Essentials Of Statistics For Business And Economics

by Anderson, David Ray; Sweeney, Dennis J.; Williams, Thomas Arthur

• ISBN13: 9780324223200
• ISBN10: 032422320X
• Edition: 4th
• Format: Paperback
• Copyright: 2005-01-05
• Publisher: South-Western College Pub

Summary

ESSENTIALS OF STATISTICS FOR BUSINESS AND ECONOMICS, FOURTH EDITION is an introductory stats textbook that emphasizes statistical concepts and applications. The discussion and development of each technique is presented in an application setting, with the statistical results providing insights to decisions and solutions to problems. The easy-to-follow presentation style and problem-scenario approach clearly show how to apply statistical methods in practical business situations. This brief introduction to business statistics balances a conceptual understanding of statistics with the real-world application of statistical methodology. The essentials version features selected core topics from the authors’ market-leading STATISTICS FOR BUSINESS AND ECONOMICS, NINTH EDITION presented in 13 chapters. It includes the highly-regarded strengths of the longer text, including the problem-scenario approach that uses real-world examples to introduce stat techniques. Methods, Applications, and Self-Test exercises include hundreds of problems based on real data. Examples and exercises throughout focus on ways that stats contribute to improving the quality of products and services. This text can also be computer integrated at the discretion of the instructor. Instruction for data analysis based on Microsoft Excel and MINITAB is included in appendices of appropriate chapters. Case problems are also provided with the text, with data sets available on disk for both MINITAB 14 and Excel formats.

Table of Contents

Preface	xvii
About the Authors	xxiii
Data and Statistics	1	(22)
Statistics in Practice: Business Week	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)
Computers and Statistical Analysis	16	(7)
Summary	16	(1)
Glossary	16	(1)
Exercises	17	(6)
Descriptive Statistics Tabular and Graphical Presentations	23	(53)
Statistics in Practice: Colgate-Palmolive Company	24	(1)
Summarizing Qualitative Data	25	(6)
Frequency Distribution	25	(1)
Relative Frequency and Percent Frequency Distributions	26	(1)
Bar Graphs and Pie Charts	26	(5)
Summarizing Quantitative Data	31	(9)
Frequency Distribution	31	(1)
Relative Frequency and Percent Frequency Distributions	32	(1)
Dot Plot	33	(1)
Histogram	33	(1)
Cumulative Distributions	34	(2)
Ogive	36	(4)
Exploratory Data Analysis: The Stem-and-Leaf Display	40	(5)
Crosstabulations and Scatter Diagrams	45	(31)
Crosstabulation	45	(3)
Simpson's Paradox	48	(1)
Scatter Diagram and Trendline	49	(5)
Summary	54	(2)
Glossary	56	(1)
Key Formulas	57	(1)
Supplementary Exercises	57	(6)
Case Problem Pelican Stores	63	(1)
Appendix 2.1 Using Minitab for Tabular and Graphical Presentations	64	(2)
Appendix 2.2 Using Excel for Tabular and Graphical Presentations	66	(10)
Descriptive Statistics: Numerical Measures	76	(63)
Statistics in Practice: Small Fry Design	77	(1)
Measures of Location	78	(9)
Mean	78	(1)
Median	79	(1)
Mode	80	(1)
Percentiles	81	(1)
Quartiles	82	(5)
Measures of Variability	87	(7)
Range	88	(1)
Interquartile Range	88	(1)
Variance	89	(2)
Standard Deviation	91	(1)
Coefficient of Variation	91	(3)
Measures of Distribution Shape, Relative Location, and Detecting Outliers	94	(7)
Distribution Shape	94	(2)
z-Scores	96	(1)
Chebyshev's Theorem	97	(1)
Empirical Rule	97	(1)
Detecting Outliers	98	(3)
Exploratory Data Analysis	101	(5)
Five-Number Summary	101	(1)
Box Plot	102	(4)
Measures of Association Between Two Variables	106	(9)
