BOOK

## Business Statistics: A First Course, Global Edition

**David M. Levine** |
** Kathryn A. Szabat** |
** David F. Stephan**

(2016)

### Additional Information

#### Book Details

### Abstract

Statistics is essential for all business majors, and this text helps students see the role statistics will play in their own careers by providing examples drawn from all functional areas of business. Guided by principles set by major statistical and business science associations (ASA and DSI), plus the authors’ diverse experiences, the **Seventh Edition** of Levine/Szabat/Stephan’s **Business Statistics: A First Course **continues to innovate and improve the way this course is taught to all students. This brief version, created to fit the needs of a one-semester course, is part of the established Berenson/Levine series.

**MyStatLab not included. **Students, if MyStatLab is a recommended/mandatory component of the course, please ask your instructor for the correct ISBN and course ID. MyStatLab should only be purchased when required by an instructor. Instructors, contact your Pearson representative for more information.

**MyStatLab** is an online homework, tutorial, and assessment product designed to personalize learning and improve results. With a wide range of interactive, engaging, and assignable activities, students are encouraged to actively learn and retain tough course concepts.

### Table of Contents

Section Title | Page | Action | Price |
---|---|---|---|

Cover | Cover | ||

Dedication | 5 | ||

About the Authors | 6 | ||

Brief Contents | 7 | ||

Contents | 8 | ||

Preface | 15 | ||

Getting Started: Important Things to Learn First | 23 | ||

Using Statistics: “You Cannot Escape from Data” | 23 | ||

GS.1 Statistics: A Way of Thinking | 24 | ||

GS.2 Data: What is it? | 24 | ||

Statistics | 25 | ||

GS.3 The Changing Face of Statistics | 26 | ||

Business Analytics | 26 | ||

“Big Data” | 26 | ||

Integral Role of Software in Statistics | 27 | ||

GS.4 Statistics: An Important Part of Your Business Education | 27 | ||

Making Best Use of This Book | 27 | ||

Making Best Use of the Software Guides | 28 | ||

References | 29 | ||

Key Terms | 29 | ||

Excel Guide | 30 | ||

EG.1 Getting Started with Microsoft Excel | 30 | ||

EG.2 Entering Data | 30 | ||

Minitab Guide | 31 | ||

MG.1 Getting Started with Minitab | 31 | ||

MG.2 Entering Data | 31 | ||

Chapter 1: Defining and Collecting Data | 32 | ||

Using Statistics: Beginning of the End … Or the End of the Beginning? | 32 | ||

1.1 Defining Variables | 33 | ||

Classifying Variables by Type | 33 | ||

1.2 Collecting Data | 35 | ||

Data Sources | 35 | ||

Populations and Samples | 36 | ||

Structured Versus Unstructured Data | 36 | ||

Electronic Formats and Encodings | 37 | ||

Data Cleaning | 37 | ||

Recoding Variables | 37 | ||

1.3 Types of Sampling Methods | 38 | ||

Simple Random Sample | 39 | ||

Systematic Sample | 40 | ||

Stratified Sample | 40 | ||

Cluster Sample | 40 | ||

1.4 Types of Survey Errors | 41 | ||

Coverage Error | 42 | ||

Nonresponse Error | 42 | ||

Sampling Error | 42 | ||

Measurement Error | 42 | ||

Ethical Issues About Surveys | 43 | ||

Think About This: New Media Surveys/Old Sampling Problems | 43 | ||

Using Statistics: Beginning of the End… Revisited | 44 | ||

Summary | 45 | ||

References | 45 | ||

Key Terms | 45 | ||

Checking Your Understanding | 46 | ||

Chapter Review Problems | 46 | ||

Cases for Chapter1 | 47 | ||

