Cover......Page 1
Title Page......Page 4
Copyright Page......Page 5
About the Authors......Page 8
Brief Contents......Page 10
Contents......Page 12
Preface......Page 20
Acknowledgments......Page 25
Chapter 1: The Where, Why, and How of Data Collection......Page 26
1.1. What Is Business Statistics?......Page 27
Descriptive Statistics......Page 28
Inferential Procedures......Page 29
Primary Data Collection Methods......Page 30
Other Data Collection Methods......Page 35
Data Collection Issues......Page 36
Populations and Samples......Page 38
Sampling Techniques......Page 39
Quantitative and Qualitative Data......Page 44
Data Measurement Levels......Page 45
Data Mining—Finding the Important, Hidden Relationships in Data......Page 48
Summary......Page 50
Key Terms......Page 51
Chapter Exercises......Page 52
Chapter 2: Graphs, Charts, and Tables—Describing Your Data......Page 53
Frequency Distributions......Page 54
Grouped Data Frequency Distributions......Page 58
Histograms......Page 63
Relative Frequency Histograms and Ogives......Page 66
Joint Frequency Distributions......Page 68
Bar Charts......Page 75
Pie Charts......Page 78
Stem and Leaf Diagrams......Page 79
Line Charts......Page 84
Scatter Diagrams......Page 87
Pareto Charts......Page 89
Summary......Page 93
Chapter Exercises......Page 94
Case 2.1: Server Downtime......Page 96
Case 2.3: Pine River Lumber Company—Part 1......Page 97
Chapter 3: Describing Data Using Numerical Measures......Page 98
Population Mean......Page 99
Sample Mean......Page 102
The Impact of Extreme Values on the Mean......Page 103
Median......Page 104
Skewed and Symmetric Distributions......Page 105
Mode......Page 106
Applying the Measures of Central Tendency......Page 108
Other Measures of Location......Page 109
Box and Whisker Plots......Page 112
Data-Level Issues......Page 114
Range......Page 120
Interquartile Range......Page 121
Population Variance and Standard Deviation......Page 122
Sample Variance and Standard Deviation......Page 125
Coefficient of Variation......Page 131
Standardized Data Values......Page 134
Summary......Page 139
Equations......Page 140
Chapter Exercises......Page 141
Case 3.2: National Call Center......Page 145
Case 3.4: AJ’s Fitness Center......Page 146
Chapters 1–3......Page 147
Exercises......Page 150
Review Case 1: State Department of Insurance......Page 151
Term Project Assignments......Page 152
Chapter 4: Introduction to Probability......Page 153
Important Probability Terms......Page 154
Methods of Assigning Probability......Page 159
Measuring Probabilities......Page 166
Conditional Probability......Page 174
Multiplication Rule......Page 178
Bayes’ Theorem......Page 181
Equations......Page 190
Chapter Exercises......Page 191
Case 4.1: Great Air Commuter Service......Page 194
Case 4.2: Pittsburg Lighting......Page 195
Chapter 5: Discrete Probability Distributions......Page 197
Random Variables......Page 198
Mean and Standard Deviation of Discrete Distributions......Page 200
5.2. The Binomial Probability Distribution......Page 205
Characteristics of the Binomial Distribution......Page 206
The Poisson Distribution......Page 218
The Hypergeometric Distribution......Page 222
Equations......Page 230
Chapter Exercises......Page 231
Case 5.1: SaveMor Pharmacies......Page 234
Case 5.2: Arrowmark Vending......Page 235
Case 5.3: Boise Cascade Corporation......Page 236
Chapter 6: Introduction to Continuous Probability Distributions......Page 237
The Normal Distribution......Page 238
The Standard Normal Distribution......Page 239
Using the Standard Normal Table......Page 241
The Uniform Distribution......Page 251
The Exponential Distribution......Page 253
Summary......Page 258
Chapter Exercises......Page 259
Case 6.1: State Entitlement Programs......Page 262
Case 6.3: National Oil Company—Part 1......Page 263
Chapter 7: Introduction to Sampling Distributions......Page 264
Calculating Sampling Error......Page 265
7.2. Sampling Distribution of the Mean......Page 273
Simulating the Sampling Distribution for x......Page 274
The Central Limit Theorem......Page 280
Working with Proportions......Page 287
Sampling Distribution of p......Page 289
Summary......Page 296
Chapter Exercises......Page 297
