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The document provides an overview of the 9th edition of 'Introductory Statistics' by Prem S. Mann, which is designed for students with a basic understanding of algebra and aims to make statistics accessible and engaging. Key features include updated examples, new videos, and a focus on real-world applications to enhance learning. The text also aligns with the GAISE report recommendations to foster statistical literacy and active learning through technology and real data usage.

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100% found this document useful (8 votes)
87 views28 pages

(Original PDF) Introductory Statistics, 9th Edition by Prem S. Mann PDF Download

The document provides an overview of the 9th edition of 'Introductory Statistics' by Prem S. Mann, which is designed for students with a basic understanding of algebra and aims to make statistics accessible and engaging. Key features include updated examples, new videos, and a focus on real-world applications to enhance learning. The text also aligns with the GAISE report recommendations to foster statistical literacy and active learning through technology and real data usage.

Uploaded by

almiryexin
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PREFACE

Introductory Statistics is written for a one- or two-semester first course in applied statistics.
This book is intended for students who do not have a strong background in mathematics. The
only prerequisite for this text is knowledge of elementary algebra.
Today, college students from almost all fields of study are required to take at least one
course in statistics. Consequently, the study of statistical methods has taken on a prominent role
in the education of students from a variety of backgrounds and academic pursuits. From the first
edition, the goal of Introductory Statistics has been to make the subject of statistics interesting
and accessible to a wide and varied audience. Three major elements of this text support this goal:
1. Realistic content of its examples and exercises, drawing from a comprehensive range of
applications from all facets of life
2. Clarity and brevity of presentation
3. Soundness of pedagogical approach
These elements are developed through the interplay of a variety of significant text features.
The feedback received from the users of the eighth edition (and earlier editions) of Introductory
Statistics has been very supportive and encouraging. Positive experiences reported by instructors
and students have served as evidence that this text offers an interesting and accessible approach
to statistics—the author’s goal from the very first edition. The author has pursued the same goal
through the refinements and updates in this ninth edition, so that Introductory Statistics can continue
to provide a successful experience in statistics to a growing number of students and instructors.

New to the Ninth Edition


The following are some of the changes made in the ninth edition:
■ New for the ninth edition, are the videos that are accessible via the WileyPLUS course
associated with this text. These videos provide step-by-step solutions to selected examples
in the book.
■ A large number of the examples and exercises are new or revised, providing contemporary
and varied ways for students to practice statistical concepts.
■ Coverage of sample surveys, sampling techniques, and design of experiments has been
moved from Appendix A to Chapter 1.
■ In Chapter 3, the discussions of weighted mean, trimmed mean, and coefficient of variation
have been moved from the exercises to the main part of the chapter.
■ The majority of the case studies are new or revised, drawing on current uses of statistics in
areas of student interest.
■ New data are integrated throughout, reinforcing the vibrancy of statistics and the relevance
of statistics to student lives right now.
■ The Technology Instructions sections have been updated to support the use of the latest
versions of TI-84 Color/TI-84, Minitab, and Excel.
■ Many of the Technology Assignments at the end of each chapter are either new or have been
updated.
vi
Preface vii

■ The data sets posted on the book companion Web site and WileyPLUS have been updated.
■ Most of the Uses and Misuses sections at the end of each chapter have been updated or replaced.
■ Many of the Mini-Projects, which are now located on the book companion Web site, are
either new or have been updated.
■ Many of the Decide for Yourself sections, also located on the book companion Web site, are
either new or have been updated.

Hallmark Features of This Text


Clear and Concise Exposition The explanation of statistical methods and concepts is clear and
concise. Moreover, the style is user-friendly and easy to understand. In chapter introductions and
in transitions from section to section, new ideas are related to those discussed earlier.
Thorough Examples The text contains a wealth of examples. The examples are usually pre-
sented in a format showing a problem and its solution. They are well sequenced and thorough,
displaying all facets of concepts. Furthermore, the examples capture students’ interest because
they cover a wide variety of relevant topics. They are based on situations that practicing statisti-
cians encounter every day. Finally, a large number of examples are based on real data taken from
sources such as books, government and private data sources and reports, magazines, newspapers,
and professional journals.
Step-by-Step Solutions A clear, concise solution follows each problem presented in an example.
When the solution to an example involves many steps, it is presented in a step-by-step format. For
instance, examples related to tests of hypothesis contain five steps that are consistently used to
solve such examples in all chapters. Thus, procedures are presented in the concrete settings of
applications rather than as isolated abstractions. Frequently, solutions contain highlighted remarks
that recall and reinforce ideas critical to the solution of the problem. Such remarks add to the
clarity of presentation.
Titles for Examples Each example based on an application of concepts now contains a title that
describes to what area, field, or concept the example relates.
Margin Notes for Examples A margin note appears beside each example that briefly describes
what is being done in that example. Students can use these margin notes to assist them as they read
through sections and to quickly locate appropriate model problems as they work through exercises.
Frequent Use of Diagrams Concepts can often be made more understandable by describing
them visually with the help of diagrams. This text uses diagrams frequently to help students
understand concepts and solve problems. For example, tree diagrams are used a few times in
Chapters 4 and 5 to assist in explaining probability concepts and in computing probabilities.
Similarly, solutions to all examples about tests of hypothesis contain diagrams showing rejection
regions, nonrejection regions, and critical values.
Highlighting Definitions of important terms, formulas, and key concepts are enclosed in colored
boxes so that students can easily locate them.
Cautions Certain items need special attention. These may deal with potential trouble spots that
commonly cause errors, or they may deal with ideas that students often overlook. Special empha-
sis is placed on such items through the headings Remember, An Observation, or Warning. An
icon is used to identify such items.
Real World Case Studies These case studies, which appear in most of the chapters, provide
additional illustrations of the applications of statistics in research and statistical analysis. Most of
these case studies are based on articles or data published in journals, magazines, newspapers, or
Web sites. Almost all case studies are based on real data.
Variety of Exercises The text contains a variety of exercises, including technology assignments.
Moreover, a large number of these exercises contain several parts. Exercise sets appearing at the
viii Preface