Managing Ashland MultiComm Services | 47 | ||

CardioGood Fitness | 47 | ||

Clear Mountain State Student Surveys | 48 | ||

Learning with the Digital Cases | 48 | ||

Chapter 1 Excel Guide | 50 | ||

EG1.1 Defining Variables | 50 | ||

EG1.2 Collecting Data | 50 | ||

EG1.3 Types of Sampling Methods | 50 | ||

Chapter 1 Minitab Guide | 51 | ||

MG1.1 Defining Variables | 51 | ||

MG1.2 Collecting Data | 51 | ||

MG1.3 Types of Sampling Methods | 52 | ||

Chapter 2: Organizing and Visualizing Variables | 53 | ||

Using Statistics: The Choice is Yours | 53 | ||

2.1 Organizing Categorical Variables | 55 | ||

The Summary Table | 55 | ||

The Contingency Table | 55 | ||

2.2 Organizing Numerical Variables | 59 | ||

The Ordered Array | 59 | ||

The Frequency Distribution | 60 | ||

Classes and Excel Bins | 62 | ||

The Relative Frequency Distribution and the Percentage Distribution | 62 | ||

The Cumulative Distribution | 64 | ||

Stacked and Unstacked Data | 66 | ||

2.3 Visualizing Categorical Variables | 68 | ||

The Bar Chart | 68 | ||

The Pie Chart | 69 | ||

The Pareto Chart | 70 | ||

The Side-by-Side Bar Chart | 72 | ||

2.4 Visualizing Numerical Variables | 74 | ||

The Stem-and-Leaf Display | 74 | ||

The Histogram | 76 | ||

The Percentage Polygon | 77 | ||

The Cumulative Percentage Polygon (Ogive) | 78 | ||

2.5 Visualizing Two Numerical Variables | 82 | ||

The Scatter Plot | 82 | ||

The Time-Series Plot | 83 | ||

2.6 Organizing and Visualizing a Set of Variables | 85 | ||

Multidimensional Contingency Tables | 86 | ||

Data Discovery | 87 | ||

2.7 The Challenge in Organizing and Visualizing Variables | 89 | ||

Obscuring Data | 89 | ||

Creating False Impressions | 90 | ||

Chartjunk | 90 | ||

Best Practices for Constructing Visualizations | 92 | ||

Using Statistics: The Choice is Yours, Revisited | 93 | ||

Summary | 94 | ||

References | 94 | ||

Key Equations | 95 | ||

Key Terms | 95 | ||

Checking Your Understanding | 95 | ||

Chapter Review Problems | 96 | ||

Cases for Chapter 2 | 100 | ||

Managing Ashland MultiComm Services | 100 | ||

Digital Case | 101 | ||

CardioGood Fitness | 101 | ||

The Choice is Yours Follow-Up | 101 | ||

Clear Mountain State Student Surveys | 101 | ||

Chapter 2 Excel Guide | 102 | ||

EG2.1 Organizing Categorical Variables | 102 | ||

EG2.2 Organizing Numerical Variables | 104 | ||

EG2.3 Visualizing Categorical Variables | 106 | ||

EG2.4 Visualizing Numerical Variables | 108 | ||

EG2.5 Visualizing Two Numerical Variables | 111 | ||

EG2.6 Organizing and Visualizing a Set of Variables | 111 | ||

Chapter 2 Minitab Guide | 113 | ||

MG2.1 Organizing Categorical Variables | 113 | ||

MG2.2 Organizing Numerical Variables | 113 | ||

MG2.3 Visualizing Categorical Variables | 114 | ||

MG2.4 Visualizing Numerical Variables | 115 | ||

MG2.5 Visualizing Two Numerical Variables | 117 | ||

MG2.6 Organizing and Visualizing a Set of Variables | 118 | ||

Chapter 3: Numerical Descriptive Measures | 119 | ||

Using Statistics: More Descriptive Choices | 119 | ||

3.1 Central Tendency | 120 | ||

The Mean | 120 | ||

The Median | 122 | ||

The Mode | 123 | ||

3.2 Variation and Shape | 124 | ||

The Range | 124 | ||

The Variance and the Standard Deviation | 125 | ||

The Coefficient of Variation | 129 | ||

Z Scores | 130 | ||

Shape: Skewness | 131 | ||

Shape: Kurtosis | 132 | ||

3.3 Exploring Numerical Data | 135 | ||

Quartiles | 135 | ||

The Interquartile Range | 137 | ||

The Five-Number Summary | 138 | ||

