Applied Statistics in Business and Economics Third Edition David P. Doane Oakland University Lori E. Seward University of Colorado McGraw-Hill Irwin
BRIEF CONTENTS CHAPTER ONE Overview of Statistics 2 CHAPTER THIRTEEN Multiple Regression 544 CHAPTER TWO Data Collection 22 CHAPTER THREE Describing Data Visually 58 CHAPTER FOUR Descriptive Statistics 112 CHAPTER FIVE Probability 172 CHAPTER SIX Discrete Probability Distributions 214 CHAPTER SEVEN Continuous Probability Distributions 254 CHAPTER EIGHT Sampling Distributions and Estimation 294 CHAPTER NINE One-Sample Hypothesis Tests 340 CHAPTER TEN Two-Sample Hypothesis Tests 390 CHAPTER ELEVEN Analysis of Variance 438 CHAPTER TWELVE Simple Regression 488 CHAPTER FOURTEEN Time-Series Analysis 594 CHAPTER FIFTEEN Chi-Square Tests 642 CHAPTER SIXTEEN Nonparametric Tests 684 CHAPTER SEVENTEEN Quality Management 714 CHAPTER EIGHTEEN Simulation (Online Learning Center www.mhhe.com/doane3e) APPENDIXES A Binomial Probabilities 758 B Poisson Probabilities 760 C-1 Standard Normal Areas 763 C-2 Cumulative Standard Normal Distribution 764 D Student's t Critical Values 766 E Chi-Square Critical Values 767 F Critical Values of F 768 G Solutions to Odd-Numbered Exercises 776 H Answers to Exam Review Questions 801 I Writing and Presenting Reports 803 PHOTO CREDITS 808 INDEX 809 xxii
O CHAPTER ONE Overview of Statistics 2 1.1 What Is Statistics? 4 1.2 Why Study Statistics? 5 1.3 Uses of Statistics 7 1.4 Statistical Challenges 10 1.5 Critical Thinking 14 Chapter Summary ; 17 Chapter Exercises 18 D CHAPTER TWO Data Collection 22 2.1 Definitions 23 2.2 Level of Measurement 26 2.3 Time Series versus Cross-Sectional Data 2.4 Sampling Concepts 31 2.5 Sampling Methods 35 2.6 Data Sources 44 2.7 Surveys 45 Chapter Summary Chapter Exercises 50 51 D CHAPTER THREE Describing Data Visually 58 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 Visual Description 59 i Dot Plots 61 Frequency Distributions and Histograms Excel Charts 74 Line Charts 77 Bar Charts 82 Scatter Plots 86 Tables 91 Pie Charts 95 i Deceptive Graphs Chapter Summary Chapter Exercises 97 100 101 D CHAPTER FOUR Descriptive Statistics 112 4.1 Numerical Description 113 4.2 Central Tendency 116 4.3 Dispersion 130 4.4 Standardized Data 137 4.5 Percentiles, Quartiles, and Box Plots 142 30 64 4.6 Correlation and Covariance 149 4.7 Grouped Data 153 4.8 Skewness and Kurtosis 154 Chapter Summary 158 Chapter Exercises 160 Exam Review Questions for Chapters 1-4 D CHAPTER FIVE Probability 172 5.1 Random Experiments 173 5.2 Probability 175 5.3 Rules of Probability 179 5.4 Independent Events 185 5.5 Contingency Tables 188 5.6 Tree Diagrams 196 5.7 Bayes'Theorem 198 5.8 Counting Rules v 203 Chapter Summary 207 Chapter Exercises \ 208 CHAPTER SIX Discrete Probability Distributions 214 6.1 Discrete Distributions ' 215 6.2 Uniform Distribution 221 6.3 Bernoulli Distribution 224 6.4 Binomial Distribution 225 6.5 Poisson Distribution 232 6.6 Hypergeometric Distribution 238 6.7 Geometric Distribution (Optional) 242 6.8 Transformations of Random Variables (Optional) 244 Chapter Summary 247 Chapter Exercises 249 Q CHAPTER SEVEN Continuous Probability Distributions 254 169 7.1 Describing a Continuous Distribution 256 7.2 Uniform Continuous Distribution 257 7.3 Normal Distribution 260 7.4 Standard Normal Distribution 262 7.5 Normal Approximations 274 7.6 Exponential Distribution 277 7.7 Triangular Distribution (Optional) 282 Chapter Summary 285 Chapter Exercises 287 Exam Review Questions for Chapters 5 7 292