end of each section (or sometimes at the end of two or three sections) include problems on the
topics of that section. These exercises are divided into two parts: Concepts and Procedures that
emphasize key ideas and techniques and Applications that use these ideas and techniques in
concrete settings. Supplementary exercises appear at the end of each chapter and contain exer-
cises on all sections and topics discussed in that chapter. A large number of these exercises are
based on real data taken from varied data sources such as books, government and private data
sources and reports, magazines, newspapers, and professional journals. Not only do the exercises
given in the text provide practice for students, but the real data contained in the exercises provide
interesting information and insight into economic, political, social, psychological, and other
aspects of life. The exercise sets also contain many problems that demand critical thinking skills.
The answers to selected odd-numbered exercises appear in the Answers section at the back of the
book. Optional exercises are indicated by an asterisk (*).

Advanced Exercises All chapters have a set of exercises that are of greater difficulty. Such
exercises appear under the heading Advanced Exercises after the Supplementary Exercises.

Uses and Misuses This feature toward the end of each chapter (before the Glossary) points out
common misconceptions and pitfalls students will encounter in their study of statistics and in
everyday life. Subjects highlighted include such diverse topics as do not feed the animals.

Decide for Yourself This feature is accessible online at www.wiley.com/college/mann. Each


Decide for Yourself discusses a real-world problem and raises questions that readers can think
about and answer.

Glossary Each chapter has a glossary that lists the key terms introduced in that chapter, along
with a brief explanation of each term.

Self-Review Tests Each chapter contains a Self-Review Test, which appears immediately after the
Supplementary and Advanced Exercises. These problems can help students test their grasp of the
concepts and skills presented in respective chapters and monitor their understanding of statistical
methods. The problems marked by an asterisk (*) in the Self-Review Tests are optional. The
answers to almost all problems of the Self-Review Tests appear in the Answer section.

Technology Usage At the end of each chapter is a section covering uses of three major technolo-
gies of statistics and probability: the TI-84 Color/TI-84, Minitab, and Excel. For each technology,
students are guided through performing statistical analyses in a step-by-step fashion, showing
them how to enter, revise, format, and save data in a spreadsheet, workbook, or named and
unnamed lists, depending on the technology used. Illustrations and screen shots demonstrate the
use of these technologies. Additional detailed technology instruction is provided in the technol-
ogy manuals that are online at www.wiley.com/college/mann.

Technology Assignments Each chapter contains a few technology assignments that appear at the
end of the chapter. These assignments can be completed using any of the statistical software.

Mini-projects Associated with each chapter of the text are Mini-projects posted online at www.
wiley.com/college/mann. These Mini-projects are either very comprehensive exercises or they
ask students to perform their own surveys and experiments. They provide practical applications
of statistical concepts to real life.

Data Sets A large number of data sets appear on the book companion Web site at www.wiley.
com/college/mann. These large data sets are collected from various sources, and they contain
information on several variables. Many exercises and assignments in the text are based on these
data sets. These large data sets can also be used for instructor-driven analyses using a wide variety
of statistical software packages as well as the TI-84. These data sets are available on the Web
site of the text in numerous formats, including Minitab and Excel.

Videos New for the Ninth Edition, videos for each text section illustrate concepts related to the
topic covered in that section to more deeply engage the students. These videos are accessible via
WileyPLUS.
Preface ix

