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Statistics for Business: Decision Making and Analysis, 3rd Edition

Author Dean Foster , Robert Stine
Release Date: 2017/01/01
ISBN: 9780136759102
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Book Description

For one- and two-semester courses in introductory business statistics.

Understand Business. Understand Data.

The 3rd Edition of Statistics for Business: Decision Making and Analysis emphasizes an application-based approach, in which readers learn how to work with data to make decisions. In this contemporary presentation of business statistics, readers learn how to approach business decisions through a 4M Analytics decision making strategy—motivation, method, mechanics and message—to better understand how a business context motivates the statistical process and how the results inform a course of action. Each chapter includes hints on using Excel, Minitab Express, and JMP for calculations, pointing the reader in the right direction to get started with analysis of data.

Also available with MyLab Statistics MyLab™ Statistics from Pearson is the world’s leading online resource for teaching and learning statistics; it integrates interactive homework, assessment, and media in a flexible, easy-to-use format. MyLab Statistics is a course management system that helps individual students succeed. It provides engaging experiences that personalize, stimulate, and measure learning for each student. Tools are embedded to make it easy to integrate statistical software into the course.

Note: You are purchasing a standalone product; MyLab™does not come packaged with this content. Students, if interested in purchasing this title with MyLab, ask your instructor for the correct package ISBN and Course ID.

Instructors, contact your Pearson representative for more information.

If you would like to purchase both the physical text and MyLab, search for:

0134763734 / 9780134763736 Statistics for Business: Decision Making and Analysis, Student Value Edition Plus MyLab Statistics with Pearson eText - Access Card Package, 3/e

Package consists of:

  • 0134497260 / 9780134497266 Statistics for Business: Decision Making and Analysis, Student Value Edition

  • 0134748646 / 9780134748641 MyLab Statistics for Business Stats with Pearson eText - Standalone Access Card - for Statistics for Business: Decision Making and Analysis

Table of Contents

  1. Statistics for Business Decision Making and Analysis
  2. About the Authors
  3. Contents
  4. Preface
    1. What’s New in This Edition
    2. Coverage and Organization
    3. Features
  5. Student Resources
  6. Instructor Resources
  7. Technology Resources
  8. Index of Applications
    1. Accounting
    2. Advertising
    3. Agriculture
    4. Automotive
    5. Banking
    6. Business (General)
    7. Company Names
    8. Construction
    9. Consumers
    10. Demographics
    11. Distribution and Operations Management
    12. E-Commerce
    13. Economics
    14. Education
    15. Energy
    16. Environment
    17. Finance and Investments
    18. Food/Drink
    19. Games
    20. Government
    21. Human Resource Management/Personnel
    22. Insurance
    23. Labor
    24. Law
    25. Management
    26. Manufacturing
    27. Marketing
    28. Media and Entertainment
    29. Pharmaceuticals, Medicine, and Health
    30. Quality Control
    31. Real Estate
    32. Salary and Benefits
    33. Sales and Retail
    34. Science
    35. Service Industries
    36. Sports
    37. Surveys and Opinion Polls
    38. Technology
    39. Transportation
  9. Part I Variation
    1. Chapter 1 Introduction
      1. 1.1 What Is Statistics?
