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Even You Can Learn Statistics: A Guide for Everyone Who Has Ever Been Afraid of Statistics
Even You Can Learn Statistics: A Guide for Everyone Who Has Ever Been Afraid of Statistics available in Paperback, NOOK Book
Temporarily Out of Stock Online
Overview
One easy step of a time, this book will teach you the key statistical techniques you'll need for finance, quality, marketing, the social sciences, or just about any other field. Each technique is introduced with a simple, jorgonfree explanation, practical examples, and handson guidance for solving real problems with Excel or a TI83/84 series calculator, including Plus models. Hate math? No sweat. You'll be amazed how little you need! For those who do have an interest in mathematics, optional "Equation Blackhoard" sections review the equations that provide the foundations for important concepts.
Product Details
ISBN13:  9780131467576 

Publisher:  FT Press 
Publication date:  09/16/2004 
Edition description:  with complimentarty website 
Pages:  281 
Product dimensions:  7.00(w) x 9.18(h) x 0.65(d) 
Read an Excerpt
Introduction
The Even You Can Learn Statistics Owners Manual
In today's world, knowing how to apply statistics is more important than ever. Even You Can Learn Statistics: The Easy to Use Guide for Everyone Who Has Ever Been Afraid of Statistics will teach you the basic concepts that provide that understanding. You will also learn the most commonly used statistical methods and be able to practice those methods using a statistical calculator or a spreadsheet program. Please read the rest of this introduction
so that you can become familiar with the distinctive features of this book. Be sure to visit the Web site for this book (www.prenticehall.com/youcanlearnstatistics), which contains free downloads and other material to support your learning.
Mathematics Is Always Optional!
Never mastered higher mathematics—or generally fearful of math? Not to worry, because in Even You Can Learn Statistics, you will find that every concept is explained in plain English, without the use of higher mathematics or mathematical symbols. Interested in the mathematical foundations behind statistics? Even You Can Learn Statistics includes EQUATION BLACKBOARDS, standalone sections that present the equations behind statistical methods and complement the main material. Either way, you can learn statistics.
Learning with the ConceptInterpretation Approach
Even You Can Learn Statistics uses a ConceptInterpretation approach to help you learn statistics. For each important statistical concept, you will first find a
CONCEPT, a plainlanguage definition that uses no complicated mathematical terms, followed by an INTERPRETATION that fully explains the concept and its importance to statistics. When necessary, these sections also review the misconceptions and the errors people make when trying to apply the concept.
For simpler concepts, an EXAMPLES section lists reallife examples or applications of the statistical concepts. For more advanced concepts, WORKEDOUT PROBLEMS provide a complete solution to a statistical problem—including actual spreadsheet and calculator results—that illustrate how you can apply the concept to your own problems.
Practicing Statistics While You Learn Statistics
To enhance your learning of statistics, you should always review the WORKEDOUT PROBLEMS. If you want to practice what you have just learned, you can use the optional CALCULATOR KEYS and SPREADSHEET SOLUTION sections, which help you apply a statistical calculator or spreadsheet program to statistical analyses.
CALCULATOR KEYS sections give you the keystrokebykeystroke steps to perform statistical analysis on a Texas Instruments statistical calculator from the TI83 or TI84 families, including TI83 Plus and TI84 Plus models. (You can adapt many sections for use with other TI statistical calculators—such as any model from the TI86, TI89, or Voyage 200 families—that have different keypads and arrangements of statistical functions.)
SPREADSHEET SOLUTION sections provide instructions for using the statistical capabilities of Microsoft Excel and identify files that you can download from the Even You Can Learn Statistics Web site that contain complete spreadsheets that you can use as models for your own problem solving.
If you plan to use either of these sections, review Appendix A for the conventions, software settings, and assumptions used for these sections.
InChapter Aids
As you read a chapter, look for Important Point icons that highlight key explanations. Download the data files from the Web site for this book (www.prenticehall.com/youcanlearnstatistics) so that you may examine the data under study in the Workedout Problems. Even if you do not plan to use a calculator or a spreadsheet, look at the actual examples of their outputs to become familiar with how statistical results are reported.
Interested in Math? Then look for this icon throughout the book. And if you are not interested in math, remember that all of the passages with this icon can be skipped without losing any comprehension of the statistical methods presented.
EndofChapter Features
At the end of most chapters of Even You Can Learn Statistics, you will find these features that you can review to reinforce your learning.
Important Equations
A list of the important equations discussed in the chapter. Even if you are not interested in the mathematics of the statistical methods and have skipped the EQUATION BLACKBOARDS in the book, you can use these lists for reference and later study.
OneMinute Summary
A quick review of the significant topics of a chapter in outline form. When appropriate, the summaries also help guide you to make the right decisions about applying statistics to the data you seek to analyze.
Test Yourself
Explore how much you have retained with a set of questions that enable you to review and test yourself (with answers provided) on the concepts presented in a chapter.
Summary
Even You Can Learn Statistics can help you whether you are studying statistics as part of a formal course or just brushing up on your knowledge of statistics for a specific analysis. Be sure to visit the Web site for this book (www.prenticehall.com/youcanlearnstatistics). You are also invited to contact the authors via email at david_levine@baruch.cuny.edu if you have any questions about this book.
© Copyright Pearson Education. All rights reserved.
First Chapter
Introduction
The Even You Can Learn Statistics Owners Manual
In today's world, knowing how to apply statistics is more important than ever. Even You Can Learn Statistics: The Easy to Use Guide for Everyone Who Has Ever Been Afraid of Statistics will teach you the basic concepts that provide that understanding. You will also learn the most commonly used statistical methods and be able to practice those methods using a statistical calculator or a spreadsheet program. Please read the rest of this introduction
so that you can become familiar with the distinctive features of this book. Be sure to visit the Web site for this book (www.prenticehall.com/youcanlearnstatistics), which contains free downloads and other material to support your learning.
