Statistics for Managers Using Microsoft Excel / Edition 8

by David Levine, David Stephan, Kathryn Szabat

Overview

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"For undergraduate business statistics courses.
" "This package includes MyStatLab . " Analyzing the Data Applicable to Business This text is the gold standard for learning how to use Microsoft Excel(r) in business statistics, helping students gain the understanding they need to be successful in their careers. The authors present statistics in the context of specific business fields; full chapters on business analytics further prepare students for success in their professions. Current data throughout the text lets students practice analyzing the types of data they will see in their professions. The friendly writing style include tips throughout to encourage learning. The book also integrates PHStat, an add-in that bolsters the statistical functions of Excel. Personalize learning with MyStatLab MyStatLab is an online homework, tutorial, and assessment program designed to work with this text to engage students and improve results. Within its structured environment, students practice what they learn, test their understanding, and pursue a personalized study plan that helps them absorb course material and understand difficult concepts.
0134465970 / 9780134465975 Statistics for Managers Using Microsoft Excel Plus MyStatLab with Pearson eText -- Access Card Package, 8/e Package consists of: 0134173058 / 9780134173054 Statistics for Managers Using Microsoft Excel 032192147X / 9780321921475 MyStatLab for Business Statistics -- Glue-In Access Card 0321929713 / 9780321929716 MyStatLab for Business Statistics Sticker
"

Product Details

ISBN-13:	9780134173917
Publisher:	Pearson Education
Publication date:	01/27/2016
Edition description:	Student
Pages:	744
Product dimensions:	8.20(w) x 10.80(h) x 1.00(d)

About the Author

David M. Levine is Professor Emeritus of Statistics and Computer Information Systems at Baruch College (City University of New York). He received B.B.A. and M.B.A. degrees in statistics from City College of New York and a Ph.D. from New York University in industrial engineering and operations research. He is nationally recognized as a leading innovator in statistics education and is the co-author of 14 books, including such best-selling statistics textbooks as "Statistics for Managers Using Microsoft Excel, Basic Business Statistics: Concepts and Applications, Business Statistics: A First Course, "and" Applied Statistics for Engineers and Scientists Using Microsoft Excel and Minitab." He also is the co-author of "Even You Can Learn Statistics: A Guide for Everyone Who Has Ever Been Afraid of Statistics, "currently in its second edition, "Six Sigma for Green Belts and Champions "and "Design for Six Sigma for Green Belts and Champions," and the author of" Statistics for Six Sigma Green Belts, "all published by FT Press, a Pearson imprint, and "Quality Management, " third edition, McGraw-Hill/Irwin. He is also the author of "Video Review of Statistics "and "Video Review of Probability, " both published by Video Aided Instruction, and the statistics module of the MBA primer published by Cengage Learning. He has published articles in various journals, including "Psychometrika, The American Statistician, Communications in Statistics, Decision Sciences Journal of Innovative Education, Multivariate Behavioral Research, Journal of Systems Management, Quality Progress, " and "The American Anthropologist," and he has given numerous talks at the Decision Sciences Institute (DSI), American Statistical Association (ASA), and Making Statistics More Effective in Schools and Business (MSMESB) conferences. Levine has also received several awards for outstanding teaching and curriculum development from Baruch College. David F. Stephan is an independent instructional technologist. He was an Instructor/Lecturer of Computer Information Systems at Baruch College (City University of New York) for over 20 years and also served as an Assistant to the Provost and to the Dean of the School of Business & Public Administration for computing. He pioneered the use of computer classrooms for business teaching, devised interdisciplinary multimedia tools, and created techniques for teaching computer applications in a business context. He also conducted the first large-scale controlled experiment to show the benefit of teaching Microsoft Excel in a business case context to undergraduate students. An avid developer, he created multimedia courseware while serving as the Assistant Director of a Fund for the Improvement of Postsecondary Education (FIPSE) project at Baruch College. Stephan is also the originator of PHStat, the Pearson Education statistical add-in for Microsoft Excel and a co-author of "Even You Can Learn Statistics: A Guide for Everyone Who Has Ever Been Afraid of Statistics "and "Practical Statistics by Example Using Microsoft Excel and Minitab." He is currently developing ways to extend the instructional materials that he and his co-authors develop to mobile and cloud computing platforms as well as develop social-media facilitated means to support learning in introductory business statistics courses. Stephan received a B.A. in geology from Franklin and Marshall College and a M.S. in computer methodology from Baruch College (City University of New York). Kathryn A. Szabat is Associate Professor and Chair of Business Systems and Analytics at LaSalle University. She teaches undergraduate and graduate courses in business statistics and operations management. She also teaches as Visiting Professor at the Ecole Superieure de Commerce et de Management (ESCEM) in France. Szabat s research has been published in "International Journal of Applied Decision Sciences, Accounting Education, Journal of Applied Business and Economics, Journal of Healthcare Management, " and "Journal of Management Studies." Scholarly chapters have appeared in "Managing Adaptability, Intervention, and People in Enterprise Information Systems; Managing, Trade, Economies and International Business; Encyclopedia of Statistics in Behavioral Science;" and "Statistical Methods in Longitudinal Research." Szabat has provided statistical advice to numerous business, non-business, and academic communities. Her more recent involvement has been in the areas of education, medicine, and nonprofit capacity building. Szabat received a B.S. in mathematics from State University of New York at Albany and M.S. and Ph.D. degrees in statistics, with a cognate in operations research, from the Wharton School of the University of Pennsylvania. "