        1. Variation
        2. Patterns and Models
      2. 1.2 Previews
        1. Predicting Employment
        2. Pricing a Car
    2. Chapter 2 Data
      1. Running a Business is Hard Work.
      2. 2.1 Data Tables
        1. Rows and Columns
      3. 2.2 Categorical and Numerical Data
        1. Measurement Scales
          1. What Do You Think?
      4. 2.3 Recoding and Aggregation
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
      5. 2.4 Time Series
      6. 2.5 Further Attributes of Data
        1. Sources of Data
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
    3. Chapter 3 Describing Categorical Data
      1. Consumers Spend Billions of Dollars Online.
      2. 3.1 Looking at Data
        1. Variation
        2. Frequency Table
      3. 3.2 Charts of Categorical Data
        1. Bar Chart
        2. Pie Chart
          1. What Do You Think?
      4. 3.3 The Area Principle
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
        5. Motivation State the Question
        6. Method Describe the Data and Select an Approach
        7. Mechanics Do the Analysis
        8. Message Summarize the Results
      5. 3.4 Mode and Median
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    4. Chapter 4 Describing Numerical Data
      1. A Standard iPhone 6 Comes with 16 Gigabytes (GB) of Memory.
      2. 4.1 Summaries of Numerical Variables
        1. Percentiles
          1. What Do You Think?
        2. Averages
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
          5. What Do You Think?
      3. 4.2 Histograms
        1. Histograms versus Bar Charts
        2. The White Space Rule
        3. Width of Histogram Intervals
      4. 4.3 Boxplots
        1. Combining Boxplots with Histograms
          1. What Do You Think?
      5. 4.4 Shape of a Distribution
        1. Modes
        2. Symmetry and Skewness
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
          5. What Do You Think?
        3. Bell-Shaped Distributions and the Empirical Rule
        4. Standardizing
          1. What Do You Think?
      6. 4.5 Epilog
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Mean (Average)
          2. Variance
          3. Standard Deviation (SD)
          4. Z-Score
          5. Coefficient of Variation
        4. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    5. Chapter 5 Association between Categorical Variables
      1. Busy Web Sites Charge for Running Ads on Their Pages.
      2. 5.1 Contingency Tables
        1. Marginal and Conditional Distributions
          1. What Do You Think?
        2. Stacked Bar Charts
        3. Mosaic Plots
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
          5. What Do You Think?
      3. 5.2 Lurking Variables and Simpson’s Paradox Lurking Variables and Simpson’s Paradox
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
      4. 5.3 Strength of Association
        1. Chi-Squared
          1. What Do You Think?
        2. Cramer’s V
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      5. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Chi-Squared
          2. Cramer’s V
        4. About the Data
      6. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    6. Chapter 6 Association between Quantitative Variables
      1. What Does It Cost To Heat a Home for the Winter?
      2. 6.1 Scatterplots
      3. 6.2 Association in Scatterplots
        1. Visual Test for Association
          1. What Do You Think?
        2. Describing Association in a Scatterplot
          1. What Do You Think?
      4. 6.3 Measuring Association
        1. Covariance
        2. Correlation
          1. What Do You Think?
      5. 6.4 Summarizing Association with a Line
        1. Slope-Intercept Form
        2. Lines and Prediction
        3. Nonlinear Patterns
      6. 6.5 Spurious Correlation
        1. What Do You Think?
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      7. 6.6 Correlation Matrix
      8. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Covariance
          2. Correlation
          3. Expressions Relating Covariance and Correlation
          4. Correlation Line
        4. About the Data
      9. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    7. Statistics in Action Case: Financial Time Series
