Business Statistics a First Course - 6ed Index

Business   Statistics  A   First   Course

SIXTH   EDITION

David M.   Levine Department

of  Statistics and

Computer  Information Systems

Zicklin   School of

Business,   Baruch   College,   City   University of

Timothy

C.   Krehbiel

Department

of

New   York

Management

Richard T.   Farmer   School of Business,   Miami University

Mark L   Berenson Department of Management

and   Information

Systems

School of   Business,   Montclair  State University

PEARSON Boston   Columbus

New

York

San   Francisco

Upper   Saddle   River

Cape   Town   Dubai   London   Madrid   Milan   Munich   Paris   Montreal   Toronto Mexico   City Sao   Paulo Sydney   Hong   Kong   Seoul Singapore   Taipei   Tokyo

 Amsterdam

Delhi  

Indianapolis

Contents Preface xix

ORGANIZING   DATA  27 2.2

Organizing  Categorical  Data The Summary Table The

1   Introduction

2.3

Contingency

28

28

Table 28

Organizing Numerical   Data

31

Stacked   and Unstacked   Data 31

USING   STATISTICS 1.1

@ GT&M

Holdings

Reading,   Writing, and   Statistics!

The   Ordered Array 32

3

The

4

The  Relative Frequency   Distribution and  the

1.2   Statistics:  Fundamental for   Business 4 How Statistics Has   Become  So

 

Data and  Variables

6

Types of Variables

6

1.4   Basic

Vocabulary

Important

5

2.4

USING  STATISTICS SUMMARY

The  Pie   Chart 41

Desktop Computing

9

The  Pareto   Chart 42

10

The

Getting  Started 10 @   GT&M

2.5

Holdings  Revisited

12

12

CHAPTER   REVIEW   PROBLEMS END-OF-CHAPTER CASES

12

2.6

14

Histogram

The

Percentage  Polygon

48 49

Percentage  Polygon   (Ogive)

51

Two  Numerical   Variables 54

The  Time-Series   Plot 56

CHAPTER 1   EXCEL   GUIDE

2.7

16

EG 1.2 Entering Data  and   Variable Type

2.8

Opening  and Saving  Workbooks 17 1.4 EG Creating and Copying Worksheets 18 18

SUMMARY

EG 1.8

Entering   Formulas   into  Worksheets

EG 1.9

Using Appendices

F

CHAPTER   REVIEW   PROBLEMS

DIGITAL   CASE REFERENCES

72

73 73

21

CHAPTER 2   EXCEL   GUIDE 74

Saving Worksheets

MG1.4

Creating

Copying   Worksheets 23

MG1.5

Printing Parts

EG2.2 Organizing Categorical  Data 74 EG2.3 Organizing   Numerical   Data 76 EG2.4

