(Original PDF) Basic Business

Statistics 14th Edition by Mark L.

Berenson
Visit to download the full and correct content document:
https://ebooksecure.com/download/original-pdf-basic-business-statistics-14th-edition-
by-mark-l-berenson/
 To our spouses and children,
Rhoda, Marilyn, Mary, Kathy, Lori, Sharyn, and Mark

and to our parents, in loving memory,

Nat, Ethel, Lee, Reuben, Mary, William, Ruth and Francis J.
About the Authors
Mark L. Berenson, David M. Levine, Kathryn A. Szabat, and
David F. Stephan are all experienced business school educators
committed to innovation and improving instruction in business sta-
tistics and related subjects.
Mark L. Berenson is Professor of Information Management and
Business Analytics at Montclair State University and also Professor
Emeritus of Information Systems and Statistics at Baruch College.
He currently teaches graduate and undergraduate courses in statis-
tics and in operations management in the School of Business and an
undergraduate course in international justice and human rights that
he co-developed in the College of Humanities and Social Sciences.
Kathryn Szabat, David Levine, Mark Berenson,
and David Stephan Berenson received a B.A. in economic statistics and an M.B.A. in
business statistics from City College of New York and a Ph.D. in
business from the City University of New York. Berenson’s research has been published in Decision
Sciences Journal of Innovative Education, Review of Business Research, The American Statistician,
Communications in Statistics, Psychometrika, Educational and Psychological Measurement,
Journal of Management Sciences and Applied Cybernetics, Research Quarterly, Stats Magazine,
The New York Statistician, Journal of Health Administration Education, Journal of Behavioral
Medicine, and Journal of Surgical Oncology. His invited articles have appeared in The Encyclopedia
of Measurement & Statistics and Encyclopedia of Statistical Sciences. He has coauthored numerous
statistics texts published by Pearson.
Over the years, Berenson has received several awards for teaching and for innovative contributions
to statistics education. In 2005, he was the first recipient of the Catherine A. Becker Service for
Educational Excellence Award at Montclair State University and, in 2012, he was the recipient of
the Khubani/Telebrands Faculty Research Fellowship in the School of Business.
David Levine, Professor Emeritus of Statistics and CIS at Baruch College, CUNY, is a nationally
recognized innovator in statistics education for more than three decades. Levine has coauthored
14 books, including several business statistics textbooks; textbooks and professional titles that
explain and explore quality management and the Six Sigma approach; and, with David Stephan,
a trade paperback that explains statistical concepts to a general audience. Levine has presented
or chaired numerous sessions about business education at leading conferences conducted by the
Decision Sciences Institute (DSI) and the American Statistical Association, and he and his coauthors
have been active participants in the annual DSI Data, Analytics, and Statistics Instruction (DASI)
mini-conference. During his many years teaching at Baruch College, Levine was recognized for
his contributions to teaching and curriculum development with the College’s highest distinguished
teaching honor. He earned B.B.A. and M.B.A. degrees from CCNY. and a Ph.D. in industrial engi-
neering and operations research from New York University.
As Associate Professor of Business Systems and Analytics at La Salle University, Kathryn Szabat
has transformed several business school majors into one interdisciplinary major that better sup-
ports careers in new and emerging disciplines of data analysis including analytics. Szabat strives
to inspire, stimulate, challenge, and motivate students through innovation and curricular enhance-
ments, and shares her coauthors’ commitment to teaching excellence and the continual improvement
of statistics presentations. Beyond the classroom she has provided statistical advice to numerous
business, nonbusiness, and academic communities, with particular interest in the areas of education,
medicine, and nonprofit capacity building. Her research activities have led to journal publications,
chapters in scholarly books, and conference presentations. Szabat is a member of the American
Statistical Association (ASA), DSI, Institute for Operation Research and Management Sciences
(INFORMS), and DSI DASI. She received a B.S. from SUNY-Albany, an M.S. in statistics from the
Wharton School of the University of Pennsylvania, and a Ph.D. degree in statistics, with a cognate
in operations research, from the Wharton School of the University of Pennsylvania.
viii
 ABOUT THE AUTHORS ix

Advances in computing have always shaped David Stephan’s professional life. As an under-
graduate, he helped professors use statistics software that was considered advanced even though
it could compute only several things discussed in Chapter 3, thereby gaining an early appreciation
for the benefits of using software to solve problems (and perhaps positively influencing his grades).
An early advocate of using computers to support instruction, he developed a prototype of a main-
frame-based system that anticipated features found today in Pearson’s MathXL and served as spe-
cial assistant for computing to the Dean and Provost at Baruch College. In his many years teaching
at Baruch, Stephan implemented the first computer-based classroom, helped redevelop the CIS
curriculum, and, as part of a FIPSE project team, designed and implemented a multimedia learning
environment. He was also nominated for teaching honors. Stephan has presented at SEDSI and DSI
DASI (formerly MSMESB) mini-conferences, sometimes with his coauthors. Stephan earned a
B.A. from Franklin & Marshall College and an M.S. from Baruch College, CUNY, and completed
the instructional technology graduate program at Teachers College, Columbia University.
For all four coauthors, continuous improvement is a natural outcome of their curiosity about the
world. Their varied backgrounds and many years of teaching experience have come together to
shape this book in ways discussed in the Preface.
 This page intentionally left blank

A01_THOM6233_05_SE_WALK.indd 9 1/13/17 6:50 PM

 Brief Contents

Preface xxiv
First Things First 1
1 Defining and Collecting Data 16
2 Organizing and Visualizing Variables 41
3 Numerical Descriptive Measures 120
4 Basic Probability 168
5 Discrete Probability Distributions 199
6 The Normal Distribution and Other Continuous Distributions 223
7 Sampling Distributions 252
8 Confidence Interval Estimation 275
9 Fundamentals of Hypothesis Testing: One-Sample Tests 311
10 Two-Sample Tests 351
11 Analysis of Variance 398
12 Chi-Square and Nonparametric Tests 440
13 Simple Linear Regression 484
14 Introduction to Multiple Regression 536
15 Multiple Regression Model Building 592
16 Time-Series Forecasting 629
17 Business Analytics 678
18 Getting Ready to Analyze Data in the Future 704
19 Statistical Applications in Quality Management (online) 19-1
20 Decision Making (online) 20-1
Appendices A-H 711
Self-Test Solutions and Answers to Selected Even-Numbered
Problems 761
Index 793
Credits 805

xi
 This page intentionally left blank

A01_THOM6233_05_SE_WALK.indd 9 1/13/17 6:50 PM

Contents

Preface xxiv 1.3 Types of Sampling Methods 21

Simple Random Sample 22
Systematic Sample 22
First Things First 1 Stratified Sample 23
Cluster Sample 23

USING STATISTICS: “The Price of Admission” 1 1.4 Data Cleaning 24

Invalid Variable Values 25
FTF.1 Think Differently About Statistics 2
Coding Errors 25
Statistics: A Way of Thinking 2
Data Integration Errors 25
Statistics: An Important Part of Your Business Education 3
Missing Values 26
FTF.2 Business Analytics: The Changing Face of Statistics 4
Algorithmic Cleaning of Extreme Numerical Values 26
“Big Data” 4
1.5 Other Data Preprocessing Tasks 26
FTF.3 Starting Point for Learning Statistics 5
Data Formatting 26
Statistic 5
Stacking and Unstacking Data 27
Can Statistics (pl., statistic) Lie? 6
Recoding Variables 27
FTF.4 Starting Point for Using Software 6
Using Software Properly 8 1.6 Types of Survey Errors 28
REFERENCES 9 Coverage Error 28
KEY TERMS 9 Nonresponse Error 28
EXCEL GUIDE 10 Sampling Error 28
EG.1 Getting Started with Excel 10 Measurement Error 29
EG.2 Entering Data 10 Ethical Issues About Surveys 29
EG.3 Open or Save a Workbook 10
CONSIDER THIS: New Media Surveys/Old Survey
EG.4 Working with a Workbook 11
Errors 29
EG.5 Print a Worksheet 11
EG.6 Reviewing Worksheets 11 USING STATISTICS: Defining Moments, Revisited 31
EG.7 If You Use the Workbook Instructions 11 SUMMARY 31
JMP GUIDE 12 REFERENCES 31
JG.1 Getting Started with JMP 12
KEY TERMS 31
JG.2 Entering Data 13
CHECKING YOUR UNDERSTANDING 32
JG.3 Create New Project or Data Table 13
JG.4 Open or Save Files 13 CHAPTER REVIEW PROBLEMS 32
JG.5 Print Data Tables or Report Windows 13
CASES FOR CHAPTER 1 33
JG.6 JMP Script Files 13
Managing Ashland MultiComm Services 33
MINITAB GUIDE 14
MG.1 Getting Started with Minitab 14
CardioGood Fitness 33
MG.2 Entering Data 14 Clear Mountain State Student Survey 34
MG.3 Open or Save Files 14 Learning with the Digital Cases 34
MG.4 Insert or Copy Worksheets 15
MG.5 Print Worksheets 15
CHAPTER 1 EXCEL GUIDE 35
EG1.1 Defining Variables 35
EG1.2 Collecting Data 35
1 Defining and Collecting Data 16 EG1.3 Types of Sampling Methods 35
EG1.4 Data Cleaning 36
EG1.5 Other Data Preprocessing 36
USING STATISTICS: Defining Moments 16
1.1 Defining Variables 17 CHAPTER 1 JMP GUIDE 37
Classifying Variables by Type 17 JG1.1 Defining Variables 37
Measurement Scales 18 JG1.2 Collecting Data 37
1.2 Collecting Data 19 JG1.3 Types of Sampling Methods 37
Populations and Samples 20 JG1.4 Data Cleaning 38
Data Sources 20 JG1.5 Other Preprocessing Tasks 39