Mathematics Is Always Optional!
Never mastered higher mathematics—or generally fearful of math? Not to worry, because in Even You Can Learn Statistics, you will find that every concept is explained in plain English, without the use of higher mathematics or mathematical symbols. Interested in the mathematical foundations behind statistics? Even You Can Learn Statistics includes EQUATION BLACKBOARDS, standalone sections that present the equations behind statistical methods and complement the main material. Either way, you can learn statistics.
Learning with the ConceptInterpretation Approach
Even You Can Learn Statistics uses a ConceptInterpretation approach to help you learn statistics. For each important statistical concept, you will first find a
CONCEPT, a plainlanguage definition that uses no complicated mathematical terms, followed by an INTERPRETATION that fully explains the concept and its importance to statistics. When necessary, these sections also review the misconceptions and the errors people make when trying to apply the concept.
For simpler concepts, an EXAMPLES section lists reallife examples or applications of the statistical concepts. For more advanced concepts, WORKEDOUT PROBLEMS provide a complete solution to a statistical problem—including actual spreadsheet and calculator results—that illustrate how you can apply the concept to your own problems.
Practicing Statistics While You Learn Statistics
To enhance your learning of statistics, you should always review the WORKEDOUT PROBLEMS. If you want to practice what you have just learned, you can use the optional CALCULATOR KEYS and SPREADSHEET SOLUTION sections, which help you apply a statistical calculator or spreadsheet program to statistical analyses.
CALCULATOR KEYS sections give you the keystrokebykeystroke steps to perform statistical analysis on a Texas Instruments statistical calculator from the TI83 or TI84 families, including TI83 Plus and TI84 Plus models. (You can adapt many sections for use with other TI statistical calculators—such as any model from the TI86, TI89, or Voyage 200 families—that have different keypads and arrangements of statistical functions.)
SPREADSHEET SOLUTION sections provide instructions for using the statistical capabilities of Microsoft Excel and identify files that you can download from the Even You Can Learn Statistics Web site that contain complete spreadsheets that you can use as models for your own problem solving.
If you plan to use either of these sections, review Appendix A for the conventions, software settings, and assumptions used for these sections.
InChapter Aids
As you read a chapter, look for Important Point icons that highlight key explanations. Download the data files from the Web site for this book (www.prenticehall.com/youcanlearnstatistics) so that you may examine the data under study in the Workedout Problems. Even if you do not plan to use a calculator or a spreadsheet, look at the actual examples of their outputs to become familiar with how statistical results are reported.
Interested in Math? Then look for this icon throughout the book. And if you are not interested in math, remember that all of the passages with this icon can be skipped without losing any comprehension of the statistical methods presented.
EndofChapter Features
At the end of most chapters of Even You Can Learn Statistics, you will find these features that you can review to reinforce your learning.
Important Equations
A list of the important equations discussed in the chapter. Even if you are not interested in the mathematics of the statistical methods and have skipped the EQUATION BLACKBOARDS in the book, you can use these lists for reference and later study.
OneMinute Summary
A quick review of the significant topics of a chapter in outline form. When appropriate, the summaries also help guide you to make the right decisions about applying statistics to the data you seek to analyze.
Test Yourself
Explore how much you have retained with a set of questions that enable you to review and test yourself (with answers provided) on the concepts presented in a chapter.
Summary
Even You Can Learn Statistics can help you whether you are studying statistics as part of a formal course or just brushing up on your knowledge of statistics for a specific analysis. Be sure to visit the Web site for this book (www.prenticehall.com/youcanlearnstatistics). You are also invited to contact the authors via email at david_levine@baruch.cuny.edu if you have any questions about this book.
© Copyright Pearson Education. All rights reserved.
Table of Contents
Introduction  xvii  
Chapter 1  Fundamentals of Statistics  1 
1.1  The Five Basic Words of Statistics  2 
Population  2  
Sample  2  
Parameter  2  
Statistic  3  
Variable  3  
1.2  The Branches of Statistics  4 
Descriptive Statistics  4  
Inferential Statistics  5  
1.3  Sources of Data  5 
Published Sources  5  
Experiments  6  
Surveys  6  
1.4  Sampling Concepts  7 
Sampling  7  
Probability Sampling  7  
Simple Random Sampling  7  
Frame  8  
1.5  Sample Selection Methods  8 
Sampling With Replacement  8  
Sampling Without Replacement  8  
OneMinute Summary  10  
Test Yourself  11  
Answers to Test Yourself Questions  14  
References  14  
Chapter 2  Presenting Data in Charts and Tables  17 