Covariance	106	(2)
Interpretation of the Covariance	108	(2)
Correlation Coefficient	110	(1)
Interpretation of the Correlation Coefficient	111	(4)
The Weighted Mean and Working with Grouped Data	115	(24)
Weighted Mean	115	(1)
Grouped Data	116	(4)
Summary	120	(1)
Glossary	121	(1)
Key Formulas	122	(2)
Supplementary Exercises	124	(5)
Case Problem 1 Pelican Stores	129	(1)
Case Problem 2 National Health Care Association	130	(1)
Case Problem 3 Business Schools of Asia-Pacific	131	(2)
Appendix 3.1 Descriptive Statistics Using Minitab	133	(2)
Appendix 3.2 Descriptive Statistics Using Excel	135	(4)
Introduction to Probability	139	(45)
Statistics in Practice: Morton International	140	(1)
Experiments, Counting Rules, and Assigning Probabilities	141	(10)
Counting Rules, Combinations, and Permutations	142	(4)
Assigning Probabilities	146	(2)
Probabilities for the KP&L Project	148	(3)
Events and Their Probabilities	151	(4)
Some Basic Relationships of Probability	155	(6)
Complement of an Event	155	(1)
Addition Law	156	(5)
Conditional Probability	161	(8)
Independent Events	165	(1)
Multiplication Law	165	(4)
Bayes' Theorem	169	(15)
Tabular Approach	173	(2)
Summary	175	(1)
Glossary	175	(1)
Key Formulas	176	(1)
Supplementary Exercises	177	(4)
Case Problem Hamilton County Judges	181	(3)
Discrete Probability Distributions	184	(39)
Statistics in Practice: Citibank	185	(1)
Random Variables	185	(3)
Discrete Random Variables	186	(1)
Continuous Random Variables	187	(1)
Discrete Probability Distributions	188	(6)
Expected Value and Variance	194	(4)
Expected Value	194	(1)
Variance	194	(4)
Binomial Probability Distribution	198	(10)
A Binomial Experiment	199	(1)
Martin Clothing Store Problem	200	(4)
Using Tables of Binomial Probabilities	204	(1)
Expected Value and Variance for the Binomial Distribution	205	(3)
Poisson Probability Distribution	208	(4)
An Example Involving Time Intervals	209	(2)
An Example Involving Length or Distance Intervals	211	(1)
Hypergeometric Probability Distribution	212	(11)
Summary	215	(1)
Glossary	216	(1)
Key Formulas	217	(1)
Supplementary Exercises	218	(2)
Appendix 5.1 Discrete Probability Distributions with Minitab	220	(1)
Appendix 5.2 Discrete Probability Distributions with Excel	221	(2)
Continuous Probability Distributions	223	(34)
Statistics in Practice: Procter & Gamble	224	(1)
Uniform Probability Distribution	225	(4)
Area as a Measure of Probability	226	(3)
Normal Probability Distribution	229	(14)
Normal Curve	229	(2)
Standard Normal Probability Distribution	231	(6)
Computing Probabilities for Any Normal Distribution	237	(1)
Grear Tire Company Problem	238	(5)
Normal Approximation of Binomial Probabilities	243	(3)
Exponential Probability Distribution	246	(11)
Computing Probabilities for the Exponential Distribution	246	(2)
Relationship Between the Poisson and Exponential Distributions	248	(2)
Summary	250	(1)
Glossary	250	(1)
Key Formulas	250	(1)
Supplementary Exercises	251	(3)
Case Problem Specialty Toys	254	(1)
Appendix 6.1 Continuous Probability Distributions with Minitab	255	(1)
Appendix 6.2 Continuous Probability Distributions with Excel	256	(1)
Sampling and Sampling Distributions	257	(36)
Statistics in Practice: MeadWestvaco Corporation	258	(1)
The Electronics Associates Sampling Problem	259	(1)
Simple Random Sampling	260	(4)
Sampling from a Finite Population	260	(1)
Sampling from an Infinite Population	261	(3)
Point Estimation	264	(3)
Introduction to Sampling Distributions	267	(3)
Sampling Distribution of x	270	(9)
Expected Value of x	270	(1)
Standard Deviation of x	270	(2)
Form of the Sampling Distribution of x	272	(1)
Sampling Distribution of x for the EAI Problem	273	(1)