GAISE Report Recommendations Adopted


In 2003, the American Statistical Association (ASA) funded the Guidelines for Assessment and
Instruction in Statistics Education (GAISE) Project to develop ASA-endorsed guidelines for
assessment and instruction in statistics for the introductory college statistics course. The report,
which can be found at www.amstat.org/education/gaise, resulted in the following series of
recommendations for the first course in statistics and data analysis.
1. Emphasize statistical literacy and develop statistical thinking.
2. Use real data.
3. Stress conceptual understanding rather than mere knowledge of procedures.
4. Foster active learning in the classroom.
5. Use technology for developing concepts and analyzing data.
6. Use assessments to improve and evaluate student learning.
Here are a few examples of how this Introductory Statistics text can assist in helping you, the
instructor, in meeting the GAISE recommendations.
1. Many of the exercises require interpretation, not just answers in terms of numbers. Graphical
and numeric summaries are combined in some exercises in order to emphasize looking at the
whole picture, as opposed to using just one graph or one summary statistic.
2. The Uses and Misuses and online Decide for Yourself features help to develop statistical
thinking and conceptual understanding.
3. All of the data sets listed in Appendix A are available on the book’s Web site. They have been
formatted for a variety of statistical software packages. This eliminates the need to enter data
into the software. A variety of software instruction manuals also allow the instructor to spend
more time on concepts and less time teaching how to use technology.
4. The online Mini-projects help students to generate their own data by performing an
experiment and/or taking random samples from the large data sets mentioned in Appendix A.
We highly recommend that all statistics instructors take the time to read the GAISE report. There
is a wealth of information in this report that can be used by everyone.

Web Site
www.wiley.com/college/mann
After you go to the page exhibited by the above URL, click on Visit the Companion Sites. Then click
on the site that applies to you out of the two choices. This Web site provides additional resources for
instructors and students. The following items are available for instructors on this Web site:
• Key Formulas
• Printed Test Bank
• Mini-Projects
• Decide for Yourself
• Power Point Lecture Slides
• Instructor’s Solutions Manual
• Data Sets (see Appendix A for a complete list of these data sets)
• Chapter 14: Multiple Regression
• Chapter 15: Nonparametric Methods
• Technology Resource Manuals:
• TI Graphing Calculator Manual
• Minitab Manual
• Excel Manual
These manuals provide step-by-step instructions, screen captures, and examples for using tech-
nology in the introductory statistics course. Also provided are exercise lists and indications of
which exercises from the text best lend themselves to the use of the package presented.
x Preface

Using WileyPLUS
SUCCESS: WileyPLUS helps to ensure that each study session has a positive outcome by putting
students in control. Through instant feedback and study objective reports, students know if they
did it right and where to focus next, so they achieve the strongest results.
Our efficacy research shows that with WileyPLUS, students improve their outcomes by as
much as one letter grade. WileyPLUS helps students take more initiative, so you will have greater
impact on their achievement in the classroom and beyond.

What Do Students Receive with WileyPLUS?


• The complete digital textbook, saving students up to 60% off the cost of a printed text.
• Question assistance, including links to relevant sections in the online digital textbook.
• Immediate feedback and proof of progress, 24/7.
• Integrated, multimedia resources—including videos—that provide multiple study paths and
encourage more active learning.

What Do Instructors Receive with WileyPLUS?


• Reliable resources that reinforce course goals inside and outside of the classroom.
• The ability to easily identify those students who are falling behind.
• Media-rich course materials and assessment content, including Instructor’s Solutions Manual,
PowerPoint slides, Learning Objectives, Printed Test Bank, and much more.
www.wileyplus.com. Learn More.

Supplements
The following supplements are available to accompany this text:
■ Instructor’s Solutions Manual (ISBN 978-1-119-14830-2). This manual contains com-
plete solutions to all of the exercises in the text.
■ Printed Test Bank The printed copy of the test bank contains a large number of multiple-
choice questions, essay questions, and quantitative problems for each chapter. It can be
downloaded and printed from WileyPLUS or from www.wiley.com/college/mann.
■ Student Solutions Manual (ISBN 978-1-119-14829-6). This manual contains complete
solutions to all of the odd-numbered exercises in the text.

Acknowledgments
I thank the following reviewers of the ninth edition of this book, whose comments and sugges-
tions were invaluable in improving the text.

D. P. Adhikari Hossein Behforooz


Marywood University Utica College
Wendy Ahrendsen Joleen Beltrami
South Dakota State University University of the Incarnate Word
Nan Hutchins Bailey Bill Burgin
The University of Texas at Tyler Gaston College
Les Barnhouse David Bush
Athabasca University Villanova University
Preface xi

Ferry Butar Butar Maurice LeBlanc


Sam Houston State University Kennesaw State University
Chris Chappa Min-Lin Lo
University of Texas at Tyler California State University, San Bernardino
Jerry Chen Natalya Malakhova
Suffolk County Community College, Johnson County Community College
Ammerman Campus Nola McDaniel
A. Choudhury McNeese State University
Illinois State University Stéphane Mechoulan
Robert C. Forsythe Dalhousie University
Frostburg State University Robert L. Nichols
Daesung Ha Florida Gulf Coast University
Marshall University Jonathan Oaks
Rhonda Hatcher Macomb Community
Texas Christian University College—South Campus
Joanna Jeneralczuk Marty Rhoades
University of Massachusetts, Amherst West Texas A&M University
Annette Kanko Mary Beth Rollick
University of the Incarnate Word Kent State University—Kent
Mohammad Kazemi Seema Sehgal
University of North Carolina, Athabasca University
Charlotte Linda Simonsen
Janine Keown-Gerrard University of Washington, Bothell
Athabasca University Criselda Toto
Hoon Kim Chapman University
California State Polytechnic Viola Vajdova
University—Pomona Benedictine University
Matthew Knowlen Daniel Weiner
Horry Georgetown Technical College Boston University

