Fluent Essays

Question 1- Assignment Blockchain is an IT that has the potential to revolutionize many business processes and many organizations are already integrating blockchain technology into their business strategies. The purpose of this assignment is to analyze and/or interpret a technological innovation (blockchain) through the lens of relevant course content (business-IT strategy).  To learn more and to prepare for the assignment, please review the following materials: · McKeen & Smith, Chapter 2 - Developing IT Strategy for Business Value: McKeen Smith Chapter 2 Developing IT Strategy.pdf  · What is Blockchain (6:26) - https://www.youtube.com/watch?v=3xGLc-zz9cA · Blockchains: How can they be used? (7:07) - https://www.youtube.com/watch?v=aQWflNQuP_o · Why Blockchain Matters More Than You Think (5:55) - https://www.youtube.com/watch?v=GVN0Ddr3xig You will submit a maximum 2-page strategy analysis paper addressing these prompts: · Think of a traditional business, e.g. Walmart, and create a strategy for how it might use blockchain to gain competitive advantage. o Give a brief description of the organization’s current business model if it is not a well-known organization. o Describe your strategy in terms of one of the 5 types of initiatives from pp. 22-23 in the McKeen & Smith chapter. o Explain exactly what competitive advantage is expected. o Discuss what types of success measure the organization should use to evaluate the strategy. · Guidelines: 2 pages maximum Single spaced Margins – 1 inch Font – no larger than 12 pt References (if used) – APA style Question 2- Please submit a word document with the answers to the following highlighted question numbers given below, available at the end of chapters 1 and 2. 1.1 – 1.4 Introduction & syllabus review Chapter 1 – Introduction to Business Stats Question: 25 2.1 – 2.6 Chapter 2 – Displaying Descriptive Statistics - Quantitative and qualitative data, stem and leaf displays, scatter plots Questions:  11,23,36,38,41 Question 1- Assignment Blockchain is an IT that has the potential to revolutionize many business processes and many organizations are already integrating blockchain technology into their business strategies. The purpose of this assignment is to analyze and/or interpret a technological innovation (blockchain) through the lens of relevant course content (business-IT strategy).  To learn more and to prepare for the assignment, please review the following materials: · McKeen & Smith, Chapter 2 - Developing IT Strategy for Business Value: McKeen Smith Chapter 2 Developing IT Strategy.pdf  · What is Blockchain (6:26) -  https://www.youtube.com/watch?v=3xGLc-zz9cA · Blockchains: How can they be used? (7:07) -  https://www.youtube.com/watch?v=aQWflNQuP_o · Why Blockchain Matters More Than You Think (5:55) -  https://www.youtube.com/watch?v=GVN0Ddr3xig You will submit a maximum 2-page strategy analysis paper addressing these prompts: · Think of a traditional business, e.g. Walmart, and create a strategy for how it might use blockchain to gain competitive advantage. . Give a brief description of the organization’s current business model if it is not a well-known organization. . Describe your strategy in terms of one of the 5 types of initiatives from pp. 22-23 in the McKeen & Smith chapter. . Explain exactly what competitive advantage is expected. . Discuss what types of success measure the organization should use to evaluate the strategy. · Guidelines: . 2 pages maximum . Single spaced . Margins – 1 inch . Font – no larger than 12 pt . References (if used) – APA style Question 2- please submit a word document with the following highlighted questions, available at the end of chapters 1 and 2.   1.1 – 1.4 Introduction & syllabus review Chapter 1 – Introduction to Business Stats Chapter 1:  25   2.1 – 2.6   Chapter 2 – Displaying Descriptive Statistics - Quantitative and qualitative data, stem and leaf displays, scatter plots   Chapter 2:  11, 23, 36, 38, 41 Homework #1 – Chapters (1, 2)  www.freebookslides.com http://www.freebookslides.com MyStatLab™ for Business Statistics MyStatLab is a course management system that provides engaging learning experiences and delivers proven results while helping students succeed. Tools are embedded which make it easy to integrate statistical software into the course. And, MyStatLab comes from an experienced partner with educational expertise and an eye on the future. Tutorial Exercises MyStatLab homework and practice exercises correlated to the exercises in the textbook are generated