Complete Business Statistics with Student CD

by Aczel, Amir D.; Sounderpandian, Jayavel

• ISBN13: 9780073126982
• ISBN10: 0073126985
• Edition: 6th
• Format: Hardcover
• Copyright: 2005-01-10
• Publisher: McGraw-Hill/Irwin

Summary

Statistical integrity with a complete Excel solution, this new edition of Complete Business Statistics offers revised sections on regression analysis and updated cases highlighting companies across the globe.

Table of Contents

Working with Templates	2	(20)
The Idea of Templates	3	(2)
The Dangers of Templates and How to Avoid Them	3	(1)
Conventions Employed in the Templates	4	(1)
Working with Templates	5	(1)
Protecting and Unprotecting a Sheet	5	(1)
Entering Data into the Templates	5	(1)
The AutoCalculate Command	6	(1)
The Datal Table Command	7	(1)
The Goal Seek Command	8	(1)
The Solver Macro	9	(3)
Solver Installation	9	(3)
Some Formatting Tips	12	(1)
Saving the Templates	13	(9)
Chapter Appendix: Introduction to Excel Basics	14	(8)
Introduction and Descriptive Statistics	22	(52)
Using Statistics	23	(5)
Samples and Populations	25	(1)
Data and Data Collection	25	(3)
Percentiles and Quartiles	28	(3)
Measures of Central Tendency	31	(4)
Measures of Variability	35	(5)
Grouped Data and the Histogram	40	(3)
Skewness and Kurtosis	43	(1)
Relations between the Mean and the Standard Deviation	44	(1)
Chebyshev's Theorem	44	(1)
The Empirical Rule	45	(1)
Methods of Displaying Data	45	(6)
Pie Charts	46	(1)
Bar Charts	46	(1)
Frequency Polygons and Ogives	46	(1)
A Caution about Graphs	47	(2)
Time Plots	49	(2)
Exploratory Data Analysis	51	(7)
Stem-and-Leaf Displays	51	(1)
Box Plots	52	(6)
Using the Computer	58	(7)
Percentile and Percentile Rank Computation	58	(1)
Histograms	58	(1)
Pie Charts	59	(1)
Bar Charts	59	(1)
Box Plots	60	(1)
Time Plots	60	(1)
Scatter Plots	61	(4)
Summary and Review of Terms	65	(9)
Case 1: NASDAQ Volatility	73	(1)
Probability	74	(42)
Using Statistics	75	(2)
Basic Definitions: Events, Sample Space, and Probabilities	77	(5)
Basic Rules for Probability	82	(4)
The Range of Values	82	(1)
The Rule of Complements	83	(1)
Mutually Exclusive Events	84	(2)
Conditional Probability	86	(5)
Independence of Events	91	(5)
Product Rules for Independent Events	93	(3)
Combinatorial Concepts	96	(3)
The Law of Total Probability and Bayes' Theorem	99	(6)
The Law of Total Probability	99	(2)
Bayes' Theorem	101	(4)
The Joint Probability Table	105	(1)
Using the Computer	106	(3)
Summary and Review of Terms	109	(7)
Case 2: Job Applications	114	(2)
Random Variables	116	(58)
Using Statistics	117	(11)
Discrete and Continuous Random Variables	121	(1)
Cumulative Distribution Function	122	(6)
Expected Values of Discrete Random Variables	128	(5)
The Expected Value of a Function of a Random Variable	129	(1)
Variance and Standard Deviation of a Random Variable	130	(2)
Variance of a Linear Function of a Random Variable	132	(1)
Sum and Linear Composites of Random Variables	133	(5)
Chebyshev's Theorem	134	(1)
The Templates for Random Variables	135	(3)
The Use of Standard Random Variables	138	(1)
Bernoulli Random Variable	138	(1)
The Binomial Random Variable	139	(5)
Conditions for a Binomial Random Variable	140	(1)
Binomial Distribution Formulas	140	(1)
The Template	141	(1)
Problem Solving with the Template	141	(3)
Negative Binomial Distribution	144	(2)
Negative Binomial Distribution Formulas	145	(1)
Problem Solving with the Template	145	(1)
The Geometric Distribution	146	(1)
Geometric Distribution Formulas	146	(1)
