Statistics for Business and Economics

by McClave, James T.; Benson, P. George; Sincich, Terry L.

• ISBN13: 9780130272935
• ISBN10: 0130272930
• Edition: 8th
• Format: Hardcover
• Copyright: 2001-01-01
• Publisher: Pearson College Div

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	xiii
Statistics, Data, and Statistical Thinking	1	(26)
The Science of Statistics	2	(1)
Types of Statistical Applications in Business	2	(2)
Fundamental Elements of Statistics	4	(5)
Processes (Optional)	9	(4)
Types of Data	13	(2)
Quality Improvement: U.S. Firms Respond to the Challenge from Japan	14	(1)
Collecting Data	15	(3)
The Role of Statistics in Managerial Decision-Making	18	(9)
A 20/20 View of Survey Results: Fact or Fiction?	20	(1)
Quick Review	21	(6)
Methods for Describing Sets of Data	27	(92)
Describing Qualitative Data	28	(10)
Pareto Analysis	30	(8)
Graphical Methods for Describing Quantitative Data	38	(14)
Summation Notation	52	(2)
Numerical Measures of Central Tendency	54	(11)
Numerical Measures of Variability	65	(7)
Interpreting the Standard Deviation	72	(8)
Numerical Measures of Relative Standing	80	(6)
Methods for Detecting Outliers (Optional)	86	(10)
Graphing Bivariate Relationships (Optional)	96	(3)
The Time Series Plot (Optional)	99	(3)
Distorting the Truth with Descriptive Techniques	102	(17)
Car & Driver's ``Road Test Digest''	106	(1)
Quick Review	107	(10)
The Kentucky Milk Case---Part I (A Case Covering Chapters 1 and 2)	117	(2)
Probability	119	(50)
Events, Samples Spaces, and Probability	120	(13)
Game Show Strategy: To Switch or Not to Switch?	130	(3)
Unions and Intersections	133	(3)
Complementary Events	136	(2)
The Additive Rule and Mutually Exclusive Events	138	(5)
Conditional Probability	143	(4)
The Multiplicative Rule and Independent Events	147	(10)
Random Sampling	157	(12)
Lottery Buster	158	(4)
Quick Review	162	(7)
Discrete Random Variables	169	(44)
Two Types of Random Variables	170	(3)
Probability Distributions for Discrete Random Variables	173	(5)
Expected Values of Discrete Random Variables	178	(8)
Portfolio Selection	182	(4)
The Binomial Random Variable	186	(15)
The Space Shuttle Challenger: Catastrophe in Space	196	(5)
The Poisson Random Variable (Optional)	201	(12)
Quick Review	208	(5)
Continuous Random Variables	213	(44)
Continuous Probability Distributions	214	(1)
The Uniform Distribution (Optional)	215	(4)
The Normal Distribution	219	(15)
IQ, Economic Mobility, and the Bell Curve	230	(4)
Descriptive Methods for Assessing Normality	234	(5)
Approximating a Binomial Distribution with a Normal Distribution	239	(7)
The Exponential Distribution (Optional)	246	(11)
Queueing Theory	250	(2)
Quick Review	252	(5)
Sampling Distributions	257	(30)
The Concept of Sampling Distributions	258	(7)
Properties of Sampling Distributions: Unbiasedness and Minimum Variance (Optional)	265	(5)
Reducing Investment Risk Through Diversification	268	(2)
The Central Limit Theorem	270	(17)
The Insomnia Pill	276	(3)
Quick Review	279	(6)
The Furniture Fire Case (A Case Covering Chapters 3--6)	285	(2)
Inferences Based on a Single Sample: Estimation with Confidence Intervals	287	(52)
Large-Sample Confidence Interval for a Population Mean	288	(9)
Small-Sample Confidence Interval for a Population Mean	297	(12)
Scallops, Sampling, and the Law	303	(6)
Large-Sample Confidence Interval for a Population Proportion	309	(7)
Determining the Sample Size	316	(7)
Finite Population Correction for Simple Random Sampling (Optional)	323	(4)
Sample Survey Designs (Optional)	327	(12)
Sampling Error Versus Nonsampling Error	328	(3)
Quick Review	331	(8)
Inferences Based on a Single Sample: Tests of Hypothesis	339	(54)
The Elements of a Test of Hypothesis	340	(6)
Large-Sample Test of Hypothesis About a Population Mean	346	(8)
Statistical Quality Control	349	(5)
Observed Significance Levels: p-Values	354	(6)
Small-Sample Test of Hypothesis About a Population Mean	360	(8)
Large-Sample Test of Hypothesis About a Population Proportion	368	(6)
Calculating Type II Error Probabilities: More About β (Optional)	374	(8)
Test of Hypothesis About a Population Variance (Optional)	382	(11)
March Madness---Handicapping the NCAA Basketball Tourney	384	(4)
Quick Review	388	(5)
Inferences Based on Two Samples: Confidence Intervals And Tests of Hypotheses	393	(62)
Comparing Two Population Means: Independent Sampling	394	(18)
The Effect of Self-Managed Work Teams on Family Life	402	(10)
Comparing Two Population Means: Paired Difference Experiments	412	(12)
Comparing Two Population Proportions: Independent Sampling	424	(7)
Determining the Sample Size	431	(4)
