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Business Australia / New Zealand
8th edition
Statistics
Eliyathamby A. Selvanathan Saroja Selvanathan Gerald Keller

Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-202
8th edition
Statistics

DEDICATION
We would like to dedicate this book to our statistics gurus, the Foundation Lecturers of the
Department of Mathematics and Statistics, University of Jaffna, Sri Lanka:
Late Professor Balan Selliah

Professor S Ganesalingam
Late Dr S Varatharajaperumal
8th edition
Statistics

Business Statistics: Australia/New Zealand © 2021 Cengage Learning Australia Pty Limited
8th Edition
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1 2 3 4 5 6 7 24 23 22 21 20
BRIEF CONTENTS
1 What is statistics? 1
2 Types of data, data collection and sampling 18
PART 1 Descriptive measures and probability 43

3 Graphical descriptive techniques – Nominal data 44
4 Graphical descriptive techniques – Numerical data 85
5 Numerical descriptive measures 135
6 Probability 211
7 Random variables and discrete probability distributions 260
8 Continuous probability distributions 309
PART 2 Statistical inference 349

9 Statistical inference and sampling distributions 350
10 Estimation: Single population 373
11 Estimation: Two populations 429
12 Hypothesis testing: Single population 466
13 Hypothesis testing: Two populations 530
14 Inference about population variances 582
15 Analysis of variance 615
16 Chi-squared tests 682
17 Simple linear regression and correlation 727
18 Multiple regression 789
19 Model building 846
20 Nonparametric techniques 891
21 Statistical inference: Conclusion 946
PART 3 Applications 989

22 Time series analysis and forecasting 990
23 Index numbers 1041
24 Decision analysis [Online] 24-1
v
CONTENTS
P R E FAC E XIV
GUIDE TO THE TEXT X vi I I
GUIDE TO THE ONLINE RESOURCES XXII
ACKNOWLEDGEMENTS XXIV
ABOUT THE AUTHORS XXV
1 What is statistics? 1
Introduction to statistics 2
1.1 Key statistical concepts 5
1.2 Statistical applications in business 6
Case 3.6 Differing average weekly earnings of men and women in Australia 7
Case 4.2 Analysing the spread of the Global Coronavirus Pandemic 7
Case 5.5 Sydney and Melbourne lead the way in the growth in house prices 7
Case 14.1 Comparing salary offers for finance and marketing MBA majors – I 8
Case 16.1 Gold lotto 8
Case 17.3 Does unemployment affect inflation in New Zealand? 9
1.3 How managers use statistics 9
1.4 Statistics and the computer 11
1.5 Online resources 13
Appendix 1.A Introduction to Microsoft Excel 15
2 Types of data, data collection and sampling 18

Introduction 19
2.1 Types of data 20
2.2 Methods of collecting data 26
2.3 Sampling 30
2.4 Sampling plans 32
2.5 Sampling and non-sampling errors 39
Chapter summary 41
PA R T 1: D E S CR IP T I V E ME A S URE S A ND P R OBA BIL I T Y 43
3 Graphical descriptive techniques – Nominal data 44

Introduction 45
3.1 Graphical techniques to describe nominal data 46
3.2 Describing the relationship between two nominal variables 68
Chapter summary 74
Case 3.1 Analysing the COVID-19 deaths in Australia by gender and age group 77
Case 3.2 Corporate tax rates around the world 77
vi
Contents vii
Case 3.3 Trends in CO2 emissions 78

Case 3.4 Where is the divorce rate heading? 79
Case 3.5 Geographic location of share ownership in Australia 80
Case 3.6 Differing average weekly earnings of men and women in Australia 80
Case 3.7 The demography of Australia 81
Case 3.8 Survey of graduates 82
Case 3.9 Analysing the health effect of the Coronavirus pandemic 82
Case 3.10 A
ustralian domestic and overseas student market by states and territories 82
Case 3.11 Road fatalities in Australia 83
Case 3.12 Drinking behaviour of Australians 84
4 Graphical descriptive techniques – Numerical data 85

Introduction 86
4.1 Graphical techniques to describe numerical data 86
4.2 Describing time-series data 106
4.3 Describing the relationship between two or more numerical variables 111
4.4 Graphical excellence and deception 123
Chapter summary 131
Case 4.1 The question of global warming 133
Case 4.2 Analysing the spread of the global coronavirus pandemic 134
Case 4.3 An analysis of telephone bills 134
Case 4.4 An analysis of monthly retail turnover in Australia 134
Case 4.5 Economic freedom and prosperity 134
5 Numerical descriptive measures 135

