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Basic Business Statistics : Concepts and Applications

by: Berenson, Mark L.; Levine, David M.; Krehbiel, Timothy C.

Basic Business Statistics : Concepts and Applications

by: Berenson, Mark L.; Levine, David M.; Krehbiel, Timothy C.

ISBN 13:
9780131678316
ISBN 10:
0131678310
Edition: 10th
Format: Hardcover w/CD
Copyright: 01/01/2009
Publisher: Prentice Hall
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Summary

For a 1 or 2 semester course in Business Statistics.This comprehensive, 18 chapter hardcover text focuses on using rich business applications from all the functional areas of business to introduce the core concepts. The focus is on providing a sophisticated, uncluttered (by bells and whistles) approach.A briefer version is also available: Business Statistics: A First Course 4e.

Preface

xxv

Introduction and Data Collection

(20)

Using Statistics: Good Tunes

(1)

Basic Concepts of Statistics

(2)

The Growth of Statistics and Information Technology

(1)

How This Text Is Organized

(2)

Collecting Data

(1)

Identifying Sources of Data

(1)

Types of Data

(13)

Levels of Measurement and Types of Measurement Scales

(2)

Summary

(1)

Key Terms

(1)

Chapter Review Problems

(1)

Introduction to the Web Cases

(1)

Introduction to Using Statistical Programs

(1)

Using Windows

(2)

Introduction to Microsoft Excel

(3)

Introduction to Minitab

(2)

CD-ROM Topic: Introduction to Spss

Presenting Data in Tables and Charts

(50)

Using Statistics: Comparing the Performance of Mutual Funds

(1)

Tables and Charts for Categorical Data

(7)

The Summary Table

(1)

The Bar Chart

(1)

The Pie Chart

(1)

The Pareto Diagram

(4)

Organizing Numerical Data

(3)

The Ordered Array

(1)

The Stem-and-Leaf Display

(2)

Tables and Charts for Numerical Data

(11)

The Frequency Distribution

(2)

The Relative Frequency Distribution and the Percentage Distribution

(1)

The Cumulative Distribution

(2)

The Histogram

(1)

The Polygon

(2)

The Cumulative Percentage Polygon (Ogive)

(3)

Cross Tabulations

(4)

The Contingency Table

(2)

The Side-by-Side Bar Chart

(2)

Scatter Diagrams and Time-Series Plots

(4)

The Scatter Diagram

(1)

The Time-Series Plot

(3)

Misusing Graphs and Ethical Issues

(20)

Summary

(1)

Key Terms

(1)

Chapter Review Problems

(7)

Managing the Springville Herald

(1)

Web Case

(1)

Using Software for Tables and Charts

(1)

Microsoft Excel

(3)

Minitab

(5)

CD-ROM Topic: Using SPSS for Tables and Charts

Numerical Descriptive Measures

(54)

Using Statistics: Evaluating the Performance of Mutual Funds

(1)

Measures of Central Tendency, Variation, and Shape

(22)

The Mean

(2)

The Median

(1)

The Mode

(1)

Quartiles

(2)

The Geometric Mean

(1)

The Range

(1)

The Interquartile Range

(1)

The Variance and the Standard Deviation

(3)

The Coefficient of Variation

(1)

Z Scores

(2)

Shape

(1)

Visual Explorations: Exploring Descriptive Statistics

(1)

Microsoft Excel Descriptive Statistics Output

(1)

Minitab Descriptive Statistics Output

(4)

Numerical Descriptive Measures for a Population

(5)

The Population Mean

(1)

The Population Variance and Standard Deviation

(1)

The Empirical Rule

(1)

The Chebyshev Rule

(2)

Computing Numerical Descriptive Measures from a Frequency Distribution

(2)

Exploratory Data Analysis

101

(5)

The Five-Number Summary

102

(1)

The Box-and-Whisker Plot

103

(3)

The Covariance and the Coefficient of Correlation

106

(6)

The Covariance

106

(2)

The Coefficient of Correlation

108

(4)

Pitfalls in Numerical Descriptive Measures and Ethical Issues

112

(13)

Ethical Issues

113

(1)

Summary

113

(1)

Key Formulas

114

(1)

Key Terms

114

(1)

Chapter Review Problems

115

(6)

Managing the Springville Herald

121

(1)

