Essentials of Modern Business Statistics (with CD-ROM)

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

• ISBN13: 9780324312843
• ISBN10: 0324312849
• Edition: 3rd
• Format: Hardcover
• Copyright: 2006-04-07
• Publisher: South-Western College Pub

Summary

From the renowned author team that has been writing market-leading business statistics textbooks for more than 20 years, ESSENTIALS OF MODERN BUSINESS STATISTICS, 3e provides a brief introduction to business statistics that 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 Third Edition contains the same student learning features that have made ASW products best-sellers for years; features include the problem-scenario approach and real-world examples that introduce statistical techniques.

Table of Contents

Preface	xvii
About the Authors	xxiii
Data and Statistics	1	(29)
Statistics in Practice: Business Week	2	(1)
Applications in Business and Economics	3	(2)
Accounting	3	(1)
Finance	4	(1)
Marketing	4	(1)
Production	4	(1)
Economics	4	(1)
Data	5	(3)
Elements, Variables, and Observations	6	(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	(1)
Statistical Analysis Using Microsoft Excel	15	(15)
Data Sets and Excel Worksheets	16	(2)
Using Excel for Statistical Analysis	18	(1)
Summary	19	(1)
Glossary	20	(1)
Supplementary Exercises	21	(6)
Appendix 1.1 An Introduction to SWStat+	27	(3)
Descriptive Statistics: Tabular and Graphical Presentations	30	(59)
Statistics in Practice: Colgate-Palmolive Company	31	(1)
Summarizing Qualitative Data	32	(9)
Frequency Distribution	32	(1)
Using Excel's Countif Function to Construct a Frequency Distribution	33	(1)
Relative Frequency and Percent Frequency Distributions	34	(1)
Using Excel to Construct Relative Frequency and Percent Frequency Distributions	35	(1)
Bar Graphs and Pie Charts	36	(1)
Using Excel's Chart Wizard to Construct Bar Graphs and Pie Charts	36	(5)
Summarizing Quantitative Data	41	(17)
Frequency Distribution	41	(2)
Using Excel's Frequency Function to Construct a Frequency Distribution	43	(2)
Relative Frequency and Percent Frequency Distributions	45	(1)
Histogram	45	(1)
Using Excel's Chart Wizard to Construct a Histogram	46	(2)
Cumulative Distributions	48	(3)
Using Excel's Histogram Tool to Construct a Frequency Distribution and Histogram	51	(7)
Exploratory Data Analysis: The Stem-and-Leaf Display	58	(5)
Crosstabulations and Scatter Diagrams	63	(26)
Crosstabulation	63	(3)
Using Excel's PivotTable Report to Construct a Crosstabulation	66	(3)
Simpson's Paradox	69	(1)
Scatter Diagram and Trendline	70	(2)
Using Excel's Chart Wizard to Construct a Scatter Diagram and a Trendline	72	(6)
Summary	78	(2)
Glossary	80	(1)
Key Formulas	80	(1)
Supplementary Exercises	81	(6)
Case Problem Pelican Stores	87	(2)
Descriptive Statistics: Numerical Measures	89	(66)
Statistics in Practice: Small Fry Design	90	(1)
Measures of Location	91	(12)
Mean	91	(1)
Median	92	(1)
Mode	93	(1)
Using Excel to Compute the Mean, Median, and Mode	94	(1)
Percentiles	95	(1)
Quartiles	96	(1)
Using Excel's Rank and Percentile Tool to Compute Percentiles and Quartiles	97	(6)
Measures of Variability	103	(10)
Range	104	(1)
Interquartile Range	104	(1)
Variance	105	(1)
Standard Deviation	106	(2)
Using Excel to Compute the Sample Variance and Sample Standard Deviation	108	(1)
Coefficient of Variation	108	(1)
Using Excel's Descriptive Statistics Tool	108	(5)
Measures of Distribution Shape, Relative Location, and Detecting Outliers	113	(7)
Distribution Shape	113	(2)
z-Scores	115	(1)
Chebyshev's Theorem	116	(1)
Empirical Rule	116	(1)
Detecting Outliers	117	(3)
Exploratory Data Analysis	120	(5)
Five-Number Summary	120	(1)
Box Plot	121	(4)
Measures of Association Between Two Variables	125	(10)
Covarlance	125	(2)
Interpretation of the Covariance	127	(2)
Correlation Coefficient	129	(1)
Interpretation of the Correlation Coefficient	130	(2)
Using Excel to Compute the Covariance and Correlation Coefficient	132	(3)
The Weighted Mean and Working with Grouped Data	135	(20)