      1. Stock Prices
        1. Stock Prices
        2. Some Details: Stock Splits
      2. Stock Returns
        1. Simple Time Series
        2. Histograms
      3. Value at Risk
      4. Case Summary
      5. Key Terms
      6. Formula
        1. Return on an Investment
      7. About the Data
      8. Questions for Thought
    8. Statistics in Action Case: Executive Compensation
      1. Income and Skewness
      2. Log Transformation
        1. Utility for Wealth
        2. Logs and Histograms
      3. Association and Transformations
      4. Case Summary
      5. Key Terms
      6. About the Data
      7. Questions for Thought
  10. Part II Probability
    1. Chapter 7 Probability
      1. Thousands of Customers Dial Toll-Free Telephone Numbers to Get Help.
      2. 7.1 From Data to Probability
        1. The Law of Large Numbers
          1. What Do You Think?
      3. 7.2 Rules for Probability
        1. Three Essential Rules
        2. The Complement and Addition Rules
        3. An Example
          1. What Do You Think?
      4. 7.3 Independent Events
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
        5. Boole’s Inequality
      5. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas and Notation
          1. Complement of an Event
          2. Union of Events
          3. Intersection of Events
          4. Boole’s Inequality
      6. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    2. Chapter 8 Conditional Probability
      1. Education Affects the Income That You Can Expect to Earn.
      2. 8.1 From Tables to Probabilities
        1. Joint Probability
        2. Marginal Probability
        3. Conditional Probability
          1. What Do You Think?
          2. What Do You Think?
      3. 8.2 Dependent Events
        1. The Multiplication Rule
          1. What Do You Think?
        2. Order Matters
        3. Independence in Venn Diagrams
          1. What Do You Think?
      4. 8.3 Organizing Probabilities
        1. Probability Trees
        2. Probability Tables
      5. 8.4 Order in Conditional Probabilities
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
        5. Bayes’ Rule
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Conditional Probability
          2. Multiplication Rule
          3. Bayes’ Rule
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    3. Chapter 9 Random Variables
      1. Day Trading Is Popular with Young People Around the World.
      2. 9.1 Random Variables
        1. Graphs of Random Variables
        2. Random Variables as Models
          1. What Do You Think?
      3. 9.2 Properties of Random Variables
        1. Mean of a Random Variable
        2. Expected Value
          1. What Do You Think?
        3. Variance and Standard Deviation
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      4. 9.3 Properties of Expected Values
        1. Adding or Subtracting a Constant
        2. Multiplying by a Constant
          1. What Do You Think?
      5. 9.4 Comparing Random Variables
        1. Sharpe Ratio
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Mean or Expected Value of a Discrete Random Variable X
          2. Variance of a Discrete Random Variable
          3. Adding a Constant to a Random Variable
          4. Multiplying a Random Variable by a Constant
          5. Adding a Constant and Multiplying by a Constant
          6. Sharpe Ratio of the Random Variable X with Mean μ and Variance σ2
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    4. Chapter 10 Association between Random Variables
      1. The Two Largest Stock Exchanges in the World
      2. 10.1 Portfolios and Random Variables
        1. Two Random Variables
        2. Comparisons and the Sharpe Ratio
      3. 10.2 Joint Probability Distribution
        1. Independent Random Variables
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
        2. Dependent Random Variables
      4. 10.3 Sums of Random Variables
        1. What Do You Think?
      5. 10.4 Dependence Between Random Variables
        1. Covariance
        2. Covariance and Sums
        3. Correlation
        4. Covariance, Correlation, and Independence
      6. 10.5 IID Random Variables
        1. IID Data
          1. What Do You Think?
      7. 10.6 Weighted Sums
        1. Variance of Differences
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      8. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Joint Probability Distribution of Two Random Variables
          2. Multiplication Rule for Expected Values.
          3. Addition Rule for Expected Values of Sums
          4. Addition Rule for Variances of Sums
          5. Covariance Between Random Variables
          6. Correlation Between Random Variables
        4. About the Data
      9. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    5. Chapter 11 Probability Models for Counts
      1. Pharmaceutical Advertising Appears On Television,
      2. 11.1 Random Variables for Counts
        1. Bernoulli Random Variable
        2. Counting Successes
          1. What Do You Think?
      3. 11.2 Binomial Model
        1. Assumptions
        2. Finite Populations
      4. 11.3 Properties of Binomial Random Variables
        1. Mean and Variance
        2. Binomial Probabilities
        3. Summary
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
      5. 11.4 Poisson Model
        1. Poisson Random Variable
        2. Poisson Model
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Binomial Random Variable, Y ~ Bi(n, p)
          2. Poisson Random Variable, X ~ Poisson (λ)
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    6. Chapter 12 The Normal Probability Model
