Cover......Page 1
Contents......Page 10
Preface......Page 20
Chapter 1 The Where, Why, and How of Data Collection......Page 28
Descriptive Statistics......Page 29
Inferential Procedures......Page 32
Data Collection......Page 34
Other Data Collection Methods......Page 38
Data Collection Issues......Page 39
Populations and Samples......Page 41
Sampling Techniques......Page 42
Data Types and Data Measurement Levels......Page 47
Data Measurement Levels......Page 48
Visual Summary......Page 53
Chapter Exercises......Page 55
References......Page 56
Chapter 2 Graphs, Charts, and Tables—Describing Your Data......Page 58
Frequency Distributions and Histograms......Page 59
Frequency Distribution......Page 60
Grouped Data Frequency Distributions......Page 63
Histograms......Page 68
Relative Frequency Histograms and Ogives......Page 72
Joint Frequency Distributions......Page 74
Bar Charts......Page 81
Pie Charts......Page 87
Stem and Leaf Diagrams......Page 89
Line Charts......Page 93
Scatter Diagrams......Page 97
Visual Summary......Page 103
Chapter Exercises......Page 104
Video Case 2: Drive-Thru Service Times @ McDonald’s......Page 107
Case 2.2: Yakima Apples, Inc.......Page 108
Case 2.3: Welco Lumber Company—Part A......Page 110
References......Page 111
Measures of Center and Location......Page 112
Population Mean......Page 113
Sample Mean......Page 116
The Impact of Extreme Values on the Mean......Page 117
Median......Page 118
Skewed and Symmetric Distributions......Page 119
Mode......Page 120
Applying the Measures of Central Tendency......Page 121
Other Measures of Location......Page 124
Box and Whisker Plots......Page 127
Data-Level Issues......Page 129
Range......Page 134
Interquartile Range......Page 135
Population Variance and Standard Deviation......Page 136
Sample Variance and Standard Deviation......Page 139
Coefficient of Variation......Page 145
Tchebysheff’s Theorem......Page 148
Standardized Data Values......Page 149
Visual Summary......Page 155
Equations......Page 156
Chapter Exercises......Page 157
Case 3.1: WGI—Human Resources......Page 162
Case 3.2: National Call Center......Page 163
Case 3.4: AJ’s Fitness Center......Page 164
References......Page 165
Chapters 1–3......Page 166
Exercises......Page 169
Term Project Assignments......Page 171
Chapter 4 Introduction to Probability......Page 173
Important Probability Terms......Page 174
Methods of Assigning Probability......Page 179
Measuring Probabilities......Page 186
Conditional Probability......Page 194
Multiplication Rule......Page 199
Bayes’ Theorem......Page 202
Visual Summary......Page 212
Chapter Exercises......Page 213
Case 4.1: Great Air Commuter Service......Page 216
References......Page 217
Chapter 5 Discrete Probability Distributions......Page 218
Random Variables......Page 219
Mean and Standard Deviation of Discrete Distributions......Page 220
Characteristics of the Binomial Distribution......Page 226
The Poisson Distribution......Page 240
The Hypergeometric Distribution......Page 244
Visual Summary......Page 253
Chapter Exercises......Page 254
Case 5.1: SaveMor Pharmacies......Page 257
Case 5.2: Arrowmark Vending......Page 258
References......Page 259
Chapter 6 Introduction to Continuous Probability Distributions......Page 260
The Normal Distribution......Page 261
The Standard Normal Distribution......Page 262
Uniform Probability Distribution......Page 276
The Exponential Probability Distribution......Page 279
Visual Summary......Page 285
Chapter Exercises......Page 286
Case 6.1: State Entitlement Programs......Page 289
References......Page 290
Chapter 7 Introduction to Sampling Distributions......Page 291
Calculating Sampling Error......Page 292
Sampling Distribution of the Mean......Page 300
Simulating the Sampling Distribution for x......Page 301
The Central Limit Theorem......Page 309
Working with Proportions......Page 316
Sampling Distribution of ρ......Page 318
Visual Summary......Page 325
Chapter Exercises......Page 326
Case 7.2: Truck Safety Inspection......Page 330
References......Page 331
Chapter 8 Estimating Single Population Parameters......Page 332
Point Estimates and Confidence Intervals......Page 333
Confidence Interval Estimate for the Population Mean, σ Known......Page 335
Student’s t-Distribution......Page 341
Determining the Required Sample Size for Estimating a Population Mean......Page 351