Introduction 136
5.1 Measures of central location 136
5.2 Measures of variability 153
5.3 Measures of relative standing and box plots 169
5.4 Measures of association 179
5.5 General guidelines on the exploration of data 193
Chapter summary 195
Case 5.1 Return to the global warming question 199
Case 5.2 Another return to the global warming question 199
Case 5.3 GDP versus consumption 199
Case 5.4 The gulf between the rich and the poor 199
Case 5.5 Sydney and Melbourne leading the way in the growth in house prices 200
Case 5.6 Performance of managed funds in Australia: 3-star, 4-star and
5-star rated funds 200
Case 5.7 Life in suburbs drives emissions higher 201
Case 5.8 Aussies and Kiwis are leading in education 202
Case 5.9 Growth in consumer prices and consumption in Australian states 202
Appendix 5.A Summation notation 203
Appendix 5.B Descriptive measures for grouped data 206
viii Contents
6 Probability 211
Introduction 212
6.1 Assigning probabilities to events 212
6.2 Joint, marginal and conditional probability 224
6.3 Rules of probability 234
6.4 Probability trees 239
6.5 Bayes’ law 244
6.6 Identifying the correct method 251
Chapter summary 252
Case 6.1 Let’s make a deal 255
Case 6.2 University admissions in Australia: Does gender matter? 255
Case 6.3 Maternal serum screening test for Down syndrome 255
Case 6.4 Levels of disability among children in Australia 256
Case 6.5 Probability that at least two people in the same room have the same birthday 257
Case 6.6 Home ownership in Australia 257
Case 6.7 COVID-19 confirmed cases and deaths in Australia II 259
7 Random variables and discrete probability distributions 260

Introduction 261
7.1 Random variables and probability distributions 261
7.2 Expected value and variance 269
7.3 Binomial distribution 275
7.4 Poisson distribution 284
7.5 Bivariate distributions 290
7.6 Applications in finance: Portfolio diversification and asset allocation 296
Chapter summary 303
Case 7.1 Has there been a shift in the location of overseas-born population
within Australia over the 50 years from 1996 to 2016? 306
Case 7.2 How about a carbon tax on motor vehicle ownership? 306
Case 7.3 How about a carbon tax on motor vehicle ownership? – New Zealand 307
Case 7.4 Internet usage by children 307
Case 7.5 COVID-19 deaths in Australia by age and gender III 308
8 Continuous probability distributions 309

Introduction 310
8.1 Probability density functions 310
8.2 Uniform distribution 313
8.3 Normal distribution 316
8.4 Exponential distribution 336
Chapter summary 341
Case 8.1 Average salary of popular business professions in Australia 343
Case 8.2 Fuel consumption of popular brands of motor vehicles 343
Appendix 8.A Normal approximation to the binomial distribution 344
Contents ix
PA R T 2: S TAT IS T ICA L INF ER ENCE 349
9 Statistical inference and sampling distributions 350

Introduction 351
9.1 Data type and problem objective 351
9.2 Systematic approach to statistical inference: A summary 352
9.3 Introduction to sampling distribution 354
—
9.4 Sampling distribution of the sample mean X 354
9.5 Sampling distribution of the sample proportion pˆ 366
9.6 From here to inference 369
Chapter summary 371
10 Estimation: Single population 373

Introduction 374
10.1 Concepts of estimation 375
10.2 Estimating the population mean µ when the population variance σ 2 is known 378
10.3 Estimating the population mean µ when the population variance σ is unknown 2
391
10.4 Estimating the population proportion p 403
10.5 Determining the required sample size 410
10.6 Applications in marketing: Market segmentation 417
Chapter summary 422
Case 10.1 Estimating the monthly average petrol price in Queensland 426
Case 10.2 Cold men and cold women will live longer! 426
Case 10.3 Super fund managers letting down retirees 427
Appendix 10.A Excel instructions for missing data and for recoding data 428
11 Estimation: Two populations 429

Introduction 430
11.1 Estimating the difference between two population means (µ 1 − µ 2) when the
population variances are known: Independent samples 431
11.2 Estimating the difference between two population means (µ 1 − µ 2) when
the population variances are unknown: Independent samples 439
11.3 Estimating the difference between two population means with matched pairs
experiments: Dependent samples 449
11.4 Estimating the difference between two population proportions, p 1 – p 2 453
Chapter summary 461
Case 11.1 Has demand for print newspapers declined in Australia? 463
Case 11.2 Hotel room prices in Australia: Are they becoming cheaper? 463
Case 11.3 Comparing hotel room prices in New Zealand 464
Case 11.4 Comparing salary offers for finance and marketing major graduates 464
Case 11.5 Estimating the cost of a life saved 465
12 Hypothesis testing: Single population 466

