Statistics for Business and Economics 1st European Edition

Cover......Page 1
Title Page......Page 9
Copyright......Page 10
Brief Contents......Page 11
Contents......Page 13
Changes to the first European Edition......Page 21
Videotape Tutorials by Ken Black......Page 23
Features and Benefits......Page 24
Acknowledgements......Page 28
About the Authors......Page 29
Unit I: Introduction......Page 31
1: Introduction to Statistics......Page 33
Decision Dilemma: Statistics Describe the State of Business in India's Countryside......Page 34
1.1: Statistics in Business......Page 35
1.2: Basic Statistical Concepts......Page 36
1.3: Data Measurement......Page 38
Key Terms......Page 43
Supplementary Problems......Page 44
Analysing the Databases......Page 45
Case: Caffè Nero: The Italian Coffee Co.......Page 47
2: Charts and Graphs......Page 49
Decision Dilemma: Energy Consumption Around the World......Page 50
2.1: Frequency Distributions......Page 51
2.2: Quantitative Data Graphs......Page 54
2.3: Qualitative Data Graphs......Page 60
2.4: Graphical Depiction of Two-Variable Numerical Data: Scatter Plots......Page 66
Key Terms......Page 70
Supplementary Problems......Page 71
Case: Soap Companies Do Battle......Page 75
Using the Computer......Page 76
3: Descriptive Statistics......Page 81
3.1: Measures of Central Tendency: Ungrouped Data......Page 82
3.2: Measures of Variability: Ungrouped Data......Page 90
3.3: Measures of Central Tendency and Variability: Grouped Data......Page 106
3.4: Measures of Shape......Page 113
3.5: Descriptive Statistics on the Computer......Page 118
Summary......Page 120
Key Terms......Page 121
Formulas......Page 122
Supplementary Problems......Page 123
Analysing the Databases......Page 128
Case: Coca-Cola Goes Small in Russia......Page 129
Using the Computer......Page 130
4: Probability......Page 132
Decision Dilemma: Equality of the Sexes in the Workplace......Page 133
4.1: Introduction to Probability......Page 134
4.2: Methods of Assigning Probabilities......Page 135
4.3: Structure of Probability......Page 136
4.4: Marginal, Union, Joint, and Conditional Probabilities......Page 141
4.5: Addition Laws......Page 143
4.6: Multiplication Laws......Page 151
4.7: Conditional Probability......Page 157
4.8: Revision of Probabilities: Bayes' Rule......Page 163
Summary......Page 168
Key Terms......Page 169
Supplementary Problems......Page 170
Analysing the Databases......Page 174
Case: Colgate-Palmolive Makes a 'Total' Effort......Page 175
Unit II: Distributions and Sampling......Page 177
5: Discrete Distributions......Page 179
Decision Dilemma: Life with a Mobile Phone......Page 180
5.1: Discrete versus Continuous Distributions......Page 181
5.2: Describing a Discrete Distribution......Page 182
5.3: Binomial Distribution......Page 186
5.4: Poisson Distribution......Page 198
5.5: Hypergeometric Distribution......Page 208
Summary......Page 213
Formulas......Page 214
Supplementary Problems......Page 215
Analysing the Databases......Page 220
Case: Kodak Transitions Well into the Digital Camera Market but Faces Big Challenges......Page 221
Using the Computer......Page 222
6: Continuous Distributions......Page 224
Decision Dilemma: The Cost of Absenteeism in the Workplace......Page 225
6.1: The Uniform Distribution......Page 226
6.2: Normal Distribution......Page 230
6.3: Using the Normal Curve to Approximate Binomial Distribution Problems......Page 242
6.4: Exponential Distribution......Page 249
Key Terms......Page 255
Supplementary Problems......Page 256
Analysing the Databases......Page 260
Case: Mercedes Goes After Younger Buyers......Page 261
Using the Computer......Page 262
7: Sampling and Sampling Distributions......Page 264
Decision Dilemma: Private Health Insurance in India......Page 265
7.1: Sampling......Page 266
7.2: Sampling Distribution of x–......Page 275
7.3: Sampling Distribution of p^......Page 284
Key Terms......Page 289
Supplementary Problems......Page 290
Analysing the Databases......Page 293
Case: Does Money Make You Happy?......Page 294
Using the Computer......Page 295
Unit III: Making Inferences about Population Parameters......Page 297
8: Statistical Inference: Estimation for Single Populations......Page 301
Decision Dilemma: Compensation for Marketing Professionals......Page 302
8.1: Estimating the Population Mean Using the z Statistic (σ Known)......Page 304
8.2: Estimating the Population Mean Using the t Statistic (σ Unknown)......Page 311
8.3: Estimating the Population Proportion......Page 318
8.4: Estimating the Population Variance......Page 323
8.5: Estimating Sample Size......Page 326
Summary......Page 331
Formulas......Page 332
Supplementary Problems......Page 333
Analysing the Databases......Page 336
Case: Artnet AG......Page 337
Using the Computer......Page 338
9: Statistical Inference: Hypothesis Testing for Single Populations......Page 340
Decision Dilemma: Word-of-Mouth Business: Recommendations and Influentials......Page 341
9.1: Introduction to Hypothesis Testing......Page 343
9.2: Testing Hypotheses About a Population Mean Using the z Statistic (σ Known)......Page 350
9.3: Testing Hypotheses About a Population Mean Using the t Statistic (σ Unknown)......Page 358
9.4: Testing Hypotheses About a Proportion......Page 365
9.5: Testing Hypotheses About a Variance......Page 371
9.6: Solving for Type II Errors......Page 374