2.1  Presenting Categorical Data  17 
The Summary Table  17  
The Bar Chart  18  
The Pie Chart  19  
The Pareto Diagram  20  
TwoWay CrossClassification Tables  22  
2.2  Presenting Numerical Data  24 
The Frequency and Percentage Distribution  24  
Histogram  25  
The Dot Scale Diagram  27  
The TimeSeries Plot  28  
The Scatter Plot  28  
2.3  Misusing Graphs  30 
OneMinute Summary  32  
Test Yourself  32  
Answers to Test Yourself Questions  35  
References  36  
Chapter 3  Descriptive Statistics for Numerical Variables  37 
3.1  Measures of Central Tendency  37 
The Mean  37  
The Median  40  
The Mode  41  
Quartiles  41  
3.2  Measures of Variation  45 
The Range  45  
The Variance and the Standard Deviation  46  
Standard (Z) Scores  49  
3.3  Shape of Distributions  50 
Symmetrical Shape  50  
LeftSkewed Shape  50  
RightSkewed Shape  51  
The BoxandWhisker Plot  52  
Important Equations  56  
OneMinute Summary  56  
Test Yourself  57  
Answers to Test Yourself Questions  59  
References  60  
Chapter 4  Probability  61 
4.1  Getting Started with Probability  61 
Event  61  
Elementary Event  62  
Random Variable  62  
Probability  62  
Collectively Exhaustive Events  64  
4.2  Some Rules of Probability  64 
4.3  Assigning Probabilities  67 
Classical Approach  67  
Empirical Approach  67  
Subjective Approach  68  
OneMinute Summary  68  
Test Yourself  68  
Answers to Test Yourself Questions  70  
References  70  
Chapter 5  Probability Distributions  73 
5.1  Probability Distributions for Discrete Variables  73 
Discrete Probability Distribution  73  
The Expected Value of a Random Variable  75  
Standard Deviation of a Random Variable ([sigma])  76  
5.2  The Binomial and Poisson Probability Distributions  79 
The Binomial Distribution  79  
The Poisson Distribution  83  
5.3  Continuous Probability Distributions and the Normal Distribution  87 
Normal Distribution  87  
Using Standard Deviation Units  89  
Finding the Z Value from the Area Under the Normal Curve  91  
5.4  The Normal Probability Plot  94 
Important Equations  96  
OneMinute Summary  96  
Test Yourself  97  
Answers to Test Yourself Questions  101  
References  102  
Chapter 6  Sampling Distributions and Confidence Intervals  103 
6.1  Sampling Distributions  104 
Sampling Distribution  104  
Sampling Distribution of the Mean and the Central Limit Theorem  104  
Sampling Distribution of the Proportion  107  
What You Need to Know About Sampling Distributions  107  
6.2  Sampling Error and Confidence Intervals  107 
Sampling Error  109  
Confidence Interval Estimate  109  
6.3  Confidence Interval Estimate for the Mean Using the t Distribution ([sigma] Unknown)  111 
t Distribution  112  
6.4  Confidence Interval Estimation for the Proportion  116 
Important Equations  119  
OneMinute Summary  119  
Test Yourself  119  
Answers to Test Yourself Questions  122  
References  122  
Chapter 7  Fundamentals of Hypothesis Testing  125 
7.1  The Null and Alternative Hypotheses  125 
Null Hypothesis  126  
Alternative Hypothesis  126  
7.2  Hypothesis Testing Issues  127 
Test Statistic  127  
Practical Significance Versus Statistical Significance  128  
7.3  DecisionMaking Risks  129 
Type I Error  129  
Type II Error  129  
Risk TradeOff  130  
7.4  Performing Hypothesis Testing  130 
The pValue Approach to Hypothesis Testing  131  
pValue  131  
7.5  Types of Hypothesis Tests  132 
Number of Groups  132  
Relationship Stated in Alternative Hypothesis H[subscript 1]  132  
Type of Variable  132  
OneMinute Summary  133  
Test Yourself  133  
Answers to Test Yourself Questions  135  
References  135  
Chapter 8  Hypothesis Testing: Z and t Tests  137 
8.1  Testing for the Difference Between Two Proportions  137 
8.2  Testing for the Difference Between the Means of Two Independent Groups  143 
PooledVariance t Test  143  
PooledVariance t Test Assumptions  148  
8.3  The Paired t Test  150 
Important Equations  155  
OneMinute Summary  156  
Test Yourself  156  
Answers to Test Yourself Questions  157  
References  158  
Chapter 9  Hypothesis Testing: ChiSquare Tests and the OneWay Analysis of Variance (ANOVA)  159 
9.1  ChiSquare Test for TwoWay Tables  159 
9.2  OneWay Analysis of Variance (ANOVA): Testing for the Differences Among the Means of More Than Two Groups  166 
OneWay ANOVA  166  
The Three Variances of ANOVA  168  
ANOVA Summary Table  170  
OneWay ANOVA Assumptions  174  
Important Equations  174  
OneMinute Summary  175  
Test Yourself  175  
Answers to Test Yourself Questions  178  
References  178  
Chapter 10  Regression Analysis  181 
10.1  Basics of Regression Analysis  182 
Simple Linear Regression  182  
10.2  Determining the Simple Linear Regression Equation  183 
Y intercept  183  
Slope  183  
LeastSquares Method  184  
Regression Model Prediction  187  
10.3  Measures of Variation  191 
Regression Sum of Squares (SSR)  191  
Error Sum of Squares (SSE)  191  
Total Sum of Squares (SST)  192  
The Coefficient of Determination  193  
The Coefficient of Correlation  194  
Standard Error of the Estimate  194  
10.4  Regression Assumptions  195 
10.5  Residual Analysis  196 
Residual  196  
Evaluating the Assumptions  197  
10.6  Inferences About the Slope  197 
t Test for the Slope  198  