Weighted Mean	135	(1)
Grouped Data	136	(5)
Summary	141	(1)
Glossary	141	(1)
Key Formulas	142	(2)
Supplementary Exercises	144	(5)
Case Problem 1 Pelican Stores	149	(1)
Case Problem 2 National Health Care Association	150	(1)
Case Problem 3 Business Schools of Asia-Pacific	151	(1)
Appendix 3.1 Constructing a Box Plot Using SWStat+	151	(4)
Introduction to Probability	155	(45)
Statistics in Practice: Morton International	156	(1)
Experiments, Counting Rules, and Assigning Probabilities	157	(10)
Counting Rules, Combinations, and Permutations	157	(5)
Assigning Probabilities	162	(2)
Probabilities for the KP&L Project	164	(3)
Events and Their Probabilities	167	(4)
Some Basic Relationships of Probability	171	(6)
Complement of an Event	171	(1)
Addition Law	172	(5)
Conditional Probability	177	(8)
Independent Events	181	(1)
Multiplication Law	181	(4)
Bayes' Theorem	185	(15)
Tabular Approach	188	(1)
Using Excel to Compute Posterior Probabilities	189	(3)
Summary	192	(1)
Glossary	192	(1)
Key Formulas	193	(1)
Supplementary Exercises	194	(4)
Case Problem Hamilton County Judges	198	(2)
Discrete Probability Distributions	200	(40)
Statistics in Practice: Citibank	201	(1)
Random Variables	201	(3)
Discrete Random Variables	202	(1)
Continuous Random Variables	203	(1)
Discrete Probability Distributions	204	(6)
Expected Value and Variance	210	(5)
Expected Value	210	(1)
Variance	210	(1)
Using Excel to Compute the Expected Value, Variance, and Standard Deviation	211	(4)
Binomial Probability Distribution	215	(11)
A Binomial Experiment	216	(1)
Martin Clothing Store Problem	216	(5)
Using Excel to Compute Binomial Probabilities	221	(2)
Expected Value and Variance for the Binomial Probability Distribution	223	(3)
Poisson Probability Distribution	226	(5)
An Example Involving Time Intervals	226	(1)
An Example Involving Length or Distance Intervals	227	(1)
Using Excel to Compute Poisson Probabilities	228	(3)
Hypergeometric Probability Distribution	231	(9)
Using Excel to Compute Hypergeometric Probabilities	233	(2)
Summary	235	(1)
Glossary	235	(1)
Key Formulas	236	(1)
Supplementary Exercises	237	(3)
Continuous Probability Distributions	240	(31)
Statistics in Practice: Procter & Gamble	241	(1)
Uniform Probability Distribution	242	(4)
Area as a Measure of Probability	243	(3)
Normal Probability Distribution	246	(15)
Normal Curve	246	(2)
Standard Normal Probability Distribution	248	(5)
Computing Probabilities for Any Normal Probability Distribution	253	(1)
Grear Tire Company Problem	254	(2)
Using Excel to Compute Normal Probabilities	256	(5)
Exponential Probability Distribution	261	(10)
Computing Probabilities for the Exponential Distribution	262	(1)
Relationship Between the Poisson and Exponential Distributions	263	(1)
Using Excel to Compute Exponential Probabilities	263	(3)
Summary	266	(1)
Glossary	266	(1)
Key Formulas	266	(1)
Supplementary Exercises	267	(2)
Case Problem Specialty Toys	269	(2)
Sampling and Sampling Distribution	271	(37)
Statistics in Practice: MeadWestvaco Corporation	272	(1)
The Electronics Associates Sampling Problem	273	(1)
Simple Random Sampling	274	(6)
Sampling from a Finite Population	274	(4)
Sampling from an Infinite Population	278	(2)
Point Estimation	280	(3)
Introduction to Sampling Distributions	283	(3)
Sampling Distribution of x	286	(10)
Expected Value of x	286	(1)
Standard Deviation of x	287	(1)
Form of the Sampling Distribution of x	288	(2)
Sampling Distribution of x for the EAI Problem	290	(1)
Practical Value of the Sampling Distribution of x	290	(2)
Relationship Between Sample Size and the Sampling Distribution of x	292	(4)
Sampling Distribution of p	296	(5)
Expected Value of p	296	(1)
Standard Deviation of p	297	(1)
Form of the Sampling Distribution of p	297	(1)
Practical Value of the Sampling Distribution of p	298	(3)
Sampling Methods	301	(7)
Stratified Random Sampling	301	(1)
Cluster Sampling	301	(1)
Systematic Sampling	302	(1)
Convenience Sampling	303	(1)
Judgment Sampling	303	(1)
Summary	304	(1)
Glossary	304	(1)
