Statistics for Business and Economics

by MCCLAVE J

• ISBN13: 9780138402327
• ISBN10: 0138402329
• Edition: 7th
• Format: Hardcover
• Copyright: 1997-11-01
• Publisher: Prentice Hall

Summary

This best-selling introduction stresses the development of statistical thinking - the assessment of credibility and value of the inferences made from data - by both those who consume and those who produce the information. The authors emphasize inference; data collection and analysis are covered extensively, as needed, to evaluate the reported results of statistical studies and to make good business decisions. Numerous case studies, examples, and exercises draw on real business situations and recent economic events. Assumes a background in basic algebra. &

Table of Contents

Preface	ix
CHAPTER 1 Statistics, Data, and Statistical Thinking	1	(24)
1.1 The Science of Statistics	2	(1)
1.2 Types of Statistical Applications in Business	2	(2)
1.3 Fundamental Elements of Statistics	4	(5)
1.4 Processes (Optional)	9	(3)
1.5 Types of Data	12	(3)
STATISTICS IN ACTION 1.1 Quality Improvement: U.S. Firms Respond to the Challenge from Japan	13	(2)
1.6 Collecting Data	15	(2)
1.7 The Role of Statistics in Managerial Decision-Making	17	(8)
STATISTICS IN ACTION 1.2 A 20/20 View of Survey Results: Fact or Fiction?	18	(3)
Quick Review	21	(4)
CHAPTER 2 Methods for Describing Sets of Data	25	(86)
2.1 Describing Qualitative Data	26	(9)
STATISTICS IN ACTION 2.1 Pareto Analysis	31	(4)
2.2 Graphical Methods for Describing Quantitative Data	35	(14)
2.3 The Time Series Plot (Optional)	49	(3)
2.4 Summation Notation	52	(1)
2.5 Numerical Measures of Central Tendency	53	(10)
2.6 Numerical Measures of Variability	63	(6)
2.7 Interpreting the Standard Deviation	69	(7)
2.8 Numerical Measures of Relative Standing	76	(7)
2.9 Quartiles and Box Plots (Optional)	83	(7)
2.10 Graphing Bivariate Relationship (Optional)	90	(3)
2.11 Distorting the Truth with Descriptive Techniques	93	(18)
STATISTICS IN ACTION 2.2 Car & Driver's "Road Test Digest"	93	(5)
Quick Review	98	(9)
SHOWCASE The Kentucky Milk Case--Part I	107	(2)
INTERNET LAB Accessing and Summarizing Business and Economic Data Maintained by the U.S. Government	109	(2)
CHAPTER 3 Probability	111	(50)
3.1 Events, Sample Spaces, and Probability	112	(14)
STATISTICS IN ACTION 3.1 Game Show Strategy: To Switch or Not to Switch	122	(4)
3.2 Unions and Intersections	126	(2)
3.3 Complementary Events	128	(1)
3.4 The Additive Rule and Mutually Exclusive Events	129	(6)
3.5 Conditional Probability	135	(3)
3.6 The Multiplicative Rule and Independent Events	138	(10)
3.7 Random Sampling	148	(13)
STATISTICS IN ACTION 3.2 Lottery Buster	151	(2)
Quick Review	153	(8)
CHAPTER 4 Discrete Random Variables	161	(40)
4.1 Two Types of Random Variables	162	(3)
4.2 Probability Distributions for Discrete Random Variables	165	(5)
4.3 Expected Values of Discrete Random Variables	170	(8)
STATISTICS IN ACTION 4.1 Portfolio Selection	174	(13)
STATISTICS IN ACTION 4.2 The Space Shuttle Challenger: Catastrophe in Space	187
4.4 The Binomial Random Variable	178	(12)
4.5 The Poisson Random Variable (Optional)	190	(11)
Quick Review	195	(6)