23

MG1.6   Worksheet   Entries  and  References D

66

MANAGING  ASHLA ND   MULTICOMM   SERVICES

MG1.3 Opening and and Projects 22

MG1.7 Using  Appendices

66

20

Entering   Data and Variable Type

Project

65

20

MG1.1 Getting  Started   With   Minitab 21

of a

I   Revisited 64

65

KEY   TERMS

  MINITAB   GUIDE 21

and

@  Choice  Is  Yours,   Part

KEY   EQUATIONS

EG 1.7  Absolute and  Relative Cell  References 20

and

Misuses and   Common  Errors in Visualizing   Data 61

USING   STATISTICS

EG 1.6   Worksheet   Entries and  References 19

D

58

 Adding   Numerical Variables 59

17

EG 1.3

Printing  Worksheets

Organizing  Multidimensional   Data

Multidimensional Contingency   Tables 58

EG1.1 Getting  Started  with Excel 16

MG1.2

Display

The

Visualizing

47 47

The   Scatter Plot 54

REFERENCES 15

CHAPTER 1

44

Visualizing  Numerical   Data

The   Cumulative

LEARNING   WITH THE  DIGITAL   CASES 14

EG 1.5

Side-by-Side  Bar Chart

The  Stem-and-Leaf

12

KEY  TERMS

Visualizing  Categorical   Data 39 The Bar  Chart 40

of  Statistics 7

How to Use   This   Book

Checklist for

The  Cumulative  Distribution 36 5

VISUALIZING DATA  39

1.5   Statistical Applications for 1.6

Percentage

Distribution 35

Reconsidering  the   GT&M Holdings  Scenario-I 1.3

Frequency   Distribution 33

Visualizing Categorical Data 78

EG2.5 Visualizing Numerical   Data 80

23

EG2.6 Visualizing Two   Numerical   Variables 82

and  F 23

EG2.7 Organizing   Multidimensional Data 83 CHAPTER  2   MINITAB   GUIDE

2 Organizing and

MG2.2

Visualizing  Data USING   STATISTICS 2.1

 

@   Choice Is

Data   Collection 26

Yours,   Part

24 I 25

85

Organizing   Categorical   Data

85

MG2.3 Organizing  Numerical   Data 85 MG2.4

Visualizing Categorical  Data

86

MG2.5 Visualizing   Numerical   Data 87 MG2.6

Visualizing  T wo  Numerical  Variables

90

MG2.7 Organizing   Multidimensional Data 91 XI

Xii

 

CONTENTS

3   Numerical Descriptive

4   Basic

Measures

92

3.1   Central Tendency

USING  STATISTICS 4.1

USING   STATISTICS @   Choice Is Yours,   Part  II 93

  Basic Probability Concepts 142 Events  and Sample  Spaces 143

94

The Median 96

Simple   Probability 145 Joint

97

Shape

General Addition  Rule

4.2   Conditional

The  Variance and the   Standard  Deviation 99 The  Coefficient  of Variation

Independence

Shape 105

154 155

Marginal  Probability  Using  the   General Multiplication

Exploring Numerical  Data

Rule 156

109 4.3

Quartiles 109 The Interquartile   Range The  Five-Number

Summary

Bayes' Theorem 159

THINK   ABOUT THIS:   Divine   Providence

111 111

4.4

113

TheBoxplot

Counting   Rules Counting  Rule

Descriptive Measures for

a

Population

116

163

1

Counting  Rule

3

164

Population  Variance and   Standard Deviation 117

Counting   Rule  4 165

The

Empirical   Rule 118

Counting  Rule

Descriptive  Statistics:   Pitfalls

KEY TERMS

and  Ethical

@   Choice Is

Yours,  Part  II  Revisited

169

KEY   EQUATIONS

169

DIGITAL CASE 171

127 REFERENCES 172

128

TERMS

168

CHAPTER   REVIEW   PROBLEMS

USING  STATISTICS

KEY

KEY   EQUATIONS

123

127

SUMMARY

168

SUMMARY

The   Coefficient  of   Correlation

Probability 167

USING  STATISTICS @ M&R Electronics World Revisited 168

121

The   Covariance 121

Issues

165

5

4.5   Ethicallssues and

The Covariance and the   Coefficient of

Spam 162

163

The

The Chebyshev   Rule 119

and

Counting   Rule 2 164

The Population   Mean 117

Correlation

151

152

Multiplication  Rules

Exploring  Descriptive

Statistics 107

3.4   Numerical

Probability

Decision   Trees

VISUAL   EXPLORATIONS:

147

Computing  Conditional   Probabilities 151

103

104

Z  Scores

Probability 146

Marginal  Probability 146

98

The Range 98

3.6

Electronics World 141

@ M&R

Contingency   Tables  and   Venn Diagrams 144

3.2   Variation and

3.5

140

The   Mean 94

The Mode

3.3

Probability

CHAPTER 4

128

  EXCEL GUIDE

173

EG4.1   Basic Probability   Concepts 173

129

EG4.2  Conditional Probability

CHAPTER   REVIEW   PROBLEMS 129 MANAGING   ASHLAND   MULTICOMM   SERVICES

173

EG4.3 Bayes' Theorem 173 134

EG4.4 Counting  Rules 174

DIGITAL   CASE 134

CHAPTER  4   MINITAB   GUIDE 174 REFERENCES

CHAPTER

134

MG4.1   Basic Probability   Concepts 174

3   EXCEL GUIDE

135

MG4.2  Conditional

EG3.1   Central Tendency 135

Exploring Numerical   Data

174

MG4.3   Bayes'Theorem 174

EG3.2  Variation  and Shape 135 EG3.3

Probability

MG4.4

Counting  Rules

174

136

EG3.4  Numerical Descriptive   Measures  for  a

Population 136

EG3.5 The  Covariance and   the Coefficient of Correlation 137 CHAPTER 3   MINITAB GUIDE