Contents CHAPTER EIGHT Sampling Distributions and Estimation 294 8.1 Sampling Variation 295 8.2 Estimators and Sampling Distributions 8.3 Sample Mean and the Central Limit Theorem 300 8.4 Confidence Interval for a Mean (/it) with Known a 307 8.5 Confidence Interval for a Mean ([ ) with Unknown a 310 '* -, 8.6 Confidence Interval for a Proportion (n) 8.7 Sample Size Determination for a Mean 8.8 Sample Size Determination for a Proportion 329 8.9 Confidence Interval for a Population Variance, a 2 331 Chapter Summary 334 Chapter Exercises 335 D CHAPTER NINE One-Sample Hypothesis Tests 340 9.1 Logic of Hypothesis Testing 341 9.2 Statistical Hypothesis Testing 348 9.3 Testing a Mean: Known Population Variance 353 9.4 Testing a Mean: Unknown Population Variance 359 9.5 Testing a Proportion 365 9.6 Power Curves and OC Curves (Optional) 9.7 Tests for One Variance (Optional) 381 Chapter Summary 383 Chapter Exercises 385 CHAPTER TEN Two-Sample Hypothesis Tests 390 297 318 327 374 10.1 Two-Sample Tests 391 10.2 Comparing Two Means: Independent Samples 393 10.3 Confidence Interval for the Difference of Two Means, \i x (i 2 401 10.4 Comparing Two Means: Paired Samples 404 10.5 Comparing Two Proportions 409 10.6 Confidence Interval for the Difference of Two Proportions, n x - n 2 416 10.7 Comparing Two Variances 417 Chapter Summary 425 Chapter Exercises 426 Exam Review Questions for Chapters 8-10 436 CHAPTER ELEVEN Analysis of Variance 438 11.1 Overview of ANOVA 439 11.2 One-Factor ANOVA (Completely Randomized Model) 442 11.3 Multiple Comparisons 450 11.4 Tests for Homogeneity of Variances 452 11.5 Two-Factor ANOVA without Replication (Randomized Block Model) 456 11.6 Two-Factor ANOVA with Replication (Full Factorial Model) 464 11.7 Higher Order ANOVA Models (Optional) 473 Chapter Summary 477 Chapter Exercises 478 CHAPTER TWELVE Simple Regression 488 12.1 Visual Displays and Correlation Analysis 489 12.2 Simple Regression 494 12.3 Regression Terminology 496 12.4 Ordinary Least Squares Formulas 499 12.5 Tests for Significance 504 12.6 Analysis of Variance: Overall Fit 511 12.7 Confidence and Prediction Intervals for Y 515 12.8 Residual Tests 518 12.9 Unusual Observations 524 12.10 Other Regression Problems 528 Chapter Summary 532 Chapter Exercises\ 535 CHAPTER THIRTEEN Multiple Regression 544 13.1 Multiple Regression 545 13.2 Assessing Overall Fit 551 13.3 Predictor Significance 554 13.4 Confidence Intervals for Y 558 13.5 Binary Predictors 560 13.6 Tests for Nonlinearity and Interaction 568 13.7 Multicollinearity 571 13.8 Violations of Assumptions 575 13.9 Other Regression Topics 580 Chapter Summary 582 Chapter Exercises 584 Exam Review Questions for Chapters 11-13 592 CHAPTER FOURTEEN Time-Series Analysis 594 14.1 Time-Series Components 595 14.2 Trend Forecasting 599 14.3 Assessing Fit 612 14.4 Moving Averages 614 14.5 Exponential Smoothing 617 14.6 Seasonality 622 14.7 Index Numbers 628 14.8 Forecasting: Final Thoughts 630 Chapter Summary 631 Chapter Exercises 633
Contents D CHAPTER FIFTEEN Chi-Square Tests 642 15.1 Chi-Square Test for Independence 643 15.2 Chi-Square Tests for Goodness-of-Fit 65,4 ^ 15.3 Uniform Goodness-of-Fit Test 656 -' 15.4 Poisson Goodness-of-Fit Test 660 15.5 Normal Chi-Square Goodness-of-Fit Test 665 15.6 ECDF Tests (Optional) 670 Chapter Summary 672 Chapter Exercises 674 % < ^ D CHAPTER SIXTEEN Nonparametric Tests 684 16.1 Why Use Nonparametric Tests? 685 16.2 One ; Sample Runs Test 686 16.3 Wilcoxon Signed-Rank Test 689 16.4 Mann-Whitney Test 692 16.5 Kruskal-Wallis Test for Independent Samples 695 16.6 Friedman Test for Related Samples 700 16.7 Spearman Rank Correlation Test 702 Chapter Summary 706 Chapter Exercises 707 D CHAPTER SEVENTEEN Quality Management 714 17.1 Quality and Variation 715 17.2 Customer Orientation 717 17.3 Behavioral Aspects of Quality 718 17.4 Pioneers in Quality Management 719 17.5 Quality Improvement 721 17.6 Control Charts: Overview 724 17.7 Control Charts for a Mean 725 17.8 Control Charts for a Range 733 17.9 Patterns in Control Charts 734 17.10 Process Capability 736 17.11 Other Control Charts 739 17.12 Additional Quality Topics (Optional) 744 Chapter Summary 747 Chapter Exercises 749 CHAPTER EIGHTEEN Simulation (Online Learning Center www.mhhe.com/doane3e) APPENDIXES A Binomial Probabilities 758 B Poisson Probabilities 760 C-1 Standard Normal Areas 763 C-2 Cumulative Standard Normal Distribution 764 D Student's Critical Values 766 E Chi-Square Critical Values 767 F Critical Values of F 76S G Solutions to Odd-Numbered Exercises 776 H Answers to Exam Review Questions 801 I Writing and Presenting Reports 803 PHOTO CREDITS 808 INDEX 809