CHAPTER 5 Continuous Random Variables	201	(38)
5.1 Continuous Probability Distributions	202	(1)
5.2 The Uniform Distribution (Optional)	203	(4)
5.3 The Normal Distribution	207	(14)
STATISTICS IN ACTION 5.1 IQ, Economic Mobility, and the Bell Curve	216	(5)
5.4 Approximating a Binomial Distribution with a Normal Distribution	221	(6)
5.5 The Exponential Distribution (Optional)	227	(12)
STATISTICS IN ACTION 5.2 Queueing Theory	230	(3)
Quick Review	233	(6)
CHAPTER 6 Sampling Distributions	239	(30)
6.1 The Concept of Sampling Distributions	240	(7)
6.2 Properties of Sampling Distributions: Unbiasedness and Minimum Variance	247	(5)
STATISTICS IN ACTION 6.1 Reducing Investment Risk Through Diversification	250	(2)
6.3 The Sampling Distribution of the Sample Mean	252	(17)
STATISTICS IN ACTION 6.2 The Insomnia Pill	258	(3)
Quick Review	261	(6)
SHOWCASE The Furniture Fire Case	267	(1)
INTERNET LAB Analyzing Monthly Business Start-ups	268	(1)
CHAPTER 7 Inferences Based on a Single Sample: Estimation with Confidence Intervals	269	(48)
7.1 Large-Sample Confidence Interval for a Population Mean	270	(8)
7.2 Small-Sample Confidence Interval for a Population Mean	278	(10)
STATISTICS IN ACTIONS 7.1 Scallops, Sampling, and the Law	284	(4)
7.3 Large-Sample Confidence Interval for a Population Proportion	288	(5)
7.4 Determining the Sample Size	293	(8)
STATISTICS IN ACTION 7.2 Is Caffeine Addictive?	299	(2)
7.5 Finite Population Correction for Simple Random Sampling (Optional)	301	(3)
7.6 Sample Survey Designs (Optional)	304	(13)
STATISTICS IN ACTION 7.3 Sampling Error Versus Nonsampling Error	307	(2)
Quick Review	309	(8)
CHAPTER 8 Inferences Based on a Single Sample: Tests of Hypothesis	317	(50)
8.1 The Elements of a Test of Hypothesis	318	(6)
STATISTICS IN ACTION 8.1 Statistics Is Murder!	322	(2)
8.2 Large-Sample Test of Hypothesis About a Population Mean	324	(8)
STATISTICS IN ACTION 8.2 Statistical Quality Control, Part I	328	(4)
8.3 Observed Significance Levels: p-Values	332	(6)
8.4 Small-Sample Test of Hypothesis About a Population Mean	338	(7)
8.5 Large-Sample Test of Hypothesis About a Population Proportion	345	(7)
STATISTICS IN ACTION 8.3 Statistical Quality Control, Part II	349	(3)
8.6 Calculating Type II Error Probabilities: More About XXX (Optional)	352	(15)
Quick Review	361	(6)
CHAPTER 9 Inferences Based on Two Samples: Confidence Intervals and Tests of Hypotheses	367	(62)
9.1 Comparing Two Population Means: Independent Sampling	368	(19)
STATISTICS IN ACTION 9.1 The Effect of Self-Managed Work Teams on Family Life	378	(9)
9.2 Comparing Two Population Means: Paired Difference Experiments	387	(10)
9.3 Comparing Two Population Proportions: Independent Sampling	397	(7)
9.4 Determining the Sample Size for Comparing Means or Proportions	404	(4)
STATISTICS IN ACTION 9.2 Unpaid Overtime and the Fair Labor Standards Act	406	(2)
9.5 Comparing Two Population Variances: Independent Sampling	408	(21)
Quick Review	418	(9)
SHOWCASE The Kentucky Milk Case--Part II	427	(1)
INTERNET LAB Choosing Between Economic Indicators	428	(1)
CHAPTER 10 Simple Linear Regression	429	(70)
10.1 Probabilistic Models	430	(3)
10.2 Fitting the Model: The Least Squares Approach	433	(11)