Determining the Required Sample Size for Estimating μ, σ Known......Page 352
Determining the Required Sample Size for Estimating μ, σ Unknown......Page 353
Estimating a Population Proportion......Page 357
Confidence Interval Estimate for a Population Proportion......Page 358
Determining the Required Sample Size for Estimating a Population Proportion......Page 360
Visual Summary......Page 366
Chapter Exercises......Page 367
Case 8.1: Management Solutions, Inc.......Page 370
Case 8.3: Cell Phone Use......Page 371
References......Page 372
Chapter 9 Introduction to Hypothesis Testing......Page 373
Formulating the Hypotheses......Page 374
Significance Level and Critical Value......Page 378
Hypothesis Test for μ, σ Known......Page 379
Types of Hypothesis Tests......Page 385
ρ-Value for Two-Tailed Tests......Page 386
Hypothesis Test for μ, σ Unknown......Page 388
Testing a Hypothesis about a Single Population Proportion......Page 395
Calculating Beta......Page 403
Controlling Alpha and Beta......Page 405
Power of the Test......Page 409
Visual Summary......Page 414
Equations......Page 415
Chapter Exercises......Page 416
Case 9.1: Campbell Brewery, Inc.—Part 1......Page 421
Case 9.2: Wings of Fire......Page 422
References......Page 423
Chapter 10 Estimation and Hypothesis Testing for Two Population Parameters......Page 424
Estimating the Difference between Two Population Means when σ[sub(1)] and σ[sub(2)] Are Known, Using Independent Samples......Page 425
Estimating the Difference between Two Means when σ[sub(1)] and σ[sub(2)] Are Unknown, Using Independent Samples......Page 427
Testing for μ[sub(1)] – μ[sub(2)] When σ[sub(1)] and σ[sub(2)] Are Known, Using Independent Samples......Page 436
Testing μ[sub(1)] – μ[sub(2)] When σ[sub(1)] and σ[sub(2)] Are Unknown, Using Independent Samples......Page 439
Why Use Paired Samples?......Page 450
Hypothesis Testing for Paired Samples......Page 454
Estimating the Difference between Two Population Proportions......Page 459
Hypothesis Tests for the Difference between Two Population Proportions......Page 460
Visual Summary......Page 467
Equations......Page 468
Chapter Exercises......Page 469
Case 10.1: Motive Power Company—Part 1......Page 472
Case 10.3: Green Valley Assembly Company......Page 473
References......Page 474
Chapter 11 Hypothesis Tests and Estimation for Population Variances......Page 475
Chi-Square Test for One Population Variance......Page 476
Interval Estimation for a Population Variance......Page 481
F-Test for Two Population Variances......Page 485
Visual Summary......Page 497
Chapter Exercises......Page 498
References......Page 501
Chapter 12 Analysis of Variance......Page 502
Introduction to One-Way ANOVA......Page 503
Partitioning the Sum of Squares......Page 504
The ANOVA Assumptions......Page 505
Applying One-Way ANOVA......Page 508
Fixed Effects Versus Random Effects in Analysis of Variance......Page 520
Randomized Complete Block ANOVA......Page 524
Fisher’s Least Significant Difference Test......Page 532
Two-Factor Analysis of Variance with Replication......Page 536
Two-Factor ANOVA with Replications......Page 537
A Caution about Interaction......Page 544
Visual Summary......Page 548
Chapter Exercises......Page 549
Case 12.1: Agency for New Americans......Page 553
Case 12.3: NW Pulp and Paper......Page 554
Business Statistics Capstone Project......Page 555
References......Page 556
Chapters 8–12......Page 557
Using the Flow Diagrams......Page 570
Exercises......Page 571
Business Statistics Capstone Project......Page 573
Chapter 13 Goodness-of-Fit Tests and Contingency Analysis......Page 574
Chi-Square Goodness-of-Fit Test......Page 575
2 × 2 Contingency Tables......Page 589
r × c Contingency Tables......Page 593
Chi-Square Test Limitations......Page 596
Visual Summary......Page 600
Chapter Exercises......Page 601
Case 13.2: Bentford Electronics—Part 1......Page 604
References......Page 605
Chapter 14 Introduction to Linear Regression and Correlation Analysis......Page 606
The Correlation Coefficient......Page 607
Simple Linear Regression Analysis......Page 616
The Regression Model and Assumptions......Page 617
Meaning of the Regression Coefficients......Page 618
Least Squares Regression Properties......Page 623
Significance Tests in Regression Analysis......Page 626
Regression Analysis for Description......Page 639
Regression Analysis for Prediction......Page 642