The Boxplot | 139 | ||

3.4 Numerical Descriptive Measures for a Population | 142 | ||

The Population Mean | 142 | ||

The Population Variance and Standard Deviation | 143 | ||

The Empirical Rule | 144 | ||

The Chebyshev Rule | 145 | ||

3.5 The Covariance and the Coefficient of Correlation | 146 | ||

The Covariance | 147 | ||

The Coefficient of Correlation | 148 | ||

3.6 Descriptive Statistics: Pitfalls and Ethical Issues | 152 | ||

Using Statistics: More Descriptive Choices, Revisited | 152 | ||

Summary | 153 | ||

References | 153 | ||

Key Equations | 153 | ||

Key Terms | 154 | ||

Checking Your Understanding | 154 | ||

Chapter Review Problems | 155 | ||

Cases for Chapter 3 | 158 | ||

Managing Ashland MultiComm Services | 158 | ||

Digital Case | 158 | ||

CardioGood Fitness | 158 | ||

More Descriptive Choices Follow-up | 158 | ||

Clear Mountain State Student Surveys | 158 | ||

Chapter 3 Excel Guide | 159 | ||

EG3.1 Central Tendency | 159 | ||

EG3.2 Variation and Shape | 159 | ||

EG3.3 Exploring Numerical Data | 160 | ||

EG3.4 Numerical Descriptive Measures for a Population | 161 | ||

EG3.5 The Covariance and the Coefficient of Correlation | 161 | ||

Chapter 3 Minitab Guide | 162 | ||

MG3.1 Central Tendency | 162 | ||

MG3.2 Variation and Shape | 162 | ||

MG3.3 Exploring Numerical Data | 162 | ||

MG3.4 Numerical Descriptive Measures for a Population | 163 | ||

MG3.5 The Covariance and the Coefficient of Correlation | 163 | ||

Chapter 4: Basic Probability | 164 | ||

Using Statistics: Possibilities at M&R Electronics World | 164 | ||

4.1 Basic Probability Concepts | 165 | ||

Events and Sample Spaces | 166 | ||

Contingency Tables and Venn Diagrams | 168 | ||

Simple Probability | 168 | ||

Joint Probability | 169 | ||

Marginal Probability | 170 | ||

General Addition Rule | 171 | ||

4.2 Conditional Probability | 174 | ||

Computing Conditional Probabilities | 174 | ||

Decision Trees | 176 | ||

Independence | 178 | ||

Multiplication Rules | 179 | ||

Marginal Probability Using the General Multiplication Rule | 180 | ||

4.3 Bayes’ Theorem | 182 | ||

Think About This Divine Providence and Spam | 185 | ||

4.4 Counting Rules | 187 | ||

4.5 Ethical Issues and Probability | 190 | ||

Using Statistics: Possibilities at M&R Electronics World, Revisited | 191 | ||

Summary | 191 | ||

References | 191 | ||

Key Equations | 192 | ||

Key Terms | 192 | ||

Checking Your Understanding | 193 | ||

Chapter Review Problems | 193 | ||

Cases for Chapter 4 | 195 | ||

Digital Case | 195 | ||

CardioGood Fitness | 195 | ||

Clear Mountain State Student Surveys | 195 | ||

Chapter 4 Excel Guide | 196 | ||

EG4.1 Basic Probability Concepts | 196 | ||

EG4.2 Conditional Probability | 196 | ||

EG4.3 Bayes’ Theorem | 196 | ||

EG4.4 Counting Rules | 196 | ||

Chapter 4 Minitab Guide | 197 | ||

MG4.1 Basic Probability Concepts | 197 | ||

MG4.2 Conditional Probability | 197 | ||

MG4.3 Bayes’ Theorem | 197 | ||

MG4.4 Counting Rules | 197 | ||

Chapter 5: Discrete Probability Distributions | 198 | ||

Using Statistics: Events of Interest at Ricknel Home Centers | 198 | ||

5.1 The Probability Distribution for a Discrete Variable | 199 | ||

Expected Value of a Discrete Variable | 199 | ||

Variance and Standard Deviation of a Discrete Variable | 200 | ||

5.2 Binomial Distribution | 203 | ||

5.3 Poisson Distribution | 210 | ||

Using Statistics: Events of Interest at Ricknel Home Centers, Revisited | 214 | ||

