Even You Can Learn Statistics and Analytics

David M. Levine and David F. Stephan are part of a writing team known for their series of business statistics textbooks that include Basic Business Statistics, Business Statistics: A First Course, and Statistics for Managers Using Microsoft Excel. In long teaching careers at Baruch College, both were known for their classroom innovations, with Levine being honored with a Presidential Excellence Award for Distinguished Teaching Award and Stephan granted the privilege to design and develop the College's first computer-based classroom. Both are active members of the Data, Analytics and Statistics Instruction SIG of the Decision Sciences Institute. Levine is Professor Emeritus of Information Systems at Baruch College. He is nationally recognized innovator in business statistics education and is also the coauthor of Applied Statistics for Engineers and Scientists Using Microsoft Excel and Minitab. Levine is also the author or coauthor of four books about statistical quality management: Statistics for Six Sigma Green Belts and Champions, Six Sigma for Green Belts and Champions, Design for Six Sigma for Green Belts and Champions, and Quality Management, 3rd Edition. He has published articles in various journals, including Psychometrika, The American Statistician, Communications in Statistics, Multivariate Behavioral Research, Journal of Systems Management, Quality Progress, and The American Anthropologist, and has given numerous talks at American Statistical Association, Decision Sciences Institute, and Making Statistics More Effective in Schools of Business conferences. During his more than 20 years at Baruch College, Stephan devised techniques for teaching computer applications such as Microsoft Excel in a business context and developed future-forward courses that explored the effects of emerging digital technologies. He also served as the associate director of a U.S. Department of Education FIPSE project that successfully integrated interactive media into classroom instruction for the humanities.. Stephan is also the developer of PHStat, the statistics add-in for Microsoft Excel distributed by Pearson Education.

• Introduction The Even You Can Learn Statistics and Analytics Owner's Manual. xiii Chapter 1 Fundamentals of Statistics. 1 1.1 The First Three Words of Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 The Fourth and Fifth Words. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.3 The Branches of Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 1.4 Sources of Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1.5 Sampling Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 1.6 Sample Selection Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Chapter 2 Presenting Data in Tables and Charts . 15 2.1 Presenting Categorical Variables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 2.2 Presenting Numerical Variables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 2.3 “Bad” Charts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 Chapter 3 Descriptive Statistics. 45 3.1 Measures of Central Tendency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.2 Measures of Position. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 3.3 Measures of Variation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 3.4 Shape of Distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Chapter 4 Probability. 75 4.1 Events. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 4.2 More Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 4.3 Some Rules of Probability. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 4.4 Assigning Probabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Chapter 5 Probability Distributions. 87 5.1 Probability Distributions for Discrete Variables. . . . . . . . . . . . . . . . . . . . . . . . 87 5.2 The Binomial and Poisson Probability Distributions. . . . . . . . . . . . . . . . . . . . 93 5.3 Continuous Probability Distributions and the Normal Distribution . . . . . . . 100 5.4 The Normal Probability Plot. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108 Chapter 6 Sampling Distributions and Confidence Intervals. 121 6.1 Foundational Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122 6.2 Sampling Error and Confidence Intervals. . . . . . . . . . . . . . . . . . . . . . . . . . . 125 6.3 Confidence Interval Estimate for the Mean Using the t Distribution (? Unknown). . . 128 6.4 Confidence Interval Estimation for Categorical Variables . . . . . . . . . . . . . . . 131 6.5 Confidence Interval Estimation When Normality Cannot Be Assumed. . . . . 134 Chapter 7 Fundamentals of Hypothesis Testing. 145 7.1 The Null and Alternative Hypotheses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145 7.2 Hypothesis Testing Issues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 147 7.3 Decision-Making Risks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149 7.4 Performing Hypothesis Testing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150 7.5 Types of Hypothesis Tests. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152 Chapter 8 Hypothesis Testing: Z and t Tests. 157 8.1 Test for the Difference Between Two Proportions . . . . . . . . . . . . . . . . . . . . . 157 8.2 Test for the Difference Between the Means of Two Independent Groups . . . . 163 8.3 The Paired t Test. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 168 Chapter 9 Hypothesis Testing: Chi-Square Tests and the One-Way Analysis of Variance (ANOVA). 183 9.1 Chi-Square Test for Two-Way Tables. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 183 9.2 One-Way Analysis of Variance (ANOVA): Testing for the Differences Among the Means of More Than Two Groups. . . . . . . . . . . . . . . 191 Chapter 10 Simple Linear Regression. 211 10.1 Basics of Regression Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211 10.2 Developing a Simple Linear Regression Model. . . . . . . . . . . . . . . . . . . . . . 214 10.3 Measures of Variation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 221 10.4 Inferences About the Slope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 226 10.5 Common Mistakes When Using Regression Analysis . . . . . . . . . . . . . . . . . 229 Chapter 11 Multiple Regression. 243 11.1 The Multiple Regression Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 11.2 Coefficient of Multiple Determination . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 11.3 The Overall F Test . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 11.4 Residual Analysis for the Multiple Regression Model . . . . . . . . . . . . . . . . . 247 11.5 Inferences Concerning the Population Regression Coefficients. . . . . . . . . . 248 Chapter 12 Introduction to Analytics. 259 12.1 Basic Concepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 259 12.2 Descriptive Analytics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 12.3 Typical Descriptive Analytics Visualizations. . . . . . . . . . . . . . . . . . . . . . . . 269 Chapter 13 Predictive Analytics. 279 13.1 Predictive Analytics Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279 13.2 More About Predictive Models. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 281 13.3 Tree Induction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 284 13.4 Clustering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 13.5 Association Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 290 Appendix A Microsoft Excel Operation and Configuration . 299 Appendix B Review of Arithmetic and Algebra. 301 Appendix C Statistical Tables. 311 Appendix D Spreadsheet Tips . 339 Appendix E Advanced Techniques. 343 Appendix F Documentation for Downloadable Files. 353 9780137654765, TOC, 4/25/2022