      1. Prices of Stock Plummeted in October 1987.
      2. 12.1 Normal Random Variable
        1. Central Limit Theorem
        2. Normal Probability Distribution
        3. Shifts and Scales
      3. 12.2 The Normal Model
        1. What Do You Think?
        2. Standardizing
        3. The Empirical Rule, Revisited
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
        4. Using Normal Tables
          1. What Do You Think?
      4. 12.3 Percentiles
        1. What Do You Think?
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      5. 12.4 Departures from Normality
        1. Normal Quantile Plot
        2. Skewness and Kurtosis
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Probability Distribution
          2. Skewness
          3. Kurtosis
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    7. Statistics in Action Case: Managing Financial Risk
      1. Investment Risk
      2. The Dice Game
        1. Dice Investments
        2. Simulation
        3. A Two-Investment Portfolio
      3. Understanding What Happens
        1. Random Variables
        2. Properties of a Portfolio
        3. Volatility Drag
      4. Real Investments
        1. Broader Implications
      5. Case Summary
      6. Key Terms
      7. Questions for Thought
    8. Statistics in Action Case: Modeling Sampling Variation
      1. A Sampling Experiment
        1. A Model for Counts
        2. Using the Model
      2. The Central Limit Theorem
        1. Counting Possibilities
      3. Using a Normal Model
        1. Weighing in Place of Counting
        2. Using Normality
        3. Does It Matter?
      4. Case Summary
      5. Questions for Thought
  11. Part III Inference
    1. Chapter 13 Samples and Surveys
      1. The Claim “Ranked Tops in Initial Quality” Often Appears in Advertisements for New Cars.
      2. 13.1 Two Surprising Properties of Samples
        1. Randomization
        2. Sample Size
          1. What Do You Think?
        3. Simple Random Sample
        4. Identifying the Sampling Frame
          1. What Do You Think?
      3. 13.2 Variation
        1. Estimating Parameters
        2. Sampling Variation
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      4. 13.3 Alternative Sampling Methods
        1. Stratified and Cluster Samples
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
        2. Census
        3. Voluntary Response
        4. Convenience Samples
          1. What Do You Think?
      5. 13.4 Questions to Ask
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
    2. Chapter 14 Sampling Variation and Quality
      1. Delivery Services Love GPS Devices.
      2. 14.1 Sampling Distribution of the Mean
        1. Benefits of Averaging
        2. Normal Models
          1. What Do You Think?
        3. Standard Error of the Mean
        4. Sampling Distribution
          1. What Do You Think?
      3. 14.2 Control Limits
        1. Type I and Type II Errors
          1. What Do You Think?
        2. Setting the Control Limits
        3. Balancing Type I and Type II Errors
          1. What Do You Think?
      4. 14.3 Using a Control Chart
        1. Repeated Testing
        2. Recognizing a Problem
      5. 14.4 Control Charts for Variation
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Sampling Distribution
          2. Standard Error of the Mean
          3. Sample Size Condition
          4. Upper and Lower Control Limits
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    3. Chapter 15 Confidence Intervals
      1. The Federal Reserve Says That U.S. Households Have Accumulated Close to $12 Trillion in Outstanding Debt.
      2. 15.1 Ranges for Parameters
        1. Confidence Interval for the Proportion
          1. What Do You Think?
            1. Checklist
        2. Assumptions and Conditions
        3. Sample Size
          1. What Do You Think?
      3. 15.2 Confidence Interval for the Mean
        1. Student’s t-Distribution
        2. t-Interval for the Mean
          1. Checklist
          2. What Do You Think?
      4. 15.3 Interpreting Confidence Intervals
        1. Common Confusions
      5. 15.4 Manipulating Confidence Intervals
        1. Combining Confidence Intervals
        2. Changing the Problem
          1. What Do You Think?
      6. 15.5 Margin of Error
        1. Determining Sample Size
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
            5. Motivation State the Question
            6. Method Describe the Data and Select an Approach
            7. Mechanics Do the Analysis
            8. Message Summarize the Results
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. z-Interval for the Proportion
          2. t-Interval for the Mean
          3. Margin of Error
        4. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    4. Chapter 16 Statistical Tests
      1. Spam Is Annoying. Junk Email Takes Time to Delete, and You Sometimes Mistakenly Throw Out Messages You Want Along with the Junk.
