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Chapter 1
Objectives
This chapter introduces the field of statistics by linking statistical thinking
to the understanding and management of variability.
Upon completion of this chapter you should understand:
 The difference between samples and populations.
 The difference between categorical and numerical variables.
 The difference between discrete numerical and continuous numerical
variables.
 The difference between various sampling approaches.
Read the entire chapter. Note: Software installation and how to configure
your EXCEL is discussed on page 574. Also there is an EXCEL overview
at the end of chapter one.
October 24, 2005
Chapter 2
Objectives
This chapter discusses the importance of tables and charts for everyday
business decision - making and for improving processes. You will learn to
create and understand a variety of charts that can be used to summarize data
obtained from continuous or discrete variables.
Upon completion of this chapter you should be able to:
 Given a numerical data set, be able to prepare by hand a stem-leaf
display, frequency distribution, relative frequency distribution,
cumulative percentage distribution, histogram, polygon, or a cumulative
percentage polygon. And if appropriate, be able to create by hand a
time series plot.
 Given a categorical data set, create by hand a summary table, bar
chart, Pareto diagram, and pie chart.
 Given a data set with two categorical variables, be able to prepare by
hand a contingency table and a side by side chart.
 Given two numerical variables, be able to create by hand a scatter
diagram.
 Use EXCEL to do the above.
Read all pages in the chapter.
October 24, 2005
Chapter 3
Objectives
This chapter describes the characteristics and properties of a variety of
measures of central tendency, variability, and skewness. It also illustrates
the use of the box-and-whisker plot as a graphical representation that can
used to assess skewness and identify outliers.
Upon completion of this chapter you should understand:
 Measures of central tendency including the mean, median, and mode; be
able to calculate these measures by hand.
 Measures of variation including the range, inter-quartile range, and
standard deviation; be able to calculate these measures by hand.
 The concepts behind the box-and-whisker plot; be able to create the
box-and-whisker plot by hand.
 Be able to use the box-and-whisker plot to chose between the measures
in 1 and 2 above based on skewness and outliers. Also be able to
compare the characteristics of two or more groups using the
box-and-whisker plot.
 Additional measures of central tendency and variation include the
coefficient of variation, z scores, and variance; be able to calculate these
by hand.
 Also be able to calculate the population mean and population standard
deviation.
 Use EXCEL to do the above.
 (No need to calculate the geometric mean or Chebyshev Rule)
Read all pages in the chapter.
October 24, 2005
Chapter 4
Objectives
This chapter helps you to understand the basic concepts of probability and
probability distributions.
Upon completion of this chapter you should be able to:
 Given a simple word problem, be able to use the rules for finding
various probabilities and establishing independence.
(No need to do 4.3 Bayes Theorem or 4.4 Counting Rules)
Read pages 122 to 159.
October 24, 2005
Chapter 5 and 6
Objectives
Omit Chapter 5. Chapter 6 helps you to understand the basic concepts of
the normal distribution.
Upon completion of chapter 6 you should be able to:
 Given a word problem, be able to find probabilities using the normal
curve table.
 Use EXCEL to assess whether a distribution is normal.
Read all pages in chapter 6.
October 24, 2005
Chapter 7
Objectives
This chapter explains sampling distributions and their measures.
Upon completion of this chapter, you should be able to:
 Be able to calculate the mean, standard error, and variance of the
sampling distribution for a mean or proportion.
 Given a word problem, be able to find probabilities for the sampling
distributions using the normal table.
 Be able to contrast and identify the four types of sampling methods
presented in 7.4
 Be able to contrast and identify the four types of survey errors presented
in 7.5
 Be able to take a simple random sample.
Read all pages in chapter 7.
October 24, 2005
Chapter 8
Objectives
This chapter explains interval estimates of the population means and
proportions using confidence intervals.
Upon completion of this chapter, you should be able to:
 Interpret the meaning of a confidence interval estimate.
 Set up confidence interval estimates of the mean both when sigma is
known and unknown.
 Set up confidence interval estimates the proportion.
 Determine the necessary sample size for a given level of error when
estimating means and proportions.
Read all pages in chapter 8.
October 24, 2005
Chapter 14
Objectives
This chapter explains the underlying theory of quality control charts and the
circumstances in which they should be used.
Upon completion of this chapter you should to be able to:
 Understand Deming's 14 points.
 Understand how and why control charts are used.
 Be able to decide if a process is out of control.
 Given appropriate data, be able to create the p, range, and mean charts;
also understand the differences between them.
 Use EXCEL to do the above.
Read all pages in this chapter except section 14.5.
October 24, 2005
Chapters 9 to 11
Objectives
To develop an understanding of the hypothesis testing approach so that
conclusions can be reached on important questions like whether two or
more groups differ in their means or proportions.
Upon completion of this chapter, you should be able to:
 Formulate the null and alternative hypotheses.
 Distinguish between the risks of Type I and Type II errors.
 Understand and be able to test one and two tail hypotheses.
 Be able to use the one sample Z and t tests to determine if the mean or
proportion of a population is as hypothesized. Be able to calculate the pvalue for Z tests.
 Use the single factor Analysis of Variance to examine differences in the
means of two or more groups. Also be able to use the Tukey-Kramer
procedure. No need to know Levene's test.
 Use the chi-square test to determine whether differences exist in the
proportions in two or more groups and if necessary use the Marasculio
procedure.
 Use EXCEL to do these tests.
Read all of chapter 9 and chapter 11 sections 1 and 2 plus pages 346 to 360.
October 24, 2005
Chapters 12 to 13
Objectives
These chapters explain the forecasting models used for predicting one
variable from one or more other variables, what the assumptions of these
models are, and how these assumptions may be evaluated. Upon
completion of this chapter you should be able to:
 Interpret the regression coefficients obtained by using the least square method in
EXCEL. No need to calculate the regression coefficients by hand.
 Use regression to estimate both causal and time series models including the use of
dummy variables shown in 13.5.
 Interpret the coefficients of determination, correlation, r squared, and r squared
adjusted. No need to know the t test on correlation in section 12.7
 Interpret the standard error of the estimate.
 Use residual analysis to determine whether the appropriate model has been fit to a
set of data.
 Evaluate the validity of regression assumptions including testing using the Durbin
Watson statistic (and VIF - not in the book).
 Test regression hypotheses about the slope and about overall regression model fit.
 Be able to make forecasts; be able to place confidence intervals on the forecasts
using EXCEL (not by hand).
 Use EXCEL to do all the above.
Read all of 12 and 13 except 12.7 and 13.6
October 24, 2005