10.3 Model Assumptions	444	(1)
10.4 An Estimator of XXX(2)	445	(6)
10.5 Assessing the Utility of the Model: Making Inferences About the Slope XXX(1)	451	(10)
STATISTICS IN ACTION 10.1 New Jersey Banks--Serving Minorities?	454	(7)
10.6 The Coefficient of Correlation	461	(3)
10.7 The Coefficient of Determination	464	(8)
10.8 Using the Model for Estimation and Prediction	472	(12)
STATISTICS IN ACTION 10.2 Statistical Assessment of Damage to Bronx Bricks	478	(6)
10.9 Simple Linear Regression: An Example	484	(15)
Quick Review	487	(12)
CHAPTER 11 Multiple Regression	499	(78)
11.1 Multiple Regression: The Model and the Procedure	500	(1)
11.2 Fitting the Model: The Least Squares Approach	501	(3)
11.3 Model Assumptions	504	(2)
11.4 Inferences About the XXX Parameters	506	(11)
11.5 Checking the Usefulness of a Model: R(2) and the Analysis of Variance F-Test	517	(15)
11.6 Using the Model for Estimation and Prediction	532	(2)
11.7 Multiple Regression: An Example	534	(3)
11.8 Residual Analysis: Checking the Regression Assumptions	537	(13)
STATISTICS IN ACTION 11.1 Predicting the Price of Vintage Red Bordeaux Wine	538	(12)
11.9 Some Pitfalls: Estimability, Multicollinearity, and Extrapolation	550	(27)
STATISTICS IN ACTION 11.2 "Wringing" The Bell Curve	553	(9)
Quick Review	562	(15)
CHAPTER 12 Model Building	577	(84)
12.1 Introduction	578	(1)
12.2 The Two Types of Independent Variables: Quantitative and Qualitative	579	(2)
12.3 Models with a Single Quantitative Independent Variable	581	(9)
12.4 Models with Two or More Quantitative Independent Variables	590	(8)
12.5 Testing Portions of a Model	598	(12)
12.6 Models with One Qualitative Independent Variable	610	(9)
12.7 Comparing the Slopes of Two or More Lines	619	(12)
12.8 Comparing Two or More Response Curves	631	(12)
STATISTICS IN ACTION 12.1 Forecasting Peak-Hour Traffic Volume	633	(10)
12.9 Stepwise Regression	643	(18)
Quick Review	651	(7)
SHOWCASE The Condo Sales Case	658	(2)
INTERNET LAB Using the Consumer Price Index in Business Forecasts of Labor, Wages, and Compensation	660	(1)
CHAPTER 13 Methods for Quality Improvement	661	(72)
13.1 Quality, Processes, and Systems	662	(6)
STATISTICS IN ACTION 13.1 Deming's 14 Points	666	(2)
13.2 Statistical Control	668	(8)
13.3 The Logic of Control Charts	676	(4)
13.4 A Control Chart for Monitoring the Mean of a Process: The x-Chart	680	(17)
13.5 A Control Chart for Monitoring the Variation of a Process: The R-Chart	697	(9)
13.6 A Control Chart for Monitoring the Proportion of Defectives Generated by a Process: The p-Chart	706	(9)
13.7 Diagnosing the Causes of Variation (Optional)	715	(5)
STATISTICS IN ACTION 13.2 Quality Control in a Service Operation	719	(1)
13.8 Capability Analysis (Optional)	720	(13)
Quick Review	727	(6)
CHAPTER 14 Time Series: Descriptive Analyses, Models, and Forecasting	733	(66)
14.1 Descriptive Analysis: Index Numbers	734	(14)
STATISTICS IN ACTION 14.1 The Consumer Price Index: CPI-U and CPI-W	743	(5)
14.2 Descriptive Analysis: Exponential Smoothing	748	(5)
14.3 Time Series Components	753	(1)
14.4 Forecasting: Exponential Smoothing	754	(3)
14.5 Forecasting Trends: The Holt-Winters Forecasting Model (Optional)	757	(6)
