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About the Author
Judith Skuce earned a Bachelor of Mathematics from the University of
Waterloo and a Master of Arts in Political Economy from the University of
Toronto. She spent many years as an economic policy advisor and manager
for several Canadian government departments before joining Georgian
College in 1990. Judith teaches statistics and economics in the School of
Business.
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Brief Contents
PART I INTRODUCTION 1
1 Using Data to Make Better Decisions 1
PART I INTRODUCTION 1
1 Using Data to Make Better Decisions 1
INTRODUCTION 1
1.1 Getting the Data 2
Primary and Secondary Data 3
1.2 Sampling 5
Why Sampling Is Necessary 5
Nonstatistical Sampling 5
Statistical Sampling 7
Sampling and Nonsampling Error 11
1.3 Analyzing the Data 12
1.4 Making Decisions 15
1.5 Communication 18
1.6 A Framework for Data-Based Decision Making 19
Chapter Summary 21 • Chapter Review Exercises 22
2.3 Tables, Bar Graphs, and Pie Charts for Qualitative Data 62
Bar Graphs and Pie Charts for a Simple Table 62
Bar Graphs for Contingency Tables 66
2.4 Time-Series Graphs 70
2.5 Scatter Diagrams for Paired Quantitative Data 76
2.6 Misleading and Uninteresting Graphs 80
Misleading Graphs 80
Uninteresting Graphs 88
Chapter Summary 92 • Chapter Review Exercises 93
The following is a list of Guides used in this text. Matched Pairs, Quantitative Data, Non-Normal
Differences—The Wilcoxon Signed Rank Sum
Test to Decide About the Difference in Matched
CHAPTER 2 Populations, p. 352
Setting Up Appropriate Classes for a Frequency Matched Pairs, Ranked Data—The Sign Test to
Distribution, p. 38 Decide About the Difference in Matched
Comparing Histograms, p. 60 Populations, p. 361
CHAPTER 3 CHAPTER 10
Choosing a Measure of Central Tendency, p. 114 Independent Samples, Normal Quantitative Data—
Choosing a Measure of Variability, p. 131 The t-Test of 1 2 to Decide About the
Choosing a Measure of Association, p. 142 Difference in Two Population Means, p. 380
Independent Samples, Non-Normal Quantitative Data
CHAPTER 6 or Ranked Data—The Wilcoxon Rank Sum Test
to Decide About the Difference in Two
Using the Sampling Distribution of x to Decide
Population Locations, p. 391
About When Is Known, p. 243
Using the Sampling Distribution of pN to Decide
About p, p. 252 CHAPTER 11
Three or More Independent Samples, Normal
CHAPTER 7 Quantitative Data—One-Way ANOVA to Decide
About the Equality of Population Means, p. 419
Calculating p-Values, p. 266
Steps in a Formal Hypothesis Test, p. 268
Hypothesis Test to Decide About a Population CHAPTER 12
Proportion, p. 274 Comparing Two Population Proportions, p. 445
Hypothesis Test to Decide About a Population 2 Goodness-of-Fit Test to Compare Proportions in One
Mean, p. 288 Population with a Desired Distribution, p. 457
Contingency Table Tests to Compare Proportions Across
Many Populations, or Decide About the Independ-
CHAPTER 8 ence of Population Characteristics, p. 466
Creating a Confidence Interval Estimate
for p, p. 304
Creating a Confidence Interval Estimate CHAPTER 13
for , p. 309 Checking Requirements for the Linear Regression
Choosing the Sample Size to Estimate , p. 314 Model, p. 504
Choosing the Sample Size to Estimate p, p. 316 Testing the Slope of the Regression Line for Evidence
of a Linear Relationship, p. 509
CHAPTER 9
Matched Pairs, Quantitative Data, Normal CHAPTER 14
Differences—The t-Test to Decide About the Checking Requirements for the Linear Multiple