Key Formulas	305	(1)
Supplementary Exercises	305	(3)
Interval Estimation	308	(39)
Statistics in Practice: Food Lion	309	(1)
Population Mean: σ Known	310	(8)
Margin of Error and the Interval Estimate	310	(4)
Using Excel	314	(2)
Practical Advice	316	(2)
Population Mean: σ Unknown	318	(10)
Margin of Error and the Interval Estimate	319	(3)
Using Excel	322	(1)
Practical Advice	323	(1)
Using a Small Sample	323	(2)
Summary of Interval Estimation Procedures	325	(3)
Determining the Sample Size	328	(3)
Population Proportion	331	(16)
Using Excel	332	(2)
Determining the Sample Size	334	(4)
Summary	338	(1)
Glossary	339	(1)
Key Formulas	339	(1)
Supplementary Exercises	340	(3)
Case Problem 1 Bock Investment Services	343	(1)
Case Problem 2 Gulf Real Estate Properties	343	(3)
Case Problem 3 Metropolitan Research, Inc.	346	(1)
Hypothesis Tests	347	(46)
Statistics in Practice: John Morrell & Company	348	(1)
Developing Null and Alternative Hypotheses	349	(2)
Testing Research Hypotheses	349	(1)
Testing the Validity of a Claim	349	(1)
Testing in Decision-Making Situations	350	(1)
Summary of Forms for Null and Alternative Hypotheses	350	(1)
Type I and Type II Errors	351	(3)
Population Mean: σ Known	354	(16)
One-Tailed Test	354	(6)
Two-Tailed Test	360	(3)
Using Excel	363	(1)
Summary and Practical Advice	364	(2)
Relationship Between Interval Estimation and Hypothesis Testing	366	(4)
Population Mean: σ Unknown	370	(10)
One-Tailed Test	371	(1)
Two-Tailed Test	372	(2)
Using Excel	374	(2)
Summary and Practical Advice	376	(4)
Population Proportion	380	(13)
Using Excel	382	(2)
Summary	384	(2)
Summary	386	(1)
Glossary	387	(1)
Key Formulas	387	(1)
Supplementary Exercises	388	(2)
Case Problem 1 Quality Associates, Inc.	390	(2)
Case Problem 2 Unemployment Study	392	(1)
Comparisons Involving Means	393	(57)
Statistics in Practice: Fisons Corporation	394	(1)
Inferences About the Difference Between Two Population Means: σ1 and σ2 Known	395	(10)
Interval Estimation of μ1 - μ2	395	(2)
Using Excel to Construct a Confidence Interval	397	(2)
Hypothesis Tests About μ1 - μ2	399	(2)
Using Excel to Conduct a Hypothesis Test	401	(2)
Practical Advice	403	(2)
Inferences About the Difference Between Two Population Means: σ1 and σ2 Unknown	405	(12)
Interval Estimation of μ1 - μ2	406	(1)
Using Excel to Construct a Confidence Interval	407	(2)
Hypothesis Tests About μ1 - μ2	409	(2)
Using Excel to Conduct a Hypothesis Test	411	(2)
Practical Advice	413	(4)
Inferences About the Difference Between Two Population Means: Matched Samples	417	(7)
Using Excel to Conduct a Hypothesis Test	419	(5)
Introduction to Analysis of Variance	424	(4)
Assumptions for Analysis of Variance	425	(1)
Conceptual Overview	425	(3)
Analysis of Variance: Testing for the Equality of k Population Means	428	(22)
Between-Treatments Estimate of Population Variance	429	(1)
Within-Treatments Estimate of Population Variance	430	(1)
Comparing the Variance Estimates: The F Test	430	(3)
ANOVA Table	433	(1)
Using Excel	433	(6)
Summary	439	(1)
Glossary	439	(1)
Key Formulas	440	(2)
Supplementary Exercises	442	(4)
Case Problem 1 Par, Inc.	446	(1)
Case Problem 2 Wentworth Medical Center	447	(1)
Case Problem 3 Compensation for ID Professionals	448	(2)
Comparisons Involving Proportions and a Test of Independence	450	(34)
Statistics in Practice: United Way	451	(1)
Inferences About the Difference Between Two Population Proportions	452	(9)
Interval Estimation of p1 - p2	452	(2)
Using Excel to Construct a Confidence Interval	454	(2)
Hypothesis Tests About p1 - p2	456	(1)
Using Excel to Conduct a Hypothesis Test	457	(4)
Hypothesis Test for Proportions of a Multinomial Population	461	(8)
Using Excel to Conduct a Goodness of Fit Test	466	(3)
Test of Independence	469	(15)
Using Excel to Conduct a Test of Independence	473	(4)
Summary	477	(1)
Glossary	477	(1)
Key Formulas	478	(1)
Supplementary Exercises	478	(5)
Case Problem A Bipartisan Agenda for Change	483	(1)
Simple Linear Regression	484	(75)