Introduction 467
12.1 Concepts of hypothesis testing 467
12.2 Testing the population mean µ when the population variance σ is known 2
476
12.3 The p-value of a test of hypothesis 491
12.4 Testing the population mean µ when the population variance σ is unknown 2
504
12.5 Calculating the probability of a Type II error 510
x Contents
12.6 Testing the population proportion p 517

Chapter summary 524
Case 12.1 Singapore Airlines has done it again 527
Case 12.2 Australian rate of real unemployment 527
Case 12.3 The republic debate: What Australians are thinking 527
Case 12.4 Has Australian Business Confidence improved since the May 2019 election? 528
Case 12.5 I s there a gender bias in the effect of COVID-19 infection? 528
Appendix 12.A Excel instructions 529
13 Hypothesis testing: Two populations 530

Introduction 531
13.1 Testing the difference between two population means: Independent samples 531
13.2 Testing the difference between two population means: Dependent
samples - matched pairs experiment 551
13.3 Testing the difference between two population proportions 562
Chapter summary 573
Case 13.1 Is there gender difference in spirits consumption? 578
Case 13.2 Consumer confidence in New Zealand 578
Case 13.3 New Zealand Government bond yields: Short term versus long term 579
Case 13.4 The price of petrol in Australia: Is it similar across regions? 579
Case 13.5 Student surrogates in market research 579
Case 13.6 Do expensive drugs save more lives? 580
Case 13.7 Comparing two designs of ergonomic desk: Part I 580
Appendix 13.A Excel instructions: Manipulating data 581
14 Inference about population variances 582

Introduction 583
14.1 Inference about σ 2 583
14.2 Inference about σ 21/σ 22 595
Chapter summary 610
Case 14.1 Comparing salary offers for finance and marketing MBA majors – I 612
Case 14.2 Comparing salary offers for finance and marketing MBA majors – II 612
Case 14.3 Risk of an asset: Five-year bonds versus 10-year bonds 612
Case 14.4 Efficiency in streetlight maintenance 612
Case 14.5 Comparing two designs of ergonomic desk II 613
Appendix 14.A A brief discussion of the derivation of the chi-squared distribution 614
15 Analysis of variance 615

Introduction 616
15.1 Single-factor analysis of variance: Independent samples (one-way ANOVA) 616
15.2 Multiple comparisons 638
15.3 Analysis of variance: Experimental designs 647
15.4 Single-factor analysis of variance: Randomised blocks (two-way ANOVA) 648
15.5 Two-factor analysis of variance 661
Chapter summary 674
Case 15.1 Top 300 Australian companies 678
Case 15.2 Which diets work? 678
Case 15.3 Effects of financial planning on small businesses 678
Case 15.4 Diversification strategy for multinational companies 679
Contents xi
Case 15.5 Comparing three methods of treating childhood ear infections 680
Case 15.6 Treatment of headaches 680
16 Chi-squared tests 682

Introduction 683
16.1 Chi-squared goodness-of-fit test 683
16.2 Chi-squared test of a contingency table 693
16.3 Chi-squared test for normality 708
16.4 Summary of tests on nominal data 714
Chapter summary 716
Case 16.1 Gold lotto 720
Case 16.2 Exit polls 720
Case 16.3 How well is the Australian Government managing the coronavirus pandemic? 720
Appendix 16.A Chi-squared test for a Poisson distribution 722
Appendix 16.B Review of Chapters 10 to 16 725
17 Simple linear regression and correlation 727

Introduction 728
17.1 Model 729
17.2 Estimating the coefficients 731
17.3 Error variable: Required conditions 744
17.4 Assessing the model 746
17.5 Using the regression equation 762
17.6 Testing the coefficient of correlation 767
17.7 Regression diagnostics – I 770
Chapter summary 780
Case 17.1 Does unemployment rate affect weekly earnings in New Zealand? 786
Case 17.2 Tourism vs tax revenue 786
Case 17.3 Does unemployment affect inflation in New Zealand? 786
Case 17.4 Does domestic market capital influence stock prices? 786
Case 17.5 Book sales vs free examination copies 786
Case 17.6 Does increasing per capita income lead to increase in energy consumption? 787
Case 17.7 Market model of share returns 787
Case 17.8 Life insurance policies 788
Case 17.9 Education and income: How are they related? 788
Case 17.10 Male and female unemployment rates in New Zealand – Are they related? 788
18 Multiple regression 789