Confidence Interval Estimate of the Slope ([beta subscript 1])  200  
10.7  Common Mistakes Using Regression Analysis  201 
Important Equations  203  
OneMinute Summary  205  
Test Yourself  205  
Answers to Test Yourself Questions  207  
References  208  
Chapter 11  Quality and Six Sigma Management Applications of Statistics  209 
11.1  Total Quality Management  209 
11.2  Six Sigma Management  211 
Six Sigma  211  
The Six Sigma DMAIC Model  211  
11.3  Control Charts  212 
Special or Assignable Causes of Variation  212  
Chance or Common Causes of Variation  213  
Control Limits  213  
The p Chart  214  
11.4  The Parable of the Red Bead Experiment: Understanding Process Variability  219 
Deming's Red Bead Experiment  220  
11.5  Variables Control Charts for the Mean and Range  221 
Important Equations  226  
OneMinute Summary  227  
Test Yourself  227  
Answers to Test Yourself Questions  229  
References  230  
Appendix A  TI Statistical Calculator Settings and Microsoft Excel Settings  231 
A.1  TI Statistical Calculator Settings  231 
"Ready State" Assumptions  231  
Menu Selections  231  
Statistical Function Entries by Menus  232  
Primary Key Legend Convention  232  
Mode Settings  232  
Calculator Clearing and Reset  232  
Data Storage  232  
A.2  Microsoft Excel Settings  233 
Appendix B  Review of Arithmetic and Algebra  235 
Assessment Quiz  235  
Part 1  235  
Part 2  236  
Symbols  238  
Addition  238  
Subtraction  239  
Multiplication  239  
Division  240  
Fractions  241  
Exponents and Square Roots  242  
Equations  243  
Answers to Quiz  244  
Part 1  244  
Part 2  244  
Appendix C  Statistical Tables  245 
C.1  The Cumulative Standardized Normal Distribution  246 
C.2  Critical Values of t  248 
C.3  Critical Values of X[superscript 2]  252 
C.4  Critical Values of F  254 
C.5  Control Chart Factors  262 
Appendix D  Using Microsoft Excel Wizards  263 
D.1  Using the Chart Wizard  263 
Choosing the Best Chart Options  264  
D.2  Using the PivotTable Wizard  265 
D.3  Using the Data Analysis Tools  267 
D.4  Simple Linear Regression  267 
Glossary  269  
Index  277 
Reading Group Guide
Introduction  xvii  
Chapter 1  Fundamentals of Statistics  1 
1.1  The Five Basic Words of Statistics  2 
Population  2  
Sample  2  
Parameter  2  
Statistic  3  
Variable  3  
1.2  The Branches of Statistics  4 
Descriptive Statistics  4  
Inferential Statistics  5  
1.3  Sources of Data  5 
Published Sources  5  
Experiments  6  
Surveys  6  
1.4  Sampling Concepts  7 
Sampling  7  
Probability Sampling  7  
Simple Random Sampling  7  
Frame  8  
1.5  Sample Selection Methods  8 
Sampling With Replacement  8  
Sampling Without Replacement  8  
OneMinute Summary  10  
Test Yourself  11  
Answers to Test Yourself Questions  14  
References  14  
Chapter 2  Presenting Data in Charts and Tables  17 
2.1  Presenting Categorical Data  17 
The Summary Table  17  
The Bar Chart  18  
The Pie Chart  19  
The Pareto Diagram  20  
TwoWay CrossClassification Tables  22  
2.2  Presenting Numerical Data  24 
The Frequency and Percentage Distribution  24  
Histogram  25  
The Dot Scale Diagram  27  
The TimeSeries Plot  28  
The Scatter Plot  28  
2.3  Misusing Graphs  30 
OneMinute Summary  32  
Test Yourself  32  
Answers to Test Yourself Questions  35  
References  36  
Chapter 3  Descriptive Statistics for Numerical Variables  37 
3.1  Measures of Central Tendency  37 
The Mean  37  
The Median  40  
The Mode  41  
Quartiles  41  
3.2  Measures of Variation  45 
The Range  45  
The Variance and the Standard Deviation  46  
Standard (Z) Scores  49  
3.3  Shape of Distributions  50 
Symmetrical Shape  50  
LeftSkewed Shape  50  
RightSkewed Shape  51  
The BoxandWhisker Plot  52  
Important Equations  56  
OneMinute Summary  56  
Test Yourself  57  
Answers to Test Yourself Questions  59  
References  60  
Chapter 4  Probability  61 
4.1  Getting Started with Probability  61 
Event  61  
Elementary Event  62  
Random Variable  62  
Probability  62  
Collectively Exhaustive Events  64  
4.2  Some Rules of Probability  64 
4.3  Assigning Probabilities  67 
Classical Approach  67  
Empirical Approach  67  
Subjective Approach  68  
OneMinute Summary  68  
Test Yourself  68  
Answers to Test Yourself Questions  70  
References  70  
Chapter 5  Probability Distributions  73 
5.1  Probability Distributions for Discrete Variables  73 
Discrete Probability Distribution  73  
The Expected Value of a Random Variable  75  
Standard Deviation of a Random Variable ([sigma])  76  
5.2  The Binomial and Poisson Probability Distributions  79 
The Binomial Distribution  79  
The Poisson Distribution  83  
5.3  Continuous Probability Distributions and the Normal Distribution  87 
Normal Distribution  87  
Using Standard Deviation Units  89  
Finding the Z Value from the Area Under the Normal Curve  91  
5.4  The Normal Probability Plot  94 
Important Equations  96  
OneMinute Summary  96  
Test Yourself  97  
Answers to Test Yourself Questions  101  
References  102  
Chapter 6  Sampling Distributions and Confidence Intervals  103 
6.1  Sampling Distributions  104 
Sampling Distribution  104  
Sampling Distribution of the Mean and the Central Limit Theorem  104  
Sampling Distribution of the Proportion  107  
What You Need to Know About Sampling Distributions  107  