Read an Excerpt

Educational Philosophy

In our many years of teaching introductory statistics courses, we have continually searched for ways to improve the teaching of these courses. Our vision for teaching these introductory business statistics courses has been shaped by active participation in a series of Making Statistics More Effective in Schools of Business, Decision Sciences Institute, and American Statistical Association conferences as well as the reality of serving a diverse group of students at large universities. Over the years, our vision has come to include these principles:

1. Students need a frame of reference when learning statistics, especially since statistics is not their major. That frame of reference for business students should be the functional areas of business—that is, accounting, economics and finance, information systems, management, and marketing. Each statistical topic needs to be presented in an applied context related to at least one of these functional areas.
2. Virtually all the students taking introductory business statistics courses are majoring in areas other than statistics. Introductory courses should focus on underlying principles that non-statistics majors will find useful.
3. The use of spreadsheet and/or statistical software should be integrated into all aspects of an introductory statistics course. In the workplace, spreadsheet software (and sometimes statistical software) is usually available on a decision maker's desktop. Our teaching approach needs to recognize this reality, and we need to make our courses more consistent with the workplace environment.
4. Textbooks that use software must provide enoughinstructions that students can effectively use the software, without the software (and instruction) dominating the course.
5. The focus in teaching each topic should be on the application of the topic to a functional area of business, the interpretation of results, the presentation of assumptions, the evaluation of the assumptions, and the discussion of what should be done if the assumptions are violated. These points are particularly important in regression and forecasting and in hypothesis testing. Although the illustration of some computations is inevitable, the focus on computations should be minimized.
6. Both classroom examples and homework exercises should relate to actual or realistic data as much as possible. Students should work with data sets, both small and large, and be encouraged to look beyond the statistical analysis of data to the interpretation of results in a managerial context.
7. Introductory courses should avoid an overconcentration on one topic area (such as hypothesis testing) and instead provide breadth of coverage of a variety of statistical topics. This will help students avoid the "I can't see the forest from the trees" syndrome.

Features of This Text

When planning this textbook, we focused on how desktop productivity tools, such as spreadsheets, have altered managers' decision-making processes. Whereas managers once had to turn to a Management Information Systems Department to obtain customized summaries of corporate data, today an increasing number of managers use spreadsheet applications as the means to retrieve and directly analyze the data they need. In this context, employers now are beginning to desire, if not demand, that their college-educated, entry-level employees have more than just a cursory awareness of spreadsheet applications. These changes, along with the realization that current spreadsheet applications can assist in performing the types of analyses once done only by specialized statistical software packages, led us to develop Statistics for Managers Using Microsoft Excel.

Therefore, we take the position that using Microsoft Excel can play a valuable role in learning statistics. Our focus emphasizes analyzing data, interpreting the output from Microsoft Excel, and explaining how to use this software while reducing the emphasis on doing computations. Therefore, we have included a great deal of Excel output and integrated this output into the fabric of the text. For example, in the coverage of tables and charts in Chapter 2, the focus is on the interpretation of various charts, not on their construction by hand. In our coverage of hypothesis testing in Chapters 7 through 10, extensive Excel output has been included so that the p-value approach can be used. In our coverage of simple linear regression in Chapter 11, we assume that Microsoft Excel will be used, and thus the focus is on the interpretation of the output, and not on hand calculations (which have been placed in a separate section of the chapter).