Problem Solving with the Template	147	(1)
The Hypergeometric Distribution	147	(3)
Hypergeometric Distribution Formulas	148	(1)
Problem Solving with the Template	149	(1)
The Poisson Distribution	150	(2)
Problem Solving with the Template	151	(1)
Continuous Random Variables	152	(3)
Uniform Distribution	155	(1)
Problem Solving with the Template	156	(1)
The Exponential Distribution	156	(3)
A Remarkable Property	157	(1)
The Template	157	(2)
Value at Risk	159	(1)
Summary and Review of Terms	159	(13)
Case 3: Microchip Contract	170	(1)
Case 4: Cereal Promotion	171	(1)
Chapter Appendix: Excel Formulas for Some Standard Distributions	172	(2)
The Normal Distribution	174	(32)
Using Statistics	175	(1)
Properties of the Normal Distribution	176	(2)
The Template	178	(3)
Problem Solving with the Template	179	(2)
Finding Normal Probabilities Using the Tables	181	(1)
The Standard Normal Distribution	181	(5)
Finding Probabilities of the Standard Normal Distribution	181	(3)
Finding Values of Z Given a Probability	184	(2)
The Transformation of Normal Random Variables	186	(7)
Using the Normal Transformation	188	(5)
The Inverse Transformation	193	(4)
Normal Approximation of Binomial Distributions	197	(2)
Summary and Review of Terms	199	(7)
Case 5: Acceptable Pins	204	(1)
Case 6: Multicurrency Decision	204	(1)
Chapter Appendix: Excel Functions for a Normal Distribution	205	(1)
Sampling and Sampling Distributions	206	(36)
Using Statistics	207	(2)
Sample Statistics as Estimators of Population Parameters	209	(6)
Obtaining a Random Sample	212	(1)
Other Sampling Methods	213	(1)
Nonresponse	214	(1)
Sampling Distributions	215	(12)
The Central Limit Theorem	218	(5)
The History of the Central Limit Theorem	223	(1)
The Standardized Sampling Distribution of the Sample Mean When a Is Not Known	223	(1)
The Sampling Distribution of the Sample Proportion P	224	(3)
Estimators and Their Properties	227	(3)
Applying the Concepts of Unbiasedness, Efficiency, Consistency, and Sufficiency	229	(1)
Degrees of Freedom	230	(5)
The Template	235	(1)
Summary and Review of Terms	236	(6)
Case 7: Acceptance Sampling of Pins	240	(2)
Confidence Intervals	242	(36)
Using Statistics	243	(1)
Confidence Interval for the Population Mean When the Population Standard Deviation Is Known	244	(8)
The Template	249	(3)
Confidence Intervals for μ When σ Is Unknown---The t Distribution	252	(7)
The t Distribution	257	(2)
Large-Sample Confidence Intervals for the Population Proportion p	259	(3)
The Template	260	(2)
Confidence Intervals for the Population Variance	262	(4)
The Template	265	(1)
Sample-Size Determination	266	(3)
The Templates	269	(3)
Optimizing Population Mean Estimates	269	(1)
Determining the Optimal Half-Width	269	(1)
Using the Solver	270	(1)
Optimizing Population Proportion Estimates	271	(1)
Summary and Review of Terms	272	(6)
Case 8: Presidential Polling	275	(1)
Case 9: Privacy Problem	276	(2)
Hypothesis Testing	278	(46)
Using Statistics	279	(4)
The Null Hypothesis	279	(4)
The Concepts of Hypothesis Testing	283	(6)
Evidence Gathering	283	(1)
Type I and Type II Errors	283	(1)
The p-Value	284	(1)
The Significance Level	285	(2)
Optimal α and the Compromise between Type I and Type II Errors	287	(1)
β and Power	287	(1)
Sample Size	288	(1)
Computing the p-Value	289	(6)
The Test Statistic	289	(1)
p-Value Calculations	289	(2)
One-Tailed and Two- Tailed Tests	291	(2)
Computing β	293	(2)
The Hypothesis Test	295	(17)
Testing Population Means	295	(1)
A Note on t Tables and p-Values	296	(1)