I express my thanks to the following for their contributions to earlier editions of this book that
made it better in many ways: Chris Lacke (Rowan University), Gerald Geissert (formerly of
Eastern Connecticut State University), Daniel S. Miller (Central Connecticut State University),
and David Santana-Ortiz (Rand Organization).
I extend my special thanks to Doug Tyson, James Bush, and Chad Cross, who contributed to
this edition in many significant ways. I take this opportunity to thank Mark McKibben for work-
ing on the solutions manuals and preparing the answer section and Julie M. Clark for checking
the solutions for accuracy.
It is of utmost importance that a textbook be accompanied by complete and accurate sup-
plements. I take pride in mentioning that the supplements prepared for this text possess these
qualities and much more. I thank the authors of all these supplements.
It is my pleasure to thank all the professionals at John Wiley & Sons with whom I enjoyed
working during this revision. Among them are Laurie Rosatone (Vice President and Director),
Joanna Dingle (Acquisitions Editor), Wendy Lai (Senior Designer), Billy Ray (Senior Photo
Editor), Valerie Zaborski (Senior Content Manager), Ken Santor (Senior Production Editor),
Ellen Keohane (Project Editor), Jennifer Brady (Sponsoring Editor), Carolyn DeDeo (Market
Solutions Assistant), David Dietz (Senior Product Designer), and John LaVacca (Marketing
Manager). I also want to thank Jackie Henry (Full Service Manager) for managing the production
process and Lisa Torri (Art Development Editor) for her work on the case study art.
Any suggestions from readers for future revisions would be greatly appreciated. Such
suggestions can be sent to the author at [email protected] or [email protected].
I recently retired from Eastern Connecticut State University and, hence, will prefer that readers
email me at [email protected].
Prem S. Mann
December 2015
CONTENTS

CHAPTER 1 Introduction 1
1.1 Statistics and Types of Statistics 2
Case Study 1–1 2014 Lobbying Spending by Selected Companies 3
Case Study 1–2 Americans’ Life Outlook, 2014 4
1.2 Basic Terms 5
1.3 Types of Variables 7
1.4 Cross-Section Versus Time-Series Data 9
1.5 Population Versus Sample 10
1.6 Design of Experiments 18
1.7 Summation Notation 22
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 2 Organizing and Graphing Data 36


2.1 Organizing and Graphing Qualitative Data 37
Case Study 2–1 Ideological Composition of the U.S. Public, 2014 40
Case Study 2–2 Millennials’ Views on Their Level of Day-to-Day Banking Knowledge 41
2.2 Organizing and Graphing Quantitative Data 43
Case Study 2–3 Car Insurance Premiums per Year in 50 States 49
Case Study 2–4 Hours Worked in a Typical Week by Full-Time U.S. Workers 50
Case Study 2–5 How Many Cups of Coffee Do You Drink a Day? 53
2.3 Stem-and-Leaf Displays 60
2.4 Dotplots 64
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 3 Numerical Descriptive Measures 77


3.1 Measures of Center for Ungrouped Data 78
Case Study 3–1 2013 Average Starting Salaries for Selected Majors 81
Case Study 3–2 Education Level and 2014 Median Weekly Earnings 83
3.2 Measures of Dispersion for Ungrouped Data 89
3.3 Mean, Variance, and Standard Deviation for Grouped Data 97
3.4 Use of Standard Deviation 103
Case Study 3–3 Does Spread Mean the Same as Variability and Dispersion? 106
xii
Contents xiii

3.5 Measures of Position 108


3.6 Box-and-Whisker Plot 113
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Appendix 3.1 / Self-Review Test /
Technology Instructions / Technology Assignments

CHAPTER 4 Probability 129


4.1 Experiment, Outcome, and Sample Space 130
4.2 Calculating Probability 133
4.3 Marginal Probability, Conditional Probability, and Related Probability
Concepts 140
Case Study 4–1 Do You Worry About Your Weight? 143
4.4 Intersection of Events and the Multiplication Rule 150
4.5 Union of Events and the Addition Rule 156
4.6 Counting Rule, Factorials, Combinations, and Permutations 162
Case Study 4–2 Probability of Winning a Mega Millions Lottery Jackpot 166
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER5 Discrete Random Variables and Their


Probability Distributions 179
5.1 Random Variables 180
5.2 Probability Distribution of a Discrete Random Variable 182
5.3 Mean and Standard Deviation of a Discrete Random Variable 187
Case Study 5–1 All State Lottery 189
5.4 The Binomial Probability Distribution 193
5.5 The Hypergeometric Probability Distribution 203
5.6 The Poisson Probability Distribution 206
Case Study 5–2 Global Birth and Death Rates 210
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER6 Continuous Random Variables and


the Normal Distribution 227
6.1 Continuous Probability Distribution and the Normal Probability Distribution 228
Case Study 6–1 Distribution of Time Taken to Run a Road Race 231
6.2 Standardizing a Normal Distribution 242
6.3 Applications of the Normal Distribution 247
6.4 Determining the z and x Values When an Area Under the Normal Distribution
Curve Is Known 252
6.5 The Normal Approximation to the Binomial Distribution 257
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Appendix 6.1 / Self-Review Test /
Technology Instructions / Technology Assignments