xiii
xiv CONTENTS

CHAPTER 1 MINITAB GUIDE 39 CASES FOR CHAPTER 2 88

MG1.1 Defining Variables 39 Managing Ashland MultiComm Services 88
MG1.2 Collecting Data 39 Digital Case 88
MG1.3 Types of Sampling Methods 39 CardioGood Fitness 89
MG1.4 Data Cleaning 40
The Choice Is Yours Follow-Up 89
MG1.5 Other Preprocessing Tasks 40
Clear Mountain State Student Survey 89
CHAPTER 2 EXCEL GUIDE 90
2 Organizing and Visualizing EG2.1 Organizing Categorical Variables 90
EG2.2 Organizing Numerical Variables 92
Variables 41       Charts Group Reference 94
EG2.3 Visualizing Categorical Variables 94
USING STATISTICS: “The Choice Is Yours” 41 EG2.4 Visualizing Numerical Variables 96
2.1 Organizing Categorical Variables 42 EG2.5 Visualizing Two Numerical Variables 99
The Summary Table 42 EG2.6 Organizing a Mix of Variables 100
The Contingency Table 43 EG2.7 Visualizing a Mix of Variables 101
EG2.8 Filtering and Querying Data 102
2.2 Organizing Numerical Variables 46
The Frequency Distribution 47 CHAPTER 2 JMP GUIDE 102
Classes and Excel Bins 49 JG2   JMP Choices for Creating Summaries 102
The Relative Frequency Distribution and the JG2.1  Organizing Categorical Variables 103
Percentage Distribution 49 JG2.2  Organizing Numerical Variables 104
The Cumulative Distribution 51 JG2.3  Visualizing Categorical Variables 106
2.3 Visualizing Categorical Variables 54 JG2.4  Visualizing Numerical Variables 107
The Bar Chart 54 JG2.5  Visualizing Two Numerical Variables 109
The Pie Chart and the Doughnut Chart 55 JG2.6  Organizing a Mix of Variables 110
The Pareto Chart 56 JG2.7  Visualizing a Mix of Variables 110
Visualizing Two Categorical Variables 58 JG2.8  Filtering and Querying Data 111
      JMP Guide Gallery 112
2.4 Visualizing Numerical Variables 61
The Stem-and-Leaf Display 61 CHAPTER 2 MINITAB GUIDE 113
The Histogram 61 MG2.1 Organizing Categorical Variables 113
The Percentage Polygon 63 MG2.2 Organizing Numerical Variables 113
The Cumulative Percentage Polygon (Ogive) 64 MG2.3 Visualizing Categorical Variables 113
MG2.4 Visualizing Numerical Variables 115
2.5 Visualizing Two Numerical Variables 67
MG2.5 Visualizing Two Numerical Variables 117
The Scatter Plot 67
MG2.6 Organizing a Mix of Variables 118
The Time-Series Plot 68
MG2.7 Visualizing a Mix of Variables 118
2.6 Organizing a Mix of Variables 70 MG2.8 Filtering and Querying Data 119
Drill-down 71
2.7 Visualizing a Mix of Variables 72
Colored Scatter Plot 72 3 Numerical Descriptive
Bubble Charts 73 Measures 120
PivotChart (Excel) 73
Treemap (Excel, JMP) 73
USING STATISTICS: More Descriptive Choices 120
Sparklines (Excel) 74
3.1 Measures of Central Tendency 121
2.8 Filtering and Querying Data 75
The Mean 121
Excel Slicers 75
The Median 123
2.9 Pitfalls in Organizing and Visualizing Variables 77 The Mode 124
Obscuring Data 77 The Geometric Mean 125
Creating False Impressions 78
3.2 Measures of Variation and Shape 126
Chartjunk 79
The Range 126
EXHIBIT: Best Practices for Creating Visual Summaries 80
The Variance and the Standard Deviation 127
USING STATISTICS: “The Choice Is Yours,” Revisited 81 The Coefficient of Variation 130
SUMMARY 81 Z Scores 130
REFERENCES 82 Shape: Skewness 132
Shape: Kurtosis 132
KEY EQUATIONS 82
3.3 Exploring Numerical Variables 137
KEY TERMS 83
Quartiles 137
CHECKING YOUR UNDERSTANDING 83 EXHIBIT: Rules for Calculating the Quartiles from a Set
CHAPTER REVIEW PROBLEMS 83 of Ranked Values 137
 CONTENTS xv

The Interquartile Range 139 4.2 Conditional Probability 178

The Five-Number Summary 139 Computing Conditional Probabilities 178
The Boxplot 141 Decision Trees 179
3.4 Numerical Descriptive Measures for a Population 143 Independence 181
The Population Mean 144 Multiplication Rules 182
The Population Variance and Standard Deviation 144 Marginal Probability Using the General Multiplication Rule 183
The Empirical Rule 145 4.3 Ethical Issues and Probability 185
Chebyshev’s Theorem 146
4.4 Bayes’ Theorem 186
3.5 The Covariance and the Coefficient of Correlation 148
CONSIDER THIS: Divine Providence and Spam 188
The Covariance 148
The Coefficient of Correlation 148 4.5 Counting Rules 189
3.6 Descriptive Statistics: Pitfalls and Ethical Issues 152 USING STATISTICS: Possibilities at M&R Electronics
World, Revisited 192
USING STATISTICS: More Descriptive Choices, Revisited 153 SUMMARY 193
SUMMARY 153 REFERENCES 193
REFERENCES 154 KEY EQUATIONS 193
KEY EQUATIONS 154 KEY TERMS 194
KEY TERMS 154 CHECKING YOUR UNDERSTANDING 194
CHECKING YOUR UNDERSTANDING 155 CHAPTER REVIEW PROBLEMS 194
CHAPTER REVIEW PROBLEMS 155 CASES FOR CHAPTER 4 196
CASES FOR CHAPTER 3 158 Digital Case 196
Managing Ashland MultiComm Services 158 CardioGood Fitness 196
Digital Case 158 The Choice Is Yours Follow-Up 196
CardioGood Fitness 158 Clear Mountain State Student Survey 196
More Descriptive Choices Follow-up 159
CHAPTER 4 EXCEL GUIDE 197
Clear Mountain State Student Survey 159
EG4.1 Basic Probability Concepts 197
CHAPTER 3 EXCEL GUIDE 160 EG4.4 Bayes’ Theorem 197
EG3.1 Measures of Central Tendency 160 EG4.5 Counting Rules 197
EG3.2 Measures of Variation and Shape 161
EG3.3 Exploring Numerical Variables 161 CHAPTER 4 JMP
EG3.4 Numerical Descriptive Measures for a Population 162 JG4.4 Bayes’ Theorem 198
EG3.5 The Covariance and the Coefficient of Correlation 162 CHAPTER 4 MINITAB GUIDE 198
CHAPTER 3 JMP GUIDE 163 MG4.5 Counting Rules 198
JG3.1 Measures of Central Tendency 163
JG3.2 Measures of Variation and Shape 163
JG3.3 Exploring Numerical Variables 164 5 Discrete Probability
JG3.4 Numerical Descriptive Measures for a Population 164 Distributions 199
JG3.5 The Covariance and the Coefficient of Correlation 164
CHAPTER 3 MINITAB GUIDE 165 USING STATISTICS: Events of Interest at Ricknel
MG3.1 Measures of Central Tendency 165 Home Centers 199
MG3.2 Measures of Variation and Shape 166
5.1 The Probability Distribution for a Discrete Variable 200
MG3.3 Exploring Numerical Variables 166
Expected Value of a Discrete Variable 200
MG3.4 Numerical Descriptive Measures for a Population 167
MG3.5 The Covariance and the Coefficient of Correlation 167 Variance and Standard Deviation of a Discrete Variable 201
5.2 Binomial Distribution 204
EXHIBIT: Properties of the Binomial Distribution 204
4 Basic Probability 168 Histograms for Discrete Variables 207
Summary Measures for the Binomial Distribution 208
USING STATISTICS: Possibilities at M&R Electronics 5.3 Poisson Distribution 211
World 168 5.4 Covariance of a Probability Distribution and Its
4.1 Basic Probability Concepts 169 Application in Finance 214
Events and Sample Spaces 169 5.5 Hypergeometric Distribution (online) 214
Types of Probability 170
5.6 Using the Poisson Distribution to Approximate the
Summarizing Sample Spaces 171
Binomial Distribution (online) 214
Simple Probability 172
Joint Probability 173 USING STATISTICS: Events of Interest …. , Revisited 215
Marginal Probability 174 SUMMARY 215
General Addition Rule 174 REFERENCES 215
xvi CONTENTS

KEY EQUATIONS 215 CASES FOR CHAPTER 6 246

KEY TERMS 216 Managing Ashland MultiComm Services 246
CHECKING YOUR UNDERSTANDING 216 CardioGood Fitness 247
CHAPTER REVIEW PROBLEMS 216 More Descriptive Choices Follow-up 247
Clear Mountain State Student Survey 247
CASES FOR CHAPTER 5 218
Digital Case 247
Managing Ashland MultiComm Services 218
Digital Case 218 CHAPTER 6 EXCEL GUIDE 248
EG6.2 The Normal Distribution 248
CHAPTER 5 EXCEL GUIDE 219
EG6.3 Evaluating Normality 248
EG5.1 The Probability Distribution for a Discrete Variable 219
EG5.2 Binomial Distribution 219 CHAPTER 6 JMP GUIDE 249
EG5.3 Poisson Distribution 219 JG6.2 The Normal Distribution 249
JG6.3 Evaluating Normality 249
CHAPTER 5 JMP GUIDE 220
JG5.1 The Probability Distribution for a Discrete Variable 220 CHAPTER 6 MINITAB GUIDE 250
JG5.2 Binomial Distribution 220 MG6.2 The Normal Distribution 250
JG5.3 Poisson Distribution 221 MG6.3 Evaluating Normality 250

CHAPTER 5 MINITAB GUIDE 221

MG5.1 The Probability Distribution for a Discrete Variable 221
MG5.2 Binomial Distribution 222
MG5.3 Poisson Distribution 222
7 Sampling Distributions 252