Practical Value of the Sampling Distribution of x	274	(1)
Relationship Between the Sample Size and the Sampling Distribution of x	275	(4)
Sampling Distribution of p	279	(5)
Expected Value of p	280	(1)
Standard Deviation of p	280	(1)
Form of the Sampling Distribution of p	281	(1)
Practical Value of the Sampling Distribution of p	281	(3)
Sampling Methods	284	(9)
Stratified Random Sampling	285	(1)
Cluster Sampling	285	(1)
Systematic Sampling	286	(1)
Convenience Sampling	286	(1)
Judgment Sampling	287	(1)
Summary	287	(1)
Glossary	287	(1)
Key Formulas	288	(1)
Supplementary Exercises	289	(2)
Appendix 7.1 Random Sampling with Minitab	291	(1)
Appendix 7.2 Random Sampling with Excel	291	(2)
Interval Estimation	293	(39)
Statistics in Practice: Food Lion	294	(1)
Population Mean: σ Known	295	(6)
Margin of Error and the Interval Estimate	295	(4)
Practical Advice	299	(2)
Population Mean: σ Unknown	301	(9)
Margin of Error and the Interval Estimate	302	(3)
Practical Advice	305	(1)
Using a Small Sample	305	(2)
Summary of Interval Estimation Procedures	307	(3)
Determining the Sample Size	310	(3)
Population Proportion	313	(19)
Determining the Sample Size	315	(3)
Summary	318	(1)
Glossary	319	(1)
Key Formulas	320	(1)
Supplementary Exercises	320	(3)
Case Problem 1 Bock Investment Services	323	(1)
Case Problem 2 Gulf Real Estate Properties	323	(3)
Case Problem 3 Metropolitan Research, Inc.	326	(1)
Appendix 8.1 Interval Estimation with Minitab	327	(1)
Appendix 8.2 Interval Estimation Using Excel	328	(4)
Hypothesis Tests	332	(47)
Statistics in Practice: John Morrell & Company	333	(1)
Developing Null and Alternative Hypotheses	334	(2)
Testing Research Hypotheses	334	(1)
Testing the Validity of a Claim	334	(1)
Testing in Decision-Making Situations	335	(1)
Summary of Forms for Null and Alternative Hypotheses	335	(1)
Type I and Type II Errors	336	(3)
Population Mean: σ Known	339	(15)
One-Tailed Test	339	(6)
Two-Tailed Test	345	(3)
Summary and Practical Advice	348	(1)
Relationship Between Interval Estimation and Hypothesis Testing	349	(5)
Population Mean: σ Unknown	354	(7)
One-Tailed Test	354	(2)
Two-Tailed Test	356	(1)
Summary and Practical Advice	357	(4)
Population Proportion	361	(18)
Summary	363	(3)
Summary	366	(1)
Glossary	367	(1)
Key Formulas	367	(1)
Supplementary Exercises	367	(3)
Case Problem 1 Quality Associates, Inc.	370	(1)
Case Problem 2 Unemployment Study	371	(1)
Appendix 9.1 Hypothesis Tests with Minitab	372	(2)
Appendix 9.2 Hypothesis Tests with Excel	374	(5)
Comparisons Involving Means	379	(52)
Statistics in Practice: Fisons Corporation	380	(1)
Inferences About the Difference Between Two Population Means: σ1 and σ2 Known	381	(6)
Interval Estimation of μ1 -- μ2	381	(2)
Hypothesis Tests About μ1 -- μ2	383	(2)
Practical Advice	385	(2)
Inferences About the Difference Between Two Population Means: σ1 and σ2 Unknown	387	(9)
Interval Estimation of μ1 -- μ2	387	(2)
Hypothesis Tests About μ1 -- μ2	389	(2)
Practical Advice	391	(5)
Inferences About the Difference Between Two Population Means: Matched Samples	396	(5)
Introduction to Analysis of Variance	401	(4)
Assumptions for Analysis of Variance	403	(1)
A Conceptual Overview	403	(2)
Analysis of Variance: Testing for the Equality of k Population Means	405	(26)
Between-Treatments Estimate of Population Variance	406	(1)
Within-Treatments Estimate of Population Variance	407	(1)
Comparing the Variance Estimates: The F Test	408	(2)
Anova Table	410	(1)
Computer Results for Analysis of Variance	411	(5)
Summary	416	(1)
Glossary	416	(1)
Key Formulas	417	(2)
Supplementary Exercises	419	(4)
Case Problem 1 Par, Inc.	423	(1)
Case Problem 2 Wentworth Medical Center	424	(1)
