Even You Can Learn Statistics : A Guide for Everyone Who Has Ever Been Afraid of Statistics

by Levine, David M.; Stephan, David F.

• ISBN13: 9780131467576
• ISBN10: 0131467573
• Edition: 1st
• Format: Paperback
• Copyright: 2005-01-01
• Publisher: FT Press

Summary

Even You Can Learn StatisticsA Guide for Everyone Who Has Ever Been Afraid Of Statistics One easy step at a time, this book will teach you the key statistical techniques you'll need for finance, quality, marketing, the social sciences, or just about any other field. Each technique is introduced with a simple, jargon-free explanation, practical examples, and hands-on guidance for solving real problems with Excel or a TI-83/84 series calculator, including Plus models. Hate math? No sweat. You'll be amazed how little you need! For those who do have an interest in mathematics, optional "Equation Blackboard" sections review the equations that provide the foundations for important concepts. David M. Levine is a much-honored innovator in statistics education. He is Professor Emeritus of Statistics and Computer Information Systems at Bernard M. Baruch College (CUNY), and co-author of several best-selling books, including Statistics for Managers using Microsoft Excel, Basic Business Statistics, Quality Management, and Six Sigma for Green Belts and Champions. Instructional designer David F. Stephan pioneered the classroom use of personal computers, and is a leader in making Excel more accessible to statistics students. He has co-authored several textbooks with David M. Levine. Here's just some of what you'll learn how to do... Use statistics in your everyday work or study Perform common statistical tasks using a Texas Instruments statistical calculator or Microsoft Excel Build and interpret statistical charts and tables "Test Yourself" at the end of each chapter to review the concepts and methods that you learned in the chapter Work with mean, median, mode, standard deviation, Z scores, skewness, and other descriptive statistics Use probability and probability distributions Work with sampling distributions and confidence intervals Test hypotheses and decision-making risks with Z, t, Chi-Square, ANOVA, and other techniques Perform regression analysis and modeling The easy, practical introduction to statisticsfor everyone! Thought you couldn't learn statistics? Think again. You canand you will! Complementary Web site Downloadable practice files at http://www.ftpress.com/youcanlearnstatistics

Author Biography

David M. Levine is Professor Emeritus of Statistics and Computer Information Systems of Bernard M. Baruch College (CUNY) David F. Stephan pioneered the classroom use of personal computers