Summary......Page 383
Formulas......Page 384
Supplementary Problems......Page 385
Analysing the Databases......Page 388
Case: European Banks Face Increasingly Complex Channel Challenges......Page 389
Using the Computer......Page 391
10: Statistical Inferences About Two Populations......Page 393
Decision Dilemma: Online Shopping......Page 394
10.1: Hypothesis Testing and Confidence Intervals About the Difference in Two Means Using the z Statistic (Population Variances Known)......Page 396
10.2: Hypothesis Testing and Confidence Intervals About the Difference in Two Means: Independent Samples and Population Variances Unknown......Page 405
10.3: Statistical Inferences for Two Related Populations......Page 415
10.4: Statistical Inferences About Two Population Proportions, P1 – P2......Page 424
10.5: Testing Hypotheses About Two Population Variances......Page 431
Formulas......Page 440
Supplementary Problems......Page 441
Case: Manutan International Mail Order European Success......Page 447
Using the Computer......Page 449
11: Analysis of Variance and Design of Experiments......Page 452
Decision Dilemma: Job and Career Satisfaction of Foreign Self-Initiated Expatriates......Page 453
11.1: Introduction to Design of Experiments......Page 454
11.2: The Completely Randomized Design (One-Way ANOVA)......Page 456
11.3: Multiple Comparison Tests......Page 468
11.4: The Randomized Block Design......Page 476
11.5: A Factorial Design (Two-Way ANOVA)......Page 487
Summary......Page 505
Formulas......Page 506
Supplementary Problems......Page 507
Analysing the Databases......Page 511
Case: The TOMOE Valve Company......Page 512
Using the Computer......Page 513
Unit IV: Regression Analysis and Forecasting......Page 515
12: Simple Regression Analysis and Correlation......Page 517
Decision Dilemma: Predicting International Hourly Wages by the Price of a Big Mac......Page 518
12.1: Correlation......Page 519
12.2: Introduction to Simple Regression Analysis......Page 523
12.3: Determining the Equation of the Regression Line......Page 524
12.4: Residual Analysis......Page 531
12.5: Standard Error of the Estimate......Page 538
12.6: Coefficient of Determination......Page 542
12.7: Tests for the Slope of the Regression Model and Testing the Overall Model......Page 545
12.8: Estimation......Page 550
12.9: Using Regression to Develop a Forecasting Trend Line......Page 554
12.10: Interpreting the Output......Page 561
Summary......Page 564
Formulas......Page 565
Supplementary Problems......Page 566
Case: The New Zealand Wine Industry......Page 571
Using the Computer......Page 573
13: Multiple Regression Analysis......Page 575
Decision Dilemma: Are You Going to Hate Your New Job?......Page 576
13.1: The Multiple Regression Model......Page 577
13.2: Significance Tests of the Regression Model and Its Coefficients......Page 584
13.3: Residuals, Standard Error of the Estimate, and R2......Page 589
13.4: Interpreting Multiple Regression Computer Output......Page 595
Summary......Page 600
Supplementary Problems......Page 601
Analysing the Databases......Page 604
Case: Audience Demand for UK Films......Page 605
Using the Computer......Page 606
14: Building Multiple Regression Models......Page 608
Decision Dilemma: Determining Compensation for CEOs......Page 609
14.1: Non-linear Models: Mathematical Transformation......Page 610
14.2: Indicator (Dummy) Variables......Page 623
14.3: Model-Building: Search Procedures......Page 630
14.4: Multicollinearity......Page 640
Summary......Page 645
Key Terms......Page 646
Supplementary Problems......Page 647
Case: Mobile Phone Quality and Price......Page 651
Using the Computer......Page 653
15: Time-Series Forecasting and Index Numbers......Page 655
Decision Dilemma: Forecasting Air Pollution......Page 656
15.1: Introduction to Forecasting......Page 657
15.2: Smoothing Techniques......Page 661
15.3: Trend Analysis......Page 671
15.4: Seasonal Effects......Page 678
15.5: Autocorrelation and Autoregression......Page 684
15.6: Index Numbers......Page 691
Summary......Page 700
Key Terms......Page 701
Supplementary Problems......Page 702
Analysing the Databases......Page 707
Case: Nando's......Page 708
Using the Computer......Page 710
Unit V: Categorical Data and Non-Parametric Statistics......Page 713
16: Analysis of Categorical Data......Page 715
Decision Dilemma: Business Planning in Small Firms......Page 716
16.1: Chi-Square Goodness-of-Fit Test......Page 717
16.2: Contingency Analysis: Chi-Square Test of Independence......Page 727
Key Terms......Page 737
Supplementary Problems......Page 738
Analysing the Databases......Page 740
Case: Sports Advertising and the Olympics......Page 741
Using the Computer......Page 742
17: Non-parametric Statistics......Page 743
Decision Dilemma: How Is the Doughnut Business?......Page 744
17.1: Runs Test......Page 746
17.2: Mann–Whitney U Test......Page 751
17.3: Wilcoxon Matched-Pairs Signed Rank Test......Page 759
17.4: Kruskal–Wallis Test......Page 768
17.5: Friedman Test......Page 773
17.6: Spearman's Rank Correlation......Page 779
Summary......Page 785
Formulas......Page 786
Supplementary Problems......Page 787
Case: Raleigh......Page 792
Using the Computer......Page 794
A: Tables......Page 795
B: Answers to Selected Odd-Numbered Quantitative Problems......Page 837
Glossary......Page 849
Index......Page 859