Summary | 214 | ||

References | 214 | ||

Key Equations | 214 | ||

Key Terms | 215 | ||

Checking Your Understanding | 215 | ||

Chapter Review Problems | 215 | ||

Cases for Chapter 5 | 217 | ||

Managing Ashland MultiComm Services | 217 | ||

Digital Case | 218 | ||

Chapter 5 Excel Guide | 219 | ||

EG5.1 The Probability Distribution for a Discrete Variable | 219 | ||

EG5.2 Binomial Distribution | 219 | ||

EG5.3 Poisson Distribution | 219 | ||

Chapter 5 Minitab Guide | 220 | ||

MG5.1 The Probability Distribution for a Discrete Variable | 220 | ||

MG5.2 B inomial Distribution | 220 | ||

MG5.3 Poisson Distribution | 220 | ||

Chapter 6: The Normal Distribution | 222 | ||

Using Statistics: Normal Downloading at MyTVLab | 222 | ||

6.1 Continuous Probability Distributions | 223 | ||

6.2 The Normal Distribution | 223 | ||

Computing Normal Probabilities | 225 | ||

Finding X Values | 230 | ||

Visual Explorations: Exploring the Normal Distribution | 234 | ||

Think About This What is Normal? | 234 | ||

6.3 Evaluating Normality | 236 | ||

Comparing Data Characteristics to Theoretical Properties | 236 | ||

Constructing the Normal Probability Plot | 238 | ||

Using Statistics: Normal Downloading at MyTVLab, Revisited | 240 | ||

Summary | 241 | ||

References | 241 | ||

Key Equations | 241 | ||

Key Terms | 241 | ||

Checking Your Understanding | 242 | ||

Chapter Review Problems | 242 | ||

Cases for Chapter 6 | 243 | ||

Managing Ashland MultiComm Services | 243 | ||

Digital Case | 244 | ||

CardioGood Fitness | 244 | ||

More Descriptive Choices Follow-up | 244 | ||

Clear Mountain State Student Surveys | 244 | ||

Chapter 6 Excel Guide | 245 | ||

EG6.1 Continuous Probability Distributions | 245 | ||

EG6.2 The Normal Distribution | 245 | ||

EG6.3 Evaluating Normality | 245 | ||

Chapter 6 Minitab Guide | 246 | ||

MG6.1 Continuous Probability Distributions | 246 | ||

MG6.2 The Normal Distribution | 246 | ||

MG6.3 Evaluating Normality | 246 | ||

Chapter 7: Sampling Distributions | 248 | ||

Using Statistics: Sampling Oxford Cereals | 248 | ||

7.1 Sampling Distributions | 249 | ||

7.2 Sampling Distribution of the Mean | 249 | ||

The Unbiased Property of the Sample Mean | 249 | ||

Standard Error of the Mean | 251 | ||

Sampling from Normally Distributed Populations | 252 | ||

Sampling from Non-normally Distributed Populations—The Central Limit Theorem | 255 | ||

Visual Explorations: Exploring Sampling Distributions | 259 | ||

7.3 Sampling Distribution of the Proportion | 260 | ||

Using Statistics: Sampling Oxford Cereals, Revisited | 264 | ||

Summary | 264 | ||

References | 264 | ||

Key Equations | 264 | ||

Key Terms | 265 | ||

Checking Your Understanding | 265 | ||

Chapter Review Problems | 265 | ||

Cases for Chapter 7 | 267 | ||

Managing Ashland MultiComm Services | 267 | ||

Digital Case | 267 | ||

Chapter 7 Excel Guide | 268 | ||

EG7.1 Sampling Distributions | 268 | ||

EG7.2 Sampling Distribution of the Mean | 268 | ||

EG7.3 Sampling Distribution of the Proportion | 268 | ||

Chapter 7 Minitab Guide | 269 | ||

MG7.1 Sampling Distributions | 269 | ||

MG7.2 Sampling Distribution of the Mean | 269 | ||

MG7.3 Sampling Distribution of the Proportion | 269 | ||

Chapter 8: Confidence Interval Estimation | 270 | ||

Using Statistics: Getting Estimates at Ricknel Home Centers | 270 | ||

8.1 Confidence Interval Estimate for the Mean (σ Known) | 271 | ||

Can You Ever Know the Population Standard Deviation? | 276 | ||

8.2 Confidence Interval Estimate for the Mean (σ Unknown) | 277 | ||

Student’s t Distribution | 277 | ||

Properties of the t Distribution | 278 | ||

The Concept of Degrees of Freedom | 279 | ||

The Confidence Interval Statement | 280 | ||

8.3 Confidence Interval Estimate for the Proportion | 285 | ||

8.4 Determining Sample Size | 288 | ||

Sample Size Determination for the Mean | 288 | ||

Sample Size Determination for the Proportion | 290 | ||

8.5 Confidence Interval Estimation and Ethical Issues | 293 | ||

8.6 Bootstrapping | 294 | ||

Using Statistics: Getting Estimates at Ricknel Home Centers, Revisited | 294 | ||