Web Case

121

(1)

Using Software for Descriptive Statistics

121

(1)

Microsoft Excel

121

(1)

Minitab

122

(3)

CD-ROM Topic: Using SPSS for Descriptive Statistics

Basic Probability

125

(32)

Using Statistics: The Consumer Electronics Company

126

(1)

Basic Probability Concepts

126

(9)

Events and Sample Spaces

128

(1)

Contingency Tables and Venn Diagrams

129

(1)

Simple (Marginal) Probability

129

(2)

Joint Probability

131

(1)

General Addition Rule

132

(3)

Conditional Probability

135

(8)

Computing Conditional Probabilities

135

(2)

Decision Trees

137

(1)

Statistical Independence

138

(2)

Multiplication Rules

140

(3)

Bayes' Theorem

143

(4)

Counting Rules

147

(3)

Ethical Issues and Probability

150

(7)

Summary

151

(1)

Key Formulas

151

(1)

Key Terms

152

(1)

Chapter Review Problems

152

(2)

Web Case

154

(1)

Using Software for Basic Probability

155

(1)

Microsoft Excel

155

(2)

Some Important Discrete Probability Distributions

157

(34)

Using Statistics: The Accounting Information System of the Saxon Home Improvement Company

158

(1)

The Probability Distribution for a Discrete Random Variable

158

(4)

Expected Value of a Discrete Random Variable

159

(1)

Variance and Standard Deviation of a Discrete Random Variable

160

(2)

Covariance and Its Application in Finance

162

(4)

The Covariance

162

(1)

The Expected Value, Variance, and Standard Deviation of the Sum of Two Random Variables

163

(1)

Portfolio Expected Return and Portfolio Risk

164

(2)

Binomial Distribution

166

(9)

Poisson Distribution

175

(4)

Hypergeometric Distribution

179

(3)

The Mean

180

(1)

The Standard Deviation

180

(2)

CD-ROM Topic: Using the Poisson Distribution to Approximate the Binomial Distribution

182

(9)

Summary

182

(1)

Key Formulas

183

(1)

Key Terms

183

(1)

Chapter Review Problems

184

(3)

Managing the Springville Herald

187

(1)

Web Case

188

(1)

Using Software for Discrete Probability Distributions

188

(1)

Microsoft Excel

188

(1)

Minitab

189

(2)

The Normal Distribution and Other Continuous Distributions

191

(36)

Using Statistics: Download Time for a Web Site Homepage

192

(1)

Continuous Probability Distributions

192

(1)

The Normal Distribution

193

(15)

Visual Explorations: Exploring the Normal Distribution

202

(6)

Evaluating Normality

208

(5)

Evaluating the Properties

208

(1)

Constructing the Normal Probability Plot

209

(4)

The Uniform Distribution

213

(2)

The Exponential Distribution

215

(3)

The Normal Approximation to the Binomial Distribution

218

(9)

Need for a Correction for Continuity Adjustment

218

(1)

Approximating the Binomial Distribution

218

(2)

Computing a Probability Approximation for an Individual Value

220

(1)

Summary

220

(1)

Key Formulas

221

(1)

Key Terms

221

(1)

Chapter Review Problems

221

(2)

Managing the Springville Herald

223

(1)

Web Case

224

(1)

Using Software for Continuous Probability Distributions

224

(1)

Microsoft Excel

224

(1)

Minitab

225

(2)

CD-ROM Topic: Using SPSS for a Normal Probability Plot

Sampling Distributions

227

(32)

Using Statistics: Cereal-Fill Packaging Process

228

(1)

Sampling Distributions

228

(1)

Sampling Distribution of the Mean

229

(10)

The Unbiased Property of the Sample Mean

229

(1)

Standard Error of the Mean

230

(2)

Sampling from Normally Distributed Populations

232

(3)

Sampling from Nonnormally Distributed Populations---The Central Limit Theorem

235

(2)

Visual Explorations: Exploring Sampling Distributions

237

(2)

Sampling Distribution of the Proportion

239

(3)

Types of Survey Sampling Methods

242

(6)

Simple Random Sample

243

(2)

Systematic Sample

245

(1)

Stratified Sample

246

(1)

Cluster Sample

246

(2)

Evaluating Survey Worthiness

248

(3)

