Actual values, 211, 216

for life is vs opinion on death penalty, 214

of party affiliation by capital punishment, 213

table of, 212

Actual vs expected theory, 203–209

Alternative hypothesis, 72, 167, 187, 190, 203, 209

definition of, 165

difference of means test, 176–177

large sample size test, 168, 170

small sample size test, 173–174

testing hypothesis for proportion, 181, 183

Analysis of Variance (ANOVA) procedure, 238, 245

computations for, 250

definition of, 246

Excel demonstration, 253–254

one / single factor, 247–252

two factor, 252

used two means, 246

Analysis reporting, 5

Analysis ToolPak installation in Microsoft Excel, 39, 178

dialog to install, 16

output of, two-sample t-test with equal and unequal variance, 180

procedures of, 17

options for, 42

Auditor, 4

Axioms, 93

Bar charts, 27, 38–39, 41, 45. See also Microsoft Excel

applicable to categorical variables, 23

poverty data for New England states, 40

sample, 24–25

standard, money spent per student, 34

use of vertical or horizontal bars, 24

Bell curve, 99

Bernoulli, Jacob, 128

Bernoulli Trial, 128, 180

Bimodal variables, 53

Binomial distributions, 130

definition of, 128

Excel use for computation of, 131

formula for, 129

parameters for, 128

Binomial probabilities in Excel

rules to find, 133

Binomial random variable, 128, 158

Bins, 27, 30. See also Frequency histograms or table

boundaries, 42

computation for MLB data, 44

Blood pressure, 11

Box / box plot

definition of, 72

estimation of mean, 73–74

generated by Excel, 86

indicates shape of histogram, 73

for normal distribution, 77

skewed to the left, 76

skewed to the right, 77

Calculus, 2

Categorical variables

association between, 193

definition of, 10

groups of, 10–11

Census, 7

Central limit theorem, 168

applet, 124–127

colloquial version, 123

definition of, 122

distribution of means, 141

importance of, 123

for means, 122

uniform distribution for tossing one die, 123

Central tendency

measures of, 50–53

pros and cons of, 53–55

Certified public accountants (CPAs), 17

Charts, 22–25. See also Bar charts; Pie charts

use of, 50

Chi-Square Test for categorical crosstabs, 202–214, 226

Excel demonstration, 214–217

Chi-Square Test of independence, 209–210

Coefficients of least-squares regression line, 239

Company sales report, 14

Confidence intervals for difference of means

equal variances, 153–155

and hypothesis testing, relationship between, 186–187

unequal variances, 155–157

Confidence intervals for means, 140–152

Contingency tables, 198–202, 205

Continuous random variable, 114–118

Continuous variables, 10

Corporate presidents, 2

Correlation between numerical values, 219–226, 233

Correlation coefficient, 237

definition of, 222

Excel use for computation of, 223–226

Course evaluation, frequency table for, 66

Crosstabs table, 212

Cumulative frequency histograms, 33

Darts, 95

Data

analysis, 5

collected, 22

points, 60

spread, method to measure, 60

Data collection, 5

primary sources of, 4

secondary sources of, 4

Decimal numbers, 96

Dependent variable, 221, 226, 247

definition of, 203

Descriptive statistics, 91, 140

available parameters for procedure of, 88

definition of, 3

output procedure, 88, 150

parameters for procedure, 161

procedure options, 149

using excel, 79–86

Difference of means test, 160

equal variances, 175–177

unequal variances, 178–180

Discrete random variable, 114–118, 129

Distribution, histogram

definition of, 74

skewed to the left, 74–75, 77

skewed to the right, 74–75, 77

Distributions of variable

definition of, 13

types of, 13–15

Drop Row Fields in Microsoft Excel, 46

Equal variances, 153–155, 175–177

Estimate / Estimation, 139

confidence intervals for difference of means, 153–157

confidence intervals for means, 140–152

Excel demonstration, 161–162

point, 159

proportions, 157–159

Expected value tables, 209, 216

computation of, 205

creation of, 206

for life is vs opinion on death penalty, 214

methods of computation, 205, 207

of party affiliation by capital punishment, 213

in sex versus income level, 211

table of, 212

F distribution, 119–121, 248–249, 252

definition of, 118

Fictitious data, 204

Frequency histograms or table, 25–33, 56–57, 121

with arbitrary bin boundaries, 101

computation of average, 58

computation of percentages for, 58

construction for height, 96

cumulative frequency histograms (see Cumulative frequency histograms)

with cumulative percent, 59

relative frequency histograms (see Relative frequency histograms)