New to This Edition

This new third edition of Statistics for Managers Using Microsoft Excel has been enhanced in a number of important areas.

COVERAGE OF EXCEL

A major thrust of this revision is to refine the presentation of the Microsoft Excel-related material. To that end, this edition contains the following enhancements:

• Excel output for interpretation has been integrated directly into the examples. Results for many of the examples are now presented as screen shots from actual Excel worksheets.
• Simple-to-use Excel instructions are conveniently located after the discussion of a statistical topic. These instructions allow readers to generate statistical results quickly through the extensive use of PHStat2 (see below) and the wizards and add-ins that comprise Microsoft Excel. Sets of instructions are highlighted with a color tint for easy reference and are typically a page or less in length.
• Detailed instructions for implementing worksheet solutions are presented in end of chapter "Excel Handbook" sections. Those who want to learn about Microsoft Excel or those who cannot or choose not to use PHStat2 can use these instructions to generate statistical results. This way, the detailed instructions are there for those who want them, but those who do not can easily skip the instructions. (All will find the Handbooks helpful for understanding how PHStat2 generates its results.)
• New or streamlined Excel instructions for a variety of methods including producing dot scale diagrams, histograms, multiple polygons, and stepwise regression.
• PHStat2, the latest version of PHStat, Prentice Hall's statistical add-in for Microsoft Excel for Windows. PHStat2 contains a number of new or enhanced procedures and now includes a full help system for easy reference.

APPLICATIONS

• Updated and improved Using Statistics business scenarios—Each chapter begins with a Using Statistics example that shows how statistics can be used in one of the functional areas of business—accounting, finance, management, marketing or information systems. This scenario is used throughout the chapter to provide an applied context for the concepts.
• Hundreds of new applied examples and exercises with data from the Wall Street Journal, USA Today, and other sources have been added to the text.
• Visual Explorations—Included on the CD-ROM that accompanies this textbook. Visual Explorations in Statistics is a Microsoft Excel add-in that allows students to interactively explore important statistical concepts in descriptive statistics, probability, the normal distribution, and regression analysis. For example, in descriptive statistics, students observe the effect of changes in the data on the average, median, quartiles, and standard deviation. In sampling distributions, students use simulation to explore the effect of sample size on a probability distribution. With the normal distribution, students see the effect of changes in the mean and standard deviation on the areas under the normal curve. In regression analysis, students have the opportunity of fitting a line and observing how changes in the slope and intercept affect the goodness of fit of the fitted line.
• Using Microsoft Office sections. Located at the end of selected chapters, this feature discusses ways in which users can share data between Microsoft Excel and other components of Microsoft Office, including Microsoft Word and Microsoft PowerPoint, and the web browser Internet Explorer. Detailed, step-by-step instructions explain how to incorporate an Excel worksheet or chart in a Word document or a PowerPoint presentation, as well as how to save Excel worksheets and charts as html World Wide Web pages and how to retrieve and import data from the World Wide Web using Internet Explorer.

EXERCISES

• Answers to most of the even-numbered exercises are provided at the end of the book.
• Report Writing exercises allow students to place the results of an analysis in a business context by incorporating Microsoft Office techniques such as pasting Microsoft Excel tables and charts into a Microsoft Word document and PowerPoint presentation.
• Internet Exercises, located on the book's web site, allow students to explore data sources available on the World Wide Web.
• Case Studies and Team Projects—Detailed case studies are included at the ends of many chapters. The Springville Herald case is included at the end of most chapters as an integrating theme. A Team Project relating to mutual funds is also included at the end of most chapters as an integrating theme.