CHAPTER 7 Sampling Distributions 275


7.1 Sampling Distribution, Sampling Error, and Nonsampling Errors 276
7.2 Mean and Standard Deviation of x 281
xiv Contents

7.3 Shape of the Sampling Distribution of x 283


7.4 Applications of the Sampling Distribution of x 289
7.5 Population and Sample Proportions; and thḙ Mean, Standard Deviation,
and Shape of the Sampling Distribution of p 293
̭
7.6 Applications of the Sampling Distribution of p 299
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 8 Estimation of the Mean and Proportion 311


8.1 Estimation, Point Estimate, and Interval Estimate 312
8.2 Estimation of a Population Mean: σ Known 315
Case Study 8–1 Annual Salaries of Registered Nurses, 2014 319
8.3 Estimation of a Population Mean: σ Not Known 324
8.4 Estimation of a Population Proportion: Large Samples 331
Case Study 8–2 Americans’ Efforts to Lose Weight Still Trail Desires 334
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 9 Hypothesis Tests About the Mean and Proportion 346


9.1 Hypothesis Tests: An Introduction 347
9.2 Hypothesis Tests About μ: σ Known 354
Case Study 9–1 Average Student Loan Debt for the Class of 2013 364
9.3 Hypothesis Tests About μ: σ Not Known 367
9.4 Hypothesis Tests About a Population Proportion: Large Samples 375
Case Study 9–2 Are Upper-Income People Paying Their Fair Share in Federal Taxes? 382
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER10 Estimation and Hypothesis Testing:


Two Populations 396
10.1 Inferences About the Difference Between Two Population Means
for Independent Samples: σ1 and σ2 Known 397
10.2 Inferences About the Difference Between Two Population Means
for Independent Samples: σ1 and σ2 Unknown but Equal 404
10.3 Inferences About the Difference Between Two Population Means
for Independent Samples: σ1 and σ2 Unknown and Unequal 411
10.4 Inferences About the Mean of Paired Samples (Dependent Samples) 416
10.5 Inferences About the Difference Between Two Population Proportions
for Large and Independent Samples 425
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 11 Chi-Square Tests 448


11.1 The Chi-Square Distribution 449
11.2 A Goodness-of-Fit Test 451
Case Study 11–1 Are People on Wall Street Honest and Moral? 457
Contents xv

11.3 A Test of Independence or Homogeneity 459


11.4 Inferences About the Population Variance 469
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 12 Analysis of Variance 483


12.1 The F Distribution 484
12.2 One-Way Analysis of Variance 486
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 13 Simple Linear Regression 502


13.1 Simple Linear Regression 503
Case Study 13–1 Regression of Weights on Heights for NFL Players 512
13.2 Standard Deviation of Errors and Coefficient of Determination 517
13.3 Inferences About B 524
13.4 Linear Correlation 528
13.5 Regression Analysis: A Complete Example 533
13.6 Using the Regression Model 539
Uses and Misuses / Glossary / Supplementary Exercises / Advanced Exercises / Self-Review Test / Technology
Instructions / Technology Assignments

CHAPTER 14 Multiple Regression


This chapter is not included in this text but is available for download from WileyPLUS or from
www.wiley.com/college/mann.

CHAPTER 15 Nonparametric Methods


This chapter is not included in this text but is available for download from WileyPLUS or from
www.wiley.com/college/mann.

APPENDIX A Explanation of Data Sets A1

APPENDIX B Statistical Tables B1

ANSWERS TO SELECTED ODD-NUMBERED EXERCISES AND SELF-REVIEW TESTS AN1

INDEX I1
C H AP TE R

1
© Carol Thacker/iStockphoto

Introduction
Are you, as an American, thriving in your life? Or are you struggling? Or, even worse, are you suffering? 1.1 Statistics and Types of
A poll of 176,903 American adults, aged 18 and older, was conducted January 2 to December 30, 2014, Statistics
as part of the Gallup-Healthways Well-Being Index survey. The poll found that while 54.1% of these Case Study 1–1 2014
Americans said that they were thriving, 42.1% indicated that they were struggling, and 3.8% mentioned Lobbying Spending by
that they were suffering. (See Case Study 1–2.) Selected Companies
Case Study 1–2 Americans’
The study of statistics has become more popular than ever over the past four decades. The increas- Life Outlook, 2014
ing availability of computers and statistical software packages has enlarged the role of statistics as 1.2 Basic Terms
a tool for empirical research. As a result, statistics is used for research in almost all professions, from
1.3 Types of Variables
medicine to sports. Today, college students in almost all disciplines are required to take at least one
1.4 Cross-Section Versus
statistics course. Almost all newspapers and magazines these days contain graphs and stories on
Time-Series Data
statistical studies. After you finish reading this book, it should be much easier to understand these
1.5 Population Versus Sample
graphs and stories.
1.6 Design of Experiments
Every field of study has its own terminology. Statistics is no exception. This introductory chapter
1.7 Summation Notation
explains the basic terms and concepts of statistics. These terms and concepts will bridge our under-
standing of the concepts and techniques presented in subsequent chapters.

