694	(3)
Case 16-A: Bentford Electronics, Part 2	697	(1)
General References	697	(2)
Introduction to Quality and Statistical Process Control	699	(30)
Quality Management and Tools for Process Improvement	700	(3)
The Tools of Quality for Process Improvement	701	(1)
Process Flowcharts	702	(1)
Brainstorming	702	(1)
Fishbone Diagram	702	(1)
Histograms	702	(1)
Trend Charts	702	(1)
Scatter Plots	703	(1)
Statistical Process Control Charts	703	(1)
Introduction to Statistical Process Control Charts	703	(26)
The Existence of Variation	704	(1)
Sources of Variation	704	(1)
Types of Variation	705	(1)
The Predictability of Variation: Understanding the Normal Distribution	705	(1)
The Concept of Stability	705	(1)
Introducing Statistical Process Control Charts	706	(1)
x-Chart and R-Chart	706	(6)
Using the Control Charts	712	(3)
p-Charts	715	(2)
Using the p-Chart	717	(1)
c-Charts	718	(3)
Other Control Charts	721	(3)
Summary and Conclusions	724	(1)
Equations	724	(1)
Key Terms	725	(1)
Chapter Exercises	725	(1)
Case 17-A: Izbar Precision Casters, Inc.	726	(1)
General References	727	(2)
Introduction to Decision Analysis
Decision-Making Environments and Decision Criteria
Certainty
Uncertainty
Decision Criteria
Nonprobalistic Decision Criteria
Probabilistic Decision Criteria
Cost of Uncertainity
Decision-Tree Analysis
Harris Publishing Company
Step 1: Growing the Tree
Step 2: Assigning the Probabilities
Step 3: Assigning the Cash Flow
Step 4: Folding Back the Tree
Sensitivity Analysis
Key Terms
Chapter Exercises
Case 18-A: Rockstone International
Case 18-B: Hadden Materials and Supplies, Inc.
General References
Answers to Selected Odd-Numbered Problems
OPTIONAL CD-ROM TOPICS
Experimental Design and Tukey's Method of Multiple Comparison
Backward Elimination Regression
Regression-Based Forecasting Models
Spearman Rank Correlation
u-Charts
APPENDIXES	729	(38)
Appendix A Random Numbers Table	730	(1)
Appendix B Binomial Distribution Table	731	(7)
Appendix C Poisson Probability Distribution Table	738	(5)
Appendix D Standard Normal Distribution Table	743	(1)
Appendix E Exponential Distribution Table	744	(1)
Appendix F Values of t for Selected Probabilities	745	(1)
Appendix G Values of Χ2 for Selected Probabilities	746	(1)
Appendix H F-Distribution Table	747	(6)
Appendix I Critical Values of Hartley's Fmax Test	753	(1)
Appendix J Distribution of the Studentized Range (q-values)	754	(2)
Appendix K Critical Values of r in the Runs Test	756	(1)
Appendix L Mann-Whitney U Test Probabilities (n < 9)	757	(2)
Appendix M Mann-Whitney U Test Critical Values (9 ≤ n ≤ 20)	759	(2)
Appendix N Critical Values of T in the Wilcoxon Matched-Pairs Signed Ranks Test, (n ≤ 25)	761	(1)
Appendix O Critical Values dL and du of the Durbin-Watson Statistic D	762	(2)
Appendix P Lower and Upper Critical Values of Wilcoxon Signed-Ranks Test	764	(1)
Appendix Q Control Chart Factors	765	(2)
Answers to Selected Odd-Numbered Problems	767	(32)
Glossary	799	(6)
Index	805