algorithmically, giving students unlimited opportunity for practice and mastery. MyStatLab grades homework and provides feedback and guidance. Powerful Homework and Test Manager Create, import, and manage online homework assignments, quizzes, and tests that are automatically graded, allowing you to spend less time grading and more time teaching. Thousands of high-quality and algorithmic exercises of all types and difficulty levels are available to meet the needs of students with diverse mathematical backgrounds. Ready-to-Go Courses Ready-to-Go Courses make it even easier for first-time users to start using MyStatLab. With the help of experienced instructors, these courses include pre-made assignments that you can alter at any time. Help Me Solve This breaks the problem into manageable steps. Students enter answers along the way. View an Example walks students through a problem similar to the one assigned. Textbook links to the appropriate section in the etext. Tech Help is a suite of Technology Tutorial videos that show how to perform statistical calculations using popular software. Adaptive Learning An Adaptive Study Plan serves as a personalized tutor for your students. When enabled, Knewton in MyStatLab monitors student performance and provides personalized recommendations. It gathers information about learning preferences and is continuously adaptive, guiding students though the Study Plan one objective at a time. Integrated Statistical Software Copy our data sets, from the eText and the MyStatLab questions, into software such as StatCrunch, Minitab, Excel, and more. Students have access to support tools—videos, Study Cards, and manuals for select titles—to learn how to use statistical software. StatCrunch MyStatLab includes web-based statistical software, StatCrunch, within the online assessment platform so that students can analyze data sets from exercises and the text. In addition, MyStatLab includes access to www.StatCrunch.com, the full web-based program where users can access thousands of shared data sets, create and conduct online surveys, perform complex analyses using the powerful statistical software, and generate compelling reports. Engaging Video Resources • Business Insight Videos are 10 engaging videos showing managers at top companies using statistics in their everyday work. Assignable questions encourage discussion. • StatTalk Videos, hosted by fun-loving statistician Andrew Vickers, demonstrate important statistical concepts through interesting stories and real-life events. This series of 24 videos includes available assessment questions and an instructor’s guide. CVR_DONN5121_01_FEP.indd 1-2 12/11/13 10:08 AM www.freebookslides.com http://www.freebookslides.com MyStatLab™ for Business Statistics MyStatLab is a course management system that provides engaging learning experiences and delivers proven results while helping students succeed. Tools are embedded which make it easy to integrate statistical software into the course. And, MyStatLab comes from an experienced partner with educational expertise and an eye on the future. Tutorial Exercises MyStatLab homework and practice exercises correlated to the exercises in the textbook are generated algorithmically, giving students unlimited opportunity for practice and mastery. MyStatLab grades homework and provides feedback and guidance. Powerful Homework and Test Manager Create, import, and manage online homework assignments, quizzes, and tests that are automatically graded, allowing you to spend less time grading and more time teaching. Thousands of high-quality and algorithmic exercises of all types and difficulty levels are available to meet the needs of students with diverse mathematical backgrounds. Ready-to-Go Courses Ready-to-Go Courses make it even easier for first-time users to start using MyStatLab. With the help of experienced instructors, these courses include pre-made assignments that you can alter at any time. Help Me Solve This breaks the problem into manageable steps. Students enter answers along the way. View an Example walks students through a problem similar to the one assigned. Textbook links to the appropriate section in the etext. Tech Help is a suite of Technology Tutorial videos that show how to perform statistical calculations using popular software. Adaptive Learning An Adaptive Study Plan serves as a personalized tutor for your students. When enabled, Knewton in MyStatLab monitors student performance and provides personalized recommendations. It gathers information about learning