1
2 Chapter 1 Introduction

1.1 Statistics and Types of Statistics


In this section we will learn about statistics and types of statistics.

1.1.1 What Is Statistics?


The word statistics has two meanings. In the more common usage, statistics refers to numerical
facts. The numbers that represent the income of a family, the age of a student, the percentage of
passes completed by the quarterback of a football team, and the starting salary of a typical college
graduate are examples of statistics in this sense of the word. A 1988 article in U.S. News & World
Report mentioned that “Statistics are an American obsession.”1 During the 1988 baseball World
Series between the Los Angeles Dodgers and the Oakland A’s, the then NBC commentator Joe
Garagiola reported to the viewers numerical facts about the players’ performances. In response,
fellow commentator Vin Scully said, “I love it when you talk statistics.” In these examples, the
word statistics refers to numbers.
The following examples present some statistics:
1. During March 2014, a total of 664,000,000 hours were spent by Americans watching March
Madness live on TV and/or streaming (Fortune Magazine, March 15, 2015).
2. Approximately 30% of Google’s employees were female in July 2014 (USA TODAY, July 24,
2014).
3. According to an estimate, an average family of four living in the United States needs $130,357
a year to live the American dream (USA TODAY, July 7, 2014).
4. Chicago’s O’Hare Airport was the busiest airport in 2014, with a total of 881,933 flight
arrivals and departures.
5. In 2013, author James Patterson earned $90 million from the sale of his books (Forbes,
September 29, 2014).
6. About 22.8% of U.S. adults do not have a religious affiliation (Time, May 25, 2015).
7. Yahoo CEO Marissa Mayer was the highest paid female CEO in America in 2014, with a
total compensation of $42.1 million.
The second meaning of statistics refers to the field or discipline of study. In this sense of the
word, statistics is defined as follows.

Statistics Statistics is the science of collecting, analyzing, presenting, and interpreting data,
as well as of making decisions based on such analyses.

Every day we make decisions that may be personal, business related, or of some other kind.
Usually these decisions are made under conditions of uncertainty. Many times, the situations or
problems we face in the real world have no precise or definite solution. Statistical methods help
us make scientific and intelligent decisions in such situations. Decisions made by using statistical
methods are called educated guesses. Decisions made without using statistical (or scientific)
methods are pure guesses and, hence, may prove to be unreliable. For example, opening a large
store in an area with or without assessing the need for it may affect its success.
Like almost all fields of study, statistics has two aspects: theoretical and applied. Theoretical
or mathematical statistics deals with the development, derivation, and proof of statistical theo-
rems, formulas, rules, and laws. Applied statistics involves the applications of those theorems,
formulas, rules, and laws to solve real-world problems. This text is concerned with applied sta-
tistics and not with theoretical statistics. By the time you finish studying this book, you will have
learned how to think statistically and how to make educated guesses.

1.1.2 Types of Statistics


Broadly speaking, applied statistics can be divided into two areas: descriptive statistics and
inferential statistics.
1
“The Numbers Racket: How Polls and Statistics Lie,” U.S. News & World Report, July 11, 1988, pp. 44–47.
CASE STUDY 1–1
2014 LOBBYING SPENDING BY SELECTED COMPANIES 2014 LOBBYING
SPENDING
AT&T Inc. $14,200,000 BY SELECTED
COMPANIES
Comcast Corp. $17,000,000

Google $16,800,000

Time Warner Cable $7,800,000

Verizon $13,300,000

Data source: Fortune Magazine, June 1, 2015

The accompanying chart shows the lobbying spending by five selected companies during 2014. Many com-
panies spend millions of dollars to win favors in Washington. According to Fortune Magazine of June 1, 2015,
“Comcast has remained one of the biggest corporate lobbyists in the country.” In 2014, Comcast spent
$17 million, Google spent $16.8 million, AT&T spent $14.2 million, Verizon spent $13.3 million, and Time
Warner Cable spent $7.8 million on lobbying. These numbers simply describe the total amounts spent by
these companies on lobbying. We are not drawing any inferences, decisions, or predictions from these data.
Hence, this data set and its presentation is an example of descriptive statistics.

Descriptive Statistics
Suppose we have information on the test scores of students enrolled in a statistics class. In statis-
tical terminology, the whole set of numbers that represents the scores of students is called a data
set, the name of each student is called an element, and the score of each student is called an
observation. (These terms are defined in more detail in Section 1.2.)
Many data sets in their original forms are usually very large, especially those collected by
federal and state agencies. Consequently, such data sets are not very helpful in drawing conclu-
sions or making decisions. It is easier to draw conclusions from summary tables and diagrams
than from the original version of a data set. So, we summarize data by constructing tables, draw-
ing graphs, or calculating summary measures such as averages. The portion of statistics that helps
us do this type of statistical analysis is called descriptive statistics.

Descriptive Statistics Descriptive statistics consists of methods for organizing, displaying,


and describing data by using tables, graphs, and summary measures.