      2. 16.1 Concepts of Statistical Tests
        1. Null and Alternative Hypotheses
          1. What Do You Think?
        2. Type I and II Errors
        3. Previous Hypothesis Tests
          1. What Do You Think?
        4. Test Statistic
          1. What Do You Think?
      3. 16.2 Testing the Proportion
        1. α Level
        2. z-Test
          1. What Do You Think?
        3. p-Value
        4. Type II Error
        5. Summary
          1. Motivation State The Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize The Results
      4. 16.3 Testing The Mean
        1. t-Statistic
        2. t-Test and p-Value
        3. Summary
          1. Motivation State the Question
          2. Method Describe The Data and Select an Approach
          3. Mechanics Do The Analysis
          4. Message Summarize The Results
      5. 16.4 Significance Versus Importance
      6. 16.5 Confidence Interval or Test?
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. One-Sided z-Test of a Proportion
          2. One-Sided t-Test of a Mean
        4. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    5. Chapter 17 Comparison
      1. Diets Are Big Business.
      2. 17.1 Types of Comparisons
      3. 17.2 Data for Comparisons
        1. Experiments
        2. Confounding
          1. What Do You Think?
      4. 17.3 Two-Sample z-Test for Proportions
      5. 17.4 Two-Sample Confidence Interval for Proportions
        1. Interpreting the Confidence Interval
          1. Checklist
          2. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
      6. 17.5 two-Sample t-Test
        1. What Do You Think?
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize The Results
      7. 17.6 Confidence Interval for the Difference Between Means
        1. Interpreting the Confidence Interval
          1. Checklist (see the two-sample t-test)
          2. Motivation State the Question
          3. Method Describe the Data and Select an Approach
          4. Mechanics Do the Analysis
          5. Message Summarize the Results
      8. 17.7 Paired Comparisons
        1. Checklist
        2. Motivation State the Question
        3. Method Describe the Data and Select an Approach
        4. Mechanics Do the Analysis
        5. Message Summarize the Results
      9. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Standard Error of the Difference Between Two Sample Means
          2. Two-Sample t-Test for the Difference in Means
          3. Two-Sample Confidence Interval for the Difference in Means
        4. About the Data
      10. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    6. Chapter 18 Inference for Counts
      1. Online Marketing Allows a Retailer to Customize Sales Pitches.
      2. 18.1 Chi-Squared Tests
      3. 18.2 Test of Independence
        1. Hypotheses for the chi-squared test
          1. What Do You Think?
        2. Calculating χ2
          1. What Do You Think?
        3. Plots of the Chi-Squared Test of Independence
        4. Conditions
        5. The Chi-Squared Distribution
        6. Getting the p-Value
        7. Summary: Chi-Squared Test of Independence
        8. Connection to Two-Sample Tests
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
      4. 18.3 General versus Specific Hypotheses
      5. 18.4 Tests of Goodness of Fit
        1. Testing for Randomness
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
        2. Testing the Fit of a Probability Model
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Degrees of Freedom (d)
          2. Chi-Squared Statistic
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    7. Statistics in Action Case: Rare Events