USING STATISTICS: Sampling Oxford Cereals 252

6 The Normal Distribution 7.1 Sampling Distributions 253
and Other Continuous 7.2 Sampling Distribution of the Mean 253
Distributions 223 The Unbiased Property of the Sample Mean 253
Standard Error of the Mean 255
USING STATISTICS: Normal Load Times at MyTVLab 223 Sampling from Normally Distributed Populations 256
Sampling from Non-normally Distributed Populations—
6.1 Continuous Probability Distributions 224 The Central Limit Theorem 259
6.2 The Normal Distribution 224 EXHIBIT: Normality and the Sampling Distribution of the
EXHIBIT: Normal Distribution Important Theoretical Mean 260
Properties 225 VISUAL EXPLORATIONS: Exploring Sampling
Role of the Mean and the Standard Deviation 226 Distributions 263
Calculating Normal Probabilities 227
7.3 Sampling Distribution of the Proportion 264
VISUAL EXPLORATIONS: Exploring the Normal
Distribution 231
7.4 Sampling from Finite Populations (online) 267
Finding X Values 232 USING STATISTICS: Sampling Oxford Cereals,
Revisited 267
CONSIDER THIS: What Is Normal? 235
SUMMARY 268
6.3 Evaluating Normality 237
REFERENCES 268
Comparing Data Characteristics to Theoretical
Properties 237 KEY EQUATIONS 268
Constructing the Normal Probability Plot 238 KEY TERMS 268
6.4 The Uniform Distribution 241 CHECKING YOUR UNDERSTANDING 269
6.5 The Exponential Distribution (online) 243 CHAPTER REVIEW PROBLEMS 269
6.6 The Normal Approximation to the Binomial CASES FOR CHAPTER 7 270
Distribution (online) 243 Managing Ashland MultiComm Services 270
USING STATISTICS: Normal Load Times … , Revisited 243 Digital Case 271
SUMMARY 243 CHAPTER 7 EXCEL GUIDE 272
REFERENCES 244 EG7.2 Sampling Distribution of the Mean 272
KEY EQUATIONS 244 CHAPTER 7 JMP GUIDE 273
KEY TERMS 244 JG7.2 Sampling Distribution of the Mean 273
CHECKING YOUR UNDERSTANDING 245 CHAPTER 7 MINITAB GUIDE 274
CHAPTER REVIEW PROBLEMS 245 MG7.2 Sampling Distribution of the Mean 274
 CONTENTS xvii

MG8.3 Confidence Interval Estimate for the Proportion 310

8 Confidence Interval MG8.4 Determining Sample Size 310

Estimation 275
USING STATISTICS: Getting Estimates at Ricknel
9 Fundamentals of Hypothesis
Home Centers 275 Testing: One-Sample Tests 311
8.1 Confidence Interval Estimate for the Mean (s Known) 276
Sampling Error 277 USING STATISTICS: Significant Testing at Oxford
Can You Ever Know the Population Standard Deviation? 280 Cereals 311
8.2  onfidence Interval Estimate for the Mean
C 9.1 Fundamentals of Hypothesis Testing 312
(s Unknown) 281 EXHIBIT: Fundamental Hypothesis Testing Concepts 313
Student’s t Distribution 282 The Critical Value of the Test Statistic 313
The Concept of Degrees of Freedom 282 Regions of Rejection and Nonrejection 314
Properties of the t Distribution 282 Risks in Decision Making Using Hypothesis Testing 314
The Confidence Interval Statement 284 Z Test for the Mean (s Known) 316
8.3 Confidence Interval Estimate for the Proportion 289 Hypothesis Testing Using the Critical Value Approach 317
EXHIBIT: The Critical Value Approach to Hypothesis
8.4 Determining Sample Size 292
Testing 318
Sample Size Determination for the Mean 292
Hypothesis Testing Using the p-Value Approach 320
Sample Size Determination for the Proportion 294
EXHIBIT: The p-Value Approach to Hypothesis Testing 321
8.5 Confidence Interval Estimation and Ethical Issues 297 A Connection Between Confidence Interval Estimation
8.6 Application of Confidence Interval Estimation in and Hypothesis Testing 322
Auditing (online) 297 Can You Ever Know the Population Standard Deviation? 323
8.7 Estimation and Sample Size Estimation for Finite 9.2 t Test of Hypothesis for the Mean (s Unknown) 324
Populations (online) 298 The Critical Value Approach 325
8.8 Bootstrapping (online) 298 p-Value Approach 326
Checking the Normality Assumption 327
USING STATISTICS: Getting Estimates …. , Revisited 298
9.3 One-Tail Tests 330
SUMMARY 298
The Critical Value Approach 330
REFERENCES 299
The p-Value Approach 331
KEY EQUATIONS 299 EXHIBIT: The Null and Alternative Hypotheses in One-Tail
KEY TERMS 299 Tests 333
CHECKING YOUR UNDERSTANDING 299 9.4 Z Test of Hypothesis for the Proportion 334
CHAPTER REVIEW PROBLEMS 300 The Critical Value Approach 335
CASES FOR CHAPTER 8 302 The p-Value Approach 336
Managing Ashland MultiComm Services 302 9.5 Potential Hypothesis-Testing Pitfalls and Ethical Issues 338
Digital Case 303 EXHIBIT: Questions for the Planning Stage of Hypothesis
Testing 338
Sure Value Convenience Stores 304
Statistical Significance Versus Practical Significance 338
CardioGood Fitness 304
Statistical Insignificance Versus Importance 339
More Descriptive Choices Follow-Up 304
Reporting of Findings 339
Clear Mountain State Student Survey 304 Ethical Issues 339
CHAPTER 8 EXCEL GUIDE 305 9.6 Power of the Test (online) 339
EG8.1 Confidence Interval Estimate for the Mean (s Known) 305
USING STATISTICS: Significant Testing …. Revisited 340
EG8.2 Confidence Interval Estimate for the Mean (s Unknown) 305
SUMMARY 340
EG8.3 Confidence Interval Estimate for the Proportion 306
REFERENCES 340
EG8.4 Determining Sample Size 306
KEY EQUATIONS 341
CHAPTER 8 JMP GUIDE 307
KEY TERMS 341
JG8.1 Confidence Interval Estimate for the Mean (s Known) 307
JG8.2 Confidence Interval Estimate for the Mean (s Unknown) 307 CHECKING YOUR UNDERSTANDING 341
JG8.3 Confidence Interval Estimate for the Proportion 308 CHAPTER REVIEW PROBLEMS 341
JG8.4 Determining Sample Size 308 CASES FOR CHAPTER 9 343
CHAPTER 8 MINITAB GUIDE 309 Managing Ashland MultiComm Services 343
MG8.1 Confidence Interval Estimate for the Mean (s Known) 309 Digital Case 343
MG8.2 Confidence Interval Estimate for the Mean (s Unknown) 309 Sure Value Convenience Stores 344
xviii CONTENTS
CHPATER 9 EXCEL GUIDE 345
EG9.1 Fundamentals of Hypothesis Testing 345
EG9.2 t Test Of Hypothesis for The Mean (s Unknown) 345
EG9.3 One-Tail Tests 346
EG9.4 Z Test Of Hypothesis For The Proportion 346
CHAPTER 9 JMP GUIDE 347
JG9.1 Fundamentals of Hypothesis Testing 347
JG9.2 t Test of Hypothesis for the Mean (s Unknown) 347
JG9.3 One-Tail Tests 348
JG9.4 Z Test Of Hypothesis For The Proportion 348
CHAPTER 9 MINITAB GUIDE 348
MG9.1 Fundamentals of Hypothesis Testing 348
MG9.2 t Test Of Hypothesis for The Mean (s Unknown) 349
MG9.3 One-Tail Tests 349
MG9.4 Z Test Of Hypothesis for The Proportion 349
10 Two-Sample Tests 351
USING STATISTICS: Differing Means for Selling
Streaming Media Players at Arlingtons? 351
10.1 Comparing the Means of Two Independent
Populations 352
Pooled-Variance t Test for the Difference Between
Two Means Assuming Equal Variances 352
Evaluating the Normality Assumption 355
Confidence Interval Estimate for the Difference Between
Two Means 357
Separate-Variance t Test for the Difference Between
Two Means, Assuming Unequal Variances 358
CONSIDER THIS: Do People Really Do This? 359
10.2 Comparing the Means of Two Related Populations 361
Paired t Test 362
Confidence Interval Estimate for the Mean Difference 367
10.3 Comparing the Proportions of Two Independent
Populations 369
Z Test for the Difference Between Two Proportions 369
Confidence Interval Estimate for the Difference Between
Two Proportions 374
10.4 F Test for the Ratio of Two Variances 376
10.5 Effect Size (online) 380
USING STATISTICS: Differing Means for Selling … ,
Revisited 381
SUMMARY 381
REFERENCES 382
KEY EQUATIONS 382
KEY TERMS 383
CHECKING YOUR UNDERSTANDING 383
CHAPTER REVIEW PROBLEMS 383
CASES FOR CHAPTER 10 385
Managing Ashland MultiComm Services 385
Digital Case 386
Sure Value Convenience Stores 386
CardioGood Fitness 386
More Descriptive Choices Follow-Up 386
Clear Mountain State Student Survey 387
CHAPTER 10 EXCEL GUIDE 388
EG10.1 Comparing The Means of Two Independent
Populations 388
EG10.2 Comparing The Means of Two Related Populations 390
EG10.3 Comparing The Proportions of Two Independent
Populations 391
EG10.4 F Test For The Ratio of Two Variances 392
CHAPTER 10 JMP GUIDE 393
JG10.1 Comparing The Means of Two Independent Populations 393
JG10.2 Comparing The Means of Two Related Populations 394
JG10.3 Comparing The Proportions of Two Independent
Populations 394
JG10.4 F Test For The Ratio of Two Variances 394
CHAPTER 10 MINITAB GUIDE 395
MG10.1 Comparing The Means of Two Independent Populations 395
MG10.2 Comparing The Means of Two Related Populations 396
MG10.3 Comparing The Proportions of Two Independent
Populations 396
MG10.4 F Test For The Ratio of Two Variances 397
11 Analysis of Variance 398
USING STATISTICS: The Means to Find Differences
at Arlingtons 398
11.1 The Completely Randomized Design: One-Way
ANOVA 399
Analyzing Variation in One-Way ANOVA 400
F Test for Differences Among More Than Two Means 402
One-Way ANOVA F Test Assumptions 407
Levene Test for Homogeneity of Variance 407
Multiple Comparisons: The Tukey-Kramer Procedure 409
The Analysis of Means (ANOM) 411
11.2 The Factorial Design: Two-Way ANOVA 414
Factor and Interaction Effects 415
Testing for Factor and Interaction Effects 416
Multiple Comparisons: The Tukey Procedure 420
Visualizing Interaction Effects: The Cell Means Plot 421
Interpreting Interaction Effects 422
11.3 The Randomized Block Design (online) 426
11.4 Fixed Effects, Random Effects, and Mixed Effects
Models (online) 426
USING STATISTICS: The Means to Find Differences
at Arlingtons Revisited 426
SUMMARY 426
REFERENCES 427
KEY EQUATIONS 427
KEY TERMS 428
CHECKING YOUR UNDERSTANDING 428
CHAPTER REVIEW PROBLEMS 428
CASES FOR CHAPTER 11 430
Managing Ashland MultiComm Services 430
Digital Case 431
Sure Value Convenience Stores 431
CardioGood Fitness 431
More Descriptive Choices Follow-Up 431
Clear Mountain State Student Survey 431

