Statistics for Business

This document was uploaded by one of our users. The uploader already confirmed that they had the permission to publish it. If you are author/publisher or own the copyright of this documents, please report to us by using this DMCA report form.

Simply click on the Download Book button.

Yes, Book downloads on Ebookily are 100% Free.

Sometimes the book is free on Amazon As well, so go ahead and hit "Search on Amazon"

Statistics for Business is meant as a textbook for students in business, computer science, bioengineering, environmental technology, and mathematics. In recent years, business statistics is used widely for decision making in business endeavours. It emphasizes statistical applications, statistical model building, and determining the manual solution methods.

Special Features:

This text is prepared based on "self-taught" method.

For most of the methods, the required algorithm is clearly explained using flow-charting methodology.

More than 200 solved problems provided.

More than 175 end-of-chapter exercises with answers are provided.

This allows teachers ample flexibility in adopting the textbook to their individual class plans.

This textbook is meant to for beginners and advanced learners as a text in Statistics for Business or Applied Statistics for undergraduate and graduate students.

Author(s): Perumal Mariappan
Publisher: CRC Press
Year: 2019

Language: English
Pages: xxii+350

Cover
Half Title
Title Page
Copyright Page
Dedication
Table of Contents
Foreword
Preface
Acknowledgements
Author
1: Introduction to Statistics and Its Business Applications
1.1 Introduction
1.2 Is Statistics a Science?
1.3 Application of Statistics in Business
1.3.1 The Phases of the Statistical Decision-Making Process
1.3.1.1 Study Design Phase
1.3.1.2 Data Collection
1.3.1.3 Data Analysis
1.3.1.4 Action on Results
1.4 Responsibility of the Decision Maker
1.5 Functions and Limitations of Statistics
1.5.1 Functions of Statistics
1.5.2 Limitations of Statistics
1.6 Distrust of Statistics
1.7 Nature of Statistical Law
1.7.1 Law of Statistical Regularity
1.7.2 Law of Inertia of Large Numbers
Exercise 1
2: Data Structures, Data Sources, and Data Collection
2.1 Introduction
2.2 Data Structures
2.2.1 Univariate Data
2.2.2 Bivariate Data
2.2.3 Multivariate Data
2.3 Data Sources
2.3.1 Primary Sources
2.3.2 Secondary Sources
2.3.3 Internal Source
2.3.4 External Source
2.4 Data Collection Inquiries
2.4.1 Survey Design
2.4.1.1 Questionnaire Design
2.4.2 Pilot Survey of the Questionnaire
2.4.3 Editing Primary Data
2.4.4 Possible Errors in Secondary Data
2.4.5 Census and Sampling Methods
Exercise 2
3: Data Presentation
3.1 Introduction
3.2 Classification of Data
3.2.1 Types of Classification
3.3 Data Presentation
3.3.1 Textual Form
3.3.2 Tabular Form
3.4 Types of Variables and Data
3.5 Levels of Measurement
3.5.1 Nominal Scale
3.5.2 Ordinal Scale
3.5.3 Interval Scale
3.5.4 Ratio Scale
3.6 Frequency
3.6.1 Frequency Distributions
3.7 Types of Class Interval
3.8 Tally Mark
3.9 Construction of a Discrete Frequency Distribution
3.10 Construction of a Continuous Frequency Distribution
3.11 Cumulative and Relative Frequencies
3.12 Diagrammatic Representation of Data
3.12.1 Advantages and Disadvantages of Diagrammatic Representation
3.12.2 Types of Diagrams
3.12.2.1 Bar Diagram
3.12.2.2 Pie Diagram
3.12.2.3 Histogram, Frequency Polygon, and Frequency Curve
3.12.2.4 Frequency Polygon
3.12.2.5 Frequency Curve
3.12.2.6 Ogive Curve
3.12.2.7 Line Diagram
Exercise 3
4: Measures of Central Tendency (MCT)
4.1 Introduction
4.2 MCT
4.2.1 Properties of Best Average
4.3 Arithmetic Mean
4.3.1 Discrete Data
4.3.2 Discrete Data with Frequency
4.3.3 Continuous Data with Frequency
4.4 Mathematical Properties of Arithmetic Mean
4.5 Median
4.5.1 Discrete Data
4.5.2 Discrete Data with Frequency
4.5.3 Continuous Data with Frequency
4.5.3.1 Relative Advantages
4.5.3.2 Relative Disadvantages
4.5.3.3 Property of Median
4.5.4 Graphical Method to Find the Median
4.6 Quartiles, Deciles and Percentiles
4.7 Mode
4.7.1 Discrete Data
4.7.2 Discrete Data with Frequency
4.7.3 Continuous Data with Frequency
4.7.4 A Graphical Method to Evaluate the Mode
4.8 Comparison of Mean, Median, and Mode
4.9 Weighted Arithmetic Mean
4.9.1 Advantages of the Weighted Mean
4.10 Geometric Mean
4.11 Harmonic Mean
Exercise 4
5: Dispersion
5.1 Introduction
5.2 Range
5.3 Quartile Deviation (QD)
5.4 Coefficient of Quartile Deviation
5.5 Mean Deviation
5.6 Standard Deviation (SD)
5.7 Relative Measures of Dispersion
Exercise 5
6: Skewness, Moments, and Kurtosis
6.1 Introduction
6.2 Dispersion and Skewness
6.3 Moments
6.4 Kurtosis
Exercise 6
7: Correlation and Regression Analysis
7.1 Introduction
7.2 Correlation
7.2.1 Simple Correlation or Correlation
7.2.2 Rank Correlation
7.2.3 Group Correlation