Summary | 294 | ||

References | 295 | ||

Key Equations | 295 | ||

Key Terms | 295 | ||

Checking Your Understanding | 295 | ||

Chapter Review Problems | 296 | ||

Cases for Chapter 8 | 299 | ||

Managing Ashland MultiComm Services | 299 | ||

Digital Case | 300 | ||

Sure Value Convenience Stores | 300 | ||

CardioGood Fitness | 301 | ||

More Descriptive Choices Follow-Up | 301 | ||

Clear Mountain State Student Surveys | 301 | ||

Chapter 8 Excel Guide | 302 | ||

EG8.1 Confidence Interval Estimate for the Mean (σ Known | 302 | ||

EG8.2 Confidence Interval Estimatefor the Mean (σ Unknown) | 302 | ||

EG8.3 Confidence Interval Estimate for the Proportion | 303 | ||

EG8.4 Determining Sample Size | 303 | ||

Chapter 8 Minitab Guide | 304 | ||

MG8.1 Confidence Interval Estimate for the Mean (σ Known) | 304 | ||

MG8.2 Confidence Interval Estimate for the Mean (σ Unknown) | 304 | ||

MG8.3 Confidence Interval Estimate for the Proportion | 304 | ||

MG8.4 Determining Sample Size | 305 | ||

Chapter 9: Fundamentals of Hypothesis Testing: One-Sample Tests | 306 | ||

Using Statistics: Significant Testing at Oxford Cereals | 306 | ||

9.1 Fundamentals of Hypothesis-Testing Methodology | 307 | ||

The Null and Alternative Hypotheses | 307 | ||

The Critical Value of the Test Statistic | 308 | ||

Regions of Rejection and Nonrejection | 309 | ||

Risks in Decision Making Using Hypothesis Testing | 309 | ||

Z Test for the Mean (σ Known) | 312 | ||

Hypothesis Testing Using the Critical Value Approach | 312 | ||

Hypothesis Testing Using the p-Value Approach | 315 | ||

A Connection Between Confidence Interval Estimation and Hypothesis Testing | 317 | ||

Can You Ever Know the Population Standard Deviation? | 318 | ||

9.2 t Test of Hypothesis for the Mean (σ Unknown) | 319 | ||

The Critical Value Approach | 320 | ||

The p-Value Approach | 322 | ||

Checking the Normality Assumption | 322 | ||

9.3 One-Tail Tests | 326 | ||

The Critical Value Approach | 326 | ||

The p-Value Approach | 327 | ||

9.4 Z Test of Hypothesis for the Proportion | 330 | ||

The Critical Value Approach | 331 | ||

The p-Value Approach | 332 | ||

9.5 Potential Hypothesis-Testing Pitfalls and Ethical Issues | 334 | ||

Statistical Significance Versus Practical Significance | 334 | ||

Statistical Insignificance Versus Importance | 335 | ||

Reporting of Findings | 335 | ||

Ethical Issues | 335 | ||

Using Statistics: Significant Testing at Oxford Cereals, Revisited | 336 | ||

Summary | 336 | ||

References | 336 | ||

Key Equations | 337 | ||

Key Terms | 337 | ||

Checking Your Understanding | 337 | ||

Chapter Review Problems | 337 | ||

Cases for Chapter 9 | 339 | ||

Managing Ashland MultiComm Services | 339 | ||

Digital Case | 340 | ||

Sure Value Convenience Stores | 340 | ||

Chapter 9 Excel Guide | 341 | ||

EG9.1 Fundamentals of Hypothesis-Testing Methodology | 341 | ||

EG9.2 t Test of Hypothesis for the Mean (σ Unknown) | 341 | ||

EG9.3 One -Tail Tests | 342 | ||

EG9.4 Z Test of Hypothesis for the Proportion | 342 | ||

Chapter 9 Minitab Guide | 343 | ||

MG9.1 Fundamentals of Hypothesis-Testing Methodology | 343 | ||

MG9.2 t Test of Hypothesis for the Mean (σ Unknown) | 343 | ||

MG9.3 One-Tail Tests | 343 | ||

MG9.4 Z Test of Hypothesis for the Proportion | 344 | ||

Chapter 10: Two-Sample Tests and One-Way ANOVA | 345 | ||

Using Statistics: For North Fork, Are There Different Means to the Ends? | 345 | ||

10.1 Comparing the Means of Two Independent Populations | 346 | ||

Pooled-Variance t Test for the Difference Between Two Means | 346 | ||

Confidence Interval Estimate for the Difference Between Two Means | 351 | ||

t Test for the Difference Between Two Means, Assuming Unequal Variances | 352 | ||

Do People Really Do This? | 352 | ||

10.2 Comparing the Means of Two Related Populations | 355 | ||

Paired t Test | 356 | ||

Confidence Interval Estimate for the Mean Difference | 361 | ||

10.3 Comparing the Proportions of Two Independent Populations | 363 | ||

Z Test for the Difference Between Two Proportions | 363 | ||

Confidence Interval Estimate for the Difference Between Two Proportions | 367 | ||

10.4 F Test for the Ratio of Two Variances | 369 | ||

10.5 One-Way ANOVA | 374 | ||

F Test for Differences Among More Than Two Means | 377 | ||

One-Way ANOVA F Test Assumptions | 381 | ||

Levene Test for Homogeneity of Variance | 382 | ||

Multiple Comparisons: The Tukey-Kramer Procedure | 383 | ||

10.6 Effect Size | 388 | ||

Using Statistics: For North Fork, Are There Different Means to the Ends? Revisited | 389 | ||