Unpaid Overtime and the Fair Labor Standards Act	432	(3)
Comparing Two Population Variances: Independent Sampling (Optional)	435	(20)
Quick Review	445	(8)
The Kentucky Milk Case---Part II (A Case Covering Chapters 7--9)	453	(2)
Simple Linear Regression	455	(78)
Probabilistic Models	456	(4)
Fitting the Model: The Least Squares Approach	460	(13)
Model Assumptions	473	(1)
An Estimator of σ2	474	(4)
Assessing the Utility of the Model: Making Inferences About the Slope β1	478	(11)
The Coefficient of Correlation	489	(4)
The Coefficient of Determination	493	(7)
Using the Model for Estimation and Prediction	500	(14)
Statistical Assessment of Damage to Bronx Bricks	504	(10)
Simple Linear Regression: A Complete Example	514	(19)
Can ``Dowsers'' Really Detect Water?	518	(3)
Quick Review	521	(12)
Multiple Regression and Model Building	533	(142)
Multiple Regression Models	534	(1)
The First-Order Model: Estimating and Interpreting the β-Parameters	535	(6)
Model Assumptions	541	(3)
Inferences About the β Parameters	544	(10)
Checking the Overall Utility of a Model	554	(15)
Predicting the Price of Vintage Red Bordeaux Wine	560	(9)
Using the Model for Estimation and Prediction	569	(5)
Model Building: Interaction Models	574	(8)
Model Building: Quadratic and Other Higher-Order Models	582	(12)
Model Building: Qualitative (Dummy) Variable Models	594	(8)
Model Building: Models with Both Quantitative and Qualitative Variables (Optional)	602	(12)
Model Building: Comparing Nested Models (Optional)	614	(12)
Model Building: Stepwise Regression (Optional)	626	(8)
Residual Analysis: Checking the Regression Assumptions	634	(15)
Some Pitfalls: Estimability, Multicollinearity, and Extrapolation	649	(26)
``Wringing'' The Bell Curve	652	(8)
Quick Review	660	(15)
Methods for Quality Improvement	675	(76)
Quality, Processes, and Systems	676	(6)
Deming's 14 Points	680	(2)
Statistical Control	682	(8)
The Logic of Control Charts	690	(5)
A Control Chart for Monitoring the Mean of a Process: The x-Chart	695	(17)
A Control Chart for Monitoring the Variation of a Process: The R-Chart	712	(11)
A Control Chart for Monitoring the Proportion of Defectives Generated by a Process: The p-Chart	723	(9)
Diagnosing the Causes of Variation (Optional)	732	(6)
Quality Control in a Service Operation	736	(2)
Capability Analysis (Optional)	738	(13)
Quick Review	744	(7)
Time Series: Descriptive Analyses, Models, and Forecasting	751	(64)
Descriptive Analysis: Index Numbers	752	(13)
The Consumer Price Index: CPI-U and CPI-W	760	(5)
Descriptive Analysis: Exponential Smoothing	765	(5)
Time Series Components	770	(1)
Forecasting: Exponential Smoothing	771	(3)
Forecasting Trends: The Holt-Winters Forecasting Model (Optional)	774	(7)
Measuring Forecast Accuracy: MAD and RMSE	781	(3)
Forecasting Trends: Simple Linear Regression	784	(3)
Seasonal Regression Models	787	(9)
Forecasting the Demand for Emergency Room Services	788	(8)
Autocorrelation and the Durbin-Watson Test	796	(19)
Quick Review	803	(7)
The Gasket Manufacturing Case (A Case Covering Chapters 12 and 13)	810	(5)
Design of Experiments and Analysis of Variance	815	(72)
Elements of a Designed Experiment	816	(5)
The Completely Randomized Design: Single Factor	821	(18)
Multiple Comparisons of Means	839	(9)
Is Therapy the New Diet Pill for Binge Eaters?	844	(4)
Factorial Experiments	848	(18)
On the Trail of the Cockroach	860	(6)
Using Regression Analysis for ANOVA (Optional)	866	(21)
Quick Review	876	(11)
Nonparametric Statistics	887	(48)
Introduction: Distribution-Free Tests	888	(1)
Single Population Inferences: The Sign Test	889	(5)
Comparing Two Populations: The Wilcoxon Rank Sum Test for Independent Samples	894	(9)
Comparing Two Populations: The Wilcoxon Signed Rank Test for the Paired Difference Experiment	903	(8)
Reanalyzing the Scallop Weight Data	908	(3)
The Kruskal-Wallis H-Test for a Completely Randomized Design	911	(8)
Taxpayers Versus the IRS: Selecting the Trial Court	915	(4)
Spearman's Rank Correlation Coefficient	919	(16)
Quick Review	928	(7)
Categorical Data Analysis	935	(73)
Categorical Data and The Multinomial Experiment	936	(1)
Testing Category Probabilities: One-way Table	937	(7)
Testing Category Probabilities: Two-way (Contingency) Table	944	(16)
Ethics in Computer Technology and Use	956	(4)
A Word of Caution About Chi-Square Tests	960	(10)
Quick Review	961	(7)
Discrimination in the Workplace (A Case Covering Chapters 14--16)	968	(2)
APPENDICES
Appendix A Basic Counting Rules	970	(3)
Appendix B Tables	973	(33)
Appendix C Calculation Formulas for Analysis of Variance	1006	(2)
Answers to Selected Exercises	1008	(9)
References	1017	(5)
Index	1022