Average Population Difference (D), p. 335 Regression Model, p. 540
Table of
Excel Instructions
and Excel Templates
The following is a list of Excel instructions and templates used CHAPTER 7
in this text. Note: Excel’s Data Analysis Tools may need to be
turned on. See Using Microsoft® Excel 2010 for Analyzing Data Organizing Coded Data, p. 271
and Making Decisions on page xxx for more information. Excel Template for Making Decisions About a Population
Proportion with a Single Sample, p. 272
TDIST Function, p. 279
CHAPTER 1 Excel Template for Making Decisions About the
Population Mean with a Single Sample, p. 280
Taking a Random Sample with Random Number AVERAGE/STDEV/ COUNT Functions, p. 281
Generation, p. 8
CHAPTER 8
CHAPTER 2
Excel Template for a Confidence Interval Estimate
Class Width Template, p. 34 of the Population Proportion, Exhibit 8.8, p. 305
Histogram Tool, p. 39 Excel Template for a Confidence Interval Estimate
Histogram Chart, Exhibit 2.29, p. 45 of the Population Mean, Exhibit 8.14, p. 311
Adjusting Excel’s Histogram, p. 46
Bar Graph, p. 63
Pie Chart, p. 64 CHAPTER 9
Contingency Table, p. 67 Excel Template for Making Decisions About the
Line Graph, p. 72 Population Mean with a Single Sample
Scatter Diagram, p. 77 for Matched Pairs, p. 330
Adjust Axis Scale, p. 81 Data Analysis t-Test: Paired Two Sample
for Means, p. 330
Excel Template for a Confidence Interval Estimate
CHAPTER 3
of D, Exhibit 9.13, p. 337
MEDIAN Function, p. 109 Wilcoxon Signed Rank Sum Test
MODE Function, p. 112 Calculations, p. 347
STDEV Function, p. 118 Sign Test Calculations, Add-in and
QUARTILE Function, p. 129 Template, p. 358
PEARSON Function, p. 134
Non-parametric Tools, p. 141
Spearman Rank Correlation Coefficient CHAPTER 10
Calculation, p. 141 Data Analysis t-Test: Two-Sample Assuming Unequal
Variances, p. 373
Excel Template for t-Test of Mean, p. 378
CHAPTER 5
Excel Template for Confidence Interval Estimate
BINOMDIST Function, p. 195 for the Difference in Population Means, p. 382
NORMDIST Function, p. 205 Wilcoxon Rank Sum Test Calculations Add-in and
NORMINV Function, p. 209 Template, p. 388
xx TABLE OF EXCEL INSTRUCTIONS AND EXCEL TEMPLATES
CHAPTER 11 CHAPTER 13
VAR Function, p. 406 Add Trendline, Exhibit 13.5, p. 483
FDIST Function, p. 414 Regression Tool, p. 485
Data Analysis Anova: Single Factor, p. 414 Regression Residuals, p. 492
Excel Template for the Tukey-Kramer Confidence Regression Output for Hypothesis Test About the
Interval, p. 426 Regression Relationship, p. 507
Regression Output for R2, p. 511
Multiple Regression Tools for Confidence
CHAPTER 12 and Prediction Intervals, p. 514
Excel Template for Making Decisions About Two
Population Proportions, H0: p1 p2 0, p. 442
Excel Template for Making Decisions About the
CHAPTER 14
Difference in Population Proportions, Regression Tool for Multiple Regression,
H0: p1 p2 Fixed Amount, p. 444 Exhibit 14.4, p. 530
Excel Template for the Confidence Interval Residual Output, p. 533
Estimate for the Difference in Population Plots of Residuals vs. Predicted Values, p. 533
Proportions, p. 447 Residual Plots, p. 534
Excel’s CHITEST Function for a 2 Confidence Interval and Prediction Intervals –
Goodness-of-Fit Test, p. 456 Calculations, p. 548
Chi-Squared Expected Values Calculations, p. 462 All Possible Regressions Calculations, p. 552
Table of Examples
The following is a list of Examples used in this text. Example 3.2a Using Excel to calculate the
mean, p. 107
Example 3.2b The mean is greatly affected by