Case 7.1: Carpita Bottling Company—Part 1......Page 300
Case 7.2: Truck Safety Inspection......Page 301
Chapter 8: Estimating Single Population Parameters......Page 302
Point Estimates and Confidence Intervals......Page 303
Confidence Interval Estimate for the Population Mean, S Known......Page 304
Student’s t-Distribution......Page 311
8.2. Determining the Required Sample Size for Estimating a Population Mean......Page 320
Determining the Required Sample Size for Estimating M, S Known......Page 321
Determining the Required Sample Size for Estimating M, S Unknown......Page 322
8.3. Estimating a Population Proportion......Page 326
Confidence Interval Estimate for a Population Proportion......Page 327
Determining the Required Sample Size for Estimating a Population Proportion......Page 329
Summary......Page 335
Chapter Exercises......Page 336
Case 8.1: Management Solutions, Inc.......Page 339
Case 8.3: Cell Phone Use......Page 340
Chapter 9: Introduction to Hypothesis Testing......Page 341
Formulating the Hypotheses......Page 342
Significance Level and Critical Value......Page 346
Hypothesis Test for M, S Known......Page 347
Types of Hypothesis Tests......Page 353
p-Value for Two-Tailed Tests......Page 354
Hypothesis Test for M, S Unknown......Page 356
Testing a Hypothesis about a Single Population Proportion......Page 363
Calculating Beta......Page 369
Controlling Alpha and Beta......Page 371
Power of the Test......Page 375
Summary......Page 380
Chapter Exercises......Page 382
Case 9.2: Wings of Fire......Page 386
Chapter 10: Estimation and Hypothesis Testing for Two Population Parameters......Page 388
Estimating the Difference between Two Population Means When S1 and S2 Are Known, Using Independent Samples......Page 389
Estimating the Difference between Two Population Means When S1 and S2 Are Unknown, Using Independent Samples......Page 391
Testing for M1 M2 When S1 and S2 Are Known, Using Independent Samples......Page 399
Testing for M1 M2 When S1 and S2 Are Unknown, Using Independent Samples......Page 402
10.3. Interval Estimation and Hypothesis Tests for Paired Samples......Page 411
Why Use Paired Samples?......Page 412
Hypothesis Testing for Paired Samples......Page 415
Estimating the Difference between Two Population Proportions......Page 420
Hypothesis Tests for the Difference between Two Population Proportions......Page 421
Summary......Page 427
Equations......Page 428
Chapter Exercises......Page 429
Case 10.2: Hamilton Marketing Services......Page 432
Case 10.4: U-Need-It Rental Agency......Page 433
Chapter 11: Hypothesis Tests and Estimation for Population Variances......Page 435
Chi-Square Test for One Population Variance......Page 436
Interval Estimation for a Population Variance......Page 441
F-Test for Two Population Variances......Page 445
Chapter Exercises......Page 455
Case 11.1: Larabee Engineering—Part 2......Page 457
Chapter 12: Analysis of Variance......Page 459
Introduction to One-Way ANOVA......Page 460
Partitioning the Sum of Squares......Page 461
The ANOVA Assumptions......Page 462
Applying One-Way ANOVA......Page 464
The Tukey-Kramer Procedure for Multiple Comparisons......Page 471
Fixed Effects Versus Random Effects in Analysis of Variance......Page 474
12.2. Randomized Complete Block Analysis of Variance......Page 478
Randomized Complete Block ANOVA......Page 479
Fisher’s Least Significant Difference Test......Page 485
Two-Factor ANOVA with Replications......Page 489
A Caution about Interaction......Page 495
Summary......Page 499
Chapter Exercises......Page 500
Case 12.1: Agency for New Americans......Page 503
Case 12.4: Quinn Restoration......Page 504
Business Statistics Capstone Project......Page 505
Chapters 8–12......Page 506
Using the Flow Diagrams......Page 518
Exercises......Page 519
Chapter 13: Goodness-of-Fit Tests and Contingency Analysis......Page 522
Chi-Square Goodness-of-Fit Test......Page 523
13.2. Introduction to Contingency Analysis......Page 535
2 x 2 Contingency Tables......Page 536
r x c Contingency Tables......Page 540
Chi-Square Test Limitations......Page 542
Key Term......Page 546
Chapter Exercises......Page 547
Case 13.2: Bentford Electronics—Part 1......Page 549
Chapter 14: Introduction to Linear Regression and Correlation Analysis......Page 551