6.2  Sampling Error and Confidence Intervals  107 
Sampling Error  109  
Confidence Interval Estimate  109  
6.3  Confidence Interval Estimate for the Mean Using the t Distribution ([sigma] Unknown)  111 
t Distribution  112  
6.4  Confidence Interval Estimation for the Proportion  116 
Important Equations  119  
OneMinute Summary  119  
Test Yourself  119  
Answers to Test Yourself Questions  122  
References  122  
Chapter 7  Fundamentals of Hypothesis Testing  125 
7.1  The Null and Alternative Hypotheses  125 
Null Hypothesis  126  
Alternative Hypothesis  126  
7.2  Hypothesis Testing Issues  127 
Test Statistic  127  
Practical Significance Versus Statistical Significance  128  
7.3  DecisionMaking Risks  129 
Type I Error  129  
Type II Error  129  
Risk TradeOff  130  
7.4  Performing Hypothesis Testing  130 
The pValue Approach to Hypothesis Testing  131  
pValue  131  
7.5  Types of Hypothesis Tests  132 
Number of Groups  132  
Relationship Stated in Alternative Hypothesis H[subscript 1]  132  
Type of Variable  132  
OneMinute Summary  133  
Test Yourself  133  
Answers to Test Yourself Questions  135  
References  135  
Chapter 8  Hypothesis Testing: Z and t Tests  137 
8.1  Testing for the Difference Between Two Proportions  137 
8.2  Testing for the Difference Between the Means of Two Independent Groups  143 
PooledVariance t Test  143  
PooledVariance t Test Assumptions  148  
8.3  The Paired t Test  150 
Important Equations  155  
OneMinute Summary  156  
Test Yourself  156  
Answers to Test Yourself Questions  157  
References  158  
Chapter 9  Hypothesis Testing: ChiSquare Tests and the OneWay Analysis of Variance (ANOVA)  159 
9.1  ChiSquare Test for TwoWay Tables  159 
9.2  OneWay Analysis of Variance (ANOVA): Testing for the Differences Among the Means of More Than Two Groups  166 
OneWay ANOVA  166  
The Three Variances of ANOVA  168  
ANOVA Summary Table  170  
OneWay ANOVA Assumptions  174  
Important Equations  174  
OneMinute Summary  175  
Test Yourself  175  
Answers to Test Yourself Questions  178  
References  178  
Chapter 10  Regression Analysis  181 
10.1  Basics of Regression Analysis  182 
Simple Linear Regression  182  
10.2  Determining the Simple Linear Regression Equation  183 
Y intercept  183  
Slope  183  
LeastSquares Method  184  
Regression Model Prediction  187  
10.3  Measures of Variation  191 
Regression Sum of Squares (SSR)  191  
Error Sum of Squares (SSE)  191  
Total Sum of Squares (SST)  192  
The Coefficient of Determination  193  
The Coefficient of Correlation  194  
Standard Error of the Estimate  194  
10.4  Regression Assumptions  195 
10.5  Residual Analysis  196 
Residual  196  
Evaluating the Assumptions  197  
10.6  Inferences About the Slope  197 
t Test for the Slope  198  
Confidence Interval Estimate of the Slope ([beta subscript 1])  200  
10.7  Common Mistakes Using Regression Analysis  201 
Important Equations  203  
OneMinute Summary  205  
Test Yourself  205  
Answers to Test Yourself Questions  207  
References  208  
Chapter 11  Quality and Six Sigma Management Applications of Statistics  209 
11.1  Total Quality Management  209 
11.2  Six Sigma Management  211 
Six Sigma  211  
The Six Sigma DMAIC Model  211  
11.3  Control Charts  212 
Special or Assignable Causes of Variation  212  
Chance or Common Causes of Variation  213  
Control Limits  213  
The p Chart  214  
11.4  The Parable of the Red Bead Experiment: Understanding Process Variability  219 
Deming's Red Bead Experiment  220  
11.5  Variables Control Charts for the Mean and Range  221 
Important Equations  226  
OneMinute Summary  227  
Test Yourself  227  
Answers to Test Yourself Questions  229  
References  230  
Appendix A  TI Statistical Calculator Settings and Microsoft Excel Settings  231 
A.1  TI Statistical Calculator Settings  231 
"Ready State" Assumptions  231  
Menu Selections  231  
Statistical Function Entries by Menus  232  
Primary Key Legend Convention  232  
Mode Settings  232  
Calculator Clearing and Reset  232  
Data Storage  232  
A.2  Microsoft Excel Settings  233 
Appendix B  Review of Arithmetic and Algebra  235 
Assessment Quiz  235  
Part 1  235  
Part 2  236  
Symbols  238  
Addition  238  
Subtraction  239  
Multiplication  239  
Division  240  
Fractions  241  
Exponents and Square Roots  242  
Equations  243  
Answers to Quiz  244  
Part 1  244  
Part 2  244  
Appendix C  Statistical Tables  245 
C.1  The Cumulative Standardized Normal Distribution  246 
C.2  Critical Values of t  248 
C.3  Critical Values of X[superscript 2]  252 
C.4  Critical Values of F  254 
C.5  Control Chart Factors  262 
Appendix D  Using Microsoft Excel Wizards  263 
D.1  Using the Chart Wizard  263 
Choosing the Best Chart Options  264  
D.2  Using the PivotTable Wizard  265 
D.3  Using the Data Analysis Tools  267 
D.4  Simple Linear Regression  267 
Glossary  269  
Index  277 
Interviews
Introduction  xvii  
Chapter 1  Fundamentals of Statistics  1 
1.1  The Five Basic Words of Statistics  2 
Population  2  
Sample  2  
Parameter  2  
Statistic  3  
Variable  3  
1.2  The Branches of Statistics  4 
Descriptive Statistics  4  
Inferential Statistics  5  
1.3  Sources of Data  5 
Published Sources  5  
Experiments  6  
Surveys  6  
1.4  Sampling Concepts  7 