Survey Errors

248

(2)

Ethical Issues

250

(1)

CD-ROM Topic: Sampling from Finite Populations

251

(8)

Summary

251

(1)

Key Formulas

251

(1)

Key Terms

252

(1)

Chapter Review Problems

252

(3)

Managing the Springville Herald

255

(1)

Web Case

255

(1)

Using Software for Sampling Distributions

256

(1)

Microsoft Excel

256

(1)

Minitab

256

(3)

Confidence Interval Estimation

259

(40)

Using Statistics: Auditing Sales Invoices at the Saxon Home Improvement Company

260

(1)

Confidence Interval Estimation for the Mean (σ Known)

261

(4)

Confidence Interval Estimation for the Mean (σ Unknown)

265

(7)

Student's t Distribution

265

(1)

Properties of the t Distribution

266

(1)

The Concept of Degrees of Freedom

267

(1)

The Confidence Interval Statement

268

(4)

Confidence Interval Estimation for the Proportion

272

(4)

Determining Sample Size

276

(6)

Sample Size Determination for the Mean

276

(2)

Sample Size Determination for the Proportion

278

(4)

Applications of Confidence Interval Estimation in Auditing

282

(6)

Estimating the Population Total Amount

282

(1)

Difference Estimation

283

(3)

One-Sided Confidence Interval Estimation of the Rate of Noncompliance with Internal Controls

286

(2)

Confidence Interval Estimation and Ethical Issues

288

(1)

CD-ROM Topic: Estimation and Sample Size Determination for Finite Populations

288

(11)

Summary

289

(1)

Key Formulas

289

(1)

Key Terms

289

(1)

Chapter Review Problems

290

(4)

Managing the Springville Herald

294

(1)

Web Case

295

(1)

Using Software for Confidence Intervals and Sample Size Determination

296

(1)

Microsoft Excel

296

(1)

Minitab

297

(2)

CD-ROM Topic: Using SPSS for Confidence Interval Estimation

Fundamentals of Hypothesis Testing: One-Sample Tests

299

(46)

Using Statistics: The Oxford Cereal Company Revisited

300

(1)

Hypothesis-Testing Methodology

300

(6)

The Null and Alternative Hypotheses

300

(2)

The Critical Value of the Test Statistic

302

(1)

Regions of Rejection and Nonrejection

302

(1)

Risks in Decision Making Using Hypothesis-Testing Methodology

303

(3)

Z Test of Hypothesis for the Mean (σ Known)

306

(8)

The Critical Value Approach to Hypothesis Testing

306

(3)

The p-Value Approach to Hypothesis Testing

309

(3)

A Connection between Confidence Interval Estimation and Hypothesis Testing

312

(2)

One-Tail Tests

314

(4)

The Critical Value Approach

314

(1)

The p-Value Approach

315

(3)

t Test of Hypothesis for the Mean (σ Unknown)

318

(7)

The Critical Value Approach

319

(2)

The p-Value Approach

321

(1)

Checking Assumptions

321

(4)

Z Test of Hypothesis for the Proportion

325

(4)

The Critical Value Approach

326

(1)

The p-Value Approach

327

(2)

The Power of a Test

329

(6)

Potential Hypothesis-Testing Pitfalls and Ethical Issues

335

(10)

Summary

338

(1)

Key Formulas

339

(1)

Key Terms

339

(1)

Chapter Review Problems

339

(3)

Managing the Springville Herald

342

(1)

Web Case

342

(1)

Using Software for One-Sample Tests of Hypothesis

343

(1)

Microsoft Excel

343

(1)

Minitab

343

(2)

CD-ROM Topic: Using SPSS for One-Sample Tests of Hypothesis

Two-Sample Tests

345

(50)

Using Statistics: Comparing Sales from End-Aisle Displays and Normal Displays

346

(1)

Comparing the Means of Two Independent Populations

346

(12)

Z Test for the Difference Between Two Means

346

(1)

Pooled-Variance t Test for the Difference Between Two Means

347

(5)

Confidence Interval Estimate for the Difference Between the Means of Two Independent Populations

352

(1)

Separate-Variance t Test for the Difference Between Two Means

352

(6)

Comparing the Means of Two Related Populations

358

(10)

Paired t Test

359

(6)