Chapters 2 and 3 discuss descriptive statistical methods. In Chapter 2, we learn how to con-
struct tables and how to graph data. In Chapter 3, we learn how to calculate numerical summary
measures, such as averages.
Case Study 1–1 presents an example of descriptive statistics.

Inferential Statistics
In statistics, the collection of all elements of interest is called a population. The selection of a
portion of the elements from this population is called a sample. (Population and sample are
discussed in more detail in Section 1.5.)
3
CASE STUDY 1–2
AMERICANS’ LIFE AMERICAN’S LIFE OUTLOOK 2014
OUTLOOK, 2014 Suffering
3.8%
INSU
FFIC
FUN IENT
DS

Struggling Thriving
42.1% 54.1%
ICE
F NOT
LAYOF rm you that yoouurr
et to info eliminated.
We regr
has been
position

Margin
Marg of sampling error ±1%

Data source: Gallup-Healthways Well-Being Index

A poll of 176,903 American adults, aged 18 and older, was conducted January 2 to December 30, 2014,
as part of the Gallup-Healthways Well-Being Index survey. Gallup and Healthways have been “tracking
Americans’ life evaluations daily” since 2008. According to this poll, in 2014, Americans’ outlook on life
was the best in seven years, as 54.1% “rated their lives highly enough to be considered thriving,” 42.1%
said they were struggling, and 3.8% mentioned that they were suffering. As mentioned in the chart, the
margin of sampling error was ±1%. In Chapter 8, we will discuss the concept of margin of error, which can
be combined with these percentages when making inferences. As we notice, the results described in the
chart are obtained from a poll of 176,903 adults. We will learn in later chapters how to apply these results
to the entire population of adults. Such decision making about the population based on sample results is
called inferential statistics.

A major portion of statistics deals with making decisions, inferences, predictions, and fore-
casts about populations based on results obtained from samples. For example, we may make
some decisions about the political views of all college and university students based on the polit-
ical views of 1000 students selected from a few colleges and universities. As another example, we
may want to find the starting salary of a typical college graduate. To do so, we may select 2000
recent college graduates, find their starting salaries, and make a decision based on this informa-
tion. The area of statistics that deals with such decision-making procedures is referred to as
inferential statistics. This branch of statistics is also called inductive reasoning or inductive
statistics.

Inferential Statistics Inferential statistics consists of methods that use sample results to help
make decisions or predictions about a population.

Case Study 1–2 presents an example of inferential statistics. It shows the results of a survey
in which American adults were asked about their opinions about their lives.
Chapters 8 through 15 and parts of Chapter 7 deal with inferential statistics.
Probability, which gives a measurement of the likelihood that a certain outcome will occur,
acts as a link between descriptive and inferential statistics. Probability is used to make statements
about the occurrence or nonoccurrence of an event under uncertain conditions. Probability and
probability distributions are discussed in Chapters 4 through 6 and parts of Chapter 7.
4
1.2 Basic Terms 5

EXE RC I S E S
CONCEPT S AND PROCEDURES b. The following table gives the earnings of the world’s top seven
female professional athletes for the year 2014 (ceoworld.biz).
1.1 Briefly describe the two meanings of the word statistics.
1.2 Briefly explain the types of statistics.
2014 Earnings
Female Professional Athlete (millions of dollars)
APPLI C AT IO NS
1.3 Which of the following is an example of descriptive statistics Maria Sharapova 24.4
and which is an example of inferential statistics? Explain. Li Na 23.6
a. In a survey by Fortune Magazine and SurveyMonkey, partici- Serena Williams 22.0
pants were asked what was the most important factor when Kim Yuna 16.3
purchasing groceries (Fortune, June 1, 2015). The following
Danica Patrick 15.0
table lists the summary of the responses of these participants.
Assume that the maximum margin of error is ±1.5%. Victoria Azarenka 11.1
Caroline Wozniacki 10.8
Factor Percent of Respondents

Price 42.4
Nutrition 36.0
Absence of additives 16.4
Number of calories 3.8
Carbon footprint 1.5

1.2 Basic Terms


It is very important to understand the meaning of some basic terms that will be used frequently
in this text. This section explains the meaning of an element (or member), a variable, an observa-
tion, and a data set. An element and a data set were briefly defined in Section 1.1. This section
defines these terms formally and illustrates them with the help of an example.
Table 1.1 gives information, based on Forbes magazine, on the total wealth of the world’s
eight richest persons as of March 2015. Each person listed in this table is called an element or a
member of this group. Table 1.1 contains information on eight elements. Note that elements are
also called observational units.

Element or Member An element or member of a sample or population is a specific subject or object


(for example, a person, firm, item, state, or country) about which the information is collected.

Table 1.1 Total Wealth of the World’s Eight Richest


Persons

Total Wealth Variable


Name (billions of dollars)

Bill Gates 79.2


Carlos Slim Helu 77.1
{
An element
or member
Warren Buffett
Amancio Ortega
72.7
64.5
{ An observation or
measurement

Larry Ellison 54.3


Charles Koch 42.9
David Koch 42.9
Christy Walton 41.7
Source: Forbes, March 23, 2015.
6 Chapter 1 Introduction

The total wealth in our example is called a variable. The total wealth is a characteristic of these
persons on which information is collected.