preferences and is continuously adaptive, guiding students though the Study Plan one objective at a time. Integrated Statistical Software Copy our data sets, from the eText and the MyStatLab questions, into software such as StatCrunch, Minitab, Excel, and more. Students have access to support tools—videos, Study Cards, and manuals for select titles—to learn how to use statistical software. StatCrunch MyStatLab includes web-based statistical software, StatCrunch, within the online assessment platform so that students can analyze data sets from exercises and the text. In addition, MyStatLab includes access to www.StatCrunch.com, the full web-based program where users can access thousands of shared data sets, create and conduct online surveys, perform complex analyses using the powerful statistical software, and generate compelling reports. Engaging Video Resources • Business Insight Videos are 10 engaging videos showing managers at top companies using statistics in their everyday work. Assignable questions encourage discussion. • StatTalk Videos, hosted by fun-loving statistician Andrew Vickers, demonstrate important statistical concepts through interesting stories and real-life events. This series of 24 videos includes available assessment questions and an instructor’s guide. CVR_DONN5121_01_FEP.indd 1-2 12/11/13 10:08 AM www.freebookslides.com www.StatCrunch.com http://www.freebookslides.com 2 Business Statistics E d i t i o n n d R o b e R t A . D o n n e l ly, J R . Boston Columbus Indianapolis New York San Francisco Upper Saddle River Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo www.freebookslides.com http://www.freebookslides.com Senior Author Support/Technology Specialist: Joe Vetere Project Supervisor, MyStatLab: Robert Carroll QA Manager, Assessment Content: Marty Wright Media Producer: Jean Choe Image Manager: Rachel Youdelman Image Research: Integra Procurement Manager: Vincent Scelta Procurement Specialist: Debbie Rossi Production Coordination, Technical Illustrations, and Composition: PreMediaGlobal Printer/Binder: Courier/Kendallville Cover Printer: Lehigh-Phoenix Color/Hagerstown ISBN 10: 0-321-92512-2 ISBN 13: 978-0-321-92512-1 microsoft® windows®, and microsoft office® are registered trademarks of the microsoft corporation in the u.s.a. and other countries. this book is not sponsored or endorsed by or affiliated with the microsoft corporation. microsoft and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published as part of the services for any purpose. all such documents and related graphics are provided “as is” without warranty of any kind. microsoft and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all warranties and conditions of merchantability, whether express, implied or statutory, fitness for a particular purpose, title and non-infringement. in no event shall microsoft and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from the services. the documents and related graphics contained herein could include technical inaccuracies or typographical errors. changes are periodically added to the information herein. microsoft and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time. partial screen shots may be viewed in full within the software version specified. Credits and acknowledgments borrowed from other sources and reproduced, with permission, in this textbook appear on page 935 in the back of this book. Copyright © 2015, 2013 by Pearson Education, Inc. All rights reserved. Manufactured in the United States of America. This publication is protected by Copyright, and permission should be obtained from the publisher prior to any prohibited reproduction, storage in a retrieval system, or transmission in any form or by any means, electronic, mechanical, photocopying, recording, or likewise. To obtain permission(s) to use material from this work, please submit a written request to Pearson Education, Inc., Permissions Department, One Lake Street, Upper Saddle River, New Jersey 07458, or you may fax your request to 201-236-3290. Many of the designations by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations have been printed in initial caps or all caps. Library of Congress Cataloging-in-Publication Data Donnelly, Robert A. Business statistics / Robert A. Donnelly, Jr.—2nd ed. p. cm. ISBN 978-0-321-92512-1 1. Commercial statistics. 