Introduction 790
18.1 Model and required conditions 790
18.2 Estimating the coefficients and assessing the model 791
18.3 Regression diagnostics – II 817
18.4 Regression diagnostics – III (time series) 829
Chapter summary 839
Case 18.1 Are lotteries a tax on the poor and uneducated? 844
Case 18.2 Demand for beer in Australia 844
Case 18.3 Book sales vs free examination copies revisited 844
Case 18.4 Average hourly earnings in New Zealand 845
Case 18.5 Testing a more effective device to keep arteries open 845
xii Contents
19 Model building 846

Introduction 847
19.1 Polynomial models 847
19.2 Nominal independent variables 858
19.3 Applications in human resources: Pay equity (Optional) 867
19.4 Variable selection methods (Optional) 872
19.5 Model building 879
Chapter summary 880
Case 19.1 Does the street number of a house matter? 881
Case 19.2 MBA program admissions policy 881
Case 19.3 Track and field performance forecasts 881
Appendix 19.A Logistic regression 883
20 Nonparametric techniques 891

Introduction 892
20.1 Wilcoxon rank sum test 894
20.2 Sign test and Wilcoxon signed rank sum test 906
20.3 Kruskal–Wallis test and Friedman test 920
20.4 Spearman rank correlation coefficient 934
Chapter summary 939
Case 20.1 HR Information Systems Inc. 944
Case 20.2 Bank of Commerce customer survey 944
21 Statistical inference: Conclusion 946

Introduction 947
21.1 Identifying the correct technique: Summary of statistical inference 951
21.2 Beyond the statistics subject – the last word 973
Case 21.1 Do banks discriminate against women business owners? – Part I 984
Case 21.2 Do banks discriminate against women business owners? – Part II 984
Case 21.3 Graduate survey report 985
Case 21.4 Effect of the death of key executives on stock market returns 986
Case 21.5 Evaluation of a new drug 987
Case 21.6 Nutrition education programs 987
Case 21.7 Type A, B and C personalities and job satisfaction and performance 988
PA R T 3: A P P L ICAT IONS 989
22 Time series analysis and forecasting 990

Introduction 991
22.1 Components of a time series 991
22.2 Smoothing techniques 995
22.3 Trend analysis 1005
22.4 Measuring the cyclical effect 1010
22.5 Measuring the seasonal effect 1014
22.6 Introduction to forecasting 1022
22.7 Time series forecasting with exponential smoothing 1025
22.8 Time series forecasting with regression 1027
Contents xiii
Chapter summary 1038

Case 22.1 Part-time employed females 1040
Case 22.2 New Zealand tourism: Tourist arrivals 1040
Case 22.3 Seasonal and cyclical effects in number of houses constructed in
Queensland 1040
Case 22.4 Measuring the cyclical effect on Woolworths’ stock prices 1040
23 Index numbers 1041

Introduction 1042
23.1 Constructing unweighted index numbers 1043
23.2 Constructing weighted index numbers 1050
23.3 The Australian Consumer Price Index (CPI) 1054
23.4 Using the CPI to deflate wages and GDP 1058
23.5 Changing the base period of an index number series 1063
Chapter summary 1066
Case 23.1 Soaring petrol prices in Australian capital cities 1070
Case 23.2 Is the Australian road toll on the increase again? 1070
24 Decision Analysis [Online] 24-1