CHAPTER 11 EXCEL GUIDE 432
EG11.1 The Completely Randomized Design: One-Way ANOVA 432
EG11.2 The Factorial Design: Two-Way Anova 434
CHAPTER 11 JMP GUIDE 435
JG11.1 The Completely Randomized Design: One-Way ANOVA 435
JG11.2 The Factorial Design: Two-Way Anova 436
CHAPTER 11 MINITAB GUIDE 437
MG11.1 The Completely Randomized Design: One-Way ANOVA 437
MG11.2 The Factorial Design: Two-Way Anova 438
12 Chi-Square and
Nonparametric Tests 440
USING STATISTICS: Avoiding Guesswork About
Resort Guests 440
12.1 Chi-Square Test for the Difference Between Two
Proportions 441
12.2 Chi-Square Test for Differences Among More Than
Two Proportions 448
The Marascuilo Procedure 451
The Analysis of Proportions (ANOP) 453
12.3 Chi-Square Test of Independence 454
12.4 Wilcoxon Rank Sum Test for Two Independent
Populations 460
12.5 Kruskal-Wallis Rank Test for the One-Way ANOVA 466
Assumptions of the Kruskal-Wallis Rank Test 469
12.6 McNemar Test for the Difference Between Two
Proportions (Related Samples) (online) 470
12.7 Chi-Square Test for the Variance or Standard
Deviation (online) 470
12.8 Wilcoxon Signed Ranks Test for Two Related
Populations (online) 471
12.9 Friedman Rank Test for the Randomized Block
Design (online) 471
USING STATISTICS: Avoiding Guesswork … ,
Revisited 471
SUMMARY 471
REFERENCES 472
KEY EQUATIONS 472
KEY TERMS 473
CHECKING YOUR UNDERSTANDING 473
CHAPTER REVIEW PROBLEMS 473
CASES FOR CHAPTER 12 475
Managing Ashland MultiComm Services 475
Digital Case 476
Sure Value Convenience Stores 476
CardioGood Fitness 476
More Descriptive Choices Follow-Up 477
Clear Mountain State Student Survey 477
CHAPTER 12 EXCEL GUIDE 478
EG12.1 Chi-Square Test for the Difference Between
Two Proportions 478
EG12.2 Chi-Square Test for Differences Among More Than
Two Proportions 478
CONTENTS xix
EG12.3 Chi-Square Test of Independence 479
EG12.4 Wilcoxon Rank Sum Test: A Nonparametric Method for
Two Independent Populations 479
EG12.5 Kruskal-Wallis Rank Test: A Nonparametric Method for
the One-Way ANOVA 480
CHAPTER 12 JMP GUIDE 481
JG12.1 Chi-Square Test for the Difference Between
Two Proportions 481
JG12.2 Chi-Square Test tor Difference Among More Than
Two Proportions 481
JG12.3 Chi-Square Test Of Independence 481
JG12.4 Wilcoxon Rank Sum Test For Two Independent
Populations 481
JG12.5 Kruskal-Wallis Rank Test For The One-Way Anova 482
CHAPTER 12 MINITAB GUIDE 482
MG12.1 Chi-Square Test for The Difference Between
Two Proportions 482
MG12.2 Chi-Square Test for Differences Among More Than
Two Proportions 483
MG12.3 Chi-Square Test of Independence 483
MG12.4 Wilcoxon Rank Sum Test: A Nonparametric Method
for Two Independent Populations 483
MG12.5 Kruskal-Wallis Rank Test: A Nonparametric Method
for The One-Way ANOVA 483
13 Simple Linear Regression 484
USING STATISTICS: Knowing Customers at Sunflowers
Apparel 484
Preliminary Analysis 485
13.1 Simple Linear Regression Models 486
13.2 Determining the Simple Linear Regression
Equation 487
The Least-Squares Method 487
Predictions in Regression Analysis: Interpolation Versus
Extrapolation 490
Computing the Y Intercept, b0 and the Slope, b1 491
VISUAL EXPLORATIONS: Exploring Simple Linear
Regression Coefficients 493
13.3 Measures of Variation 495
Computing the Sum of Squares 495
The Coefficient of Determination 496
Standard Error of the Estimate 498
13.4 Assumptions of Regression 500
13.5 Residual Analysis 500
Evaluating the Assumptions 500
13.6 Measuring Autocorrelation: The Durbin-Watson
Statistic 504
Residual Plots to Detect Autocorrelation 504
The Durbin-Watson Statistic 505
13.7 Inferences About the Slope and Correlation
Coefficient 508
t Test for the Slope 508
F Test for the Slope 509
Confidence Interval Estimate for the Slope 511
t Test for the Correlation Coefficient 511
xx CONTENTS

13.8 Estimation of Mean Values and Prediction of
Individual Values 514
The Confidence Interval Estimate for the Mean Response 515
The Prediction Interval for an Individual Response 516
13.9 Potential Pitfalls in Regression 518
EXHIBIT: Seven Steps for Avoiding the Potential Pitfalls 518
USING STATISTICS: Knowing Customers … , Revisited 520
SUMMARY 521
REFERENCES 522
KEY EQUATIONS 522
KEY TERMS 523
CHECKING YOUR UNDERSTANDING 523
CHAPTER REVIEW PROBLEMS 524
CASES FOR CHAPTER 13 527
Managing Ashland MultiComm Services 527
Digital Case 527
Brynne Packaging 528
CHAPTER 13 EXCEL GUIDE 529
EG13.2 Determining the Simple Linear Regression Equation 529
EG13.3 Measures of Variation 530
EG13.4 Assumptions of Regression 530
EG13.5 Residual Analysis 530
EG13.6 Measuring Autocorrelation: the Durbin-Watson Statistic 531
EG13.7 Inferences about the Slope and Correlation Coefficient 531
EG13.8 Estimation of Mean Values and Prediction of Individual
Values 531
CHAPTER 13 JMP GUIDE 532
JG13.2 Determining The Simple Linear Regression Equation 532
JG13.3 Measures Of Variation 532
JG13.4 Assumptions Of Regression 532
JG13.5 Residual Analysis 532
JG13.6 Measuring Autocorrelation: The Durbin-Watson Statistic 532
JG13.7 Inferences About The Slope And Correlation Coefficient 532
JG13.8 Estimation Of Mean Values And Prediction Of Individual
Values 533
CHAPTER 13 MINITAB GUIDE 534
MG13.2 Determining The Simple Linear Regression Equation 534
MG13.3 Measures Of Variation 535
MG13.4 Assumptions Of Regression 535
MG13.5 Residual Analysis 535
MG13.6 Measuring Autocorrelation: The Durbin-Watson Statistic 535
MG13.7 Inferences about The Slope and Correlation Coefficient 535
MG13.8 Estimation of Mean Values and Prediction of Individual
Values 535
14 Introduction to Multiple
Regression 536
USING STATISTICS: The Multiple Effects of
OmniPower Bars 536
14.1 Developing a Multiple Regression Model 537
Interpreting the Regression Coefficients 538
Predicting the Dependent Variable Y 540
14.2 r 2, Adjusted r 2, and the Overall F Test 542
Coefficient of Multiple Determination 542
Adjusted r 2 543
Test for the Significance of the Overall Multiple Regression
Model 543
14.3 Multiple Regression Residual Analysis 546
14.4 Inferences About the Population Regression
Coefficients 547
Tests of Hypothesis 548
Confidence Interval Estimation 549
14.5 Testing Portions of the Multiple Regression Model 551
Coefficients of Partial Determination 555
14.6 Using Dummy Variables and Interaction Terms 557
Interactions 560
14.7 Logistic Regression 569
14.8 Influence Analysis (online) 575
USING STATISTICS: The Multiple Effects … , Revisited 575
SUMMARY 575
REFERENCES 577
KEY EQUATIONS 577
KEY TERMS 578
CHECKING YOUR UNDERSTANDING 578
CHAPTER REVIEW PROBLEMS 578
CASES FOR CHAPTER 14 581
Managing Ashland MultiComm Services 581
Digital Case 581
CHAPTER 14 EXCEL GUIDE 582
EG14.1 Developing a Multiple Regression Model 582
EG14.2 r 2, Adjusted r 2, and the Overall F Test 583
EG14.3 Multiple Regression Residual Analysis 583
EG14.4 Inferences about the Population Regression Coefficients 584
EG14.5 Testing Portions of the Multiple Regression Model 584
EG14.6 Using Dummy Variables and Interaction Terms 584
EG14.7 Logistic Regression 585
CHAPTER 14 JMP GUIDE 585
JG14.1 Developing a Multiple Regression Model 585
JG14.2 r 2, Adjusted r 2, and the Overall F Test Measures
of Variation 586
JG14.3 Multiple Regression Residual Analysis 586
JG14.4 Inferences About the Population 586
JG14.5 Testing Portions of the Multiple Regression Model 587
JG14.6 Using Dummy Variables and Interaction Terms 587
JG14.7 Logistic Regression 587
CHAPTER 14 MINITAB GUIDE 588
MG14.1 Developing a Multiple Regression Model 588
MG14.2 r 2, Adjusted r 2, and the Overall F Test 589
MG14.3 Multiple Regression Residual Analysis 589
MG14.4 Inferences About the Population Regression Coefficients 589
MG14.5 Testing Portions of the Multiple Regression Model 589
MG14.6 Using Dummy Variables and Interaction Terms
in Regression Models 589
MG14.7 Logistic Regression 590
MG14.8 Influence Analysis 591
15 Multiple Regression Model
Building 592
USING STATISTICS: Valuing Parsimony at WSTA-TV 592
15.1 Quadratic Regression Model 593
Finding the Regression Coefficients and Predicting Y 594
Testing for the Significance of the Quadratic Model 596