Summary | 389 | ||

References | 390 | ||

Key Equations | 390 | ||

Key Terms | 391 | ||

Checking Your Understanding | 392 | ||

Chapter Review Problems | 392 | ||

Cases for Chapter 10 | 394 | ||

Managing Ashland MultiComm Services | 394 | ||

Digital Case | 395 | ||

Sure Value Convenience Stores | 395 | ||

CardioGood Fitness | 396 | ||

More Descriptive Choices Follow-Up | 396 | ||

Clear Mountain State Student Surveys | 396 | ||

Chapter 10 Excel Guide | 398 | ||

EG10.1 Comparing the Means of Two Independent Populations | 398 | ||

EG10.2 Comparing the Means of Two Related Populations | 400 | ||

EG10.3 Comparing the Proportions of Two Independent Populations | 401 | ||

EG10.4 F Test for the Ratio of Two Variances | 401 | ||

EG10.5 One-Way ANOVA | 402 | ||

Chapter 10 Minitab Guide | 405 | ||

MG10.1 Comparing the Means of Two Independent Populations | 405 | ||

MG10.2 Comparing the Means of Two Related Populations | 405 | ||

MG10.3 Comparing the Proportions of Two Independent Populations | 406 | ||

MG10.4 F Test for the Ratio of Two Variances | 406 | ||

MG10.5 One-Way ANOVA | 407 | ||

Chapter 11: Chi-Square Tests | 409 | ||

Using Statistics: Avoiding Guesswork About Resort Guests | 409 | ||

11.1 Chi-Square Test for the Difference Between Two Proportions | 410 | ||

11.2 Chi-Square Test for Differences Among More Than Two Proportions | 417 | ||

11.3 Chi-Square Test of Independence | 422 | ||

Using Statistics: Avoiding Guesswork About Resort Guests, Revisited | 427 | ||

Summary | 428 | ||

References | 428 | ||

Key Equations | 429 | ||

Key Terms | 429 | ||

Checking Your Understanding | 429 | ||

Chapter Review Problems | 429 | ||

Cases for Chapter 11 | 431 | ||

Managing Ashland MultiComm Services | 431 | ||

Digital Case | 432 | ||

CardioGood Fitness | 432 | ||

Clear Mountain State Student Surveys | 433 | ||

Chapter 11 Excel Guide | 434 | ||

EG11.1 Chi-Square Test for the Difference Between Two Proportions | 434 | ||

EG11.2 Chi-Square Test for Differences Among More Than Two Proportions | 434 | ||

EG11.3 Chi-Square Test of Independence | 434 | ||

Chapter 11 Minitab Guide | 435 | ||

MG11.1 Chi-Square Test for the Difference Between Two Proportions | 435 | ||

MG11.2 Chi-Square Test for Differences Among More Than Two Proportions | 435 | ||

MG11.3 Chi-Square Test of Independence | 435 | ||

Chapter 12: Simple Linear Regression | 436 | ||

Using Statistics: Knowing Customers at Sunflowers Apparel | 436 | ||

12.1 Types of Regression Models | 437 | ||

Simple Linear Regression Models | 438 | ||

12.2 Determining the Simple Linear Regression Equation | 439 | ||

The Least-Squares Method | 439 | ||

Predictions in Regression Analysis: Interpolation Versus Extrapolation | 442 | ||

