BUSINESS STATISTICS

A FIRST COURSE

5e

David M. Levine
Timothy C. Krehbiel Mark L. Berenson

Upper Saddle River, New Jersey07458

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Copyright © 2008 by Pearson Education, Inc., Upper Saddle River, New Jersey, 07458.

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/ 10987654321
ISBN-13: 978-0-13-606581-4
ISBN-10: 0-13-606581-3

Table of Contents

Preface / vii
Keywords Index / ix
Chapter 1 / Introduction and Data Collection / 1
Chapter 2 / Presenting Data in Tables and Charts / 29
Chapter 3 / Numerical Descriptive Measures / 74
Chapter 4 / Basic Probability / 101
Chapter 5 / Discrete Probability Distributions / 136
Chapter 6 / The Normal Distribution / 162
Chapter 7 / Sampling and Sampling Distributions / 188
Chapter 8 / Confidence Interval Estimation / 225
Chapter 9 / Fundamentals of Hypothesis Testing: One-Sample Tests / 265
Chapter 10 / Two-Sample Tests and One-Way ANOVA / 300
Chapter 11 / Chi-Square Tests / 365
Chapter 12 / Simple Linear Regression / 393
Chapter 13 / Multiple Regression / 443
Chapter 14 / Statistical Applications in Quality and Production Management / 500

Preface

The Test Item File contains a variety of multiple-choice, true-false, problem and fill-in questions based on the definitions, concepts, and ideas developed in each chapter. In addition, numerical problems and Microsoft Excel computer output problems are also given with solutions provided in multiple-choice, true-false, problem and fill-in format.

The Test Item File is intended to assist instructors in preparing examinations. The questions included herein highlight the key topics covered throughout each chapter. Keywords are available after each question to help instructors locate questions on a specific topic or concept. Explanation is provided when the rationale of the correct answer to a difficult question is rather obscure. The format for the Test Item File will facilitate grading and should be helpful to instructors who teach very large sections.

The intended difficulty level (easy, moderate, difficult) of each question in the Test Item File is stated in order to facilitate test item selection by instructors wishing to create specific types of exams. However, some words of caution must be given. The classification of question difficulty level is very subjective and each question should be evaluated based on the emphasis the particular topic was given in class and how much emphasis is to be given to numerical results obtained by calculator rather than computerized results obtained from Microsoft Excel. As an operational definition that is used here, items are classified as easy if they pertain directly to definitions and fundamental concepts. Test items are classified as moderate if they require some numerical calculations with more than a minimal number of steps or if they require a broader understanding of the topic. Test items that are classified as difficult are done so because of the level of rigor of the subject, the length of the narrative, the amount of effort required for solution, or for responses that require more thought and analysis.

Instructors are also advised that all answers in the Test Item File are computed using Microsoft Excel or PHStat with no rounding involved in the intermediate steps. If students use rounding with formulae and a calculator, their answers might be different from those provided in the answer keys. Likewise, if students use the statistical tables at the end of the book instead of Microsoft Excel or PHStat, their answers might also differ from those provided in the answer keys due to rounding. Whenever possible, we provide answers obtained using both Microsoft Excel/PHStat and the statistical tables if they are different.

This Test Item File and others that are similar suffer from one major weakness. They do not permit an evaluation of the students’ written communication skill. The authors highly recommend that, if possible, instructors who use this Test Item File supplement it with at least one short essay type question so that an assessment can be made of the students’ understanding of concepts as well as how they can make connections across various topics.

The following tabular display is a breakdown of the number of questions in each chapter by type.