Testing the Quadratic Effect 597
The Coefficient of Multiple Determination 599
15.2 Using Transformations in Regression Models 601
The Square-Root Transformation 601
The Log Transformation 603
15.3 Collinearity 605
15.4 Model Building 607
EXHIBIT: Sucessful Model Building 607
The Stepwise Regression Approach to Model Building 609
The Best Subsets Approach to Model Building 610
Model Validation 613
15.5 Pitfalls in Multiple Regression and Ethical Issues 615
Pitfalls in Multiple Regression 615
Ethical Issues 616
USING STATISTICS: Valuing Parsimony … , Revisited 616
SUMMARY 617
REFERENCES 618
KEY EQUATIONS 618
KEY TERMS 618
CHECKING YOUR UNDERSTANDING 618
CHAPTER REVIEW PROBLEMS 618
CASES FOR CHAPTER 15 620
The Mountain States Potato Company 620
Sure Value Convenience Stores 621
Digital Case 621
The Craybill Instrumentation Company Case 621
More Descriptive Choices Follow-Up 622
CHAPATER 15 EXCEL GUIDE 623
EG15.1 The Quadratic Regression Model 623
EG15.2 Using Transformations in Regression Models 623
EG15.3 Collinearity 624
EG15.4 Model Building 624
CHAPATER 15 JMP GUIDE 625
JG15.1 The Quadratic Regression Model 625
JG15.2 Using Transformations in Regression Models 625
JG15.3 Collinearity 625
JG15.4 Model Building 625
CHAPATER 15 MINITAB GUIDE 626
MG15.1 The Quadratic Regression Model 626
MG15.2 Using Transformations in Regression Models 627
MG15.3 Collinearity 627
MG15.4 Model Building 627
16 Time-Series Forecasting
USING STATISTICS: Is the ByYourDoor Service
Trending? 629
16.1 Time Series Component Factors 630
16.2 Smoothing an Annual Time Series 632
Moving Averages 633
Exponential Smoothing 635
16.3 Least-Squares Trend Fitting and Forecasting 637
The Linear Trend Model 637
The Quadratic Trend Model 639
The Exponential Trend Model 640
Model Selection Using First, Second, and Percentage
Differences 642
CONTENTS xxi
EXHIBIT: Model Selection Using First, Second, and Percentage
Differences 642
16.4 Autoregressive Modeling for Trend Fitting and
Forecasting 647
Selecting an Appropriate Autoregressive Model 648
Determining the Appropriateness of a
Selected Model 649
EXHIBIT: Autoregressive Modeling Steps 651
16.5 Choosing an Appropriate Forecasting Model 655
Residual Analysis 655
The Magnitude of the Residuals Through Squared
or Absolute Differences 656
The Principle of Parsimony 656
A Comparison of Four Forecasting Methods 657
16.6 Time-Series Forecasting of Seasonal Data 659
Least-Squares Forecasting with Monthly or Quarterly Data 659
16.7 Index Numbers (online) 665
CONSIDER THIS: Let the Model User Beware 665
USING STATISTICS: Is the ByYourDoor … , Revisited 665
SUMMARY 665
REFERENCES 666
KEY EQUATIONS 666
KEY TERMS 667
CHECKING YOUR UNDERSTANDING 668
CHAPTER REVIEW PROBLEMS 668
CASES FOR CHAPTER 16 669
Managing Ashland MultiComm Services 669
Digital Case 669
CHAPTER 16 EXCEL GUIDE 670
EG16.2 Smoothing an Annual Time Series 670
EG16.3 Least-Squares Trend Fitting and Forecasting 671
EG16.4 Autoregressive Modeling for Trend Fitting and
Forecasting 671
EG16.5 Choosing An Appropriate Forecasting Model 672
EG16.6 Time-Series Forecasting Of Seasonal Data 672
CHAPTER 16 JMP GUIDE 673
JG16.2 Smoothing an Annual Time Series 673
JG16.3 Least-Squares Trend Fitting and Forecasting 674
JG16.4 Autoregressive Modeling for Trend Fitting and Forecasting 674
JG16.5 Choosing an Appropriate Forecasting Model 675
JG16.6 Time-Series Forecasting of Seasonal Data 675
CHAPTER 16 MINITAB GUIDE 675
MG16.2 Smoothing an Annual Time Series 675
MG16.3 Least-Squares Trend Fitting and Forecasting 676
629 MG16.4 Autoregressive Modeling for Trend Fitting and
Forecasting 677
MG16.5 Choosing an Appropriate Forecasting Model 677
MG16.6 Time-Series Forecasting of Seasonal Data 677
17 Business Analytics 678
USING STATISTICS: Back to Arlingtons for the Future 678
17.1 Business Analytics Categories 679
Inferential Statistics and Predictive Analytics 680
Supervised and Unsupervised Methods 680
CONSIDER THIS: What’s My Major if I Want to be a
Data Miner? 681
xxii CONTENTS

17.2 Descriptive Analytics 682 Predict the Proportion of Items of Interest Based on the
Dashboards 682 Values of Other Variables? 708
Data Dimensionality and Descriptive Analytics 683 Classify or Associate Items 708
Determine Whether the Proportion of Items of Interest Is
17.3 Predictive Analytics for Prediction 684
Stable Over Time? 708
17.4 Predictive Analytics for Classification 687
USING STATISTICS: The Future to Be Visited 709
17.5 Predictive Analytics for Clustering 688
CHAPTER REVIEW PROBLEMS 709
17.6 Predictive Analytics for Association 691
Multidimensional scaling (MDS) 692
17.7 Text Analytics 693 19 Statistical Applications
17.8 Prescriptive Analytics 694 in Quality Management
USING STATISTICS: Back to Arlingtons … , Revisited 695 (online) 19-1
REFERENCES 695
KEY EQUATIONS 696
USING STATISTICS: Finding Quality at the
KEY TERMS 696 Beachcomber 19-1
CHECKING YOUR UNDERSTANDING 696 19.1 The Theory of Control Charts 19-2
CHAPTER REVIEW PROBLEMS 696
19.2 Control Chart for the Proportion: The p Chart 19-4
CASES FOR CHAPTER 17 698 19.3 The Red Bead Experiment: Understanding Process
The Mountain States Potato Company 698 Variability 19-10
The Craybill Instrumentation Company 698 19.4 Control Chart for an Area of Opportunity:
CHAPTER 17 SOFTWARE GUIDE 699 The c Chart 19-11
    Introduction 699 19.5 Control Charts for the Range and the Mean 19-15
SG17.2 Descriptive Analytics 699 The R Chart 19-15
SG17.3 Predictive Analytics for Prediction 701 The X Chart 19-18
SG17.4 Predictive Analytics for Classification 701 19.6 Process Capability 19-21
SG17.5 Predictive Analytics for Clustering 702 Customer Satisfaction and Specification Limits 19-21
SG17.6 Predictive Analytics for Association 702 Capability Indices 19-23
CPL, CPU, and Cpk 19-24

18 Getting Ready to Analyze 19.7 Total Quality Management 19-26

Data in the Future 704 19.8 Six Sigma 19-27

The DMAIC Model 19-28
Roles in a Six Sigma Organization 19-29
USING STATISTICS: Mounting Future Analyses 704 Lean Six Sigma 19-29
18.1 Analyzing Numerical Variables 705 USING STATISTICS: Finding Quality at the Beachcomber,
EXHIBIT: Questions to Ask When Analyzing Numerical Revisited 19-30
Variables 705
SUMMARY 19-30
Describe the Characteristics of a Numerical Variable? 705
REFERENCES 19-31
Reach Conclusions About the Population Mean or the
Standard Deviation? 705 KEY EQUATIONS 19-31
Determine Whether the Mean and/or Standard Deviation KEY TERMS 19-32
Differs Depending on the Group? 706 CHAPTER REVIEW PROBLEMS 19-32
Determine Which Factors Affect the Value of a Variable? 706
CASES FOR CHAPTER 19 19-34
Predict the Value of a Variable Based on the Values of
Other Variables? 707 The Harnswell Sewing Machine Company Case 19-34
Classify or Associate Items 707 Managing Ashland Multicomm Services 19-37
Determine Whether the Values of a Variable Are Stable CHAPTER 19 EXCEL GUIDE 19-38
Over Time? 707
EG19.2 Control Chart for the Proportion: The p Chart 19-38
18.2 Analyzing Categorical Variables 707 EG19.4 Control Chart for an Area of Opportunity: The c Chart 19-39
EXHIBIT: Questions to Ask When Analyzing Categorical EG19.5 Control Charts for the Range and the Mean 19-40
Variables 707 EG19.6 Process Capability 19-41
Describe the Proportion of Items of Interest in Each
Category? 707 CHAPTER 19 JMP GUIDE 19-41
Reach Conclusions About the Proportion of Items of JG19.2 Control Chart for the Proportion: The p Chart 19-41
Interest? 708 JG19.4 Control Chart for an Area of Opportunity: The c Chart 19-41
Determine Whether the Proportion of Items of Interest Differs JG19.5 Control Charts for the Range and the Mean 19-42
Depending on the Group? 708 JG19.6 Process Capability 19-42
 CONTENTS xxiii