Computing the Y Intercept, b0, and the Slope, b1 | 442 | ||

Visual Explorations: Exploring Simple Linear Regression Coefficients | 445 | ||

12.3 Measures of Variation | 447 | ||

Computing the Sum of Squares | 447 | ||

The Coefficient of Determination | 448 | ||

Standard Error of the Estimate | 450 | ||

12.4 Assumptions of Regression | 452 | ||

12.5 Residual Analysis | 452 | ||

Evaluating the Assumptions | 452 | ||

12.6 Measuring Autocorrelation: The Durbin-Watson Statistic | 456 | ||

Residual Plots to Detect Autocorrelation | 456 | ||

The Durbin-Watson Statistic | 457 | ||

12.7 Inferences About the Slope and Correlation Coefficient | 460 | ||

t Test for the Slope | 460 | ||

F Test for the Slope | 462 | ||

Confidence Interval Estimate for the Slope | 463 | ||

t Test for the Correlation Coefficient | 464 | ||

12.8 Estimation of Mean Values and Prediction of Individual Values | 467 | ||

The Confidence Interval Estimate for the Mean Response | 467 | ||

The Prediction Interval for an Individual Response | 468 | ||

12.9 Potential Pitfalls in Regression | 471 | ||

Six Steps for Avoiding the Potential Pitfalls | 473 | ||

Using Statistics: Knowing Customers at Sunflowers Apparel, Revisited | 473 | ||

Summary | 473 | ||

References | 474 | ||

Key Equations | 475 | ||

Key Terms | 476 | ||

Checking Your Understanding | 476 | ||

Chapter Review Problems | 476 | ||

Cases for Chapter 12 | 480 | ||

Managing Ashland MultiComm Services | 480 | ||

Digital Case | 480 | ||

Brynne Packaging | 480 | ||

Chapter 12 Excel Guide | 482 | ||

EG12.1 Types of Regression Models | 482 | ||

EG12.2 Determining the Simple Linear Regression Equation | 482 | ||

EG12.3 Measures of Variation | 483 | ||

EG12.4 Assumptions of Regression | 483 | ||

EG12.5 Residual Analysis | 483 | ||

EG12.6 Measuring Autocorrelation: the Durbin-Watson Statistic | 484 | ||

EG12.7 Inferences About the Slope and Correlation Coefficient | 484 | ||

EG 12.8 Estimation of Mean Values and Prediction of Individual Values | 484 | ||

Chapter 12 Minitab Guide | 484 | ||

MG12.1 Types of Regression Models | 484 | ||

MG12.2 Determining the Simple Linear Regression Equation | 484 | ||

MG12.3 Measures of Variation | 485 | ||

MG12.4 Assumptions | 485 | ||

MG12.5 Residual Analysis | 485 | ||

MG12.6 Measuring Autocorrelation: the Durbin-Watson Statistic | 485 | ||

MG12.7 Inferences About the Slope and Correlation Coefficient | 485 | ||

MG12.8 Estimation of Mean Values and Prediction of Individual Values | 485 | ||

Chapter 13: Multiple Regression | 486 | ||

Using Statistics: The Multiple Effects of OmniPower Bars | 486 | ||

13.1 Developing a Multiple Regression Model | 487 | ||

Interpreting the Regression Coefficients | 488 | ||

Predicting the Dependent Variable Y | 490 | ||

13.2 r2, Adjusted r2, and the Overall F Test | 492 | ||

Coefficient of Multiple Determination | 492 | ||

Adjusted r2 | 493 | ||

Test for the Significance of the Overall Multiple Regression Model | 494 | ||

13.3 Residual Analysis for the Multiple Regression Model | 496 | ||

13.4 Inferences Concerning the Population Regression Coefficients | 497 | ||

Tests of Hypothesis | 497 | ||

Confidence Interval Estimation | 499 | ||

13.5 Using Dummy Variables and Interaction Terms in Regression Models | 501 | ||

Dummy Variables | 501 | ||

Interactions | 503 | ||

Using Statistics: The Multiple Effects of OmniPower Bars, Revisited | 507 | ||

Summary | 507 | ||

References | 507 | ||

Key Equations | 509 | ||

Key Terms | 509 | ||

Checking Your Understanding | 509 | ||

Chapter Review Problems | 509 | ||

Cases for Chapter 13 | 512 | ||

Managing Ashland MultiComm Services | 512 | ||

Digital Case | 512 | ||

Chapter13 Excel Guide | 513 | ||

EG13.1 Developing a Multiple Regression Model | 513 | ||

EG13.2 r2, Adjusted r2, and the Overall F Test | 514 | ||

EG13.3 Residual Analysis for the Multiple Regression Model | 514 | ||

EG13.4 Inferences Concerning the Population Regression Coefficients | 515 | ||

EG13.5 Using Dummy Variables and Interaction Terms in Regression Models | 515 | ||

Chapter 13 Minitab Guide | 515 | ||

MG13.1 Developing a Multiple Regression Model | 515 | ||

MG13.2 r2, Adjusted r2, and the Overall F Test | 516 | ||

MG13.3 Residual Analysis for the Multiple Regression Model | 516 | ||

MG13.4 Inferences Concerning the Population Regression Coefficients | 516 | ||

MG13.5 Using Dummy Variables and Interaction Terms in Regression Models | 517 | ||