CONTENT CHANGES IN THE THIRD EDITION

• Chapter 1 ("Introduction and Data Collection") contains additional chapter review problems on accessing the Internet and a new Using Statistics example involving an Internet company.
• The Excel Primer has been reorganized and updated for Excel 2000.
• Chapter 2 ("Presenting Data in Tables and Charts") contains an updated Using Statistics example, new graphical excellence examples, a section on the scatter diagram, and a section on placing Microsoft Excel worksheet data and charts in Microsoft Word documents.
• Chapter 3 ("Descriptive Statistics") contains an updated Using Statistics example, additional integration of Excel output, coverage of the correlation coefficient, coverage of the geometric mean (which finance students especially need), a Visual Explorations module on descriptive statistics, and placing Microsoft Excel worksheet data and charts in PowerPoint presentations.
• Chapter 4 ("Basic Probability and Discrete Probability Distributions") changes the Using Statistics binomial example to an accounting information system, moves covariance so that it follows expected value, and uses an example with a negative covariance.
• Chapter 5 ("The Normal Distribution and Sampling Distributions") changes the Using Statistics example to an Internet example, uses only the cumulative normal table, integrates Excel output into the normal distribution section and contains Visual Explorations modules for the normal distribution and sampling distributions.
• Chapter 6 ("Confidence Interval Estimation") adds one-sided confidence intervals to the section on auditing and moves the finite population correction factor to the CD-ROM.
• Chapter 7 ("Fundamentals of Hypothesis Testing: One-Sample Tests") adds computer output to all sections and combines sections 7.2 and 7.3 so that p-values are not covered in a separate section.
• Chapter 8 ("Two-Sample Tests with Numerical Data") changes the Using Statistics example to one related to marketing and provides additional emphasis on p-values, adds the confidence interval estimate for the difference between two means, and discusses the t test for the difference between the means when the variances are not equal.
• Chapter 9 ("Analysis of Variance") changes the Using Statistics example, adds computer output, and provides additional emphasis on p-values.
• Chapter 10 ("Tests for Two or More Samples with Categorical Data") adds the confidence interval estimate for the difference between two proportions.
• Chapter 11 ("Simple Linear Regression") adds more coverage of PHStat, contains a Visual Explorations module on regression, and includes a section on saving Microsoft Excel worksheets and charts as web pages.
• Chapter 12 ("Multiple Regression") changes the Using Statistics example to a marketing problem, includes additional discussion of interaction terms in multiple regression, and adds new PHStat2 features to the section on stepwise regression and confidence intervals for the mean response.
• Chapter 13 ("Time-Series Analysis") changes the Using Statistics example, adds a section on index numbers that appears on the CD-ROM, and includes a section on how to retrieve and import data from the World Wide Web using Internet Explorer.
• Chapter 14 ("Decision Making") has been moved after the regression and time series forecasting chapters.
• Chapter 15 ("Statistical Applications in Quality and Productivity Management") has been moved after the regression and time series chapters and adds a section on process capability.

SUPPLEMENT PACKAGE

The supplement package that accompanies this text includes the following:

• Instructor's Solution Manual—This manual includes extra detail in the problem solutions and many Excel solutions.
• Student Solutions Manual—This manual provides detailed solutions to virtually all the even-numbered exercises.
• Test Item File—This supplement includes extra Excel-based test questions.
• Instructor's CD/ROM—The instructor's CD-ROM contains PowerPoint slides, the Instructor's Solutions Manual and Test Item File, and Prentice Hall's Custom Test Manager.
• PHStat2—This is a statistical add-in for Microsoft Excel for Windows. The data files for the examples and exercises are contained on the CDROM that accompanies the text.
• MyPHLIP Web site—This site contains additional problems, teaching tips, tips for students, current events exercises, practice exams, and links to other sites that contain statistical data.

ABOUT THE WORLD WIDE WEB

The text has a home page on the World Wide Web.

This site incorporates the features of MyPHLIP (Prentice Hall's Learning on the Internet Partnership), a robust Web site that contains many resources for both faculty members and students. A partial list of the features includes:

• Teaching tips
• Links to other sites that provide data appropriate for statistics courses
• Student tips
• Sample Exams
• Current Event exercises
• Internet Exercises