      1. Rare Events
        1. Clinical Trials
        2. Defaults on Corporate Bonds
        3. Electronic Components
      2. Inference for Rare Events
        1. Rule of Three
        2. Using the Rule of Three
        3. Determining n
        4. Considerations in Finance
      3. Case Summary
      4. Key Terms
      5. Questions for Thought
      6. About the Data
    8. Statistics in Action Case: Data Mining Using Chi-Squared
      1. Managing Inventories
        1. Looking for Association
        2. Chi-squared Test of Association
        3. Equality of Several Proportions
      2. Data Mining
        1. Standardizing with p-values
        2. Related Methods
      3. Case Summary
      4. Key Terms
      5. Questions for Thought
      6. About the Data
  12. Part IV Regression Models
    1. Chapter 19 Linear Patterns
      1. Many Factors Affect the Price of a Commodity.
      2. 19.1 Fitting a Line to Data
        1. Equation of a Line
        2. Least Squares
      3. 19.2 Interpreting the Fitted Line
        1. Interpreting the Intercept
        2. Interpreting the Slope
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
          2. What Do You Think?
      4. 19.3 Properties of Residuals
        1. Standard Deviation of the Residuals
      5. 19.4 Explaining Variation
        1. Summarizing the Fit of a Line
      6. 19.5 Conditions for Simple Regression
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Linear Equation
          2. Slope
          3. Intercept
          4. Fitted Value
          5. Residual
          6. Standard Deviation of the Residuals
          7. r-squared
        4. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    2. Chapter 20 Curved Patterns
      1. The Price of Gasoline Can Be a Painful Reminder of the Laws of Supply and Demand.
      2. 20.1 Detecting Nonlinear Patterns
        1. Scatterplots
        2. Residual Plots
      3. 20.2 Transformations
      4. 20.3 Reciprocal Transformation
        1. What Do You Think?
        2. Comparing Linear and Nonlinear Equations
        3. Visual Comparisons
        4. Substantive Comparison
          1. What Do You Think?
      5. 20.4 Logarithm Transformation
        1. Scatterplots and Residual Plots
        2. Comparing Equations
        3. Elasticity
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    3. Chapter 21 The Simple Regression Model
      1. Customized Manufacturing Is a Growth Industry in the United States As Businesses Adjust to Worldwide Competition.
      2. 21.1 The Simple Regression Model
        1. Linear on Average
        2. Deviations from the Mean
        3. Data-Generating Process
          1. What Do You Think?
      3. 21.2 Conditions for the SRM
        1. Modeling Process
          1. What Do You Think?
      4. 21.3 Inference in Regression
        1. Standard Errors
        2. Role of Software
        3. Confidence Intervals
        4. Hypothesis Tests
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
      5. 21.4 Prediction Intervals
        1. Leveraging the SRM
        2. Reliability of Prediction Intervals
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Simple Regression Model
          2. Checklist of Conditions for the Simple Regression Model
          3. Standard Error of the Slope
          4. Standard Error of the Intercept
          5. Standard Error of Prediction
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    4. Chapter 22 Regression Diagnostics
      1. The Internet Has Changed Many Business Models, Generating New Approaches to Retail Marketing, Medical Care, and Service Industries.
      2. 22.1 Changing Variation
        1. Fixed Costs, Marginal Costs, and Variable Costs
        2. Detecting Differences in Variation
        3. Consequences of Different Variation
          1. What Do You Think?
        4. Fixing the Problem: Revise the Model
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
        5. Comparing Models with Different Responses
      3. 22.2 Outliers
        1. Consequences of an Outlier
          1. What Do You Think?
        2. Extrapolating Prediction Intervals
        3. Fixing the Problem: More Information
      4. 22.3 Dependent Errors and Time Series
        1. Detecting Dependence Using the Durbin-Watson Statistic
        2. Consequences of Dependence
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
      5. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Durbin-Watson Statistic
        4. About the Data
      6. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    5. Chapter 23 Multiple Regression