for salary data, 58

with superimposed normal curve, 100

variance and standard deviation for, 64–66

Fulfillment time, definition of, 188–189

Gaussian normal distribution, 101, 103

General Social Science survey, 157, 182

Graphs, 92

Group variance, 248

Heterogeneous distribution, 13–14

Histogram for short, 25

Homogeneous distribution, 13, 15

Horizontal line, 72

Hypothesis testing, 163

confidence intervals and, relationship between, 186–187

difference of means test, 175–180, 188

Excel demonstration, 188–191

for mean, 188

large sample size, 168–172

small sample size, 172–175

one-tailed and two-tailed tests, 183–186

for proportion, 180–183, 188

as a trial by jury, 164–168

Inconclusive test, 170

Independent variable, 221, 226, 247

definition of, 203

Inferential statistics, 92, 140

definition of, 3

Inter quartile range (IQR), 78–79. See also Outliers

definition of, 73

for life expectancy data, 73

Inverse normal problem

definition of, 110

function of, 110

Inverse probability problem, 121

JMP software, 69

Joint standard error, 153, 176–178

Kolmogorov axioms, 93

Large sample size

confidence interval, 143–147, 152

one-tailed test for mean, 185

testing hypothesis for mean, 168–172

Least-squares linear regression, 231–235

Least-squares regression line, 231, 235–240

Level of significance, 169

Likert scale

computation of mean and median through, 56

definition of, 56

Linear regression, 229–240

correlation between numerical values, 219–226

definition of, 219

dialog, 241

Excel demonstration, 240–243

least-squares linear regression (see Least-squares linear regression)

least-squares regression line (see Least-squares regression line)

parameters for, 236

results of analysis, 242

Lower quartiles, 70–71

computation of, 67–68

definition of, 66–67

Mac, 16

Management, 17

Margin of error, definition of, 139

Margin of error, 159

Mean, 66, 73–74, 81

advantages of, 54–55

applies to numerical variables, 52

computation of, 51

confidence intervals for, 140–152

for continuous random variables, 116–118

definition of, 51

for discrete random variables, 114–116

for frequency distributions, 56–59

impacted by large or small values, 75

influenced by extreme values, 54

letters used for, 51

for machine, 60

for MLB data, 80

for ordinal variables, 55–56

of salaries, 82

testing hypothesis for, 168–175

Median, 54, 66, 72

applies to numerical variables, 53

computation of, 52–53

definition of, 52

for frequency distributions, 56–59

measure central tendency, 54

middle quartile, 67

for MLB data, 80

sorting of data before determination of, 52

Microsoft Excel, 2, 4, 6, 55, 69, 101, 105

charts creation, 38

computation of mean and standard deviation, 104

confidence interval for mean with, 143

confidence intervals computation by using, 148–150

data point without changing data, tricks to highlight, 37

demonstration of, 17–19, 86–89, 133–137

descriptive statistics using, 79–86

fictitious data in, 76

fulfillment data in, 189

histogram tool, 28–29, 39–44

installing Analysis ToolPak in, 15–17

output, descriptive statistics procedure, 83

pivot tool, 44–47

random sample selection in, 9

recommendation to pie charts, 39

selection of random sample by using, 18

special function to compute probabilities, 113

Microsoft Office CD ROM, 15

Middle quartile, 67

MINITAB software, 69

Mode

advantage of, 53

definition of, 53

for frequency distributions, 56–59

for MLB data, 80

for ordinal variables, 55–56

problem with, 53

usefulness of, 53

National Aeronautics and Space Administration (NASA), 132

National error rate, 4

New York City (NYC), 7–8

Nominal variable, 11, 25

Normal distribution, 74, 77, 121

bell-shaped, 101

computation of normal probabilities with Excel, 101–110

converting to z-scores, 112–114

definition of, 99

dialog for functioning of, 136

with different means and standard deviations, 102

Gaussian normal distribution (see Gaussian normal distribution)

solving probability problems by using, 135–137

and standard deviation, 111–112

transformation formula for, 113

Null hypothesis, 171, 187, 190, 203, 209

definition of, 165

difference of means test, 176–177

large sample size test, 168, 170

small sample size test, 173–174

testing hypothesis for proportion, 181, 183

tried and true assumption, 167

type-1 error, 166

type-2 error, 166

Numeric variables, 10

One-tailed tests, 183–186

Ordinal variables, 10–11, 55–56

Outliers. See also Inter quartile range (IQR)