Table of Contents

	Preface	xiii
1	Introduction and Data Collection	1
1.1	Why a Manager Needs to Know About Statistics	2
1.2	The Growth and Development of Modern Statistics	4
1.3	What Every Manager Needs to Know About Using Electronic Worksheets	4
1.4	What You Need to Know About Using the Software for This Textbook	5
1.5	Why Are Data Needed	6
1.6	Sources of Data	7
1.7	Types of Data	9
1.8	Types of Sampling Methods	11
1.9	Evaluating Survey Worthiness	17
	Excel Primer	27
EP.1	Working with Windows and Microsoft Excel	28
EP.2	Common Workbook Operations	32
EP.3	Basic Worksheet Concepts and Operations	36
EP.4	Enhancing Worksheet Appearance	39
EP.5	Using Microsoft Excel Wizards	40
EP.6	Using Add-Ins	43
2	Presenting Data in Tables and Charts	45
2.1	Organizing Numerical Data	46
2.2	Tables and Charts for Numerical Data	51
2.3	Graphing Bivariate Numerical Data	62
2.4	Tables and Charts for Categorical Data	65
2.5	Tabulating and Graphing Bivariate Categorical Data	73
2.6	Graphical Excellence	79
3	Numerical Descriptive Measures	107
3.1	Exploring Numerical Data and Their Properties	108
3.2	Measures of Central Tendency, Variation, and Shape	109
3.3	Exploratory Data Analysis	129
3.4	Obtaining Descriptive Summary Measures from a Population	134
3.5	The Coefficient of Correlation	138
3.6	Pitfalls in Numerical Descriptive Measures and Ethical Issues	143
4	Basic Probability and Discrete Probability Distribution	159
4.1	Basic Probability Concepts	161
4.2	Conditional Probability	170
4.3	Bayes' Theorem	178
4.4	The Probability Distribution for a Discrete Random Variable	182
4.5	Covariance and Its Application in Finance	186
4.6	Binomial Distribution	191
4.7	Poisson Distribution	200
4.8	Hypergeometric Distribution	204
4.9	Ethical Issues and Probability	207
5	The Normal Distribution and Sampling Distributions	223
5.1	The Normal Distribution	224
5.2	Evaluating the Normality Assumption	242
5.3	The Exponential Distribution	250
5.4	Introduction to Sampling Distributions	253
5.5	Sampling Distribution of the Mean	253
5.6	Sampling Distribution of the Proportion	266
5.7	Sampling from Finite Populations (CD-ROM Topic)	270
6	Confidence Interval Estimation	283
6.1	Confidence Interval Estimation of the Mean ([sigma] Known)	285
6.2	Confidence Interval Estimation of the Mean ([sigma] Unknown)	290
6.3	Confidence Interval Estimation for the Proportion	297
6.4	Determining Sample Size	301
6.5	Applications of Confidence Interval Estimation in Auditing	309
6.6	Confidence Interval Estimation and Ethical Issues	317
6.7	Estimation and Sample Size Determination for Finite Populations (CD-ROM Topic)	319
7	Fundamentals of Hypothesis Testing: One-Sample Tests	333
7.1	Hypothesis-Testing Methodology	334
7.2	Z Test of Hypothesis for the Mean ([sigma] Known)	339
7.3	One-Tail Tests	347
7.4	tTest of Hypothesis for the Mean ([sigma] Unknown)	350
7.5	Z Test of Hypothesis for the Proportion	357
7.6	Potential Hypothesis-Testing Pitfalls and Ethical Issues	361
8	Two-Sample Tests with Numerical Data	373
8.1	Comparing Two Independent Samples: t Tests for Differences Between Two Means	374
8.2	F Test for Differences Between Two Variances	385
8.3	Comparing Two Related Samples: t Test for the Mean Difference	394
8.4	Wilcoxon Rank Sum Test for Differences Between Two Medians	402
9	Analysis of Variance	421
9.1	The Completely Randomized Design: One-Way Analysis of Variance	422
9.2	The Two-Factor Factorial Design: Two-Way Analysis of Variance	437
9.3	The Kruskal-Wallis Rank Test for Differences Between Medians	450
10	Tests for Two or More Samples with Categorical Data	469
10.1	Z Test for the Difference Between Two Proportions	470
10.2	x[superscript 2] Test for the Difference Between Two Proportions	477
10.3	x[superscript 2] Test for Differences Between More Than Two Proportions	485
10.4	x[superscript 2] Test of Independence	492
11	Simple Linear Regression	511
11.1	Types of Regression Models	512
11.2	Determining the Simple Linear Regression Equation	514
11.3	Measures of Variation	524
11.4	Assumptions	529
11.5	Residual Analysis	530
11.6	Measuring Autocorrelation: The Durbin-Watson Statistic	535
11.7	Inferences About the Slope and Correlation Coefficient	541
11.8	Estimation of Mean and Prediction of Individual Values	547
11.9	Pitfalls in Regression and Ethical Issues	552
11.10	Computations in Simple Linear Regression	556
12	Multiple Regression	581
12.1	Developing the Multiple Regression Model	582
12.2	Residual Analysis for the Multiple Regression Model	591
12.3	Testing for the Significance of the Multiple Regression Model	594
12.4	Inferences Concerning the Population Regression Coefficients	596
12.5	Testing Portions of the Multiple Regression Model	600
12.6	The Quadratic Regression Model	606
12.7	Dummy Variable Models	615
12.8	Using Transformations in Regression Models	624
12.9	Collinearity	628
12.10	Model Building	630
12.11	Pitfalls in Multiple Regression and Ethical Issues	641
13	Time-Series Analysis	653
13.1	The Importance of Business Forecasting	654
13.2	Component Factors of the Classical Multiplicative Time-Series Model	655
13.3	Smoothing the Annual Time Series	657
13.4	Least-Squares Trend Fitting and Forecasting	668
13.5	Autoregressive Modeling for Trend Fitting and Forecasting	684
13.6	Choosing an Appropriate Forecasting Model	694
13.7	Time-Series Forecasting of Monthly or Quarterly Data	700
13.8	Pitfalls Concerning Time-Series Analysis	708
13.9	Index Numbers (CD-ROM Topic)	709
14	Decision Making	719
14.1	The Payoff Table and Decision Trees	720
14.2	Criteria for Decision Making	725
14.3	Decision Making with Sample Information	734
14.4	Utility	739
15	Statistical Applications in Quality and Productivity Management	749
15.1	Quality and Productivity: A Historical Perspective	751
15.2	Deming's 14 Points: A Theory of Management	751
15.3	The Theory of Control Charts	754
15.4	Control Charts for the Proportion of Nonconforming Items: p Charts	756
15.5	The Red Bead Experiment: Understanding Process Variability	762
15.6	Control Charts for the Range and the Mean	765
15.7	Process Capability	772
	Answers to Selected Problems	792
	Appendices	805
A.	Review of Arithmetic, Algebra, and Logarithms	805
B.	Summation Notation	809
C.	Statistical Symbols and the Greek Alphabet	815
D.	CD-ROM Contents	817
E.	Tables	831
F.	Microsoft Excel Configuration and Customization	863
G.	More About PHStat2	869
	Index	873
	CD-ROM Topics
5.7	Sampling from Finite Populations	1
6.7	Estimation and Sample Size Determination for Finite Populations	1
13.9	Index Numbers	1