      1. Expanding Businesses Must Decide Where to Locate New Outlets.
      2. 23.1 The Multiple Regression Model
        1. What Do You Think?
      3. 23.2 Interpreting Multiple Regression
        1. Scatterplot Matrix
          1. What Do You Think?
        2. R-squared and se
          1. What Do You Think?
        3. Marginal and Partial Slopes
        4. Path Diagram
          1. What Do You Think?
      4. 23.3 Checking Conditions
        1. Residual Plots
      5. 23.4 Inference in Multiple Regression
        1. Inference for the Model: F-test
          1. What Do You Think?
        2. Inference for One Coefficient
        3. Prediction Intervals
      6. 23.5 Steps in Fitting a Multiple Regression
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Estimates of b0, b1 and b2
          2. Adjusted R2
          3. F-statistic
          4. Standard Deviation of Residuals
        4. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    6. Chapter 24 Building Regression Models
      1. Which Explanatory Variables Belong in a Regression Model?
      2. 24.1 Identifying Explanatory Variables
        1. The Initial Model
        2. Identifying Other Variables
        3. Adding Explanatory Variables
      3. 24.2 Collinearity
        1. Variance Inflation Factor
        2. Signs of Collinearity
          1. What Do You Think?
        3. Remedies for Collinearity
      4. 24.3 Removing Explanatory Variables
        1. Motivation State the Question
        2. Method Describe the Data and Select An Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
        5. Motivation State the Question
        6. Method Describe the Data and Select An Approach
        7. Mechanics Do the Analysis
        8. Message Summarize the Results
      5. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Standard Error of a Slope in Multiple Regression
          2. Variance Inflation Factor (VIF)
        4. About the Data
      6. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    7. Chapter 25 Categorical Explanatory Variables
      1. In 2001, Six Women Filed a Lawsuit Against Wal-Mart in Federal Court in San Francisco.
      2. 25.1 Two-Sample Comparisons
        1. Confounding Variables
        2. Subsets and Confounding
          1. What Do You Think?
      3. 25.2 Analysis of Covariance
        1. Regression on Subsets
        2. Combining Regressions
          1. What Do You Think?
        3. Interpreting Coefficients
          1. What Do You Think?
      4. 25.3 Checking Conditions
        1. Checking for Similar Variances
      5. 25.4 Interactions and Inference
        1. Interactions and Collinearity
        2. Parallel Fits
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe The Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
      6. 25.5 Regression with Several Groups
        1. What Do You Think?
      7. Chapter Summary
        1. Key Terms
        2. Objectives
        3. About the Data
      8. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    8. Chapter 26 Analysis of Variance
      1. At the Dawn of the 20th Century, More Than 10 Million Americans Toiled On Farms, More Than One-Third of the Domestic Workforce.
      2. 26.1 Comparing Several Groups
        1. Comparing Groups in Plots
        2. Relating the t-Test to Regression
          1. What Do You Think?
        3. Comparing Several Groups Using Regression
        4. Interpreting the Estimates
        5. ANOVA Regression Model
          1. What Do You Think?
      3. 26.2 Inference in Anova Regression Models
        1. Checking Conditions
          1. What Do You Think?
        2. F-Test for the Difference among Means
        3. Understanding the F-Test
        4. Confidence Intervals
      4. 26.3 Multiple Comparisons
        1. Tukey Confidence Intervals
        2. Bonferroni Confidence Intervals
          1. What Do You Think?
            1. Motivation State the Question
            2. Method Describe the Data and Select an Approach
            3. Mechanics Do the Analysis
            4. Message Summarize the Results
      5. 26.4 Groups of Different Size
      6. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Notation for Data
          2. Fitted Values and Residuals
          3. Standard Error for the Difference Between Two Means
          4. Tukey Percentiles q.025,n,J
        4. About the Data
      7. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    9. Chapter 27 Time Series