14.6 Measuring Forecast Accuracy: MAD and RMSE	763	(3)
14.7 Forecasting Trends: Simple Linear Regression	766	(4)
STATISTICS IN ACTION 14.2 Forecasting the Demand for Emergency Room Services	770	(1)
14.8 Seasonal Regression Models	770	(8)
14.9 Autocorrelation and the Durbin-Watson Test	778	(21)
Quick Review	786	(7)
SHOWCASE The Gasket Manufacturing Case	793	(4)
INTERNET LAB Quality Management Outside of Manufacturing Operation	797	(2)
CHAPTER 15 Design of Experiments and Analysis of Variance	799	(68)
15.1 Elements of a Designed Experiment	800	(5)
15.2 The Completely Randomized Design: Single Factor	805	(16)
15.3 Multiple Comparisons of Means	821	(8)
STATISTICS IN ACTION 15.1 Is Therapy the New "Diet Pill" for Binge Eaters?	825	(4)
15.4 Factorial Experiments	829	(17)
STATISTICS IN ACTION 15.2 Improving a Ground Meat Canning Process Through Experimental Design	840	(6)
15.5 Using Regression Analysis for ANOVA (Optional)	846	(11)
Quick Review	857	(10)
CHAPTER 16 Nonparametric Statistics	867	(46)
16.1 Introduction	868	(1)
16.2 Single Population Inferences: The Sign Test	869	(5)
16.3 Comparing Two Populations: The Wilcoxon Rank Sum Test for Independent Samples	874	(7)
16.4 Comparing Two Populations: The Wilcoxon Signed Rank Test for the Paired Difference Experiment	881	(8)
STATISTICS IN ACTION 16.1 Reanalyzing the Scallop Weight Data	886	(3)
16.5 The Kruskal-Wallis H-Test for a Completely Randomized Design	889	(8)
STATISTICS IN ACTION 16.2 Taxpayers Versus the IRS: Selecting the Trial Court	893	(4)
16.6 Spearman's Rank Correlation Coefficient	897	(16)
Quick Review	906	(7)
CHAPTER 17 The Chi-Square Test and the Analysis of Contingency Tables	913	(34)
17.1 One-Dimensional Count Data: The Multinomial Distribution	914	(7)
17.2 Contingency Tables	921	(14)
STATISTICS IN ACTION 17.1 Ethics in Computer Technology and Use	928	(7)
17.3 A Word of Caution About Chi-Square Tests	935	(12)
Quick Review	935	(9)
SHOWCASE Discrimination in the Workplace	944	(2)
INTERNET LAB Sampling and Analyzing NYSE Stock Quotes	946	(1)
CHAPTER 18 Decision Analysis	947	(52)
18.1 Introduction	948	(1)
18.2 Three Types of Decision Problems	949	(2)
18.3 Decision-Making Under Uncertainty: Basic Concepts	951	(4)
18.4 Two Ways of Expressing Outcomes: Payoffs and Opportunity Losses	955	(4)
18.5 Characterizing the Uncertainty in Decision Problems	959	(1)
18.6 Solving the Decision Problem Using the Expected Payoff Criterion	960	(5)
STATISTICS IN ACTION 18.1 Evaluating Uncertainty in Research and Development	961	(4)
18.7 The Expected Utility Criterion	965	(4)
18.8 Classifying Decision-Makers by Their Utility Functions	969	(5)
18.9 Revising State of Nature Probabilities: Bayes' Rule	974	(5)
18.10 Solving Decision Problems Using Posterior Probabilities	979	(4)
18.11 The Expected Value of Sample Information: Preposterior Analysis (Optional)	983	(16)
STATISTICS IN ACTION 18.2 Hurricanes: To Seed or Not to Seed?	989	(4)
Quick Review	993	(6)
APPENDIX A Basic Counting Rules	999	(4)
APPENDIX B Tables	1003	(33)
APPENDIX C Calculation Formulas for Analysis of Variance	1036	(2)
Answers to Selected Exercises	1038	(13)
References	1051	(6)
Index	1057