Statistics for Business
About this book ix
1 Presenting and organizing data 1
Numerical Data 3
Categorical Data 15
Chapter Summary 23
Exercise Problems 25
2 Characterizing and defining data 45
Central Tendency of Data 47
Dispersion of Data 53
Quartiles 57
Percentiles 60
Chapter Summary 63
Exercise Problems 65
3 Basic probability and counting rules 79
Basic Probability Rules 81
System Reliability and Probability 93
Counting Rules 99
Chapter Summary 103
Exercise Problems 105
4 Probability analysis for discrete data 119
Distribution for Discrete Random
Variables 120
Binomial Distribution 127
Poisson Distribution 130
Chapter Summary 134
Exercise Problems 136
5 Probability analysis in the normal
distribution 149
Describing the Normal Distribution 150
Demonstrating That Data Follow a
Normal Distribution 161
Using a Normal Distribution to
Approximate a Binomial
Distribution 169
Chapter Summary 172
Exercise Problems 174
6 Theory and methods of statistical
sampling 185
Statistical Relationships in
Sampling for the Mean 187
Sampling for the Means from an
Infinite Population 196
Sampling for the Means from a
Finite Population 199
Sampling Distribution of the
Proportion 203
Sampling Methods 206
Chapter Summary 211
Exercise Problems 213
7 Estimating population
characteristics 229
Estimating the Mean Value 231
Estimating the Mean Using the
Student-t Distribution 237
Estimating and Auditing 243
Estimating the Proportion 245
Margin of Error and Levels of
Confidence 248
Chapter Summary 251
Exercise Problems 253
8 Hypothesis testing of a single
population 263
Concept of Hypothesis Testing 264
Hypothesis Testing for the Mean Value 265
Hypothesis Testing for Proportions 272
The Probability Value in Testing
Hypothesis 274
Risks in Hypothesis Testing 276
Chapter Summary 279
Exercise Problems 281
9 Hypothesis testing for different
populations 301
Difference Between the Mean of
Two Independent Populations 302
Differences of the Means Between
Dependent or Paired Populations 309
Difference Between the Proportions
of Two Populations with Large
Samples 311
Chi-Square Test for Dependency 313
Chapter Summary 319
Exercise Problems 321
10 Forecasting and estimating from
correlated data 333
A Time Series and Correlation 335
Linear Regression in a Time
Series Data 339
Linear Regression and Causal
Forecasting 345
Forecasting Using Multiple
Regression 347
Forecasting Using Non-linear
Regression 351
Seasonal Patterns in Forecasting 353
Considerations in Statistical
Forecasting 360
Chapter Summary 364
Exercise Problems 366
11 Indexing as a method for data
analysis 383
Relative Time-Based Indexes 385
Relative Regional Indexes 391
Weighting the Index Number 392
Chapter Summary 397
Exercise Problems 398
Appendix I: Key Terminology and
Formula in Statistics 413
Appendix II: Guide for Using
Microsoft Excel 2003 in This
Textbook 429
Appendix III: Mathematical
Relationships 437
Appendix IV: Answers to End of
Chapter Exercises 449
Bibliography 509
Index 511