CHAPTER 19 MINITAB GUIDE 19-42 B.6 Creating Histograms for Discrete Probability
MG19.2 Control Chart for the Proportion: The p Chart 19-42 Distributions (Excel) 724
MG19.4 Control Chart for an Area of Opportunity: B.7 Deleting the “Extra” Histogram Bar (Excel) 725
The c Chart 19-43
C. Online Resources 726
MG19.5 Control Charts for the Range and the Mean 19-43
MG19.6 Process Capability 19-43 C.1 About the Online Resources for This Book 726
C.2 Data Files 726
C.3 Files Integrated With Microsoft Excel 733
20 Decision Making (online) 20-1
C.4 Supplemental Files 733
D. Configuring Software 734
USING STATISTICS: Reliable Decision Making 20-1
D.1 Microsoft Excel Configuration 734
20.1 Payoff Tables and Decision Trees 20-2
D.2 JMP Configuration 736
20.2 Criteria for Decision Making 20-6
D.3 Minitab Configuration 736
Maximax Payoff 20-6
Maximin Payoff 20-7 E. Table 737
Expected Monetary Value 20-7 E.1 Table of Random Numbers 737
Expected Opportunity Loss 20-9 E.2 The Cumulative Standardized Normal
Return-to-Risk Ratio 20-11 Distribution 739
20.3 Decision Making with Sample Information 20-16 E.3 Critical Values of t 741
20.4 Utility 20-21 E.4 Critical Values of x2 743
CONSIDER THIS: Risky Business 20-22 E.5 Critical Values of F 744
USING STATISTICS: Reliable Decision-Making, E.6 Lower and Upper Critical Values, T1, of the Wilcoxon
Revisited 20-22 Rank Sum Test 748
SUMMARY 20-23 E.7 Critical Values of the Studentized Range, Q 749
REFERENCES 20-23 E.8 Critical Values, dL and dU, of the Durbin–Watson
KEY EQUATIONS 20-23 Statistic, D (Critical Values Are One–Sided) 751
KEY TERMS 20-23 E.9 Control Chart Factors 752
CHAPTER REVIEW PROBLEMS 20-23 E.10 The Standardized Normal Distribution 753
CASES FOR CHAPTER 20 20-26 F. Useful Knowledge 754
Digital Case 20-26 F.1 Keyboard Shortcuts 754
CHAPTER 20 EXCEL GUIDE 20-27 F.2 Understanding the Nonstatistical Functions 754
EG20.1 Payoff Tables and Decision Trees 20-27 G. Software FAQs 756
EG20.2 Criteria for Decision Making 20-27
G.1 Microsoft Excel FAQs 756
G.2 PHStat FAQs 756
Appendices 711
G.3 JMP FAQs 757
A. Basic Math Concepts and Symbols 712
G.4 Minitab FAQs 757
A.1 Operators 712
H. All About PHStat 758
A.2 Rules for Arithmetic Operations 712
H.1 What is PHStat? 758
A.3 Rules for Algebra: Exponents and Square Roots 712
H.2 Obtaining and Setting Up PHStat 759
A.4 Rules for Logarithms 713
H.3 Using PHStat 759
A.5 Summation Notation 714
H.4 PHStat Procedures, by Category 760
A.6 Greek Alphabet 717
B. Important Software Skills and Concepts 718
Self-Test Solutions and Answers to
B.1 Identifying the Software Version 718
Selected Even-Numbered Problems 761
B.2 Formulas 718
B.3 Excel Cell References 720 Index 793
B.4 Excel Worksheet Formatting 721 Credits 805
B.5E Excel Chart Formatting 722
B.5J JMP Chart Formatting 723
B.5M Minitab Chart Formatting 724
 Preface

A
s business statistics evolves and becomes an increasingly important part of one’s business
education, how business statistics gets taught and what gets taught becomes all the more
important.
We, the authors, think about these issues as we seek ways to continuously improve the
teaching of business statistics. We actively participate in Decision Sciences Institute (DSI),
American Statistical Association (ASA), and Data, Analytics, and Statistics Instruction and
Business (DASI) conferences. We use the ASA’s Guidelines for Assessment and Instruction
(GAISE) reports and combine them with our experiences teaching business statistics to a
diverse student body at several universities.
When writing for introductory business statistics students, five principles guide us.
Help students see the relevance of statistics to their own careers by using examples from
the functional areas that may become their areas of specialization. Students need to learn
statistics in the context of the functional areas of business. We present each statistics topic in
the context of areas such as accounting, finance, management, and marketing and explain the
application of specific methods to business activities.
Emphasize interpretation and analysis of statistical results over calculation. We ­emphasize
the interpretation of results, the evaluation of the assumptions, and the discussion of what should
be done if the assumptions are violated. We believe that these activities are more important to
students’ futures and will serve them better than focusing on tedious manual calculations.
Give students ample practice in understanding how to apply statistics to business. We
believe that both classroom examples and homework exercises should involve actual or r­ ealistic
data, using small and large sets of data, to the extent possible.
Familiarize students with the use of data analysis software. We integrate using Microsoft
Excel, JMP, and Minitab into all statistics topics to illustrate how software can assist the busi-
ness decision making process. (Using software in this way also supports our second point about
emphasizing interpretation over calculation).
Provide clear instructions to students that facilitate their use of data analysis s­ oftware.
We believe that providing such instructions assists learning and minimizes the chance that the
software will distract from the learning of statistical concepts.

What’s New in This Edition?

This fourteenth edition of Basic Business Statistics features many passages rewritten in a more
concise style that emphasize definitions as the foundation for understanding statistical con-
cepts. In addition to changes that readers of past editions have come to expect, such as new
examples and Using Statistics case scenarios and an extensive number of new end-of-section or
end-of-chapter problems, the edition debuts:
• A First Things First Chapter that builds on the previous edition’s novel ­Important
Things to Learn First Chapter by using real-world examples to illustrate how ­developments
such as the increasing use of business analytics and “big data” have made knowing and
­understanding statistics that much more critical. This chapter is available as ­complimentary
online download, allowing students to get a head start on learning.

xxiv
Another random document with
no related content on Scribd:
 veen, uivat hau'it hangotellen, ve'en koirat vengotellen, tulee
tarha Tapion, tulee väki Vellamon. Laskee päivä radaltaan
soiton kieltä kuulemaan, kultaa maat ja mantereet,
kalevaisten tantereet. Kuulee taivahalla kuu, katsoo tuores
tuomipuu kuinka nuoret karkeloi, kalevaisten soitto soi.
Soikaa siis, te soitot, soikaa, Kalevala kaunis on, kapo kaunis,
kultakutri kukkana on karkelon!

Kevätmietteissä.

Päivä jo laskee rannan taa tähtiä taivaalle kohoaa,

valkohohdossa kuuhut valvoo, kirkasna välkkyy virran kalvo,
välkkyy hopeahohdossaan, välkkyy keskellä usviaan.

Utuharsossa unten maan merenneitoset keinuu vaan,

keinuu unina aallon pinnan, aavistuksina ihmisrinnan,
keskeltä usvia harmaita herättää toivoja armaita.

Öinen kulkija katselen leikkiä Vellamon neitosten, keskellä

usvia kuljen yksin, kevättoivoin ja epäilyksin; keväthenkeä
huokuu maa, kevättoivoja kasvattaa.

Rinta kulkijan rauhaton unten lehtoon uupunut on, tähdet

tuikkivat lemmen tulta, kevättoivoja kuuhut kultaa, lehdossa
utuisten unten maan kulkija rauhaton rauhan saan.

Kultia kuuhuen katselen, totta vai valhetta — tiedä en.

Kultia katselen taivahalla, kultia katselen aallon alla, kultia
katselen virran suun, lahjoja kummia öisen kuun.
 Kuuhuelta mä kyselen: "Ken saa kultasi, lausu ken! Kelle
annat aartehes, kelle, yön ja usvanko lapsoselle?" Kuu ei
vastaa, ja usvissaan neidot Vellamon leikkii vaan.

Ainon kaiho.

Sopusointu rinnastani minne, minne haihtuikaan? Kaiho

kumma poveani aina, aina polttaa vaan.

Häntä rakastaako voisin,

sekö äidin tahto on,
mainettako unelmoisin,
ennen hoikka huoleton?

Rakastan ma vettä, mettä,

kultakummun kukkia,
kielon kastekyynelettä,
kotilahden lauluja.

Niiltä etsin lohdutusta,

nyt en niiltä löydäkkään,
mieleni on murheen musta,
nytkö lohduttomaks jään?

Kentät karkelen ja soitan, tuskat kummat tunnen vaan;

riemuella tyttö koitan, eipä riemu kuulukkaan.
Kerran lemmin…

Kerran lemmin koito lapsi, kerran raukka ma rakastin. Pois

on lenti lemmittyni, suistui armas surman suuhun; mieli
mustaksi mureni, synkkeni sydänalani. Siks on kulkuni katala,
polku päivän paistamaton, edessä on korpi kolkko, taivas
tähdetön takana.
12-13.IV.1597.

En tahtonut kansalle tuskia, en tahtonut vääryyttä, sortoa, en

tahtonut kansaani kostaa. Minä tahdoin yöstä ja hallasta,
minä tahdoin vieraasta vallasta tämän kansan jaloille nostaa.

Mun käskyni kankailla Suomenmaan sai kodit liekkinä

leimuamaan, sai soimahan sotatorven. Sain taistella kansaani
vastahan, mut herättää tahdoin unestaan ylös kontion
Suomen korven.

Mun käskyni kankailla Suomenmaan sai veljet veljiä

surmamaan, sai vuotamaan kansani verta, minä tahdoin
sorrosta, vainosta ja taistojen taakasta, painosta ylös nostaa
kansani kerta.

Mun käteni kansalle Suomenmaan ei antaa saattanut

apuaan, se armoton oli kuin rauta. Mut armoa aika ei sallinut
se, ja armotonna myös minulle nyt aukenee äkkiä hauta.

Nään sinne uskoni sortuvan ja toivoni Suomen kansahan,

sen vapauteen, vastaisuuteen, en nousevan rautaista kouraa
nää, joka kansani voisi jännittää ja herättää elohon uuteen.
 Valo vaipuu eloni auringon, pian yöhön pimeään peittynyt
on sen sammuva iltarusko. Kun kalman vuoteelle painan
pään, minä pirstoina toivoni suuren nään, nään sammuvan
eloni uskon.

Jo Manan neitoset maatavat, jo kalman tyttäret kaatavat

tään kontion Suomen korven… Mut kuulkaa ratsujen jyminää,
oi, kuulkaa! Mistä on melske tää ja toitotus sotatorven?

Minä kuulen tanteren töminää, maan perustuksetko

järkähtää, minä kuulen kalsketta kalpain! Minä kuulen
myrskyjen mylvintää, minä kuulen kuin raivoopi rajusää, minä
kuulen sortuvan salpain!

Minä kuulen sulavan Suomen jään,

minä kuulen: nuijilla isketään,
jo korven kontiot herää!
Läpi vuosisatojen harsojen,
sen kärsimyksien, tuskien
näen: paistaa jo päivänterä.