Table of Contents

Introduction	xvii
Fundamentals of Statistics	1	(16)
The Five Basic Words of Statistics	2	(2)
Population	2	(1)
Sample	2	(1)
Parameter	2	(1)
Statistic	3	(1)
Variable	3	(1)
The Branches of Statistics	4	(1)
Descriptive Statistics	4	(1)
Inferential Statistics	5	(1)
Sources of Data	5	(2)
Published Sources	5	(1)
Experiments	6	(1)
Surveys	6	(1)
Sampling Concepts	7	(1)
Sampling	7	(1)
Probability Sampling	7	(1)
Simple Random Sampling	7	(1)
Frame	8	(1)
Sample Selection Methods	8	(9)
Sampling With Replacement	8	(1)
Sampling Without Replacement	8	(2)
One-Minute Summary	10	(1)
Test Yourself	11	(3)
Answers to Test Yourself Questions	14	(1)
References	14	(3)
Presenting Data in Charts and Tables	17	(20)
Presenting Categorical Data	17	(7)
The Summary Table	17	(1)
The Bar Chart	18	(1)
The Pie Chart	19	(1)
The Pareto Diagram	20	(2)
Two-Way Cross-Classification Tables	22	(2)
Presenting Numerical Data	24	(6)
The Frequency and Percentage Distribution	24	(1)
Histogram	25	(2)
The Dot Scale Diagram	27	(1)
The Time-Series Plot	28	(1)
The Scatter Plot	28	(2)
Misusing Graphs	30	(7)
One-Minute Summary	32	(1)
Test Yourself	32	(3)
Answers to Test Yourself Questions	35	(1)
References	36	(1)
Descriptive Statistics for Numerical Variables	37	(24)
Measures of Central Tendency	37	(8)
The Mean	37	(3)
The Median	40	(1)
The Mode	41	(1)
Quartiles	41	(4)
Measures of Variation	45	(5)
The Range	45	(1)
The Variance and the Standard Deviation	46	(3)
Standard (Z) Scores	49	(1)
Shape of Distributions	50	(11)
Symmetrical Shape	50	(1)
Left-Skewed Shape	50	(1)
Right-Skewed Shape	51	(1)
The Box-and-Whisker Plot	52	(4)
Important Equations	56	(1)
One-Minute Summary	56	(1)
Test Yourself	57	(2)
Answers to Test Yourself Questions	59	(1)
References	60	(1)
Probability	61	(12)
Getting Started with Probability	61	(3)
Event	61	(1)
Elementary Event	62	(1)
Random Variable	62	(1)
Probability	62	(2)
Collectively Exhaustive Events	64	(1)
Some Rules of Probability	64	(3)
Assigning Probabilities	67	(6)
Classical Approach	67	(1)
Empirical Approach	67	(1)
Subjective Approach	68	(1)
One-Minute Summary	68	(1)
Test Yourself	68	(2)
Answers to Test Yourself Questions	70	(1)
References	70	(3)
Probability Distributions	73	(30)
Probability Distributions for Discrete Variables	73	(6)
Discrete Probability Distribution	73	(2)
The Expected Value of a Random Variable	75	(1)
Standard Deviation of a Random Variable (σ)	76	(3)
The Binomial and Poisson Probability Distributions	79	(8)
The Binomial Distribution	79	(4)
The Poisson Distribution	83	(4)
Continuous Probability Distributions and the Normal Distribution	87	(7)
Normal Distribution	87	(2)
Using Standard Deviation Units	89	(2)
Finding the Z Value from the Area Under the Normal Curve	91	(3)
The Normal Probability Plot	94	(9)
Important Equations	96	(1)
One-Minute Summary	96	(1)
Test Yourself	97	(4)
Answers to Test Yourself Questions	101	(1)
References	102	(1)
Sampling Distributions and Confidence Intervals	103	(22)
Sampling Distributions	104	(3)
Sampling Distribution	104	(1)
Sampling Distribution of the Mean and the Central Limit Theorem	104	(3)
Sampling Distribution of the Proportion	107	(1)
What You Need to Know About Sampling Distributions	107	(1)
Sampling Error and Confidence Intervals	107	(4)
Sampling Error	109	(1)
Confidence Interval Estimate	109	(2)
Confidence Interval Estimate for the Mean Using the t Distribution (σ Unknown)	111	(5)
t Distribution	112	(4)
Confidence Interval Estimation for the Proportion	116	(9)
Important Equations	119	(1)
One-Minute Summary	119	(1)
Test Yourself	119	(3)
Answers to Test Yourself Questions	122	(1)
References	122	(3)
Fundamentals of Hypothesis Testing	125	(12)
The Null and Alternative Hypotheses	125	(2)
Null Hypothesis	126	(1)
Alternative Hypothesis	126	(1)
Hypothesis Testing Issues	127	(2)
Test Statistic	127	(1)
Practical Significance Versus Statistical Significance	128	(1)
Decision-Making Risks	129	(1)
Type I Error	129	(1)
Type II Error	129	(1)
Risk Trade-Off	130	(1)
Performing Hypothesis Testing	130	(2)
The p-Value Approach to Hypothesis Testing	131	(1)