definition of, 78

for life expectancy data, 79

Percentiles, 69–71

Excel use to find, 83

Percentile value, 71

Pie charts, 25–27, 92

3D, 38–39

apply to categorical variables, 22

divides circle into segments, 22

exploding, 23–24

poverty data for New England states, 40

visualize data, 22

Pivot table, 44–47, 199–200, 212

value field settings for, 201

Plot of least-squares regression line, 239

Pooled standard deviation, 153, 176–177

Population, 5, 10

definition of, 4

mean, 140, 154–155, 159–160

Population variance, 61

Potential frequency table, 46

Probability of success, 128

Probability space, definition of, 92

Probability theory, 91, 140. See also Normal distribution

categories of probability distribution, 98

computation of, 94

under normal distribution, 105

computed, 109

construction of frequency histogram for height, 96

definition of, 92

determination of, 129–130

Excel demonstration, 133–137

inverse probability problem (see Inverse probability problem)

of success, 160

weighted coin, 95

Problem definition, 5

Product-based organization, 18

Proportion, testing hypothesis for, 180–183

Quartiles

definition of, 66–67

distribution of values, useful in, 66, 69

method to find, 67

types of, 66–67

Random sample, 145, 158

definition of, 6, 78

selection procedure, 8–10

using of Excel to select, 18–19

Random sample size, 159

Random sampling, 2

Random variable, definition of, 114, 129

Range, 81

definition of, 60

measure of dispersion, 60

midpoints, 58

of salaries, 82

Recording variables, 12

Regression statistics, 237

Rejection region, 187, 209

definition of, 166, 171

difference of means, 176–177

large sample size test, 168

probability of committing an error, 167

small size sample test, 173–175

testing hypothesis for proportion, 181, 183

Relative frequencies for age, 96

Relative frequency distribution of height, 97

Relative frequency histograms, 30–33

Residual output, 238–239

Row vs column percentages, 196–198

Rule of thumb for a chi-square test, 210

Samples, 5–6

definition of, 4

Sample space, 92–94

Sample variance, 61

SAS software, 69

Scatter plots, 226–229, 235

of high school versus college scores, 237

with lines of best fit, 230

with regression line, 242

Small sample size, 172–175

confidence interval, 147–148, 152

one-tailed test for mean, 185

testing hypothesis for mean, 147–148, 152

Special normal distribution, 99

Standard deviation, 64, 66, 77–79, 81, 111–112. See also Normal distribution

computation of, 63

for continuous random variables, 116–118

definition of, 63

for discrete random variables, 114–116

estimation of, 78

of salaries, 82

Standard error, 146, 149

Standard normal distribution, 99, 145

Standard normal probability, 136

Statistical analyses, 1

Statistical test, elements of, 165–166

Statistics

advantage of, 2

computation by using individual Excel commands, 89

definition of, 2–3, 22, 50

descriptive (see Descriptive statistics)

inferential (see Inferential statistics)

reliability on data, 2

study of, 193

Student t-distribution, definition of, 118

Sum of square (SS) differences to mean, 248

Tax auditor, 3, 5

t-distribution

degree of freedom for, 155

for large sample sizes, 155

one-and two-tailed, 120, 152

one-and two-tailed vs standard normal and F distribution, 120

vs F distributions, 119

vs standard normal distributions, 119

Test statistics, 187, 209

collection of evidence in random sample form, 167

definition of, 165

difference of means test, 176–177

large sample size test, 168, 171

small size sample test, 173–175

testing hypothesis for proportion, 181, 183

Total variance, 248

Transactional leadership style, 253

Transactional motivation technique, 253

Transformational leadership style, 253

Twain, Mark, 2

Two-dimensional data summary, 195–198

Two-tailed tests, 183–186

Type-1 error, 166

Type-2 error, 166

Unequal variances, 155–157, 178–180, 190

Uniform distribution, 117

Uniformly distributed random variable, 117

Upper quartiles, 71

computation of, 67–68

definition of, 67

U.S. House of Representatives, 7

Values in tabular form, 12

Variables

categories of, 10

definition of, 5

dependent (see Dependent variable)

distribution of, 13

independent (see Independent variable)

use of, 10

Variance(s), 81

computation of, 61–62, 64

definition of, 61

equal, 153–155, 175–177

estimation of, 65

for frequency tables, 64–66

of machine, 62

population, 61

sample, 61

sample manual, method to find, 61–62

shortcut for, 63–64

symbols for, 61

unequal, 155–157, 178–180

unit of, 63

Whiskers box, 72–79

Zoning law, 195–196

z-scores, 145, 168

..................Content has been hidden....................

You can't read the all page of ebook, please click here login for view all page.
Reset