Variable A variable is a characteristic under study that assumes different values for different
elements. In contrast to a variable, the value of a constant is fixed.

A few other examples of variables are household incomes, the number of houses built in a
city per month during the past year, the makes of cars owned by people, the gross profits of com-
panies, and the number of insurance policies sold by a salesperson per day during the past month.
In general, a variable assumes different values for different elements, as illustrated by the
total wealth for the eight persons in Table 1.1. For some elements in a data set, however, the
values of the variable may be the same. For example, if we collect information on incomes of
households, these households are expected to have different incomes, although some of them
may have the same income.
A variable is often denoted by x, y, or z. For instance, in Table 1.1, the total wealth for per-
sons may be denoted by any one of these letters. Starting with Section 1.7, we will begin to use
these letters to denote variables.
Each of the values representing the total wealths of the eight persons in Table 1.1 is called an
observation or measurement.

Observation or Measurement The value of a variable for an element is called an observation


or measurement.

From Table 1.1, the total wealth of Warren Buffett was $72.7 billion. The value $72.7 billion is an
observation or a measurement. Table 1.1 contains eight observations, one for each of the eight persons.
The information given in Table 1.1 on the total wealth of the eight richest persons is called
the data or a data set.

Data Set A data set is a collection of observations on one or more variables.

Other examples of data sets are a list of the prices of 25 recently sold homes, test scores of
15 students, opinions of 100 voters, and ages of all employees of a company.

EXE R CI S E S
CON CE PTS AND PROCEDURES Briefly explain the meaning of a member, a variable, a measurement,
and a data set with reference to the information in this table.
1.4 Explain the meaning of an element, a variable, an observation,
and a data set. 1.6 The following table lists the number of deaths by cause as
reported by the Centers for Disease Control and Prevention on
APPLI CAT IO NS February 6, 2015 (Source: www.cdc.gov).

1.5 The following table lists the number of deaths by cause as Cause of Death Number of Deaths
reported by the Centers for Disease Control and Prevention on
February 6, 2015 (Source: www.cdc.gov). Heart disease 611,105
Cancer 584,881
Cause of Death Number of Deaths
Accidents 130,557
Heart disease 611,105 Stroke 128,978
Cancer 584,881 Alzheimer’s disease 84,767
Accidents 130,557 Diabetes 75,578
Stroke 128,978 Influenza and Pneumonia 56,979
Alzheimer’s disease 84,767 Suicide 41,149
Diabetes 75,578
Influenza and Pneumonia 56,979 a. What is the variable for this data set?
Suicide 41,149 b. How many observations are in this data set?
c. How many elements does this data set contain?
1.3 Types of Variables 7

1.3 Types of Variables


In Section 1.2, we learned that a variable is a characteristic under investigation that assumes differ-
ent values for different elements. Family income, height of a person, gross sales of a company, price
of a college textbook, make of the car owned by a family, number of accidents, and status (fresh-
man, sophomore, junior, or senior) of a student enrolled at a university are examples of variables.
A variable may be classified as quantitative or qualitative. These two types of variables are
explained next.

1.3.1 Quantitative Variables


Some variables (such as the price of a home) can be measured numerically, whereas others (such
as hair color) cannot. The price of a home is an example of a quantitative variable while hair
color is an example of a qualitative variable.

Quantitative Variable A variable that can be measured numerically is called a quantitative


variable. The data collected on a quantitative variable are called quantitative data.

Income, height, gross sales, price of a home, number of cars owned, and number of accidents
are examples of quantitative variables because each of them can be expressed numerically. For
instance, the income of a family may be $81,520.75 per year, the gross sales for a company may
be $567 million for the past year, and so forth. Such quantitative variables may be classified as
either discrete variables or continuous variables.

Discrete Variables
The values that a certain quantitative variable can assume may be countable or noncountable. For
example, we can count the number of cars owned by a family, but we cannot count the height of
a family member, as it is measured on a continuous scale. A variable that assumes countable
values is called a discrete variable. Note that there are no possible intermediate values between
consecutive values of a discrete variable.

Discrete Variable A variable whose values are countable is called a discrete variable. In other
words, a discrete variable can assume only certain values with no intermediate values.

For example, the number of cars sold on any given day at a car dealership is a discrete vari-
able because the number of cars sold must be 0, 1, 2, 3, . . . and we can count it. The number of
cars sold cannot be between 0 and 1, or between 1 and 2. Other examples of discrete variables are
the number of people visiting a bank on any day, the number of cars in a parking lot, the number
of cattle owned by a farmer, and the number of students in a class.

Continuous Variables
Some variables assume values that cannot be counted, and they can assume any numerical value
between two numbers. Such variables are called continuous variables.

Continuous Variable A variable that can assume any numerical value over a certain interval or
intervals is called a continuous variable.

The time taken to complete an examination is an example of a continuous variable because


it can assume any value, let us say, between 30 and 60 minutes. The time taken may be 42.6 min-
utes, 42.67 minutes, or 42.674 minutes. (Theoretically, we can measure time as precisely as we
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