p-Value	131	(1)
Types of Hypothesis Tests	132	(5)
Number of Groups	132	(1)
Relationship Stated in Alternative Hypothesis H1	132	(1)
Type of Variable	132	(1)
One-Minute Summary	133	(1)
Test Yourself	133	(2)
Answers to Test Yourself Questions	135	(1)
References	135	(2)
Hypothesis Testing: Z and t Tests	137	(22)
Testing for the Difference Between Two Proportions	137	(6)
Testing for the Difference Between the Means of Two Independent Groups	143	(7)
Pooled-Variance t Test	143	(5)
Pooled-Variance t Test Assumptions	148	(2)
The Paired t Test	150	(9)
Important Equations	155	(1)
One-Minute Summary	156	(1)
Test Yourself	156	(1)
Answers to Test Yourself Questions	157	(1)
References	158	(1)
Hypothesis Testing: Chi-Square Tests and the One-Way Analysis of Variance (ANOVA)	159	(22)
Chi-Square Test for Two-Way Tables	159	(7)
One-Way Analysis of Variance (ANOVA): Testing for the Differences Among the Means of More Than Two Groups	166	(15)
One-Way ANOVA	166	(2)
The Three Variances of ANOVA	168	(2)
ANOVA Summary Table	170	(4)
One-Way ANOVA Assumptions	174	(1)
Important Equations	174	(1)
One-Minute Summary	175	(1)
Test Yourself	175	(3)
Answers to Test Yourself Questions	178	(1)
References	178	(3)
Regression Analysis	181	(28)
Basics of Regression Analysis	182	(1)
Simple Linear Regression	182	(1)
Determining the Simple Linear Regression Equation	183	(8)
Y intercept	183	(1)
Slope	183	(1)
Least-Squares Method	184	(3)
Regression Model Prediction	187	(4)
Measures of Variation	191	(4)
Regression Sum of Squares (SSR)	191	(1)
Error Sum of Squares (SSE)	191	(1)
Total Sum of Squares (SST)	192	(1)
The Coefficient of Determination	193	(1)
The Coefficient of Correlation	194	(1)
Standard Error of the Estimate	194	(1)
Regression Assumptions	195	(1)
Residual Analysis	196	(1)
Residual	196	(1)
Evaluating the Assumptions	197	(1)
Inferences About the Slope	197	(4)
t Test for the Slope	198	(2)
Confidence Interval Estimate of the Slope (β1)	200	(1)
Common Mistakes Using Regression Analysis	201	(8)
Important Equations	203	(2)
One-Minute Summary	205	(1)
Test Yourself	205	(2)
Answers to Test Yourself Questions	207	(1)
References	208	(1)
Quality and Six Sigma Management Applications of Statistics	209	(22)
Total Quality Management	209	(2)
Six Sigma Management	211	(1)
Six Sigma	211	(1)
The Six Sigma DMA1C Model	211	(1)
Control Charts	212	(7)
Special or Assignable Causes of Variation	212	(1)
Chance or Common Causes of Variation	213	(1)
Control Limits	213	(1)
The p Chart	214	(5)
The Parable of the Red Bead Experiment: Understanding Process Variability	219	(2)
Deming's Red Bead Experiment	220	(1)
Variables Control Charts for the Mean and Range	221	(10)
Important Equations	226	(1)
One-Minute Summary	227	(1)
Test Yourself	227	(2)
Answers to Test Yourself Questions	229	(1)
References	230	(1)
Appendix A TI Statistical Calculator Settings and Microsoft Excel Settings	231	(4)
A.1 TI Statistical Calculator Settings	231	(2)
``Ready State'' Assumptions	231	(1)
Menu Selections	231	(1)
Statistical Function Entries by Menus	232	(1)
Primary Key Legend Convention	232	(1)
Mode Settings	232	(1)
Calculator Clearing and Reset	232	(1)
Data Storage	232	(1)
A.2 Microsoft Excel Settings	233	(2)
Appendix B Review of Arithmetic and Algebra	235	(10)
Assessment Quiz	235	(3)
Part 1	235	(1)
Part 2	236	(2)
Symbols	238	(3)
Addition	238	(1)
Subtraction	239	(1)
Multiplication	239	(1)
Division	240	(1)
Fractions	241	(1)
Exponents and Square Roots	242	(1)
Equations	243	(1)
Answers to Quiz	244	(1)
Part 1	244	(1)
Part 2	244	(1)
Appendix C Statistical Tables	245	(18)
C.1 The Cumulative Standardized Normal Distribution	246	(2)
C.2 Critical Values of t	248	(4)
C.3 Critical Values of Χ2	252	(2)
C.4 Critical Values of F	254	(8)
C.5 Control Chart Factors	262	(1)
Appendix D Using Microsoft Excel Wizards	263	(6)
D.1 Using the Chart Wizard	263	(2)
Choosing the Best Chart Options	264	(1)
D.2 Using the PivotTable Wizard	265	(2)
D.3 Using the Data Analysis Tools	267	(1)
D.4 Simple Linear Regression	267	(2)
Glossary	269	(8)
Index	277