Minä näänkö vain haaveuniain,

minä vuoteellaniko houraan vain?
En, en, se uni se on totta —
Mut katso, katso, ken se on, ken?
Se käsi on kalman, tunnen sen! —
Nyt saat minut luoksesi ottaa!

Korven keskellä.
 Karun korven keskellä Pohjassa eli katajainen kansa, ja se
korvet raatoi ja perkasi ja muokkasi aurallansa.

Ja keskellä korpea kolkkoa

se taisteli, taisteli, kesti,
ja hallan ja nälkäkuoleman
sen kuokka ja kirves esti.

Vaan milloinkaan se ei sortunut,

ei konsa sen pettänyt tarmo,
sen oma kuntonsa kohotti,
ei antimet eikä armo.

Ja keskellä korpea kolkkoa

se kannelta helkytteli,
ja metsän pimeässä pirtissä
sen laulujen henki eli.

Ja se peistä ja nuijaa heilutti

kun uhkasi sorto, väärä,
ja se tunsi sen: valohon, vapauteen
oli sillä matkansa määrä.

Ja siksi se valon ja vapauden

sydänverellä omakseen osti,
ja siksi se valon temppelin
joka korven laitahan nosti.

Mut pimeät vallat ne pelkäsivät

valonvirtaa voimakasta,
ja pimeät vallat ne tahtoivat
valon estää virtaamasta.
 Ja pimeät vallat ne nousivat,
ukonpilvinä valon ne peitti,
ja keskelle kolkkoa korpea
ne kansan pimeään heitti.

Mut valonvirta on voimakas,

ken vois sen kulkua estää,
se ikuisuudesta syntynyt on
ja ikuisuutehen kestää.

Ukonpilvet ne valon jos peittääkin,

uhka haihtuva on se vain hetken;
sen jälkeen kahta näät kauniimman
valon valtavan voittoretken.

Sen jälkeen entistä uljaammin

taas nousee jumalan tammi,
sen jälkeen entistä armaampi
on loiskina metsälammin.

Sen jälkeen kahta kauniimmin taas sinelle siintää salo, sen

jälkeen kahta kirkkaammin joka majahan välkkyy valo.

Kylänkarkelo.

käy karkelohon kylän kasvava kansa, pelimanni jo soittaa

parhaillansa, ja kuluvi kesäinen ilta! Pian lampi tyyni on lailla
peilin, kera karkele, poikanen, nyt oman heilin, jotta notkuvi
sininen silta!
 Vain virrassa lainehet lipattaa, liikkuu ja järvellä sorsat
soreasti kiikkuu ja aaltoaa vihannat viljat. Ylös poikaset,
kuuset te kevähäiset, ylös neitoset nuoret, pellavapäiset, te
tään kylän lempeät liljat!

Kas, heinät ne heiluu ja nurmet ne nuokkuu, ja illan tuuli

niin hiljaa huokuu ja sävelet soivat, soivat Kas, tuoresna
tuoksuu kuunahan kukka ja nuori on neitonen pellavatukka ja
vainiot vihannoivat

Oi, soios soitto ja vinkuos viulu, pois kirvehes poika, pois

neitonen kiulu, tää ilta se ilta on ilon! Ota, poikanen, heiliäs
hellää vyöstä ja karkele huoleti päivän työstä nyt päällä sen
sillan silon!

Ja sävelet soivat ja lintuset laulaa ja poika se neitoa norjaa

kaulaa ja laskevi kesäinen ilta. Ja murheet murtuu ja huolet
ne haihtuu ja arkisurut ne riemuksi vaihtuu ja notkuvi sininen
silta.

Kas, kentät ne kukkii ja läikkyy laihot ja nuoruus surmahan

suistaa kaihot ja haihtuu elämän arki. Ja yksin nyt itkee tuima
Tuoni, povet nuorten kun paisuu ja sykkii suoni ja rinta ei
huolia harki.

Ja soios soitto ja vinkuos viulu, pois kirvehes poika, pois

neitonen kiulu, tää ilta se ilta on ilon! Ota, poikanen, heiliäs
hellää vyöstä ja karkele huoleti päivän työstä nyt päällä sen
sillan silon!
Tarina Pekasta ja vallesmannista.

Hän korven kolkasta tullut on nyt tietojen, taitojen maille.

Hän kuokan jätti ja lapion, oli oppia jäänyt vaille, mut
vanhanakin hän tahtoi koittaa ja vanhanakin hän tahtoi voittaa
viel' oksan tiedon ja taidon puusta.

Vaan kotikylässä elämä nousi, ja sana kulki nyt suuhun

suusta, ja kaikki virttä yhtä soittaa: jo herraksi Pekka tahtoo
koittaa!

Ja vallesmannikin ihmeissänsä nyt yhtehen hykersi

käsiänsä: "Mikä mieheltä mielen vienyt on, hän mennyt on
kansanopistohon! Voi ihmettä kummaa! Voi herranen aika! On
miehelle varmaan tehty jo taika. En ymmärrä mikä päähän
pisti, hän kohta on täysi sosialisti. Hän lehtiä lukee ja lausehet
pukee kuin oppia paljonki saanut ois. Hänen kerran kummia
kertovan kuulin ja päästä jo pyörälle tulleen luulin. Hän lausui:
'laps mökin pienenkin on oikeutettu oppihin.' Ja yhtä hyvin
kuin viljan hinnat tuns' Juhani Ahot ja Päivärinnat, ja draamat
Shakespearen tunsi hän — ties mitä ne kaikki lienevätkään, ei
mulle hyötyä moisesta työstä, mä ilman niitäkin osaan
ryöstää. Mä nauroin hälle, vaan vakavana näin virkkoi mulle
tuo vanha aasi: 'Sua, herra, työhön käskee maasi." Mä
lausuin hälle: "mä työtä teen, mä rästit kannan ja ryöstöt
annan?' Hän huokasi silloin syvähän, ei mitään virkkanut
enemmän. Kai huomasi, turha on vastaan koittaa, kai näki:
tyhmän ja pöllöpään mies sivistynyt aina voittaa." — Ja
tyytyväisenä, mielissänsä hän yhteen hykersi käsiänsä.
 Ja Perälän pitäjän vallasväki se eessään viisahan herran
näki, ja koko kylä se kertoa ties: "Niin viisas on meillä
nimismies, on sivistynyt ja vakainenki, ei häntä villitse ajan
henki. Ah, tällaisia jos kaikki ois, niin sovussa kansa elää vois,
ja Suomen kansa ja Suomen maa niin rauhassa saisi
kukoistaa!"

Pimeän pesä.

(Vuorilegenda.)

Ne tuikki ne tuhannet kynttilät ja valot kirkkahat välkkyivät,

oli valon juhla jalo. Ja vaikka joutui ilta ja yö ja vaikk' oli
päättynyt päivän työ, valoin välkkyi joka talo. Ja vaikka talvi
kattoi maan ja vaikka vihurit vinkui vaan, niin oli rinnoissa
kesä. Mut yks oli maja valoton, se pimeyden hengen asunto
on, se oli peikon pesä.

Ja valot ne välkkyi ja välkkyi vaan ja peikko katseli

kauhuissaan, hän silmiä siristeli ja vavistuksessa eli ja
huokasi: "ollappa oikea yö, niin silloin mullekin alkais työ,
minä valkeutta pelkään ja pelkään omaa selkään. Oi yö, sinä
suloinen lohtujen tuoja, oi yötä jos ijäti antais Luoja! Oi yöni, oi
yöni, mun peikon työni sä ijäti kätkisit maailmalta ja ijäti
kestäis peikkojen valta."

Ja peikko se tuimasti tirkisteli ja peikonsilmiään sirkisteli,

mut valoja syttyi ja syttyi vaan, ja peikko se potki kauhuissaan
ja pelosta pysähtyi veri. — "Mi joukko kumma kujalla käy, ei
 muita kuin valon soihtuja näy, siell' aaltoaa tulimeri." Ja peikko
pakenee joukkoa ja etsii pimeintä loukkoa. "Oi, kohta nyt
hukka jo perii!"

Ja valot valtavat virtaili, mut yks oli pimeän pesä. Ja kansa

valosta riemuitsi ja rintahan koitti kesä. Mutta peikko se
pelkäsi valoja ja pelkäsi toisia taloja; ne kaikki valoa virtaili —
Mut yks oli pimeän pesä.

Voiton saatte!

Lietsokaatte, lietsokaatte valonahjot valkeaa! Pilvet raskaat,

taivas tumma pimeyttä uhkajaa, vaarassa on isänmaa, kaikin
voimin lietsokaa! Lietsokaatte, lietsokaatte valonahjot
valkeaa! Lietsokaatte, voiton saatte!

Valaiskaatte, valaiskaatte maata valon airuet! Valaiskaatte

rikkaan majat sekä salon sydämmet, valaiskaatte köyhän tie,
joka metsäpirttiin vie! Valaiskaatte, valaiskaatte maata valon
airuet! Valaiskaatte, voiton saatte!

Taistelkaatte, taistelkaatte eestä ikitotuuden! Taistelkaatte

vastaan yötä, vastaan valtaa vääryyden, taistelkaatte eestä
lain, eestä oikeuden vain! Taistelkaatte, taistelkaatte eestä
ikitotuuden! Taistelkaatte, voiton saatte!

Seisokaatte, seisokaatte rivissä nyt joka mies, että rauhass'

aina palaa saisi pyhä kotilies! Vapautta puoltakaa! Teitä
 siunaa kansa, maa. Seisokaatte, seisokaatte rivissä nyt joka
mies! Seisokaatte, voiton saatte!

Lietsokaatte, lietsokaatte valonahjot valkeaa! Pilvet raskaat,

pilvet tummat vielä kerran halkeaa. Suomen, valon morsion
päivä silloin kirkas on. Lietsokaatte, lietsokaatte valonahjot
valkeaa! Lietsokaatte, voiton saatte!

Maamiehen kevätlaulu.

Oi kevään kauniin antaja, oi taivahainen Luoja! nyt viljaa

nuorta, nousevaa sä varjele ja suojaa.

Sä hoivaa hennot tähkäpäät

niit' ettei veisi halla,
niin paljon nuorta toivoa
nyt uhkuu kaikkialla.