Preface

Educational Philosophy

In our many years of teaching introductory statistics courses, we have continually searched for ways to improve the teaching of these courses. Our vision for teaching these introductory business statistics courses has been shaped by active participation in a series of Making Statistics More Effective in Schools of Business, Decision Sciences Institute, and American Statistical Association conferences as well as the reality of serving a diverse group of students at large universities. Over the years, our vision has come to include these principles:

1. Students need a frame of reference when learning statistics, especially since statistics is not their major. That frame of reference for business students should be the functional areas of business—that is, accounting, economics and finance, information systems, management, and marketing. Each statistical topic needs to be presented in an applied context related to at least one of these functional areas.
2. Virtually all the students taking introductory business statistics courses are majoring in areas other than statistics. Introductory courses should focus on underlying principles that non-statistics majors will find useful.
3. The use of spreadsheet and/or statistical software should be integrated into all aspects of an introductory statistics course. In the workplace, spreadsheet software (and sometimes statistical software) is usually available on a decision maker's desktop. Our teaching approach needs to recognize this reality, and we need to make our courses more consistent with the workplace environment.
4. Textbooks that use software must provide enoughinstructions that students can effectively use the software, without the software (and instruction) dominating the course.
5. The focus in teaching each topic should be on the application of the topic to a functional area of business, the interpretation of results, the presentation of assumptions, the evaluation of the assumptions, and the discussion of what should be done if the assumptions are violated. These points are particularly important in regression and forecasting and in hypothesis testing. Although the illustration of some computations is inevitable, the focus on computations should be minimized.
6. Both classroom examples and homework exercises should relate to actual or realistic data as much as possible. Students should work with data sets, both small and large, and be encouraged to look beyond the statistical analysis of data to the interpretation of results in a managerial context.
7. Introductory courses should avoid an overconcentration on one topic area (such as hypothesis testing) and instead provide breadth of coverage of a variety of statistical topics. This will help students avoid the "I can't see the forest from the trees" syndrome.

Features of This Text

When planning this textbook, we focused on how desktop productivity tools, such as spreadsheets, have altered managers' decision-making processes. Whereas managers once had to turn to a Management Information Systems Department to obtain customized summaries of corporate data, today an increasing number of managers use spreadsheet applications as the means to retrieve and directly analyze the data they need. In this context, employers now are beginning to desire, if not demand, that their college-educated, entry-level employees have more than just a cursory awareness of spreadsheet applications. These changes, along with the realization that current spreadsheet applications can assist in performing the types of analyses once done only by specialized statistical software packages, led us to develop Statistics for Managers Using Microsoft Excel.