Excerpts

IntroductionThe Even You Can Learn Statistics Owners ManualIn today's world, knowing how to apply statistics is more important than ever.Even You Can Learn Statistics: The Easy to Use Guide for Everyone Who Has Ever Been Afraid of Statisticswill teach you the basic concepts that provide that understanding. You will also learn the most commonly used statistical methods and be able to practice those methods using a statistical calculator or a spreadsheet program. Please read the rest of this introductionso that you can become familiar with the distinctive features of this book. Be sure to visit the Web site for this book ( www.prenticehall.com/youcanlearnstatistics ), which contains free downloads and other material to support your learning.Mathematics Is Always Optional!Never mastered higher mathematics--or generally fearful of math? Not to worry, because inEven You Can Learn Statistics,you will find that every concept is explained in plain English, without the use of higher mathematics or mathematical symbols. Interested in the mathematical foundations behind statistics?Even You Can Learn StatisticsincludesEQUATION BLACKBOARDS, standalone sections that present the equations behind statistical methods and complement the main material. Either way, you can learn statistics.Learning with the Concept-Interpretation ApproachEven You Can Learn Statisticsuses aConcept-Interpretationapproach to help you learn statistics. For each important statistical concept, you will first find aCONCEPT, a plain-language definition that uses no complicated mathematical terms, followed by anINTERPRETATIONthat fully explains the concept and its importance to statistics. When necessary, these sections also review the misconceptions and the errors people make when trying to apply the concept.For simpler concepts, anEXAMPLESsection lists real-life examples or applications of the statistical concepts. For more advanced concepts,WORKED-OUT PROBLEMSprovide a complete solution to a statistical problem--including actual spreadsheet and calculator results--that illustrate how you can apply the concept to your own problems.Practicing Statistics While You Learn StatisticsTo enhance your learning of statistics, you should always review theWORKED-OUT PROBLEMS. If you want to practice what you have just learned, you can use the optionalCALCULATOR KEYSandSPREADSHEET SOLUTIONsections, which help you apply a statistical calculator or spreadsheet program to statistical analyses.CALCULATOR KEYSsections give you the keystroke-by-keystroke steps to perform statistical analysis on a Texas Instruments statistical calculator from the TI-83 or TI-84 families, including TI-83 Plus and TI-84 Plus models. (You can adapt many sections for use with other TI statistical calculators--such as any model from the TI-86, TI-89, or Voyage 200 families--that have different keypads and arrangements of statistical functions.)SPREADSHEET SOLUTIONsections provide instructions for using the statistical capabilities of Microsoft Excel and identify files that you can download from theEven You Can Learn StatisticsWeb site that contain complete spreadsheets that you can use as models for your own problem solving.If you plan to use either of these sections, review Appendix A for the conventions, software settings, and assumptions used for these sections.In-Chapter AidsAs you read a chapter, look for Important Point icons that highlight key explanations. Download the data files from the Web site for this book ( www.prenticehall.com/youcanlearnst