Statistics in Practice: Alliance Data Systems	485	(1)
Simple Linear Regression Model	486	(3)
Regression Model and Regression Equation	486	(1)
Estimated Regression Equation	487	(2)
Least Squares Method	489	(12)
Using Excel to Develop a Scatter Diagram and Compute the Estimated Regression Equation	493	(8)
Coefficient of Determination	501	(9)
Using Excel to Compute the Coefficient of Determination	505	(1)
Correlation Coefficient	505	(5)
Model Assumptions	510	(1)
Testing for Significance	511	(10)
Estimate of σ2	512	(1)
tTest	512	(2)
Confidence Interval for β1	514	(1)
F Test	515	(2)
Some Cautions About the Interpretation of Significance Tests	517	(4)
Excel's Regression Tool	521	(6)
Using Excel's Regression Tool for the Armand's Pizza Parlors Problem	521	(2)
Interpretation of Estimated Regression Equation Output	523	(1)
Interpretation of ANOVA Output	523	(1)
Interpretation of Regression Statistics Output	524	(3)
Using the Estimated Regression Equation for Estimation and Prediction	527	(8)
Point Estimation	527	(1)
Interval Estimation	527	(1)
Confidence Interval Estimate of the Mean Value of y	527	(2)
Prediction Interval Estimate of an Individual Value of y	529	(2)
Using Excel to Develop Confidence and Prediction Interval Estimates	531	(4)
Residual Analysis: Validating Model Assumptions	535	(24)
Residual Plot Against x	536	(3)
Residual Plot Against y	539	(1)
Using Excel's Regression Tool to Construct a Residual Plot	539	(3)
Summary	542	(1)
Glossary	543	(1)
Key Formulas	543	(2)
Supplementary Exercises	545	(6)
Case Problem 1 Spending and Student Achievement	551	(1)
Case Problem 2 U.S. Department of Transportation	552	(1)
Case Problem 3 Alumni Giving	553	(2)
Case Problem 4 Major League Baseball Teams Values	555	(1)
Appendix 12.1 Regression Analysis with SWStat+	555	(4)
Multiple Regression	559	(50)
Statistics in Practice: International Paper	560	(1)
Multiple Regression Model	561	(1)
Regression Model and Regression Equation	561	(1)
Estimated Multiple Regression Equation	561	(1)
Least Squares Method	562	(10)
An Example: Butler Trucking Company	563	(3)
Using Excel's Regression Tool to Develop the Estimated Multiple Regression Equation	566	(1)
Note on Interpretation of Coefficients	567	(5)
Multiple Coefficient of Determination	572	(3)
Model Assumptions	575	(2)
Testing for Significance	577	(7)
F Test	578	(2)
t Test	580	(1)
Multicollinearity	581	(3)
Using the Estimated Regression Equation for Estimation and Prediction	584	(2)
Qualitative Independent Variables	586	(23)
An Example: Johnson Filtration. Inc.	587	(2)
Interpreting the Parameters	589	(2)
More Complex Qualitative Variables	591	(4)
Summary	595	(1)
Glossary	596	(1)
Key Formulas	596	(1)
Supplementary Exercises	597	(6)
Case Problem 1 Consumer Research, Inc.	603	(1)
Case Problem 2 Predicting Student Proficiency Test Scores	604	(1)
Case Problem 3 Alumni Giving	605	(2)
Appendix 13.1 Multiple Regression Analysis with SWStat+	607	(2)
Statistical Methods for Quality Control	609	(37)
Statistics in Practice: Dow Chemical	610	(1)
Philosophies and Frameworks	611	(3)
Malcolm Baldrige National Quality Award	611	(1)
ISO 9000	612	(1)
Six Sigma	612	(2)
Statistical Process Control	614	(17)
Control Charts	615	(1)
x Chart: Process Mean and Standard Deviation Known	616	(2)
x Chart: Process Mean and Standard Deviation Unknown	618	(3)
R Chart	621	(2)
Using Excel to Construct an R Chart and an x Chart	623	(3)
p Chart	626	(2)
np Chart	628	(1)
Interpretation of Control Charts	629	(2)
Acceptance Sampling	631	(15)
KALI, Inc.: An Example of Acceptance Sampling	633	(1)
Computing the Probability of Accepting a Lot	633	(2)
Selecting an Acceptance Sampling Plan	635	(2)
Multiple Sampling Plans	637	(2)
Summary	639	(1)
Glossary	640	(1)
Key Formulas	641	(1)
Supplementary Exercises	642	(4)
Appendix A: References and Bibliography	646	(2)
Appendix B: Tables	648	(11)
Appendix C: Summation Notation	659	(2)
Appendix D: Self-Test Solutions and Answers to Even-Numbered Exercises	661	(30)
Appendix E: Using Excel Functions	691	(6)
Index	697