The Correlation Coefficient......Page 552
The Regression Model Assumptions......Page 561
Meaning of the Regression Coefficients......Page 562
Least Squares Regression Properties......Page 567
Significance Tests in Regression Analysis......Page 569
Regression Analysis for Description......Page 579
Regression Analysis for Prediction......Page 581
Common Problems Using Regression Analysis......Page 583
Summary......Page 590
Equations......Page 591
Chapter Exercises......Page 592
Case 14.1: A & A Industrial Products......Page 595
Case 14.3: Alamar Industries......Page 596
Case 14.4: Continental Trucking......Page 597
Chapter 15: Multiple Regression Analysis and Model Building......Page 598
15.1. Introduction to Multiple Regression Analysis......Page 599
Basic Model-Building Concepts......Page 601
15.2. Using Qualitative Independent Variables......Page 615
15.3. Working with Nonlinear Relationships......Page 622
Analyzing Interaction Effects......Page 626
Partial F-Test......Page 630
Backward Elimination......Page 636
Standard Stepwise Regression......Page 638
Best Subsets Regression......Page 639
15.5. Determining the Aptness of the Model......Page 643
Analysis of Residuals......Page 644
Corrective Actions......Page 649
Summary......Page 653
Equations......Page 654
Chapter Exercises......Page 655
Case 15.1: Dynamic Weighing, Inc.......Page 657
Case 15.3: Hawlins Manufacturing......Page 659
Case 15.5: Wendell Motors......Page 660
Chapter 16: Analyzing and Forecasting Time-Series Data......Page 661
General Forecasting Issues......Page 662
Components of a Time Series......Page 663
Introduction to Index Numbers......Page 666
Using Index Numbers to Deflate a Time Series......Page 667
Developing a Trend-Based Forecasting Model......Page 669
Comparing the Forecast Values to the Actual Data......Page 671
Nonlinear Trend Forecasting......Page 678
Adjusting for Seasonality......Page 682
Exponential Smoothing......Page 692
Forecasting with Excel 2016......Page 699
Summary......Page 706
Chapter Exercises......Page 707
Case 16.1: Park Falls Chamber of Commerce......Page 710
Case 16.3: Wagner Machine Works......Page 711
Chapter 17: Introduction to Nonparametric Statistics......Page 712
The Wilcoxon Signed Rank Test—Single Population......Page 713
The Mann–Whitney U-Test......Page 718
Mann–Whitney U-Test—Large Samples......Page 721
17.3. Kruskal–Wallis One-Way Analysis of Variance......Page 730
Limitations and Other Considerations......Page 734
Summary......Page 737
Equations......Page 738
Chapter Exercises......Page 739
Case 17.1: Bentford Electronics—Part 2......Page 742
Chapter 18: Introducing Business Analytics......Page 743
18.1. What Is Business Analytics?......Page 744
Descriptive Analytics......Page 745
Predictive Analytics......Page 748
18.2. Data Visualization Using Microsoft Power BI Desktop......Page 750
Using Microsoft Power BI Desktop......Page 754
Case 18.1: New York City Taxi Trips......Page 766
Appendices......Page 768
A: Random Numbers Table......Page 769
B: Cumulative Binomial Distribution Table......Page 770
C: Cumulative Poisson Probability Distribution Table......Page 784
D: Standard Normal Distribution Table......Page 789
E: Exponential Distribution Table......Page 790
F: Values of t for Selected Probabilities......Page 791
G: Values of x2 for Selected Probabilities......Page 792
H: F-Distribution Table: Upper 5% Probability (or 5% Area) under F-Distribution Curve......Page 793
I: Distribution of the Studentized Range (q-values)......Page 799
J: Critical Values of r in the Runs Test......Page 801
K: Mann–Whitney U Test Probabilities (n * 9)......Page 802
L: Mann–Whitney U Test Critical Values (9 " n " 20)......Page 804
M: Critical Values of T in the Wilcoxon Matched-Pairs Signed-Ranks Test (n " 25)......Page 806
N: Critical Values dL and du of the Durbin-Watson Statistic D (Critical Values Are One-Sided)......Page 807
O: Lower and Upper Critical Values W of Wilcoxon Signed-Ranks Test 808......Page 809
P: Control Chart Factors......Page 810
Answers to Selected Odd-Numbered Problems......Page 812
References......Page 840
Glossary......Page 844
Index......Page 850
Credits......Page 860
Back Cover......Page 866