2. Industrial management—Statistical methods. I. Title. HF1017.S74 2013 519.5024'65—dc23 2012005942 10 9 8 7 6 5 4 3 2 1—CRK—16 15 14 13 Editor in Chief: Deirdre Lynch Acquisitions Editor: Marianne Stepanian Development Editor: Dana Bettez Assistant Editor: Sonia Ashraf Senior Managing Editor: Karen Wernholm Associate Managing Editor: Tamela Ambush Senior Production Project Manager: Peggy McMahon Associate Director of Design, USHE EMSS/HSC/EDU: Andrea Nix Art Director/Cover Designer: Beth Paquin Interior Design: Nancy Goulet, Studio Wink Marketing Manager: Erin Lane Marketing Assistant: Kathleen DeChavez www.freebookslides.com http://www.freebookslides.com To my wife, Debbie, who supported and encouraged me every step of the way. I could not have done this without you, Babe. www.freebookslides.com http://www.freebookslides.com Robert (Bob) A. Donnelly, Jr. is a professor at Goldey-Beacom College in Wilmington, Delaware, with more than 25 years of teaching experience. He teaches classes in statistics, operations management, spreadsheet modeling and project management at both the un- dergraduate and graduate level. Bob earned an undergraduate de- gree in chemical engineering from the University of Delaware, after which he worked for several years as an engineer with the Diamond Shamrock Corporation in a chlorine plant. Despite success in this field, Bob felt drawn to pursue a career in education. It was his desire to teach that took him back to school to earn his MBA and Ph.D. in Operations Research, also from the University of Delaware. Bob also teaches in the MBA program at the International School of Management in Paris, France. He thoroughly enjoys discussing research methods and business statistics with both his French and American students. Bob’s working experience gathered prior to his teaching career has provided him with many opportunities to incorporate real-life ex- amples into classroom learning. His students appreciate his knowledge of the business world as well as his mastery of the course subject matter. Many former students seek Bob’s assis- tance in work-related issues that deal with his expertise. Typical student comments focus on his genuine concern for their welfare and his desire to help them succeed in reaching their goals. R o b e R t A . D o n n e l ly, J R . About the Author www.freebookslides.com http://www.freebookslides.com v Preface | xi Acknowledgments | xvi Dear Students | xx Index of Applications | xxi Chapter 1 An Introduction to Business Statistics | 1 Chapter 2 Displaying Descriptive Statistics | 21 Chapter 3 Calculating Descriptive Statistics | 77 Chapter 4 Introduction to Probabilities | 147 Chapter 5 Discrete Probability Distributions | 193 Chapter 6 Continuous Probability Distributions | 247 Chapter 7 Sampling and Sampling Distributions | 289 Chapter 8 Confidence Intervals | 333 Chapter 9 Hypothesis Testing for a Single Population | 383 Chapter 10 Hypothesis Tests Comparing Two Populations | 437 Chapter 11 Analysis of Variance (ANOVA) Procedures | 501 Chapter 12 Chi-Square Tests | 575 Chapter 13 Hypothesis Tests for the Population Variance | 625 Chapter 14 Correlation and Simple Linear Regression | 651 Chapter 15 Multiple Regression and Model Building | 709 Chapter 16 Forecasting | 767 Chapter 17 Decision Analysis (online) | 17-1 Chapter 18 Nonparametric Statistics (online) | 18-1 Appendix A: Tables | 827 Appendix B: Answers to Selected Even-Numbered Problems | 865 Credits | 933 Index | 935 bRief Contents www.freebookslides.com http://www.freebookslides.com This page intentionally left blank www.freebookslides.com http://www.freebookslides.com vii 1 2 4 3 An Introduction to Business Statistics | 1 1.1 Business Statistics and Their Uses 2 1.2 Data 4 1.3 Descriptive and Inferential Statistics 11 1.4 Ethics and Statistics—It’s a Dangerous World of Data Out There 14 Summary 16 | Key Terms 17 | Problems 17 | Solutions to YoUR tURn 19 Displaying Descriptive Statistics | 21 2.1 The Role Technology Plays in Statistics 23 2.2 Displaying Quantitative Data 25 2.3 Displaying Qualitative Data 42 2.4 Contingency Tables 55 2.5 Stem and Leaf Display 59 2.6 Scatter Plots 61 Summary 66 | Key Terms 67 | Problems 67 | Solutions to YoUR tURn 73 Calculating Descriptive Statistics | 77 3.1 Measures of Central Tendency 78 3.2 Measures of Variability 91 3.3 Using the Mean and Standard Deviation Together 101 3.4 Working with Grouped Data 112 3.5 Measures of Relative Position 116 3.6 Measures of Association Between Two Variables 126 Summary 132 | Key Terms 133 | Equations 134 | Problems 137 | Solutions to YoUR tURn 141 Introduction to Probabilities | 147 4.1 An Introduction to Probabilities 148 4.2 Probability Rules for More Than One Event 156 4.3 Counting