      1. The Value of Goods Shipped Measures the Health of a Business.
      2. 27.1 Decomposing a Time Series
        1. Smoothing
        2. Exponential Smoothing
          1. What Do You Think?
      3. 27.2 Regression Models
        1. Polynomial Trends
          1. Motivation State the Question
          2. Method Describe the Data and Select an Approach
          3. Mechanics Do the Analysis
          4. Message Summarize the Results
        2. Autoregression
        3. Forecasting an Autoregression
          1. What Do You Think?
      4. 27.3 Checking the Model
        1. Motivation State the Question
        2. Method Describe the Data and Select an Approach
        3. Mechanics Do the Analysis
        4. Message Summarize the Results
        5. Motivation State the Question
        6. Method Describe the Data and Select an Approach
        7. Mechanics Do the Analysis
        8. Message Summarize the Results
      5. Chapter Summary
        1. Key Terms
        2. Objectives
        3. Formulas
          1. Durbin-Watson Statistic and Autocorrelation
          2. Exponential Smoothing, Exponentially Weighted Moving Average (EWMA)
        4. About the Data
      6. Exercises
        1. Mix and Match
        2. True/False
        3. Think About It
        4. You Do It
    10. Statistics in Action Case: Analyzing Experiments
      1. A Pricing Experiment
        1. Balanced Experiment
        2. Preliminary Data Analysis
      2. Two-Way Analysis of Variance
        1. Model
        2. Plan for Analysis
        3. Checking the Model
        4. Testing the Factors
        5. Regression Coefficients
        6. Interactions and One-way Anova
      3. Case Summary
      4. Key Terms
      5. Questions for Thought
    11. Statistics in Action Case: Automated Modeling
      1. Preparations
        1. Data for Modeling
        2. Preliminary Analysis: Outliers and Collinearity
      2. Saturated Model
      3. Stepwise Regression
        1. Avoiding Over-fitting
        2. Running Stepwise Regression
        3. Interpreting the Stepwise Model
      4. Related Algorithms
      5. Case Summary
      6. Key Terms
      7. Questions for Thought
  13. Appendix Tables
  14. Answers
    1. Chapter 2
      1. Mix and Match
      2. True/False
      3. Think About It
    2. Chapter 3
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    3. Chapter 4
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    4. Chapter 5
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    5. Chapter 6
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    6. Statistics in Action 1–2
      1. Pfizer case
      2. Executive Compensation case
    7. Chapter 7
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    8. Chapter 8
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    9. Chapter 9
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    10. Chapter 10
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    11. Chapter 11
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    12. Chapter 12
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    13. Statistics in Action 3–4
      1. Dice Simulation
      2. M&Ms
    14. Chapter 13
      1. Mix and Match
      2. True/False
      3. Think About It
    15. Chapter 14
      1. True/False
      2. Think About It
      3. You Do It
    16. Chapter 15
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    17. Chapter 16
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    18. Chapter 17
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    19. Chapter 18
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    20. Statistics in Action 5–6
      1. Page 484
      2. Page 491
    21. Chapter 19
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    22. Chapter 20
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    23. Chapter 21
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    24. Chapter 22
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    25. Chapter 23
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    26. Chapter 24
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    27. Chapter 25
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    28. Chapter 26
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    29. Chapter 27
      1. Mix and Match
      2. True/False
      3. Think About It
      4. You Do It
    30. Statistics in Action 7–8
      1. Answers for Questions, page 814
      2. Answers for Questions, page 821
  15. Credits
    1. Photo Credits
      1. Front Matter
      2. Chapter 1
      3. Chapter 2
      4. Chapter 3
      5. Chapter 4
      6. Chapter 5
      7. Chapter 6
      8. Chapter 7
      9. Chapter 8
      10. Chapter 9
      11. Chapter 10
      12. Chapter 11
      13. Chapter 12
      14. Chapter 13
      15. Chapter 14
      16. Chapter 15
      17. Chapter 16
      18. Chapter 17
      19. Chapter 18
      20. Chapter 19
      21. Chapter 20
      22. Chapter 21
      23. Chapter 22
      24. Chapter 23
      25. Chapter 24
      26. Chapter 25
      27. Chapter 26
      28. Chapter 27
    2. Text Credits
      1. Chapter 5
      2. Chapter 9
      3. Back Matter
  16. Subject Index
    1. Numbers
    2. A
    3. B
    4. C
    5. D
    6. E
    7. F
    8. G
    9. H
    10. I
    11. J
    12. K
    13. L
    14. M
    15. N
    16. O
    17. P
    18. Q
    19. R
    20. S
    21. T
    22. U
    23. V
    24. W
    25. X
    26. Y
    27. Z
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