Sampling  7  
Probability Sampling  7  
Simple Random Sampling  7  
Frame  8  
1.5  Sample Selection Methods  8 
Sampling With Replacement  8  
Sampling Without Replacement  8  
OneMinute Summary  10  
Test Yourself  11  
Answers to Test Yourself Questions  14  
References  14  
Chapter 2  Presenting Data in Charts and Tables  17 
2.1  Presenting Categorical Data  17 
The Summary Table  17  
The Bar Chart  18  
The Pie Chart  19  
The Pareto Diagram  20  
TwoWay CrossClassification Tables  22  
2.2  Presenting Numerical Data  24 
The Frequency and Percentage Distribution  24  
Histogram  25  
The Dot Scale Diagram  27  
The TimeSeries Plot  28  
The Scatter Plot  28  
2.3  Misusing Graphs  30 
OneMinute Summary  32  
Test Yourself  32  
Answers to Test Yourself Questions  35  
References  36  
Chapter 3  Descriptive Statistics for Numerical Variables  37 
3.1  Measures of Central Tendency  37 
The Mean  37  
The Median  40  
The Mode  41  
Quartiles  41  
3.2  Measures of Variation  45 
The Range  45  
The Variance and the Standard Deviation  46  
Standard (Z) Scores  49  
3.3  Shape of Distributions  50 
Symmetrical Shape  50  
LeftSkewed Shape  50  
RightSkewed Shape  51  
The BoxandWhisker Plot  52  
Important Equations  56  
OneMinute Summary  56  
Test Yourself  57  
Answers to Test Yourself Questions  59  
References  60  
Chapter 4  Probability  61 
4.1  Getting Started with Probability  61 
Event  61  
Elementary Event  62  
Random Variable  62  
Probability  62  
Collectively Exhaustive Events  64  
4.2  Some Rules of Probability  64 
4.3  Assigning Probabilities  67 
Classical Approach  67  
Empirical Approach  67  
Subjective Approach  68  
OneMinute Summary  68  
Test Yourself  68  
Answers to Test Yourself Questions  70  
References  70  
Chapter 5  Probability Distributions  73 
5.1  Probability Distributions for Discrete Variables  73 
Discrete Probability Distribution  73  
The Expected Value of a Random Variable  75  
Standard Deviation of a Random Variable ([sigma])  76  
5.2  The Binomial and Poisson Probability Distributions  79 
The Binomial Distribution  79  
The Poisson Distribution  83  
5.3  Continuous Probability Distributions and the Normal Distribution  87 
Normal Distribution  87  
Using Standard Deviation Units  89  
Finding the Z Value from the Area Under the Normal Curve  91  
5.4  The Normal Probability Plot  94 
Important Equations  96  
OneMinute Summary  96  
Test Yourself  97  
Answers to Test Yourself Questions  101  
References  102  
Chapter 6  Sampling Distributions and Confidence Intervals  103 
6.1  Sampling Distributions  104 
Sampling Distribution  104  
Sampling Distribution of the Mean and the Central Limit Theorem  104  
Sampling Distribution of the Proportion  107  
What You Need to Know About Sampling Distributions  107  
6.2  Sampling Error and Confidence Intervals  107 
Sampling Error  109  
Confidence Interval Estimate  109  
6.3  Confidence Interval Estimate for the Mean Using the t Distribution ([sigma] Unknown)  111 
t Distribution  112  
6.4  Confidence Interval Estimation for the Proportion  116 
Important Equations  119  
OneMinute Summary  119  
Test Yourself  119  
Answers to Test Yourself Questions  122  
References  122  
Chapter 7  Fundamentals of Hypothesis Testing  125 
7.1  The Null and Alternative Hypotheses  125 
Null Hypothesis  126  
Alternative Hypothesis  126  
7.2  Hypothesis Testing Issues  127 
Test Statistic  127  
Practical Significance Versus Statistical Significance  128  
7.3  DecisionMaking Risks  129 
Type I Error  129  
Type II Error  129  
Risk TradeOff  130  
7.4  Performing Hypothesis Testing  130 
The pValue Approach to Hypothesis Testing  131  
pValue  131  
7.5  Types of Hypothesis Tests  132 
Number of Groups  132  
Relationship Stated in Alternative Hypothesis H[subscript 1]  132  
Type of Variable  132  
OneMinute Summary  133  
Test Yourself  133  
Answers to Test Yourself Questions  135  
References  135  
Chapter 8  Hypothesis Testing: Z and t Tests  137 
8.1  Testing for the Difference Between Two Proportions  137 
8.2  Testing for the Difference Between the Means of Two Independent Groups  143 
PooledVariance t Test  143  
PooledVariance t Test Assumptions  148  
8.3  The Paired t Test  150 
Important Equations  155  
OneMinute Summary  156  
Test Yourself  156  
Answers to Test Yourself Questions  157  
References  158  
Chapter 9  Hypothesis Testing: ChiSquare Tests and the OneWay Analysis of Variance (ANOVA)  159 
9.1  ChiSquare Test for TwoWay Tables  159 
9.2  OneWay Analysis of Variance (ANOVA): Testing for the Differences Among the Means of More Than Two Groups  166 
OneWay ANOVA  166  
The Three Variances of ANOVA  168  
ANOVA Summary Table  170  
OneWay ANOVA Assumptions  174  
Important Equations  174  
OneMinute Summary  175  
Test Yourself  175  
Answers to Test Yourself Questions  178  
References  178  
Chapter 10  Regression Analysis  181 
10.1  Basics of Regression Analysis  182 
Simple Linear Regression  182  
10.2  Determining the Simple Linear Regression Equation  183 
Y intercept  183  
Slope  183  
LeastSquares Method  184  
Regression Model Prediction  187  
10.3  Measures of Variation  191 
Regression Sum of Squares (SSR)  191  
Error Sum of Squares (SSE)  191  