The Templates	297	(3)
Testing Population Proportions	300	(1)
Testing Population Variances	301	(11)
Pretest Decisions	312	(9)
Testing Population Means	313	(1)
Manual Calculation of Required Sample Size	314	(3)
Testing Population Proportions	317	(2)
Manual Calculation of Sample Size	319	(2)
Summary and Review of Terms	321	(3)
Case 10: Tiresome Tires I	322	(2)
The Comparison of Two Populations	324	(44)
Using Statistics	325	(1)
Paired-Observation Comparisons	326	(7)
The Template	328	(1)
Confidence Intervals	329	(1)
The Template	330	(3)
A Test for the Difference between Two Population Means Using Independent Random Samples	333	(13)
The Templates	336	(2)
Confidence Intervals	338	(2)
The Templates	340	(3)
Confidence Intervals	343	(3)
A Large-Sample Test for the Difference between Two Population Proportions	346	(5)
Confidence Intervals	348	(1)
The Template	349	(2)
The F Distribution and a Test for Equality of Two Population Variances	351	(13)
A Statistical Test for Equality of Two Population Variances	354	(3)
The Templates	357	(2)
Summary and Review of Terms	359	(5)
Case 11: Tiresome Tires II	364	(4)
Chapter Appendix: Using Excel for Testing Difference in Population Means	364	(4)
Analysis of Variance	368	(58)
Using Statistics	369	(1)
The Hypothesis Test of Analysis of Variance	370	(5)
The Test Statistic	372	(3)
The Theory and the Computations of ANOVA	375	(10)
The Sum-of-Squares Principle	379	(3)
The Degrees of Freedom	382	(1)
The Mean Squares	383	(1)
The Expected Values of the Statistics MSTR and MSE under the Null Hypothesis	383	(1)
The F Statistic	383	(2)
The ANOVA Table and Examples	385	(6)
Further Analysis	391	(6)
The Tukey Pairwise-Comparisons Test	393	(2)
Conducting the Tests	395	(1)
The Case of Unequal Sample Sizes, and Alternative Procedures	396	(1)
The Template	396	(1)
Models, Factors, and Designs	397	(3)
One-Factor versus Multifactor Models	398	(1)
Fixed-Effects versus Random-Effects Models	398	(1)
Experimental Design	399	(1)
Two-Way Analysis of Variance	400	(13)
The Two-Way ANOVA Model	401	(1)
The Hypothesis Tests in Two-Way ANOVA	402	(1)
Sums of Squares, Degrees of Freedom, and Mean Squares	403	(1)
The F Ratios and the Two-Way ANOVA Table	404	(3)
The Template	407	(1)
The Overall Significance Level	407	(1)
The Tukey Method for Two-Way Analysis	408	(1)
Extension of ANOVA to Three Factors	409	(1)
Two-Way ANOVA with One Observation per Cell	409	(4)
Blocking Designs	413	(4)
Randomized Complete Block Design	413	(3)
The Template	416	(1)
Summary and Review of Terms	417	(9)
Case 12: Uniform Uniforms	420	(1)
Case 13: Checking Out Checkout	421	(1)
Appendix: ANOVA Using Excel Commands	422	(4)
Simple Linear Regression and Correlation	426	(64)
Using Statistics	427	(2)
Model Building	428	(1)
The Simple Linear Regression Model	429	(3)
Estimation: The Method of Least Squares	432	(10)
The Template	439	(3)
Error Variance and the Standard Errors of Regression Estimators	442	(6)
Confidence Intervals for the Regression Parameters	445	(3)
Correlation	448	(4)
Hypothesis Tests about the Regression Relationship	452	(5)
Other Tests	455	(2)
How Good Is the Regression?	457	(4)
Analysis-of-Variance Table and an F Test of the Regression Model	461	(2)
Residual Analysis and Checking for Model Inadequacies	463	(1)
A Check for the Equality of Variance of the Errors	463	(9)
Testing for Missing Variables	464	(1)
Detecting a Curvilinear Relationship between Y and X	464	(1)
The Normal Probability Plot	465	(7)
Use of the Regression Model for Prediction	472	(4)