CHAPTER 1 extreme values, p. 108
Example 1.1 Secondary data, p. 3 Example 3.2c Finding the median in a data set,
Example 1.2a Nonstatistical sampling, p. 6 p. 109
Example 1.2b Nonstatistical sampling, p. 6 Example 3.3a Calculating standard deviation with
Example 1.2c Random sampling with Excel, p. 8 Excel, p. 118
Example 1.3 Analyzing the data, p. 13 Example 3.3b Calculating the standard deviation
Example 1.4a Cause and effect cannot be concluded with the computational formula, p. 119
from observational studies, p. 16 Example 3.3c Applying the Empirical Rule, p. 126
Example 1.4b Cause and effect may be concluded Example 3.3d Finding the 75th percentile, p. 128
from experimental studies, p. 16 Example 3.3e Calculate the interquartile range,
Example 1.5 State conclusions carefully, p. 18 p. 129
Example 3.4a Calculating the Pearson correlation
coefficient, p. 138
CHAPTER 2 Example 3.b Calculating the Spearman rank
correlation coefficient, p. 139
Example 2.2a Setting up a frequency distribution
with Excel, p. 42
Example 2.2b Modifying Excel’s automatic CHAPTER 4
histogram, p. 51 Example 4.1 Representing a sample space with a
Example 2.3 Using Excel to create a bar graph with contingency table, a joint probability
coded data, p. 64 table, and a tree diagram, p. 157
Example 2.4 Graphing time-series data, p. 73 Example 4.2a Calculating conditional probabilities,
Example 2.5 Graphing paired quantitative p. 162
data, p. 77 Example 4.2b Testing for independence, p. 163
Example 4.3a The rule of multiplication: Calculating
“and” probability, p. 169
CHAPTER 3 Example 4.3b The rule of addition: calculating “or”
Example 3.1a Evaluating ©x, p. 103 probabilities, p. 172
Example 3.1b Evaluating ©x 2, p. 103 Example 4.3c Calculating probabilities with a tree
Example 3.1c Evaluating 1©x22 , p. 103 diagram and probability rules, p. 175
Example 3.1d Evaluating ©xy, p. 103
Example 3.1e Evaluating ©(x - 6), p. 104
CHAPTER 5
Example 3.1f Evaluating ©(x - 6)2, p. 104
Example 5.1 Calculating the mean and standard
(x - 6)2 deviation of a discrete probability
Example 3.1g Evaluating © , p. 104
n - 1 distribution, p. 188
Example 3.1h Evaluating ©(x - 6)(y - 3), Example 5.2a Calculating binomial probabilities
p. 104 with a formula, p. 195
xxii TABLE OF EXAMPLES
Le chrétien est prêtre, le chrétien est roi, et il est fait pour une
gloire plus haute. Dieu doit régner en nous, Dieu doit régner par
nous afin que nous méritions de régner avec Dieu. Voilà des règles
de foi que nous ne pouvons pas écarter de nos règlements de vie
politiques. Notre rang est sublime, notre dignité est divine ; nous ne
pouvons pas abdiquer la destinée présente, nous n’en pouvons pas
décliner les devoirs très-augustes et très-pressants, — devoirs
d’ordre particulier et d’ordre public, — sans abdiquer du même coup
la dignité future. Nous n’avons la richesse, la force, la liberté, la vie,
nous n’avons rien au monde pour nous seulement : à tout don qui
nous est fait incombe le devoir de protéger dans leur âme et dans
leur corps la multitude de nos frères faibles et ignorants. Or, la
grande protection due aux faibles est d’établir des lois qui leur
facilitent la connaissance de Dieu et la communication de Dieu.
Nous serons examinés et jugés là-dessus, et nul chrétien ne peut
croire qu’au jour où il lui sera demandé compte de ces petits
abandonnés avec mépris ou défendus sans constance et sans
amour, il se justifiera par la réponse de Caïn : Num custos fratris mei
sum ego ? [8]
[8] Gen., IV, 3.
XIII