Total Sum of Squares (SST)  192  
The Coefficient of Determination  193  
The Coefficient of Correlation  194  
Standard Error of the Estimate  194  
10.4  Regression Assumptions  195 
10.5  Residual Analysis  196 
Residual  196  
Evaluating the Assumptions  197  
10.6  Inferences About the Slope  197 
t Test for the Slope  198  
Confidence Interval Estimate of the Slope ([beta subscript 1])  200  
10.7  Common Mistakes Using Regression Analysis  201 
Important Equations  203  
OneMinute Summary  205  
Test Yourself  205  
Answers to Test Yourself Questions  207  
References  208  
Chapter 11  Quality and Six Sigma Management Applications of Statistics  209 
11.1  Total Quality Management  209 
11.2  Six Sigma Management  211 
Six Sigma  211  
The Six Sigma DMAIC Model  211  
11.3  Control Charts  212 
Special or Assignable Causes of Variation  212  
Chance or Common Causes of Variation  213  
Control Limits  213  
The p Chart  214  
11.4  The Parable of the Red Bead Experiment: Understanding Process Variability  219 
Deming's Red Bead Experiment  220  
11.5  Variables Control Charts for the Mean and Range  221 
Important Equations  226  
OneMinute Summary  227  
Test Yourself  227  
Answers to Test Yourself Questions  229  
References  230  
Appendix A  TI Statistical Calculator Settings and Microsoft Excel Settings  231 
A.1  TI Statistical Calculator Settings  231 
"Ready State" Assumptions  231  
Menu Selections  231  
Statistical Function Entries by Menus  232  
Primary Key Legend Convention  232  
Mode Settings  232  
Calculator Clearing and Reset  232  
Data Storage  232  
A.2  Microsoft Excel Settings  233 
Appendix B  Review of Arithmetic and Algebra  235 
Assessment Quiz  235  
Part 1  235  
Part 2  236  
Symbols  238  
Addition  238  
Subtraction  239  
Multiplication  239  
Division  240  
Fractions  241  
Exponents and Square Roots  242  
Equations  243  
Answers to Quiz  244  
Part 1  244  
Part 2  244  
Appendix C  Statistical Tables  245 
C.1  The Cumulative Standardized Normal Distribution  246 
C.2  Critical Values of t  248 
C.3  Critical Values of X[superscript 2]  252 
C.4  Critical Values of F  254 
C.5  Control Chart Factors  262 
Appendix D  Using Microsoft Excel Wizards  263 
D.1  Using the Chart Wizard  263 
Choosing the Best Chart Options  264  
D.2  Using the PivotTable Wizard  265 
D.3  Using the Data Analysis Tools  267 
D.4  Simple Linear Regression  267 
Glossary  269  
Index  277 
Recipe
Introduction  xvii  
Chapter 1  Fundamentals of Statistics  1 
1.1  The Five Basic Words of Statistics  2 
Population  2  
Sample  2  
Parameter  2  
Statistic  3  
Variable  3  
1.2  The Branches of Statistics  4 
Descriptive Statistics  4  
Inferential Statistics  5  
1.3  Sources of Data  5 
Published Sources  5  
Experiments  6  
Surveys  6  
1.4  Sampling Concepts  7 
Sampling  7  
Probability Sampling  7  
Simple Random Sampling  7  
Frame  8  
1.5  Sample Selection Methods  8 
Sampling With Replacement  8  
Sampling Without Replacement  8  
OneMinute Summary  10  
Test Yourself  11  
Answers to Test Yourself Questions  14  
References  14  
Chapter 2  Presenting Data in Charts and Tables  17 
2.1  Presenting Categorical Data  17 
The Summary Table  17  
The Bar Chart  18  
The Pie Chart  19  
The Pareto Diagram  20  
TwoWay CrossClassification Tables  22  
2.2  Presenting Numerical Data  24 
The Frequency and Percentage Distribution  24  
Histogram  25  
The Dot Scale Diagram  27  
The TimeSeries Plot  28  
The Scatter Plot  28  
2.3  Misusing Graphs  30 
OneMinute Summary  32  
Test Yourself  32  
Answers to Test Yourself Questions  35  
References  36  
Chapter 3  Descriptive Statistics for Numerical Variables  37 
3.1  Measures of Central Tendency  37 
The Mean  37  
The Median  40  
The Mode  41  
Quartiles  41  
3.2  Measures of Variation  45 
The Range  45  
The Variance and the Standard Deviation  46  
Standard (Z) Scores  49  
3.3  Shape of Distributions  50 
Symmetrical Shape  50  
LeftSkewed Shape  50  
RightSkewed Shape  51  
The BoxandWhisker Plot  52  
Important Equations  56  
OneMinute Summary  56  
Test Yourself  57  
Answers to Test Yourself Questions  59  
References  60  
Chapter 4  Probability  61 
4.1  Getting Started with Probability  61 
Event  61  
Elementary Event  62  
Random Variable  62  
Probability  62  
Collectively Exhaustive Events  64  
4.2  Some Rules of Probability  64 
4.3  Assigning Probabilities  67 
Classical Approach  67  
Empirical Approach  67  
Subjective Approach  68  
OneMinute Summary  68  
Test Yourself  68  
Answers to Test Yourself Questions  70  
References  70  
Chapter 5  Probability Distributions  73 
5.1  Probability Distributions for Discrete Variables  73 
Discrete Probability Distribution  73  
The Expected Value of a Random Variable  75  
Standard Deviation of a Random Variable ([sigma])  76  
5.2  The Binomial and Poisson Probability Distributions  79 
The Binomial Distribution  79  
The Poisson Distribution  83  
5.3  Continuous Probability Distributions and the Normal Distribution  87 
Normal Distribution  87  
Using Standard Deviation Units  89  
Finding the Z Value from the Area Under the Normal Curve  91  
5.4  The Normal Probability Plot  94 
Important Equations  96  
OneMinute Summary  96  
Test Yourself  97  
Answers to Test Yourself Questions  101  