Principles 176 Summary 183 | Key Terms 184 | Equations 184 | Problems 186 | Solutions to YoUR tURn 189 Preface | xi Acknowledgments | xvi Dear Students | xx Index of Applications | xxi tAble of Contents www.freebookslides.com http://www.freebookslides.com viii t A B L E o F C o n t E n t s 9 8 7 6 5 Discrete Probability Distributions | 193 5.1 Introduction to Discrete Probability Distributions 195 5.2 Binomial Distributions 207 5.3 Poisson Distributions 218 5.4 The Hypergeometric Distribution 229 Summary 235 | Key Terms 236 | Equations 236 | Problems 237 | Solutions to YoUR tURn 242 Continuous Probability Distributions | 247 6.1 Continuous Random Variables 248 6.2 Normal Probability Distributions 250 6.3 Exponential Probability Distributions 269 6.4 Uniform Probability Distributions 273 Summary 279 | Key Terms 280 | Equations 280 | Problems 281 | Solutions to YoUR tURn 286 Sampling and Sampling Distributions | 289 7.1 Why Sample? 290 7.2 Types of Sampling 291 7.3 Sampling and Nonsampling Errors 298 7.4 The Central Limit Theorem 301 7.5 The Sampling Distribution of the Proportion 317 Summary 323 | Key Terms 324 | Equations 325 | Problems 325 | Solutions to YoUR tURn 329 Confidence Intervals | 333 8.1 Point Estimates 334 8.2 Calculating Confidence Intervals for the Mean when the Standard Deviation (S) of a Population Is Known 335 8.3 Calculating Confidence Intervals for the Mean when the Standard Deviation (S) of a Population Is Unknown 347 8.4 Calculating Confidence Intervals for Proportions 354 8.5 Determining the Sample Size 359 8.6 Calculating Confidence Intervals for Finite Populations 366 Summary 371 | Key Terms 372 | Equations 372 | Problems 375 | Solutions to YoUR tURn 378 Hypothesis Testing for a Single Population | 383 9.1 An Introduction to Hypothesis Testing 384 9.2 Hypothesis Testing for the Population Mean When S Is Known 390 9.3 Hypothesis Testing for the Population Mean when S Is Unknown 403 9.4 Hypothesis Testing for the Proportion of a Population 412 9.5 Type II Errors 416 Summary 425 | Key Terms 426 | Equations 426 | Problems 427 | Solutions to YoUR tURn 432 Hypothesis Tests Comparing Two Populations | 437 10.1 Comparing Two Population Means with 439 • Independent Samples • Known Population Standard Deviations 1S1 and S22 10.2 Comparing Two Population Means with 448 • Independent Samples • Unknown Population Standard Deviations 1S1 and S22 10.3 Hypothesis Testing With Dependent Samples 464 10.4 Comparing Two Population Proportions with Independent Samples 474 Summary 484 | Key Terms 485 | Equations 485 | Problems 489 | Solutions to YoUR tURn 494 10 www.freebookslides.com http://www.freebookslides.com ix C O N T E N T Six C O N T E N T S t A B L E o F C o n t E n t s ix Analysis of Variance (ANOVA) Procedures | 501 11.1 One-Way ANOVA: Examining the Effect a Single Factor Has on the Means of Populations 503 11.2 Randomized Block ANOVA: Examining the Effects of a Single Factor by Blocking a Second Factor 523 11.3 Two-Way ANOVA: Examining the Effects Two Factors Have on the Means of Populations 540 Summary 557 | Key Terms 559 | Equations 560 | Problems 563 | Solutions to YoUR tURn 568 Chi-Square Tests | 575 12.1 Comparing Two or More Population Proportions 577 12.2 Determining If Observed Frequencies Follow a Known Probability Distribution 585 12.3 Testing the Independence of Two Variables 605 Summary 612 | Key Terms 613 | Equations 613 | Problems 614 | Solutions to YoUR tURn 619 Hypothesis Tests for the Population Variance | 625 13.1 Testing the Variance of a Single Population 626 13.2 Comparing the Variances of Two Populations 634 Summary 644 | Equations 644 | Problems 645 | Solutions to YoUR tURn 648 Correlation and Simple Linear Regression | 651 14.1 Dependent and Independent Variables 653 14.2 Correlation Analysis 653 14.3 Simple Linear Regression Analysis 660 14.4 Using a Regression to Make a Prediction 672 14.5 Testing the Significance of the Slope of the Regression Equation 679 14.6 Assumptions for Regression Analysis 684 14.7 A Simple Regression Example with a Negative Correlation 687 14.8 Some Final (but Very Important) Thoughts 696 Summary 697 | Key Terms 698 | Equations 699 | Problems 701 | Solutions to YoUR tURn 704 Multiple Regression and Model Building | 709 15.1 Developing the Multiple Regression Model 710 15.2 Explaining the Variation of the Dependent Variable 717 15.3 Inferences about the Independent Variables 726 15.4 Using Qualitative Independent Variables 732 15.5 Model Building 739 Summary 756 | Key Terms 757 | Equations 758 | Problems 