Confidence Interval Estimate for the Mean Difference

365

(3)

Comparing Two Population Proportions

368

(6)

Z Test for the Difference Between Two Proportions

368

(4)

Confidence Interval Estimate for the Difference Between Two Proportions

372

(2)

F Test for the Difference Between Two Variances

374

(21)

Finding Lower-Tail Critical Values

376

(6)

Summary

382

(1)

Key Formulas

383

(1)

Key Terms

384

(1)

Chapter Review Problems

384

(4)

Managing the Springville Herald

388

(1)

Web Case

389

(1)

Using Software for Two-Sample Tests

390

(1)

Microsoft Excel

390

(2)

Minitab

392

(3)

CD-ROM Topic: Using SPSS for Two-Sample Tests of Hypothesis

Analysis of Variance

395

(50)

Using Statistics: The Perfect Parachute Company

396

(1)

The Completely Randomized Design: One-Way Analysis of Variance

396

(15)

F Test for Differences Among More than Two Means

396

(7)

Multiple Comparisons: The Tukey-Kramer Procedure

403

(2)

Anova Assumptions

405

(1)

Levene's Test for Homogeneity of Variance

406

(5)

The Randomized Block Design

411

(10)

Tests for the Treatment and Block Effects

411

(6)

Multiple Comparisons: The Tukey Procedure

417

(4)

The Factorial Design: Two-Way Analysis of Variance

421

(24)

Testing for Factor and Interaction Effects

422

(5)

Interpreting Interaction Effects

427

(3)

Multiple Comparisons: The Tukey Procedure

430

(3)

Summary

433

(1)

Key Formulas

433

(2)

Key Terms

435

(1)

Chapter Review Problems

435

(4)

Managing the Springville Herald

439

(1)

Web Case

440

(1)

Using Software for Anova

441

(1)

Microsoft Excel

441

(1)

Minitab

442

(3)

CD-ROM Topic: Using SPSS for Anova

Chi-Square Tests and Nonparametric Tests

445

(68)

Using Statistics: Guest Satisfaction at T. C. Resort Properties

446

(1)

Chi-Square Test for the Difference Between Two Proportions (Independent Samples)

446

(8)

Chi-Square Test for Differences Among More Than Two Proportions

454

(7)

The Marascuilo Procedure

457

(4)

Chi-Square Test of Independence

461

(6)

McNemar Test for the Difference Between Two Proportions (Related Samples)

467

(3)

Chi-Square Test for a Variance or Standard Deviation

470

(4)

Chi-Square Goodness-of-Fit Tests

474

(5)

Chi-Square Goodness-of-Fit Test for a Poisson Distribution

474

(2)

Chi-Square Goodness-of-Fit Test for a Normal Distribution

476

(3)

Wilcoxon Rank Sum Test: Nonparametric Analysis for Two Independent Populations

479

(6)

Wilcoxon Signed Ranks Test: Nonparametric Analysis for Two Related Populations

485

(6)

Kruskal-Wallis Rank Test: Nonparametric Analysis for the One-Way Anova

491

(5)

Friedman Rank Test: Nonparametric Analysis for the Randomized Block Design

496

(17)

Summary

501

(1)

Key Formulas

502

(1)

Key Terms

502

(1)

Chapter Review Problems

503

(4)

Managing the Springville Herald

507

(1)

Web Case

508

(1)

Using Software for Chi-Square Tests and Nonparametric Tests

509

(1)

Microsoft Excel

509

(1)

Minitab

510

(3)

CD-ROM Topic: Using SPSS for Chi-Square Tests and Nonparametric Tests

Simple Linear Regression

513

(56)

Using Statistics: Forecasting Sales for a Clothing Store

514

(1)

Types of Regression Models

514

(2)

Determining the Simple Linear Regression Equation

516

(9)

The Least-Squares Method

517

(3)

Visual Explorations: Exploring Simple Linear Regression Coefficients

520

(1)

Predictions in Regression Analysis: Interpolation versus Extrapolation

521

(1)

Computing the Y Intercept b0 and the Slope b1

521

(4)

Measures of Variation

525

(7)

Computing the Sum of Squares

525

(3)

The Coefficient of Determination

528

(2)

Standard Error of the Estimate

530

(2)

Assumptions

532

(1)

Residual Analysis

532

(5)