7.2.4 Assumptions for Karl Pearson’s Coefficient of Correlation
7.2.5 Limitations
7.2.6 Properties
7.2.7 Scatter Diagram
7.3 Karl Pearson Coefficient of Correlation
7.4 Coefficient of Correlation of a Grouped Data
7.5 Probable Error of the Coefficient of Correlation
7.6 Rank Correlation
7.7 Regression Equations
Exercise 7
8: Probability
8.1 Introduction
8.2 Definitions for Certain Key Terms
8.2.1 Experiment
8.2.2 Sample Space
8.2.3 Event
8.2.4 Equally Likely Events
8.2.5 Mutually Exclusive Events
8.2.6 Outcome
8.3 Meaning of Probability
8.3.1 The Classical Approach
8.3.2 The Relative Frequency Approach
8.3.3 Notation
8.3.4 Addition Rules for Probability
8.3.5 Multiplication Rule on Probability When Events Are Independent
8.3.6 Compound Probability or Conditional Probability
8.4 Bayes’ Theorem
Exercise 8
9: Random Variables and Expectation
9.1 Introduction
9.2 Random Variable
9.2.1 Discrete Random Variable
9.2.2 Continuous Random Variable
9.3 Probability Distribution
9.3.1 Discrete Probability Distribution
9.3.2 Characteristics of a Discrete Distribution
9.3.3 Probability Function
9.4 Mathematical Expectation
Exercise 9
10: Discrete Probability Distribution: Binomial and Poisson Distributions
10.1 Introduction
10.2 Binomial Distribution
10.2.1 Characteristics of a Bernoulli Process
10.2.2 Definition of Binomial Distribution
10.2.3 Conditions of Binomial Distribution
10.2.4 Properties of Binomial Distributions
10.2.5 Mean of Binomial Distribution
10.2.6 Variance of Binomial Distribution
10.3 Poisson Distribution
10.3.1 Definition of Poisson Distribution
10.3.2 Properties of Poisson Distribution
10.3.3 Mean of the Poisson Distribution
10.3.4 Variance of the Poisson Distribution
Exercise 10
11: Continuous Probability Distribution: Normal Distribution
11.1 Introduction
11.2 Definition of Normal Distribution
11.3 Standard Normal Distribution
11.4 Properties of Normal Distribution
Exercise 11
12: Theory of Sampling
12.1 Introduction
12.2 Why Sample?
12.3 How to Choose It?
12.4 Sample Design
12.5 Keywords and Notations
12.6 Advantages and Disadvantages of Sampling
12.7 Nonrandom Errors and Non-sampling Errors
12.8 Random Errors and Sampling Errors
12.9 Types of Samples
12.9.1 Probability Sample
12.9.2 Nonprobability Sample
12.10 Random Sampling
12.10.1 Systematic Sampling
12.10.2 Stratified Sampling (P, N)
12.10.3 Multistage Sampling
12.11 Nonrandom Sampling Methods
12.11.1 Convenience Sampling
12.11.2 Purposive Sampling
12.11.3 Quota Sampling
12.11.4 Cluster Sampling
12.11.5 Sequential Sampling
12.12 Sampling Distributions
12.13 Need for Sampling Distribution
12.14 Standard Error for Different Situations
12.14.1 When the Population Size Is Infinite
12.14.2 When the Population Is Finite
12.14.3 Sampling Distribution Based on Sample Means
12.15 Point and Internal Estimation
12.15.1 Point Estimate
12.15.2 Properties of Good Point Estimators
12.16 Interval Estimate
12.17 Confidence Interval Estimation for Large Samples
12.18 Confidence Intervals for Difference between Means
12.19 Estimating a Population Proportion
12.20 Estimating the Interval Based on the Difference between Two Proportions
12.21 Confidence Interval Estimation for Small Sample
12.22 Determining the Sample Size
Exercise 12
13: Hypothesis Testing, Parametric Tests, Distribution Tests, and Tests of Significance
13.1 Introduction
13.2 Null Hypothesis (H0)
13.3 Alternative Hypothesis (H1)
13.4 Type I and Type II Errors
13.5 Meaning of Parametric and Nonparametric Test
13.5.1 Parametric Test
13.5.2 Nonparametric Test
13.6 Selection of Appropriate Test Statistic
13.7 Methodology of Statistical Testing
13.8 Test for a Specified Mean: Large Sample
13.9 Test for Equality of Two Populations: Large Sample
13.10 Test for Population Proportion: Large Sample
13.11 Test for Equality of Two Proportions: Large Samples
13.12 Test for Equality of Two Standard Deviations: Large Samples
13.13 Student’s t-Distribution
13.14 Properties of t-Distribution
13.15 Test for the Specified Mean: Small Sample
13.16 Test for Equality of Two Population Means: Small Samples
13.17 Paired t-Test for Difference of Mean
13.18 Chi-square Distribution
13.18.1 Properties of Chi-square Distribution
13.18.2 Chi-square Test
13.18.3 Test for Goodness of Fit
13.18.4 Tests for Independence of Attributes
13.18.5 Whenever the Expected Frequencies of the Cell Entries Are Less Than 5
13.18.6 Test for a Specified Population Variance
13.19 Snedecor’s F-Distribution
13.19.1 Properties of F-Distribution
13.19.2 Test for Difference of Two Populations’ Variances
13.20 Analysis of Variance (ANOVA)
13.20.1 One-Way Classification
13.20.2 Two-Way Classification
Exercise 13
Appendix A: Answers to Exercise Problems
Exercise 4
Exercise 5
Exercise 6
Exercise 7
Exercise 8
Exercise 9
Exercise 10
Exercise 11
Exercise 12
Exercise 13
Appendix B: ST Statistical Tables
Index