759 | Solutions to YoUR tURn 761 Forecasting | 767 16.1 Introduction to Forecasting 768 16.2 Smoothing Forecasting Methods 770 16.3 Forecasting with Regression Analysis 783 16.4 Forecasting with Seasonality 797 Summary 814 | Key Terms 815 | Equations 816 | Problems 817 | Solutions to YoUR tURn 820 11 14 12 13 15 16 www.freebookslides.com http://www.freebookslides.com 10 x t A B L E o F C o n t E n t s 18 17 Decision Analysis (online) | 17-1 17.1 Introduction to Decision Analysis 17-2 17.2 Constructing a Decision Table 17-3 17.3 Decision Making Under Uncertainty 17-6 17.4 Decision Making Under Risk 17-12 17.5 Decision Making Using Decision Trees 17-16 17.6 Using Bayes’ Theorem to Calculate Posterior Probabilities 17-27 Summary 17-32 | Key Terms 17-33 | Equations 17-34 | Problems 17-34 | Solutions to YoUR tURn 17-37 Nonparametric Statistics (online) | 18-1 18.1 Introduction to Nonparametric Statistics 18-2 18.2 The Sign Test 18-4 18.3 The Wilcoxon Rank-Sum Test for Two Independent Samples 18-14 18.4 The Wilcoxon Signed-Rank Test for Two Dependent Samples 18-22 18.5 The Kruskal-Wallis One-Way ANOVA 18-27 18.6 The Spearman Rank-Order Correlation Coefficient 18-31 Appendix C: Tables for Chapter 18 18-48 Summary 18-37 | Key Terms 18-38 | Equations 18-39 | Problems 18-40 | Solutions to YoUR tURn 18-44 Appendix A | 827 table 1 Binomial Probabilities | 827 table 2 Poisson Probabilities | 838 table 3 Cumulative Probabilities for the Standard Normal Distribution | 843 table 4 Cumulative Probabilities for the Standard Normal Distribution | 844 table 5 Student’s t-distribution | 845 table 6 F-distribution | 848 table 7 Critical Values of the Studentized Range, Q | 858 table 8 Chi–Square Distribution | 861 table 9 Critical Values for the Durbin-Watson Statistic | 862 Appendix B: Answers to Selected Even-Numbered Problems | 865 Credits | 933 Index | 935 www.freebookslides.com http://www.freebookslides.com xi b u s i n e s s s tA t i s t i C s , second edition, is a one- or two-semester textbook written in a conversational tone designed to reduce the level of anxiety that many business students experience when taking a statistics course. Many of today’s business students are intimidated by their statistics textbook. These stu- dents often view their textbook as an obstacle to overcome rather than a tool to help them succeed. To address this issue, I have written Business Statistics in a straightforward, conver- sational tone that helps to reduce the anxiety many students experience with this course. My experience as both a writer and a teacher has taught me that students learn more effectively when they feel a personal connection with their instructor. Many traditional textbooks tend to “talk down” to students in a manner that many find difficult to understand. I prefer a textbook that “talks to” the students as I do in the classroom providing them a sense that I’m on their side, encouraging them every step of the way. I strongly believe that students learn most effectively when they solve statistics prob- lems as they learn new concepts rather than later (often right before the next exam). To facili- tate this philosophy, I provide the student with a parallel problem that I have labeled “Your Turn,” which allows them to work alongside the example that I am demonstrating in the chap- ter. I attempt to motivate them to do these exercises with a little levity but it’s not beneath me to downright beg them to give it a try. I show the entire solution at the end of the chapter, so they can quickly check if their answer is correct. I call this my “learn it, do it, check it” cycle, where students learn by reading an example, doing a similar problem on their own, and finally checking their answer to confirm they understand. In effect, the textbook also plays the role of a workbook for the student, keeping them actively engaged in the learning process. Too often, students skim through an example that is completely solved for them in the text and convince themselves they understand the concept—that is, until they are trying to solve a similar problem in an exam for the first time. My approach encourages students to work through examples and confirm they grasp the concept before moving on to the next topic. I have inserted many author’s comments in the margins throughout each chapter, that provide useful insights along the way. This feature is analogous to the side comments you would make to your students during a lecture to help them better understand the material. I have found this to be an