Ja kevään hengen valaista suo pimeätä Pohjaa, ja poveen

salon synkänkin sä onni, rauha ohjaa.

Tahdon ikitulta.

Taivas! elä mulle anna kiiltokultaa; paljon, paljon enempi

tahdon, taivas, sulta.
 Tahdon, taivas, sulta
vaadin valkeoita,
innon ikitulta,
tulta, salamoita.

Niillä isken yöhön,

niinkuin isket itse,
salamoita singotan
maitse, manteritse.

Niillä isken yöhön,

ohi tähtisarjain,
kautta avaruuden,
halki vuorten harjain.

Niillä isken yöhön,

mik' ei kestä, särjen,
vasten valtaa väärää
käännän nuoles kärjen.

Niillä isken yöhön,

kaadan konnat, peikot,
nostan valoon, valtaan
sorretut ja heikot.

Halpa lahjas oisi kunnia ja kulta — Tahdon, taivas, sulta

tahdon ikitulta!
 *** END OF THE PROJECT GUTENBERG EBOOK LAULUJA ***

Updated editions will replace the previous one—the old editions will
be renamed.

Creating the works from print editions not protected by U.S.

copyright law means that no one owns a United States copyright in
these works, so the Foundation (and you!) can copy and distribute it
in the United States without permission and without paying copyright
royalties. Special rules, set forth in the General Terms of Use part of
this license, apply to copying and distributing Project Gutenberg™
electronic works to protect the PROJECT GUTENBERG™ concept
and trademark. Project Gutenberg is a registered trademark, and
may not be used if you charge for an eBook, except by following the
terms of the trademark license, including paying royalties for use of
the Project Gutenberg trademark. If you do not charge anything for
copies of this eBook, complying with the trademark license is very
easy. You may use this eBook for nearly any purpose such as
creation of derivative works, reports, performances and research.
Project Gutenberg eBooks may be modified and printed and given
away—you may do practically ANYTHING in the United States with
eBooks not protected by U.S. copyright law. Redistribution is subject
to the trademark license, especially commercial redistribution.

START: FULL LICENSE

THE FULL PROJECT GUTENBERG LICENSE
 PLEASE READ THIS BEFORE YOU DISTRIBUTE OR USE THIS WORK

To protect the Project Gutenberg™ mission of promoting the free

distribution of electronic works, by using or distributing this work (or
any other work associated in any way with the phrase “Project
Gutenberg”), you agree to comply with all the terms of the Full
Project Gutenberg™ License available with this file or online at
www.gutenberg.org/license.

Section 1. General Terms of Use and

Redistributing Project Gutenberg™
electronic works
1.A. By reading or using any part of this Project Gutenberg™
electronic work, you indicate that you have read, understand, agree
to and accept all the terms of this license and intellectual property
(trademark/copyright) agreement. If you do not agree to abide by all
the terms of this agreement, you must cease using and return or
destroy all copies of Project Gutenberg™ electronic works in your
possession. If you paid a fee for obtaining a copy of or access to a
Project Gutenberg™ electronic work and you do not agree to be
bound by the terms of this agreement, you may obtain a refund from
the person or entity to whom you paid the fee as set forth in
paragraph 1.E.8.

1.B. “Project Gutenberg” is a registered trademark. It may only be

used on or associated in any way with an electronic work by people
who agree to be bound by the terms of this agreement. There are a
few things that you can do with most Project Gutenberg™ electronic
works even without complying with the full terms of this agreement.
See paragraph 1.C below. There are a lot of things you can do with
Project Gutenberg™ electronic works if you follow the terms of this
agreement and help preserve free future access to Project
Gutenberg™ electronic works. See paragraph 1.E below.
1.C. The Project Gutenberg Literary Archive Foundation (“the
Foundation” or PGLAF), owns a compilation copyright in the
collection of Project Gutenberg™ electronic works. Nearly all the
individual works in the collection are in the public domain in the
United States. If an individual work is unprotected by copyright law in
the United States and you are located in the United States, we do
not claim a right to prevent you from copying, distributing,
performing, displaying or creating derivative works based on the
work as long as all references to Project Gutenberg are removed. Of
course, we hope that you will support the Project Gutenberg™
mission of promoting free access to electronic works by freely
sharing Project Gutenberg™ works in compliance with the terms of
this agreement for keeping the Project Gutenberg™ name
associated with the work. You can easily comply with the terms of
this agreement by keeping this work in the same format with its
attached full Project Gutenberg™ License when you share it without
charge with others.

1.D. The copyright laws of the place where you are located also
govern what you can do with this work. Copyright laws in most
countries are in a constant state of change. If you are outside the
United States, check the laws of your country in addition to the terms
of this agreement before downloading, copying, displaying,
performing, distributing or creating derivative works based on this
work or any other Project Gutenberg™ work. The Foundation makes
no representations concerning the copyright status of any work in
any country other than the United States.

1.E. Unless you have removed all references to Project Gutenberg:

1.E.1. The following sentence, with active links to, or other

immediate access to, the full Project Gutenberg™ License must
appear prominently whenever any copy of a Project Gutenberg™
work (any work on which the phrase “Project Gutenberg” appears, or
with which the phrase “Project Gutenberg” is associated) is
accessed, displayed, performed, viewed, copied or distributed:
 This eBook is for the use of anyone anywhere in the United
States and most other parts of the world at no cost and with
almost no restrictions whatsoever. You may copy it, give it away
or re-use it under the terms of the Project Gutenberg License
included with this eBook or online at www.gutenberg.org. If you
are not located in the United States, you will have to check the
laws of the country where you are located before using this
eBook.

1.E.2. If an individual Project Gutenberg™ electronic work is derived

from texts not protected by U.S. copyright law (does not contain a
notice indicating that it is posted with permission of the copyright
holder), the work can be copied and distributed to anyone in the
United States without paying any fees or charges. If you are
redistributing or providing access to a work with the phrase “Project
Gutenberg” associated with or appearing on the work, you must
comply either with the requirements of paragraphs 1.E.1 through
1.E.7 or obtain permission for the use of the work and the Project
Gutenberg™ trademark as set forth in paragraphs 1.E.8 or 1.E.9.

1.E.3. If an individual Project Gutenberg™ electronic work is posted

with the permission of the copyright holder, your use and distribution
must comply with both paragraphs 1.E.1 through 1.E.7 and any
additional terms imposed by the copyright holder. Additional terms
will be linked to the Project Gutenberg™ License for all works posted
with the permission of the copyright holder found at the beginning of
this work.

1.E.4. Do not unlink or detach or remove the full Project

Gutenberg™ License terms from this work, or any files containing a
part of this work or any other work associated with Project
Gutenberg™.

1.E.5. Do not copy, display, perform, distribute or redistribute this

electronic work, or any part of this electronic work, without
prominently displaying the sentence set forth in paragraph 1.E.1 with
active links or immediate access to the full terms of the Project
Gutenberg™ License.
1.E.6. You may convert to and distribute this work in any binary,
compressed, marked up, nonproprietary or proprietary form,
including any word processing or hypertext form. However, if you
provide access to or distribute copies of a Project Gutenberg™ work
in a format other than “Plain Vanilla ASCII” or other format used in
the official version posted on the official Project Gutenberg™ website
(www.gutenberg.org), you must, at no additional cost, fee or expense
to the user, provide a copy, a means of exporting a copy, or a means
of obtaining a copy upon request, of the work in its original “Plain
Vanilla ASCII” or other form. Any alternate format must include the
full Project Gutenberg™ License as specified in paragraph 1.E.1.

1.E.7. Do not charge a fee for access to, viewing, displaying,

performing, copying or distributing any Project Gutenberg™ works
unless you comply with paragraph 1.E.8 or 1.E.9.

1.E.8. You may charge a reasonable fee for copies of or providing

access to or distributing Project Gutenberg™ electronic works
provided that:

• You pay a royalty fee of 20% of the gross profits you derive from
the use of Project Gutenberg™ works calculated using the
method you already use to calculate your applicable taxes. The
fee is owed to the owner of the Project Gutenberg™ trademark,
but he has agreed to donate royalties under this paragraph to
the Project Gutenberg Literary Archive Foundation. Royalty
payments must be paid within 60 days following each date on
which you prepare (or are legally required to prepare) your
periodic tax returns. Royalty payments should be clearly marked
as such and sent to the Project Gutenberg Literary Archive
Foundation at the address specified in Section 4, “Information
about donations to the Project Gutenberg Literary Archive
Foundation.”

• You provide a full refund of any money paid by a user who

notifies you in writing (or by e-mail) within 30 days of receipt that
s/he does not agree to the terms of the full Project Gutenberg™
 License. You must require such a user to return or destroy all
copies of the works possessed in a physical medium and
discontinue all use of and all access to other copies of Project
Gutenberg™ works.

• You provide, in accordance with paragraph 1.F.3, a full refund of

any money paid for a work or a replacement copy, if a defect in
the electronic work is discovered and reported to you within 90
days of receipt of the work.

• You comply with all other terms of this agreement for free
distribution of Project Gutenberg™ works.

1.E.9. If you wish to charge a fee or distribute a Project Gutenberg™

electronic work or group of works on different terms than are set
forth in this agreement, you must obtain permission in writing from
the Project Gutenberg Literary Archive Foundation, the manager of
the Project Gutenberg™ trademark. Contact the Foundation as set
forth in Section 3 below.

1.F.

1.F.1. Project Gutenberg volunteers and employees expend

considerable effort to identify, do copyright research on, transcribe
and proofread works not protected by U.S. copyright law in creating
the Project Gutenberg™ collection. Despite these efforts, Project
Gutenberg™ electronic works, and the medium on which they may
be stored, may contain “Defects,” such as, but not limited to,
incomplete, inaccurate or corrupt data, transcription errors, a
copyright or other intellectual property infringement, a defective or
damaged disk or other medium, a computer virus, or computer
codes that damage or cannot be read by your equipment.

1.F.2. LIMITED WARRANTY, DISCLAIMER OF DAMAGES - Except

for the “Right of Replacement or Refund” described in paragraph
1.F.3, the Project Gutenberg Literary Archive Foundation, the owner
of the Project Gutenberg™ trademark, and any other party