Evaluating the Assumptions

532

(5)

Measuring Autocorrelation: The Durbin-Watson Statistic

537

(5)

Residual Plots to Detect Autocorrelation

537

(2)

The Durbin-Watson Statistic

539

(3)

Inferences About the Slope and Correlation Coefficient

542

(7)

t Test for the Slope

542

(2)

FTest for the Slope

544

(1)

Confidence Interval Estimate of the Slope (β1)

545

(1)

t Test for a Correlation Coefficient

546

(3)

Estimation of Mean Values and Prediction of Individual Values

549

(5)

The Confidence Interval Estimate

549

(2)

The Prediction Interval

551

(3)

Pitfalls in Regression and Ethical Issues

554

(15)

Summary

557

(1)

Key Formulas

558

(1)

Key Terms

559

(1)

Chapter Review Problems

559

(5)

Managing the Springville Herald

564

(1)

Web Case

565

(1)

Using Software for Simple Linear Regression

566

(1)

Microsoft Excel

566

(2)

Minitab

568

(1)

CD-ROM Topic: Using SPSS for Simple Linear Regression

Introduction to Multiple Regression

569

(50)

Using Statistics: Predicting OmniPower Sales

570

(1)

Developing the Multiple Regression Model

570

(6)

Interpreting the Regression Coefficients

571

(3)

Predicting the Dependent Variable Y

574

(2)

r2, Adjusted r2, and the Overall F Test

576

(4)

Coefficient of Multiple Determination

576

(1)

Test for the Significance of the Overall Multiple Regression Model

577

(3)

Residual Analysis for the Multiple Regression Model

580

(2)

Inferences Concerning the Population Regression Coefficients

582

(4)

Tests of Hypothesis

582

(2)

Confidence Interval Estimation

584

(2)

Testing Portions of the Multiple Regression Model

586

(6)

Coefficients of Partial Determination

590

(2)

Using Dummy Variables and Interaction Terms in Regression Models

592

(11)

Interactions

595

(8)

Logistic Regression

603

(16)

Summary

608

(2)

Key Formulas

610

(1)

Key Terms

610

(1)

Chapter Review Problems

611

(3)

Managing the Springville Herald

614

(1)

Web Case

614

(1)

Using Software for Multiple Regression

615

(1)

Microsoft Excel

615

(1)

Minitab

616

(3)

CD-ROM Topic: Using SPSS for Multiple Regression

Multiple Regression Model Building

619

(38)

Using Statistics: Predicting Standby Hours for Unionized Graphic Artists

620

(1)

The Quadratic Regression Model

620

(9)

Finding the Regression Coefficients and Predicting Y

621

(3)

Testing for the Significance of the Quadratic Model

624

(1)

Testing the Quadratic Effect

624

(3)

The Coefficient of Multiple Determination

627

(2)

Using Transformations in Regression Models

629

(3)

The Square-Root Transformation

629

(1)

The Log Transformation

630

(2)

Influence Analysis

632

(3)

The Hat Matrix Elements hi

633

(1)

The Studentized Deleted Residuals ti

633

(1)

Cook's Distance Statistic Di

634

(1)

Overview

634

(1)

Collinearity

635

(2)

Model Building

637

(10)

The Stepwise Regression Approach to Model Building

638

(2)

The Best-Subsets Approach to Model Building

640

(6)

Model Validation 000

646

(1)

Pitfalls in Multiple Regression and Ethical Issues

647

(10)

Pitfalls in Multiple Regression

647

(1)

Ethical Issues

648

(1)

Summary

648

(1)

Key Formulas

648

(1)

Key Terms

648

(2)

Chapter Review Problems

650

(3)

The Mountain States Potato Company Case

653

(1)

Web Case

653

(1)

Software for Multiple Regression Model Building

654

(1)

Microsoft Excel

654

(1)

Minitab

655

(2)

CD-ROM Topic: Using SPSS for Model Building

Time-Series Forecasting and Index Numbers

657

(68)

Using Statistics: Forecasting Revenues for Three Companies

658

(1)

The Importance of Business Forecasting

658

(1)

Component Factors of the Classical Multiplicative Time-Series Model

659

(2)

Smoothing the Annual Time Series

661

(6)

Moving Averages

662

(2)

