Contents 1
1 The essence of statistics for business 1
The use of statistics 1
Basic terms and concepts 2
Statistics for managers 3
Schematic overview of the book 4
Statistical computer packages 6
2 Summarizing data using tables and graphs 7
The essence of descriptive tables and graphs in business 7
Tables and frequency distributions 7
Graphical methods of data presentation 10
Use of MINITAB 23
Key learning points 25
Exercises 27
3 Summarizing data numerically 29
The essence of descriptive summary measures in business 29
Measures of location 29
Measures of dispersion 38
Use of MINTAB 47
Key learning points 48
Exercises 50
4 Index numbers 54
The essence of index numbers in business 54
Price index numbers 55
Quantity index numbers 59
Key learning points 63
Exercises 64
5 Probability 67
The essence of probability in business 67
Assigning probabilities 68
The rules of probability 71
Expectations 82
Permutations and combinations 82
Key learning points 85
Exercises 87
6 Probability distributions 89
The essence of probability distributions in business 89
The binomial distribution 90
The Poisson distribution 94
The normal distribution 100
Use of MINTAB 108
Key learning points 111
Exercises 112
7 Using samples to make estimates 115
The essence of statistical inference and estimation in business115 Sampling distributions 118
Relationship between sample statistics and population parameters 119
Point estimation of the population mean 121
The size and measurement of the standard error of the mean 122
The probability of error 123
Interval estimation of the population mean μ 126
The measurement of the standard error of the mean when σ is unknown 129
Sampling and the t distribution 130
Use of MINITB 134
Key learning points 135
Exercises 136
8 Tests of statistical hypotheses 138
The essence of statistical inference and testing hypotheses in business 138
The basic principles of hypothesis testing 139
Conducting hypothesis tests 142
Errors in hypothesis testing: Type I and Type Ⅱ errors 147
Extensions of hypothesis testing 148
Use of MINITAB 155
Key learning points 157
Exercises 158
9 Tests of goodness-of-fit and independence 163
The essence of tests of goodness-of-fit and independence in business 163
Goodness-of-fit tests 164
Tests of independence 171
Use of MINITB 175
Key learning points 176
Exercises 177
10 Simple regression and correlation analysis 179
The essence of simple regression and correlation in business 179
Simple regression analysis 181
Simple correlation analysis 190
Extensions of simple regression and correlation analysis 194
Use of MINITB 195
Key learning points 197
Exercises 198
The essence of multiple regression and correlation in business 200
11 Multiple regression and correlation analysis 200
Multiple regression analysis 201
Multiple correlation analysis 204
Pitfalls and limitahons of multiple regression analysis 207
Use of MINITAB 208
Key learning points 212
Exercises 213
12 Analyzing time series data 216
The essence of time series analysis in business 216
Measurement of trend (T) 217
Measurement of seasonal variation (S) 220
Measurement of cyclical variation (C) 224
Key learning points 226
Random variation (R) 226
Exercises 227
Appendix A Probability distribution tables 229
A1 Binomial probability distribution 229
A2 Poisson probability distribution 237
A3 Standard normal distribution 242
A4 t distribution 243
A5 x■ distribution 244
A6 F distribution 246
Appendix B Computer software for statistical analysis 250
Appendix C Sources of business and economic Statistics 252
Appendix D References for further reading 256
Solutions to exercises 258
Index 265