effective technique to help keep students focused on material that they may find confusing or overwhelming. To help students be successful in your course, Business Statistics, second edition, has the following attributes: Is written in a straightforward, conversational tone—to help reduce the anxiety that many business students experience with the topic of statistics. Utilizes a “learn it, do it, check it” cycle—by providing parallel Your Turn problems throughout each chapter, the textbook essentially serves as a workbook allowing students to convince themselves they really understand a concept before moving on to the next topic. Incorporates author’s comments in the margins—which are analogous to the side comments that an instructor would make during a lecture to help students better under- stand the material. n e w t o t h i s e D i t i o n I am very excited to offer several new features to the second edition of Business Statistics. I have Added two new online chapters: Chapter 17, Decision Analysis, and Chapter 18, Non- parametric Statistics. Chapter 17, Decision Analysis, provides a detailed discussion of decision making under uncertainty and decision making under risk along with a step- by-step description on the construction and analysis of decision trees. Chapter 18, Non- parametric Statistics, provides a detailed description of the following procedures: Sign Test, Wilcoxon Rank-Sum Test, Wilcoxon Signed-Rank Test, Kruskal-Wallis One-Way ANOVA, and Spearman Rank-Order Correlation Coefficient. These chapters can be found on the textbook’s Web site www.pearsonhighered.com/donnelly. Preface www.freebookslides.com www.pearsonhighered.com/donnelly http://www.freebookslides.com xii P R E F A C E Updated technology coverage to Microsoft Excel 2013, with instructions for Excel 2011 for Mac and Excel 2010 for Windows provided online as needed. Through my experi- ence in the classroom, I have been aware of the increasing number of Mac users who have been frustrated with software compatibility issues. The version of the Excel Add-in PHStat that is utilized in this edition is compatible with Excel 2011 for Mac. These in- structions can be found on the textbook’s Web site www.pearsonhighered.com/donnelly. Increased the number of problems by 25%, totaling over 1,110 business-related prob- lems. Additionally, 35% of the problems in the text are new or updated. Doubled the number of data sets included in problems, examples, and Your Turns, total- ing over 340 data sets. Introduced topics of covariance and the correlation coefficient at the end of Chapter 3, Calculating Descriptive Statistics. The correlation coefficient is also covered in Chapter 14, Correlation and Simple Linear Regression. Used Excel functions to determine p-values and critical scores for hypothesis tests that use the normal, student’s t, F, and chi-square distributions. This feature provides students with more options for this type of analysis. Removed critical sample mean and critical sample proportion as optional steps to hy- pothesis testing in Chapters 9 and 10 to streamline these procedures. These two topics are now included in the section describing Type II Errors at the end of Chapter 9. Added learning objectives to each chapter opener, which describe the skills that the stu- dent is expected to acquire after studying this material. Added an Index of Applications that allows faculty and students to conveniently locate specific types of problems and examples. t e x t b o o k f e At u R e s Current business examples that keep the students’ interest—Statistical procedures are applied to products and services that students can relate to such as the following: • Approximating the probability of an accident similar to the BP oil spill in the Gulf of Mexico occurring again in the near future • Liberty Mutual Insurance Company comparing the proportion of auto accident claims for clients with and without good student discounts • Comparing satisfaction scores for various smartphone brands • The shortage of Internet protocol (IP) addresses using the original IPv4 format C h a p t e r 7 | 7.4 The Central Limit Theorem 315 As the calculations show, for an infinite population where n>N is less than 5%, the correction factor is close to 1.0, essentially dropping out of the standard error calculation. The next Your Turn problem demonstrates the finite population concept in an effort to save my job. My college requires instructors to have an average approval rating of 9.0 on a scale of 1–10 from stu- dent evaluations as a …