Exponential Smoothing

664

(3)

Least-Squares Trend-Fitting and Forecasting

667

(12)

The Linear Trend Model

668

(2)

The Quadratic Trend Model

670

(2)

The Exponential Trend Model

672

(2)

Model Selection Using First, Second, and Percentage Differences

674

(5)

The Holt-Winters Method for Trend-Fitting and Forecasting

679

(3)

Autoregressive Modeling for Trend-Fitting and Forecasting

682

(11)

Choosing an Appropriate Forecasting Model

693

(4)

Performing a Residual Analysis

693

(1)

Measuring the Magnitude of the Residual Error through Squared or Absolute Differences

694

(1)

Principle of Parsimony

694

(1)

A Comparison of Five Forecasting Methods

694

(3)

Time-Series Forecasting of Seasonal Data

697

(7)

Least-Squares Forecasting with Monthly or Quarterly Data

698

(6)

Index Numbers

704

(8)

The Price Index

705

(1)

Aggregate Price Indexes

706

(2)

Weighted Aggregate Price Indexes

708

(1)

Some Common Price Indexes

709

(3)

Pitfalls Concerning Time-Series Forecasting

712

(13)

Summary

712

(1)

Key Formulas

713

(2)

Key Terms

715

(1)

Chapter Review Problems

715

(3)

Managing the Springville Herald

718

(1)

Web Case

718

(1)

Using Software for Time-Series Forecasting and Index Numbers

719

(1)

Microsoft Excel

719

(3)

Minitab

722

(3)

CD-ROM Topic: Using SPSS for Time-Series Forecasting

Decision Making

725

(26)

Using Statistics: Selecting A Stock

726

(1)

Payoff Tables and Decision Trees

726

(4)

Criteria for Decision Making

730

(9)

Expected Monetary Value

731

(1)

Expected Opportunity Loss

732

(2)

Return-to-Risk Ratio

734

(5)

Decision Making with Sample Information

739

(5)

Utility

744

(7)

Summary

746

(1)

Key Formulas

746

(1)

Key Terms

746

(1)

Chapter Review Problems

746

(3)

Web Case

749

(1)

Using Software for Decision Making

750

(1)

Microsoft Excel

750

(1)

Statistical Applications in Quality and Productivity Management

751

(44)

Using Statistics: Service Quality at the Beachcomber Hotel

752

(1)

Total Quality Management

752

(3)

Six Sigma Management

755

(1)

The Theory of Control Charts

755

(3)

Control Chart for the Proportion of Nonconforming Items---The p Chart

758

(6)

The Red Bead Experiment: Understanding Process Variability

764

(2)

Control Chart for an Area of Opportunity---The c Chart

766

(4)

Control Charts for the Range and the Mean

770

(7)

The R Chart

771

(2)

The X Chart

773

(4)

Process Capability

777

(18)

Customer Satisfaction and Specification Limits

777

(2)

Capability Indexes

779

(1)

CPL, CPU, and Cpk

780

(3)

Summary

783

(1)

Key Formulas

783

(1)

Key Terms

784

(1)

Chapter Review Problems

784

(3)

The Harnswell Sewing Machine Company Case

787

(2)

Managing the Springville Herald

789

(2)

Using Software for Control Charts

791

(1)

Microsoft Excel

791

(1)

Minitab

791

(4)

CD-ROM Topic: Using SPSS for Control Charts

Appendices

795

(60)

A. Review of Arithmetic, Algebra, and Logarithms

796

(2)

B. Summation Notation

798

(3)

C. Statistical Symbols and Greek Alphabet

801

(1)

D. CD-ROM Contents

802

(7)

E. Tables

809

(27)

F. Using Microsoft Excel with This Text

836

(2)

G. PHStat2 User's Guide

838

(17)

Self-Test Solutions and Answers to Selected Even-Numbered Problems

855

(38)

Index

893

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Basic Business Statistics : Concepts and Applications

Basic Business Statistics : Concepts and Applications

9780131678316

0131678310

Summary

Table of Contents

Supplemental Materials

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Amazon no longer offers textbook rentals. We do!

Basic Business Statistics : Concepts and Applications

Basic Business Statistics : Concepts and Applications

9780131678316

0131678310

Summary

Table of Contents

Supplemental Materials

Write a Review

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