Common Problems Using Regression Analysis......Page 645
Visual Summary......Page 651
Equations......Page 652
Chapter Exercises......Page 653
Case 14.2: Sapphire Coffee—Part 1......Page 657
Case 14.4: Continental Trucking......Page 658
References......Page 659
Chapter 15 Multiple Regression Analysis and Model Building......Page 660
Introduction to Multiple Regression Analysis......Page 661
Basic Model-Building Concepts......Page 663
Using Qualitative Independent Variables......Page 681
Working with Nonlinear Relationships......Page 688
The Partial-F Test......Page 698
Forward Selection......Page 705
Backward Elimination......Page 706
Best Subsets Regression......Page 710
Analysis of Residuals......Page 716
Corrective Actions......Page 724
Visual Summary......Page 727
Chapter Exercises......Page 728
Case 15.1: Dynamic Scales, Inc.......Page 732
Case 15.3: Hawlins Manufacturing......Page 733
Case 15.5: Wendell Motors......Page 734
References......Page 735
Chapter 16 Analyzing and Forecasting Time-Series Data......Page 736
General Forecasting Issues......Page 737
Components of a Time Series......Page 738
Introduction to Index Numbers......Page 741
Aggregate Price Indexes......Page 742
Weighted Aggregate Price Indexes......Page 744
Commonly Used Index Numbers......Page 746
Stock Market Indexes......Page 747
Using Index Numbers to Deflate a Time Series......Page 748
Developing a Trend-Based Forecasting Model......Page 751
Comparing the Forecast Values to the Actual Data......Page 754
Nonlinear Trend Forecasting......Page 761
Adjusting for Seasonality......Page 765
Exponential Smoothing......Page 777
Visual Summary......Page 789
Key Terms......Page 790
Chapter Exercises......Page 791
Video Case 2: Restaurant Location and Re-imaging Decisions @ McDonald’s......Page 793
Case 16.1: Park Falls Chamber of Commerce......Page 794
Case 16.3: Wagner Machine Works......Page 795
References......Page 796
Chapter 17 Introduction to Nonparametric Statistics......Page 797
The Wilcoxon Signed Rank Test—Single Population......Page 798
The Mann–Whitney U-Test......Page 803
Mann–Whitney U-Test—Large Samples......Page 807
Kruskal–Wallis One-Way Analysis of Variance......Page 816
Limitations and Other Considerations......Page 820
Visual Summary......Page 824
Equations......Page 825
Chapter Exercises......Page 826
Case 17.1: Bentford Electronics—Part 2......Page 829
References......Page 830
Chapter 18 Introduction to Quality and Statistical Process Control......Page 831
Quality Management and Tools for Process Improvement......Page 832
The Tools of Quality for Process Improvement......Page 833
The Existence of Variation......Page 835
Introducing Statistical Process Control Charts......Page 837
x-Chart and R-Chart......Page 838
Visual Summary......Page 858
Equations......Page 859
Chapter Exercises......Page 860
Case 18.1: Izbar Precision Casters, Inc.......Page 861
References......Page 862
Appendices......Page 863
APPENDIX A: Random Numbers Table......Page 864
APPENDIX B: Binomial Distribution Table......Page 865
APPENDIX C: Poisson Probability Distribution Table......Page 878
APPENDIX D: Standard Normal Distribution Table......Page 883
APPENDIX E: Exponential Distribution Table......Page 884
APPENDIX F: Values of t for Selected Probabilities......Page 885
APPENDIX G: Values of χ[sup(2)] for Selected Probabilities......Page 886
APPENDIX H: F-Distribution Table......Page 887
APPENDIX I: Critical Values of Hartley’s F[sub(max)] Test......Page 893
APPENDIX J: Distribution of the Studentized Range (q-values)......Page 894
APPENDIX K: Critical Values of r in the Runs Test......Page 896
APPENDIX L: Mann-Whitney U Test Probabilities (n< 9)......Page 897
APPENDIX M: Mann-Whitney U Test Critical Values (9 ≤ n ≤ 20)......Page 899
APPENDIX N: Critical Values of T in the Wilcoxon Matched-Pairs Signed-Ranks Test (n ≤ 25)......Page 901
APPENDIX O: Critical Values d[sub(L)] and d[sub(U)] of the Durbin-Watson Statistic D......Page 902
APPENDIX P: Lower and Upper Critical Values W of Wilcoxon Signed-Ranks Test......Page 904
APPENDIX Q: Control Chart Factors......Page 905
Answers to Selected Odd-Numbered Problems......Page 906
C......Page 927
F......Page 928
O......Page 929
S......Page 930
T......Page 931
W......Page 932
C......Page 933
F......Page 934
M......Page 935
R......Page 936
S......Page 937
Z......Page 938