Therefore, we take the position that using Microsoft Excel can play a valuable role in learning statistics. Our focus emphasizes analyzing data, interpreting the output from Microsoft Excel, and explaining how to use this software while reducing the emphasis on doing computations. Therefore, we have included a great deal of Excel output and integrated this output into the fabric of the text. For example, in the coverage of tables and charts in Chapter 2, the focus is on the interpretation of various charts, not on their construction by hand. In our coverage of hypothesis testing in Chapters 7 through 10, extensive Excel output has been included so that the p-value approach can be used. In our coverage of simple linear regression in Chapter 11, we assume that Microsoft Excel will be used, and thus the focus is on the interpretation of the output, and not on hand calculations (which have been placed in a separate section of the chapter).

New to This Edition

This new third edition of Statistics for Managers Using Microsoft Excel has been enhanced in a number of important areas.

COVERAGE OF EXCEL

A major thrust of this revision is to refine the presentation of the Microsoft Excel-related material. To that end, this edition contains the following enhancements:

• Excel output for interpretation has been integrated directly into the examples. Results for many of the examples are now presented as screen shots from actual Excel worksheets.
• Simple-to-use Excel instructions are conveniently located after the discussion of a statistical topic. These instructions allow readers to generate statistical results quickly through the extensive use of PHStat2 (see below) and the wizards and add-ins that comprise Microsoft Excel. Sets of instructions are highlighted with a color tint for easy reference and are typically a page or less in length.
• Detailed instructions for implementing worksheet solutions are presented in end of chapter "Excel Handbook" sections. Those who want to learn about Microsoft Excel or those who cannot or choose not to use PHStat2 can use these instructions to generate statistical results. This way, the detailed instructions are there for those who want them, but those who do not can easily skip the instructions. (All will find the Handbooks helpful for understanding how PHStat2 generates its results.)
• New or streamlined Excel instructions for a variety of methods including producing dot scale diagrams, histograms, multiple polygons, and stepwise regression.
• PHStat2, the latest version of PHStat, Prentice Hall's statistical add-in for Microsoft Excel for Windows. PHStat2 contains a number of new or enhanced procedures and now includes a full help system for easy reference.

APPLICATIONS

• Updated and improved Using Statistics business scenarios—Each chapter begins with a Using Statistics example that shows how statistics can be used in one of the functional areas of business—accounting, finance, management, marketing or information systems. This scenario is used throughout the chapter to provide an applied context for the concepts.
• Hundreds of new applied examples and exercises with data from the Wall Street Journal, USA Today, and other sources have been added to the text.
• Visual Explorations—Included on the CD-ROM that accompanies this textbook. Visual Explorations in Statistics is a Microsoft Excel add-in that allows students to interactively explore important statistical concepts in descriptive statistics, probability, the normal distribution, and regression analysis. For example, in descriptive statistics, students observe the effect of changes in the data on the average, median, quartiles, and standard deviation. In sampling distributions, students use simulation to explore the effect of sample size on a probability distribution. With the normal distribution, students see the effect of changes in the mean and standard deviation on the areas under the normal curve. In regression analysis, students have the opportunity of fitting a line and observing how changes in the slope and intercept affect the goodness of fit of the fitted line.
• Using Microsoft Office sections. Located at the end of selected chapters, this feature discusses ways in which users can share data between Microsoft Excel and other components of Microsoft Office, including Microsoft Word and Microsoft PowerPoint, and the web browser Internet Explorer. Detailed, step-by-step instructions explain how to incorporate an Excel worksheet or chart in a Word document or a PowerPoint presentation, as well as how to save Excel worksheets and charts as html World Wide Web pages and how to retrieve and import data from the World Wide Web using Internet Explorer.

EXERCISES

• Answers to most of the even-numbered exercises are provided at the end of the book.
• Report Writing exercises allow students to place the results of an analysis in a business context by incorporating Microsoft Office techniques such as pasting Microsoft Excel tables and charts into a Microsoft Word document and PowerPoint presentation.
• Internet Exercises, located on the book's web site, allow students to explore data sources available on the World Wide Web.
• Case Studies and Team Projects—Detailed case studies are included at the ends of many chapters. The Springville Herald case is included at the end of most chapters as an integrating theme. A Team Project relating to mutual funds is also included at the end of most chapters as an integrating theme.