Point Predictions	473	(1)
Prediction Intervals	473	(2)
A Confidence Interval for the Average Y, Given a Particular Value of X	475	(1)
The Solver Method for Regression	476	(3)
Linear Composites of Dependent Random Variables	479	(5)
The Case of Independent Random Variables	479	(2)
The Template	481	(1)
The Case of Dependent Random Variables	481	(2)
The Template	483	(1)
Summary and Review of Terms	484	(6)
Case 14: Return on Capital in Health Care	486	(1)
Case 15: Risk and Return	487	(1)
Chapter Appendix: The LINEST Function	488	(2)
Multiple Regression	490	(92)
Using Statistics	491	(2)
The k-Variable Multiple Regression Model	493	(4)
The Estimated Regression Relationship	496	(1)
The F Test of a Multiple Regression Model	497	(4)
How Good Is the Regression?	501	(5)
Tests of the Significance of Individual Regression Parameters	506	(11)
Testing the Validity of the Regression Model	517	(7)
Residual Plots	517	(2)
Standardized Residuals	519	(1)
The Normal Probability Plot	519	(1)
Outliers and Influential Observations	519	(3)
Lack of Fit and Other Problems	522	(2)
Using the Multiple Regression Model for Prediction	524	(3)
The Template	526	(1)
Setting Recalculation to ``Manual'' on the Template	526	(1)
Qualitative Independent Variables	527	(10)
Interactions between Qualitative and Quantitative Variables	534	(3)
Polynomial Regression	537	(8)
Other Variables and Cross-Product Terms	541	(4)
Nonlinear Models and Transformations	545	(10)
Variance-Stabilizing Transformations	551	(1)
Regression with Dependent Indicator Variable	552	(3)
Multicollinearity	555	(8)
Causes of Multicollinearity	556	(1)
Detecting the Existence of Multicollinearity	557	(4)
Solutions to the Multicollinearity Problem	561	(2)
Residual Autocorrelation and the Durbin-Watson Test	563	(3)
Partial F Tests and Variable Selection Methods	566	(6)
Partial F Tests	566	(3)
Variable Selection Methods	569	(3)
Multiple Regression Using the Solver	572	(2)
A Comment on R2	573	(1)
Summary and Review of Terms	574	(8)
Case 16: Return on Capital for Four Different Sectors	576	(3)
Chapter Appendix: LINEST Function for Multiple Regression	579	(3)
Time Series, Forecasting, and Index Numbers	582	(34)
Using Statistics	583	(2)
Trend Analysis	585	(5)
Seasonality and Cyclical Behavior	590	(3)
The Ratio-to-Moving-Average Method	593	(9)
The Template	598	(1)
The Cyclical Component of the Series	598	(1)
Forecasting a Multiplicative Series	599	(3)
Exponential Smoothing Methods	602	(5)
The Template	606	(1)
Index Numbers	607	(6)
The Consumer Price Index	610	(2)
The Template	612	(1)
Summary and Review of Terms	613	(3)
Case 17: Auto Parts Sales Forecast	615	(1)
Quality Control and Improvement	616	(24)
Using Statistics	617	(1)
W. Edwards Deming Instructs	618	(1)
Statistics and Quality	619	(7)
Deming's 14 Points	619	(1)
Process Capability	620	(1)
Control Charts	620	(3)
Pareto Diagrams	623	(1)
The Template	624	(1)
Acceptance Sampling	624	(1)
Analysis of Variance and Experimental Design	624	(1)
Taguchi Methods	625	(1)
The X Chart	626	(4)
The Template	628	(2)
The R Chart and the s Chart	630	(3)
The R Chart	630	(1)
The s Chart	630	(3)
The p Chart	633	(2)
The Template	634	(1)
The c Chart	635	(2)
The Template	636	(1)
The x Chart	637	(1)
Summary and Review of Terms	637	(3)
Case 18: Quality Control and Improvement at Nashua Corporation	638	(2)
Nonparametric Methods and Chi-Square Tests	640	(64)
Using Statistics	641	(1)
The Sign Test	642	(5)
The Runs Test---A Test for Randomness	647	(5)