Chapter / Multiple Choice / True/False / Fill in / Problem / Total
1 / 48 / 42 / 40 / 0 / 130
2 / 51 / 32 / 83 / 18 / 184
3 / 27 / 33 / 31 / 38 / 129
4 / 60 / 19 / 38 / 37 / 154
5 / 21 / 13 / 47 / 41 / 122
6 / 16 / 14 / 43 / 48 / 121
7 / 44 / 65 / 39 / 31 / 179
8 / 29 / 105 / 27 / 21 / 182
9 / 70 / 57 / 16 / 7 / 150
10 / 109 / 51 / 57 / 53 / 270
11 / 45 / 31 / 31 / 6 / 113
12 / 78 / 33 / 59 / 28 / 198
13 / 102 / 51 / 42 / 18 / 213
14 / 44 / 24 / 35 / 10 / 113
Total / 744 / 582 / 588 / 368 / 2282
Keywords Index

1

A

a priori classical probability

A2 factor

addition rule

adjusted coefficient of determination

adjusted r-square

assumption

autocorrelation

B

bar chart

Bayes' theorem

beta-risk

binomial distribution

box-and-whisker plot

C

categorical random variable

center line

central limit theorem

Chebyshev rule

chi-square test

Chi-square test for difference in proportions

Chi-square test of independence

chunk sample

class boundaries

class interval

class midpoint

cluster sample

coefficient of correlation

coefficient of determination

coefficient of multiple determination

coefficient of variation

collective exhaustive

column percentages

combination

common causes of variation

complement

completely randomized design

conclusion

conditional probability

confidence coefficient

confidence interval

contingency table

continuity adjustment

continuous random variable

control chart

control limit

convenience sample

counting rule

coverage error

critical value

cumulative frequency distribution

cumulative percentage distribution

cumulative percentage polygon (ogive)

cumulative relative frequency

D

d2 factor

D3 factor

D4 factor

data

decision

degrees of freedom

Deming's 14 points

descriptive statistics

deviance statistic

difference between two means

difference between two proportions

difference between two variances

discrete random variable

dummy variable

Durbin-Watson statistic

E

empirical classical probability

empirical rule

estimation

estimation of mean values

ethical issues

F

F distribution

F test

F test for factor

F test on slope

F test on the entire regression

fitted value

five-number summary

form of hypothesis

frame

frequency distribution

H

histogram

homoscedasticity

I

inferential statistics

interaction

intercept

interpretation

interquartile range

interval scale

J

joint probability

judgment sample

L

law of large number

learning statistical programs

least squares

level of significance

Levene's test

M

marginal probability

mean (expected value)

mean difference

mean of the sum

mean squares

measure of variation

measurement error

measure of central tendency

median

mode

multiplication rule

mutually exclusive

N

nonprobability sample

nonresponse error

normal distribution

normal probability plot

number of classes

O

one-sided

one-tailed test

one-way analysis of variance

ordinal scale

outcomes

P

p chart

Pareto diagram

parameter

percentage distribution

percentage polygon

permutation

pie chart

point estimate

Poisson distribution

polygon

pooled variance

population

power

prediction interval

prediction of individual values

primary data sources

probability

probability distribution

probability sample

properties

proportion

p-value

Q

quadratic regression

quartile

quota sample

R

R chart

random number

range

ratio scale

reasons for learning statistics

reasons for sampling

red bead experiment

rejection region

relative frequency distribution

residual

residual plot

resistant to outliers

risk

robust test

row percentages

S

sample

sample size

sample size determination

sample space

sampling

sampling distribution

sampling error

sampling method

sampling with replacement

sampling without replacement

scatter plot

secondary data sources

selection bias

shape

Shewhart Deming cycle

simple random sample

six sigma management

slope

sources of data

special causes of variation

standard deviation

standard error

standard error of estimate

standard normal quantile

standardized normal distribution

statistic

statistical control

statistical independence

statistical package

statistics

stem-and-leaf display

stratified sample

subjective probability

sum of squares

survey worthiness

systematic sample

T

t distribution

t test

t test for correlation coefficient

t test on slope

test statistic

testing

total percentages

Tukey-Kramer procedure

two-tailed test

type I error

type II error

types of data

U

unbiased

V

value

variance

variance of sum

variation

W

width

X

XBar chart

Z

Z scores

Z test

1