5   Discrete Probability Distributions

137

176

MG3.1   Central Tendency 137

MG3.2  Variation  and Shape 137 MG3.3 Exploring Numerical   Data 138 MG3.4 Numerical

Descriptive   Measures

USING   STATISTICS @   Saxon Home

5.1 for  a

Population 138 MG3.5 The  Covariance Correlation 138

The

Probability   Distribution  for a   Discrete Random

Variable 178

Expected Value and the   Coefficient of

Improvement 177

of  a   Discrete   Random Variable

178

Variance and  Standard  Deviation  of  a  Discrete Random Variable

179

CONTENTS

5.2   Binomial   Distribution 182 5.3   Poisson   Distribution USING  

STATISTICS

 

Xiii

7 Sampling and Sampling

189

@   Saxon   Home

Distributions

Improvement

226

Revisited 193

USING   STATISTICS

SUMMARY 193

KEY  TERMS

7.1

193

KEY  EQUATIONS

CHAPTER

Methods 228

Systematic Samples

194

Stratified

MANAGING   ASHLAND   MULTICOMM

Cluster

196

REFERENCES

of Sampling  

Simple   Random Samples

194

CHAPTER   REVIEW   PROBLEMS

SERVICES

Types

@   Oxford  Cereals 227

7.2

196

5   EXCEL GUIDE

229

231

Samples 231

Samples 232

Evaluating  Survey   Worthiness 233 Survey  Error 233

197

EG5.1 The Probability  Distribution

for

a

Ethical   Issues 234

  Discrete   Random

Variable 197

THINK  ABOUT THIS: New   Media

Surveys/Old  Sampling

Problem 234

EG5.2   Binomial  Distribution 197 EG5.3   Poisson   Distribution 197

CHAPTER 5   MINITAB   GUIDE 198

7.3

Sampling   Distributions

7.4

Sampling Distribution of  the Mean 236

MG5.1 The Probability   Distribution for  a  Discrete Random

The   Unbiased

Variable 198

236

Property  of  the Sample Mean 236

Standard Error  of the Mean 238

MG5.2   Binomial  Distribution

MG5.3  Poisson  Distribution

199 199

Sampling

from

Normally   Distributed Populations 239

Sampling

from

Non-Normally   Distributed Populations—

The   Central   Limit Theorem 242

VISUAL   EXPLORATIONS:

6

The Normal   Distribution

USING  STATISTICS @

6.1   Continuous 6.2

OurCampus!

202

Computing   Normal   Probabilities 204 THINK  ABOUT THIS:   What Is   Normal? 212

the   Normal

Distribution 213 6.3

USING   STATISTICS @   Oxford  Cereals Revisited 248 248

KEY  EQUATIONS 248 KEY  TERMS

The   Normal   Distribution 202

  Exploring

200

249

CHAPTER   REVIEW   PROBLEMS

DIGITAL   CASE

CHAPTER 7

214

249

MANAGING  ASHLA ND MULT ICOMM   SERVICES

REFERENCES

Evaluating  Normality

252

EXCEL GUIDE

253

Types  of Sampling  Methods 253

Properties 215

EG7.2

Evaluating  Survey  Worthiness 253

Constructing the  Normal Probability

EG7.3 Sampling  Distributions 253

Plot 216

EG7.4 Sampling  Distribution of the   Mean 253

USING   STATISTICS @

to   Theoretical

OurCampus! Revisited 219

Sampling

Distribution  of the

Proportion 254

CHAPTER 7   MINITAB   GUIDE 254

SUMMARY 219 KEY   EQUATIONS KEY

EG7.5

251

251

EG7.1

Comparing   Data   Characteristics

243

Sampling Distribution  of the Proportion 245

SUMMARY

201

Probability   Distributions

VISUAL   EXPLORATIONS:

7.5

Exploring Sampling   Distributions

MG7.1 Types of Sampling  Methods 254

219

MG7.2

TERMS 220

CHAPTER   REVIEW   PROBLEMS

Evaluating  Survey Worthiness

255

MG7.3 Sampling  Distributions 255

220

MANAGING   ASHLAND MULTICOMM

MG7.4 Sampling   Distribution of the Mean 255

SERVICES 222

DIGITAL   CASE

222

8   Confidence   Interval

REFERENCES 222

CHAPTER 6   EXCEL   GUIDE 223

Estimation

EG6.1   Continuous Probability Distributions 223 EG6.2 The  Normal   Distribution

USING   STATISTICS @  Saxon   Home 223

EG6.3 Evaluating Normality 223 CHAPTER 6   MINITAB GUIDE 224

MG6.1   Continuous Probability

256 Improvement 257

8.1   Confidence Interval   Estimate for the Mean

(a Known)

258

Can You  Ever Know the Population  Standard Deviation? 263

Distributions 224

MG6.2 The   Normal   Distribution 224 MG6.3

Evaluating Normality 224

8.2   Confidence   Interval   Estimate for the Mean

(a Unknown) 264

Student's/Distribution 264

xiv

 

CONTENTS

Properties The

of  the  t  Distribution 265

9.5   Potential

Concept of Degrees of Freedom 266

Statistical Significance  Versus   Practical Significance 323

The  Confidence  Interval Statement 266

8.3   Confidence   Interval   Estimate for the

8.4

Determining  Sample   Size

Reporting

Proportion

272

275

USING  STATISTICS @   Oxford SUMMARY

Sample   Size   Determination for  the Proportion 277 8.5   Confidence  Interval Estimation @  Saxon Home

of Findings 323

Ethical  Issues 324

Sample   Size   Determination  for the   Mean 275

USING  STATISTICS

Hypothesis-Testing Pitfalls  and  Ethical  Issues 323

and   Ethical   Issues

KEY   TERMS

Improvement

II  Revisited 324

325

KEY   EQUATIONS

281

Cereals,   Part

325

325

CHAPTER   REVIEW   PROBLEMS

325

Revisited 282 MANAGING   ASHLAND   MULTICOMM   SERVICES

SUMMARY 282

328

DIGITAL   CASE 328

KEY  EQUATIONS

283

REFERENCES 328

KEY   TERMS

283

CHAPTER  9   EXCEL   GUIDE

CHAPTER   REVIEW   PROBLEMS

283

MANAGING   ASHLAND   MULTICOMM   SERVICES DIGITAL CASE

EG9.1  Fundamentals of Hypothesis-Testing   Methodology 329 287

EG9.2   (Test  of Hypothesis for the Mean (cr  Unknown) 329 EG9.3  One-Tail  Tests   330'

288

REFERENCES 288 CHAPTER  8

EG9.4   ZTest  of  Hypothesis for the

EXCEL GUIDE 289

(a  Known)

MG9.2

EG8.3   Confidence   Interval Estimate

for the

f  Test  of

Hypothesis for the Mean (o- Unknown)

332

MG9.3   One-Tail  Tests 332

(cr Unknown) 289

MG9.4   ZTest of Hypothesis for  the Proportion 333

Proportion 290

EG8.4 Determining Sample  Size 290 CHAPTER 8   MINITAB   GUIDE

331

MG9.1   Fundamentals of Hypothesis-Testing  Mettiodology 332

289

EG8.2   Confidence   Interval Estimate   for the Mean

Proportion

CHAPTER 9   MINITAB GUIDE 332

EG8.1   Confidence   Interval Estimate for the Mean

329

10 Two-Sample  Tests and

291

MG8.1   Confidence   Interval   Estimate  for the

One-Way   ANOVA 

Mean  (