Large-Sample Properties	648	(1)
The Template	649	(1)
The Wald-Wolfowitz Test	649	(3)
The Mann-Whitney U Test	652	(7)
The Computational Procedure	653	(4)
The Template	657	(2)
The Wilcoxon Signed-Rank Test	659	(6)
The Paired-Observations Two-Sample Test	659	(1)
Large-Sample Version of the Test	660	(1)
A Test for the Mean or Median of a Single Population	661	(2)
The Template	663	(2)
The Kruskal-Wallis Test---A Nonparametric Alternative to One-Way ANOVA	665	(7)
The Template	667	(2)
Further Analysis	669	(3)
The Friedman Test for a Randomized Block Design	672	(4)
The Template	674	(2)
The Spearman Rank Correlation Coefficient	676	(2)
The Template	678	(10)
A Chi-Square Test for Goodness of Fit	680	(2)
A Goodness-of-Fit Test for the Multinomial Distribution	682	(1)
The Templates	683	(1)
Unequal Probabilities	683	(3)
The Template	686	(2)
Contingency Table Analysis---A Chi-Square Test for Independence	688	(6)
The Template	691	(3)
A Chi-Square Test for Equality of Proportions	694	(5)
The Median Test	696	(3)
Summary and Review of Terms	699	(5)
Case 19: The Nine Nations of North America	701	(3)
Bayesian Statistics and Decision Analysis	704	(107)
Using Statistics	705	(1)
Bayes' Theorem and Discrete Probability Models	706	(7)
The Template	710	(3)
Bayes' Theorem and Continuous Probability Distributions	713	(6)
The Normal Probability Model	714	(2)
Credible Sets	716	(1)
The Template	716	(3)
The Evaluation of Subjective Probabilities	719	(1)
Assessing a Normal Prior Distribution	719	(1)
Decision Analysis: An Overview	720	(3)
Actions	721	(1)
Chance Occurrences	721	(1)
Probabilities	722	(1)
Final Outcomes	722	(1)
Additional Information	722	(1)
Decision	722	(1)
Decision Trees	723	(9)
The Payoff Table	724	(8)
Handling Additional Information Using Bayes' Theorem	732	(14)
Determining the Payoffs	734	(1)
Determining the Probabilities	734	(9)
Utility	743	(2)
A Method of Assessing Utility	745	(1)
The Value of Information	746	(3)
Using the Computer	749	(1)
The Template	749	(62)
Summary and Review of Terms	751	(2)
Case 20: Pizzas 'R' Us	753	(1)
Case 21: New Drug Development	754	(4)
Appendix A References	758	(3)
Appendix B Answers to Most Odd-Numbered Problems	761	(12)
Appendix C Statistical Tables	773	(38)
On the CD
Sampling Methods
Using Statistics
Nonprobability Sampling and Bias
Stratified Random Sampling
Practical Applications
Confidence Intervals
The Template
Stratified Sampling for the Population Proportion
The Template
What Do We Do When the Population Strata Weights Are Unknown?
How Many Strata Should We Use?
Postsampling Stratification
Optimum Allocation
The Template
Cluster Sampling
The Relation with Stratified Sampling
Single-Stage Cluster Sampling for the Population Mean
Single-Stage Cluster Sampling for the Population
Proportion
The Templates
Two-Stage Cluster Sampling
Systematic Sampling
The Advantages of Systematic Sampling
Estimation of the Population
Mean in Systematic
Sampling
The Template
Nonresponse
Summary and Review of Terms
Case 22: The Boston Redevelopment Authority
Multivariate Analysis
Using Statistics
The Multivariate Normal Distribution
Discriminant Analysis
Developing a Discriminant Function
Evaluating the Performance of the Model
Discriminant Analysis with More than Two Groups
Principal Components and Factor Analysis
Principal Components
The Extraction of the Components
Factor Analysis
The Extraction of Factors
The Rotation of Factors
Using the Computer
Summary and Review of Terms
Case 23: Predicting Company Failure
Index	811