CONTENT CHANGES IN THE THIRD EDITION

• Chapter 1 ("Introduction and Data Collection") contains additional chapter review problems on accessing the Internet and a new Using Statistics example involving an Internet company.
• The Excel Primer has been reorganized and updated for Excel 2000.
• Chapter 2 ("Presenting Data in Tables and Charts") contains an updated Using Statistics example, new graphical excellence examples, a section on the scatter diagram, and a section on placing Microsoft Excel worksheet data and charts in Microsoft Word documents.
• Chapter 3 ("Descriptive Statistics") contains an updated Using Statistics example, additional integration of Excel output, coverage of the correlation coefficient, coverage of the geometric mean (which finance students especially need), a Visual Explorations module on descriptive statistics, and placing Microsoft Excel worksheet data and charts in PowerPoint presentations.
• Chapter 4 ("Basic Probability and Discrete Probability Distributions") changes the Using Statistics binomial example to an accounting information system, moves covariance so that it follows expected value, and uses an example with a negative covariance.
• Chapter 5 ("The Normal Distribution and Sampling Distributions") changes the Using Statistics example to an Internet example, uses only the cumulative normal table, integrates Excel output into the normal distribution section and contains Visual Explorations modules for the normal distribution and sampling distributions.
• Chapter 6 ("Confidence Interval Estimation") adds one-sided confidence intervals to the section on auditing and moves the finite population correction factor to the CD-ROM.
• Chapter 7 ("Fundamentals of Hypothesis Testing: One-Sample Tests") adds computer output to all sections and combines sections 7.2 and 7.3 so that p-values are not covered in a separate section.
• Chapter 8 ("Two-Sample Tests with Numerical Data") changes the Using Statistics example to one related to marketing and provides additional emphasis on p-values, adds the confidence interval estimate for the difference between two means, and discusses the t test for the difference between the means when the variances are not equal.
• Chapter 9 ("Analysis of Variance") changes the Using Statistics example, adds computer output, and provides additional emphasis on p-values.
• Chapter 10 ("Tests for Two or More Samples with Categorical Data") adds the confidence interval estimate for the difference between two proportions.
• Chapter 11 ("Simple Linear Regression") adds more coverage of PHStat, contains a Visual Explorations module on regression, and includes a section on saving Microsoft Excel worksheets and charts as web pages.
• Chapter 12 ("Multiple Regression") changes the Using Statistics example to a marketing problem, includes additional discussion of interaction terms in multiple regression, and adds new PHStat2 features to the section on stepwise regression and confidence intervals for the mean response.
• Chapter 13 ("Time-Series Analysis") changes the Using Statistics example, adds a section on index numbers that appears on the CD-ROM, and includes a section on how to retrieve and import data from the World Wide Web using Internet Explorer.
• Chapter 14 ("Decision Making") has been moved after the regression and time series forecasting chapters.
• Chapter 15 ("Statistical Applications in Quality and Productivity Management") has been moved after the regression and time series chapters and adds a section on process capability.

SUPPLEMENT PACKAGE

The supplement package that accompanies this text includes the following:

• Instructor's Solution Manual—This manual includes extra detail in the problem solutions and many Excel solutions.
• Student Solutions Manual—This manual provides detailed solutions to virtually all the even-numbered exercises.
• Test Item File—This supplement includes extra Excel-based test questions.
• Instructor's CD/ROM—The instructor's CD-ROM contains PowerPoint slides, the Instructor's Solutions Manual and Test Item File, and Prentice Hall's Custom Test Manager.
• PHStat2—This is a statistical add-in for Microsoft Excel for Windows. The data files for the examples and exercises are contained on the CDROM that accompanies the text.
• MyPHLIP Web site—This site contains additional problems, teaching tips, tips for students, current events exercises, practice exams, and links to other sites that contain statistical data.

ABOUT THE WORLD WIDE WEB

The text has a home page on the World Wide Web.

This site incorporates the features of MyPHLIP (Prentice Hall's Learning on the Internet Partnership), a robust Web site that contains many resources for both faculty members and students. A partial list of the features includes:

• Teaching tips
• Links to other sites that provide data appropriate for statistics courses
• Student tips
• Sample Exams
• Current Event exercises
• Internet Exercises

Editorial Reviews

Updated edition of Microsoft's textbook for teaching Excel spreadsheet software for use in statistics applications. Topics include summarizing and describing numerical data, presenting data in tables and charts, basic probability and discrete probability distributions, fundamentals of hypothesis testing, regression, and time-series forecasting. The diskette contains Excel workbooks for all examples discussed in the text. Annotation c. by Book News, Inc., Portland, Or.

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