References  102  
Chapter 6  Sampling Distributions and Confidence Intervals  103 
6.1  Sampling Distributions  104 
Sampling Distribution  104  
Sampling Distribution of the Mean and the Central Limit Theorem  104  
Sampling Distribution of the Proportion  107  
What You Need to Know About Sampling Distributions  107  
6.2  Sampling Error and Confidence Intervals  107 
Sampling Error  109  
Confidence Interval Estimate  109  
6.3  Confidence Interval Estimate for the Mean Using the t Distribution ([sigma] Unknown)  111 
t Distribution  112  
6.4  Confidence Interval Estimation for the Proportion  116 
Important Equations  119  
OneMinute Summary  119  
Test Yourself  119  
Answers to Test Yourself Questions  122  
References  122  
Chapter 7  Fundamentals of Hypothesis Testing  125 
7.1  The Null and Alternative Hypotheses  125 
Null Hypothesis  126  
Alternative Hypothesis  126  
7.2  Hypothesis Testing Issues  127 
Test Statistic  127  
Practical Significance Versus Statistical Significance  128  
7.3  DecisionMaking Risks  129 
Type I Error  129  
Type II Error  129  
Risk TradeOff  130  
7.4  Performing Hypothesis Testing  130 
The pValue Approach to Hypothesis Testing  131  
pValue  131  
7.5  Types of Hypothesis Tests  132 
Number of Groups  132  
Relationship Stated in Alternative Hypothesis H[subscript 1]  132  
Type of Variable  132  
OneMinute Summary  133  
Test Yourself  133  
Answers to Test Yourself Questions  135  
References  135  
Chapter 8  Hypothesis Testing: Z and t Tests  137 
8.1  Testing for the Difference Between Two Proportions  137 
8.2  Testing for the Difference Between the Means of Two Independent Groups  143 
PooledVariance t Test  143  
PooledVariance t Test Assumptions  148  
8.3  The Paired t Test  150 
Important Equations  155  
OneMinute Summary  156  
Test Yourself  156  
Answers to Test Yourself Questions  157  
References  158  
Chapter 9  Hypothesis Testing: ChiSquare Tests and the OneWay Analysis of Variance (ANOVA)  159 
9.1  ChiSquare Test for TwoWay Tables  159 
9.2  OneWay Analysis of Variance (ANOVA): Testing for the Differences Among the Means of More Than Two Groups  166 
OneWay ANOVA  166  
The Three Variances of ANOVA  168  
ANOVA Summary Table  170  
OneWay ANOVA Assumptions  174  
Important Equations  174  
OneMinute Summary  175  
Test Yourself  175  
Answers to Test Yourself Questions  178  
References  178  
Chapter 10  Regression Analysis  181 
10.1  Basics of Regression Analysis  182 
Simple Linear Regression  182  
10.2  Determining the Simple Linear Regression Equation  183 
Y intercept  183  
Slope  183  
LeastSquares Method  184  
Regression Model Prediction  187  
10.3  Measures of Variation  191 
Regression Sum of Squares (SSR)  191  
Error Sum of Squares (SSE)  191  
Total Sum of Squares (SST)  192  
The Coefficient of Determination  193  
The Coefficient of Correlation  194  
Standard Error of the Estimate  194  
10.4  Regression Assumptions  195 
10.5  Residual Analysis  196 
Residual  196  
Evaluating the Assumptions  197  
10.6  Inferences About the Slope  197 
t Test for the Slope  198  
Confidence Interval Estimate of the Slope ([beta subscript 1])  200  
10.7  Common Mistakes Using Regression Analysis  201 
Important Equations  203  
OneMinute Summary  205  
Test Yourself  205  
Answers to Test Yourself Questions  207  
References  208  
Chapter 11  Quality and Six Sigma Management Applications of Statistics  209 
11.1  Total Quality Management  209 
11.2  Six Sigma Management  211 
Six Sigma  211  
The Six Sigma DMAIC Model  211  
11.3  Control Charts  212 
Special or Assignable Causes of Variation  212  
Chance or Common Causes of Variation  213  
Control Limits  213  
The p Chart  214  
11.4  The Parable of the Red Bead Experiment: Understanding Process Variability  219 
Deming's Red Bead Experiment  220  
11.5  Variables Control Charts for the Mean and Range  221 
Important Equations  226  
OneMinute Summary  227  
Test Yourself  227  
Answers to Test Yourself Questions  229  
References  230  
Appendix A  TI Statistical Calculator Settings and Microsoft Excel Settings  231 
A.1  TI Statistical Calculator Settings  231 
"Ready State" Assumptions  231  
Menu Selections  231  
Statistical Function Entries by Menus  232  
Primary Key Legend Convention  232  
Mode Settings  232  
Calculator Clearing and Reset  232  
Data Storage  232  
A.2  Microsoft Excel Settings  233 
Appendix B  Review of Arithmetic and Algebra  235 
Assessment Quiz  235  
Part 1  235  
Part 2  236  
Symbols  238  
Addition  238  
Subtraction  239  
Multiplication  239  
Division  240  
Fractions  241  
Exponents and Square Roots  242  
Equations  243  
Answers to Quiz  244  
Part 1  244  
Part 2  244  
Appendix C  Statistical Tables  245 
C.1  The Cumulative Standardized Normal Distribution  246 
C.2  Critical Values of t  248 
C.3  Critical Values of X[superscript 2]  252 
C.4  Critical Values of F  254 
C.5  Control Chart Factors  262 
Appendix D  Using Microsoft Excel Wizards  263 
D.1  Using the Chart Wizard  263 
Choosing the Best Chart Options  264  
D.2  Using the PivotTable Wizard  265 
D.3  Using the Data Analysis Tools  267 
D.4  Simple Linear Regression  267 
Glossary  269  
Index  277 
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