Case Problem 3 Compensation for ID Professionals	425	(1)
Appendix 10.1 Inferences About Two Populations Using Minitab	426	(1)
Appendix 10.2 Inferences About Two Populations Using Excel	427	(1)
Appendix 10.3 Analysis of Variance with Minitab	428	(1)
Appendix 10.4 Analysis of Variance with Excel	429	(2)
Comparisons Involving Proportions and a Test of Independence	431	(33)
Statistics in Practice: United Way	432	(1)
Inferences About the Difference Between Two Population Proportions	433	(6)
Interval Estimation of p1 -- p2	433	(2)
Hypothesis Tests About p1 -- p2	435	(4)
Hypothesis Test for Proportions of a Multinomial Population	439	(6)
Test of Independence	445	(19)
Summary	453	(1)
Glossary	453	(1)
Key Formulas	453	(1)
Supplementary Exercises	454	(4)
Case Problem A Bipartisan Agenda for Change	458	(1)
Appendix 11.1 Inferences About Two Population Proportions Using Minitab	459	(1)
Appendix 11.2 Tests of Goodness of Fit and Independence Using Minitab	460	(1)
Appendix 11.3 Tests of Goodness of Fit and Independence Using Excel	461	(3)
Simple Linear Regression	464	(69)
Statistics in Practice: Alliance Data Systems	465	(1)
Simple Linear Regression Model	466	(3)
Regression Model and Regression Equation	466	(1)
Estimated Regression Equation	467	(2)
Least Squares Method	469	(11)
Coefficient of Determination	480	(7)
Correlation Coefficient	483	(4)
Model Assumptions	487	(2)
Testing for Significance	489	(9)
Estimate of σ2	489	(1)
t Test	490	(1)
Confidence Interval for β1	491	(1)
F Test	492	(2)
Some Cautions About the Interpretation of Significance Tests	494	(4)
Using the Estimated Regression Equation for Estimation and Prediction	498	(6)
Point Estimation	498	(1)
Interval Estimation	498	(1)
Confidence Interval for the Mean Value of y	499	(1)
Prediction Interval for an Individual Value of y	500	(4)
Computer Solution	504	(5)
Residual Analysis: Validating Model Assumptions	509	(24)
Residual Plot Against x	510	(1)
Residual Plot Against y	511	(4)
Summary	515	(1)
Glossary	515	(1)
Key Formulas	516	(2)
Supplementary Exercises	518	(5)
Case Problem 1 Spending and Student Achievement	523	(2)
Case Problem 2 U.S. Department of Transportation	525	(1)
Case Problem 3 Alumni Giving	526	(2)
Case Problem 4 Major League Baseball Team Values	528	(1)
Appendix 12.1 Regression Analysis with Minitab	529	(1)
Appendix 12.2 Regression Analysis with Excel	529	(4)
Multiple Regression	533	(46)
Statistics in Practice: International Paper	534	(1)
Multiple Regression Model	535	(1)
Regression Model and Regression Equation	535	(1)
Estimated Multiple Regression Equation	535	(1)
Least Squares Method	536	(9)
An Example: Butler Trucking Company	537	(2)
Note on Interpretation of Coefficients	539	(6)
Multiple Coefficient of Determination	545	(3)
Model Assumptions	548	(1)
Testing for Significance	549	(7)
F Test	549	(3)
t Test	552	(1)
Multicollinearity	552	(4)
Using the Estimated Regression Equation for Estimation and Prediction	556	(2)
Qualitative Independent Variables	558	(21)
An Example: Johnson Filtration, Inc.	558	(2)
Interpreting the Parameters	560	(1)
More Complex Qualitative Variables	561	(5)
Summary	566	(1)
Glossary	567	(1)
Key Formulas	567	(1)
Supplementary Exercises	568	(5)
Case Problem 1 Consumer Research, Inc.	573	(1)
Case Problem 2 Predicting Student Proficiency Test Scores	574	(1)
Case Problem 3 Alumni Giving	575	(1)
Appendix 13.1 Multiple Regression with Minitab	575	(2)
Appendix 13.2 Multiple Regression with Excel	577	(2)
Appendixes	579	(1)
Appendix A References and Bibliography	580	(1)
Appendix B Tables	581	(23)
Appendix C Summation Notation	604	(2)
Appendix D Self-Test Solutions and Answers to Even-Numbered Exercises	606	(29)
Index	635