Chapter 14: Statistical Applications in Quality Management | 14-1 | ||

Using Statistics: Finding Quality at the Beachcomber | 14-1 | ||

14.1 The Theory of Control Charts | 14-2 | ||

14.2 Control Chart for the Proportion: The p Chart | 14-4 | ||

14.3 The Red Bead Experiment: Understanding Process Variability | 14-10 | ||

14.4 Control Chart for an Area of Opportunity: The c Chart | 14-12 | ||

14.5 Control Charts for the Range and the Mean | 14-15 | ||

The R Chart | 14-16 | ||

The X—Chart | 14-18 | ||

14.6 Process Capability | 14-21 | ||

Customer Satisfaction and Specification Limits | 14-21 | ||

Capability Indices | 14-23 | ||

CPL, CPU, and Cpk | 14-24 | ||

14.7 Total Quality Management | 14-26 | ||

14.8 Six Sigma | 14-28 | ||

The DMAIC Model | 14-29 | ||

Roles in a Six Sigma Organization | 14-30 | ||

Lean Six Sigma | 14-30 | ||

Using Statistics: Finding Quality at the Beachcomber, Revisited | 14-31 | ||

Summary | 14-31 | ||

References | 14-32 | ||

Key Equations | 14-32 | ||

Key Terms | 14-33 | ||

Chapter Review Problems | 14-34 | ||

The Harnswell Sewing Machine Company Case | 14-36 | ||

Managing Ashland Multicomm Services | 14-38 | ||

Chapter 14 Excel Guide | 14-39 | ||

EG14.1 The Theory of Control Charts | 14-39 | ||

EG14.2 Control Chart for the Proportion: The p Chart | 14-39 | ||

EG14.3 The Red Bead Experiment: Understanding Process Variability | 14-40 | ||

EG14.4 Control Chart for an Area of Opportunity: The c Chart | 14-40 | ||

EG14.5 Control Charts for the Range and the Mean | 14-41 | ||

EG14.6 Process Capability | 14-42 | ||

Chapter 14 Minitab Guide | 14-42 | ||

MG14.1 The Theory of Control Charts | 14-42 | ||

MG14.2 Control Chart for the Proportion: the p Chart | 14-42 | ||

MG14.3 The Red Bead Experiment: Understanding Process Variability | 14-42 | ||

MG14.4 Control Chart for an Area of Opportunity: the c Chart | 14-42 | ||

MG14.5 Control Charts for the Range and the Mean | 14-43 | ||

MG14.6 Process Capability | 14-44 | ||

Appendices | 518 | ||

Appendix A: Basic Math Concepts and Symbols | 519 | ||

A.1 Rules for Arithmetic Operations | 519 | ||

A.2 Rules for Algebra: Exponents and Square Roots | 519 | ||

A.3 Rules for Logarithms | 520 | ||

A.4 Summation Notation | 521 | ||

A.5 Statistical Symbols | 524 | ||

A.6 Greek Alphabet | 524 | ||

Appendix B: Important Excel and Minitab Skills | 525 | ||

B.1 Basic Excel Operations | 525 | ||

B.2 Formulas and Cell References | 525 | ||

B.3 Entering Formulas into Worksheets | 526 | ||

B.4 Pasting with Paste Special | 527 | ||

B.5 Basic Worksheet Cell Formatting | 527 | ||

B.6 Chart Formatting | 529 | ||

B.7 Selecting Cell Ranges for Charts | 530 | ||

B.8 Deleting the “Extra” Histogram Bar | 530 | ||

B.9 Creating Histograms for Discrete Probability Distributions | 530 | ||

B.10 Basic Minitab Operations | 531 | ||

Appendix C: Online Resources | 532 | ||

C.1 About the Online Resources for This Book | 532 | ||

C.2 Accessing the Online Resources | 532 | ||

C.3 Details of Downloadable Files | 532 | ||

C.4 PHStat | 537 | ||

Appendix D: Configuring Microsoft Excel | 538 | ||

D.1 Getting Microsoft Excel Ready for Use (ALL) | 538 | ||

D.2 Getting PHStat Ready for Use (ALL) | 539 | ||

D.3 Configuring Excel Security for Add-In Usage (WIN) | 539 | ||

D.4 Opening PHStat (ALL) | 540 | ||

D.5 Using a Visual Explorations Add-In Workbook (ALL) | 540 | ||

D.6 Checking for the Presence of the Analysis ToolPak (ALL) | 540 | ||

Appendix E: Tables | 541 | ||

E.1 Table of Random Numbers | 541 | ||

E.2 The Cumulative Standardized Normal Distribution | 543 | ||

E.3 Critical Values of t | 545 | ||

E.4 Critical Values of x2 | 547 | ||

E.5 Critical Values of F | 548 | ||

E.6 Critical Values of the Studentized Range, Q | 552 | ||

E.7 Critical Values, dL and dU, of the Durbin-Watson Statistic, D (Critical Values Are One-Sided) | 554 | ||

E.8 Control Chart Factors | 555 | ||

E.9 The Standardized Normal Distribution | 556 | ||

Appendix F: Useful Excel Knowledge | 557 | ||

F.1 Useful Keyboard Shortcuts | 557 | ||

F.2 Verifying Formulas and Worksheets | 557 | ||

F.3 New Function Names | 558 | ||

F.4 Understanding the Nonstatistical Functions | 559 | ||

Appendix G: Software FAQs | 561 | ||

G.1 PHStat FAQs | 561 | ||

G.2 Microsoft Excel FAQs | 562 | ||

G.3 FAQs for New Users of Microsoft Excel 2013 | 562 | ||

G.4 Minitab FAQs | 563 | ||

Self-Test Solutions and Answers to Selected Even-Numbered Problems | 564 | ||

Index | 589 |