Introduction 24-2
24.1 Decision problem 24-2
24.2 Acquiring, using and evaluating additional information 24-8
Chapter summary 24-19
A P P E N D I X A : S U M M A R Y S O L U T I O N S F O R S E L E C T E D
(E VEN-NUMBERED) E XERCISES 1071
APPENDIX B: S TAT I S T I C A L TA B L E S 1089
GLOSSARY1115
INDEX 1120
PREFACE
Managing a business is a very complex responsibility and requires effective management to
succeed. Managing complexity requires many skills. There are more competitors, more places to
sell products and more places to locate workers. As a consequence, effective decision making is
more crucial than ever before. On the other hand, nowadays managers have more access to larger
and more detailed data sets that are potential sources of information for making well-informed
objective decisions. Business managers are increasingly using statistical techniques to convert
data into meaningful information. However, to achieve this, potential managers need to know which
statistical techniques they should use to extract useful information from the available data to make
informed decisions. For students preparing for the business world, it is not enough to focus merely
on mastering a diverse set of statistical techniques and calculations. A course and its recommended
textbook must provide a complete picture of statistical concepts and their applications to the
real world. Business Statistics – Australia and New Zealand is designed to demonstrate that
statistical methods are vital tools for today’s businesses and business managers to improve their
decision-making skills.
This book is a thorough Australasian adaptation of the most popular and best-selling US text,
Statistics for Management and Economics (11th edition) by Gerald Keller. This edition is a further
attempt to make the basic business and economics statistics subject a more effective and enjoyable
learning experience for both instructors and students at Australasian universities. It uses familiar
local terminology, together with examples, exercises and cases that draw upon Australasian data.
To enhance flexibility, we have also rearranged a number of chapters from the US edition. For
example, we have incorporated the data collection chapter with types of data at the start of the
book, additional graphical techniques such as bubble chart and heat maps in the graphical methods
chapter, introduce estimation and hypothesis testing in separate chapters, present inference about
population variance in another chapter and single population and two or more populations in
different chapters. Furthermore, we have included a chapter on index numbers, which includes
some important topics such as the construction of the Australian Consumer Price Index, as well as
comparison of Laspeyres and Paasche index numbers.
When solving problems, Business Statistics – Australia and New Zealand uses its unique ‘ICI’
approach, which is renowned for its consistent, proven three-step method to solving problems.
The ICI approach teaches you how to: (1) Identify the appropriate technique, (2) Compute the
statistics and (3) Interpret the results, in the context of the problem at hand. The compute stage
can be completed in any or all of three ways: manually (with the aid of a calculator) or using Excel
or XLSTAT (on the computer). This book contains step-by-step instructions and commands to teach
students how to use Microsoft Excel® or XLSTAT to solve statistical problems. For those courses
that wish to use the computer extensively, manual calculations can be played down or omitted
completely. Conversely, those that wish to emphasise manual calculations may easily do so, and
the computer solutions can be selectively introduced or skipped entirely. This approach is designed
to provide maximum flexibility, and it leaves to the instructor the decision of when to introduce the
computer.
Additionally, most examples, exercises and cases feature raw data. These data sets are available
to download from the companion website accessible through https://login.cengagebrain.com/.
xiv
P r e fac e xv
Key features of our approach

1. Systematic approach
This edition retains the systematic approach introduced in the US edition, which teaches students
how to recognise which statistical technique to use. We believe that this skill is the most important
one to develop, yet it is the one students have the greatest difficulty in mastering. As each
technique is introduced, we demonstrate how to recognise when its use is appropriate and when
it is not. A feature of this approach is the review chapter (Chapter 21) presented in the book that
allows students to hone their technique-selection skills. In the review chapter, a flowchart develops
the logical process for choosing the correct technique. Our ICI approach divides the solution of
statistical problems into three parts: (1) identify the technique; (2) calculate/compute the required
sample statistics; and (3) interpret the results. Our focus has been on the first and third parts, as
the sample statistics could be produced relatively easily with a computer.
When demonstrating examples, we start the solutions by reviewing the appropriateness of
the method to be used. One of the main benefits of our approach is that it allows instructors to
de-emphasise mathematical manipulation. Consequently, students can spend more time properly
setting up the procedure and interpreting the statistical results, and less time grinding out the
arithmetic.
For students without access to a computer and statistical software, we continue to teach
how to calculate statistics manually (with the exception of the most complicated procedures), and
most exercises can be solved in this way.
2. Cases
Recent academic conferences devoted to improving the teaching of applied statistics have
advocated the use of cases to help motivate students. In practice, a statistician often has access
only to raw data and the correct procedure to employ is not obvious; our approach allows us to
offer more realistic applications. In fact, many of the cases are based on real studies that have
been reported in newspapers, magazines, journals, on television and at academic conferences.
Several from our own consulting projects have also been included. Such applications can motivate
students, who unfortunately often believe that statistics is not very relevant to their future careers.
We believe that our approach can change these attitudes. More than 80 cases are included in the
book. Students are expected to analyse the cases and draw conclusions in the same way as the
original authors did. These cases are neither summaries of what a particular statistician did to solve
a problem, nor glorified exercises; rather, they give students the opportunity to see for themselves
how statistical problem solving works.
3. Review chapter
The review chapter is included in the book to help students practise identifying the correct
techniques. This chapter reviews all the statistical methods covered in the book and provides
exercises and cases that require the use of several different statistical procedures. It, therefore,
provides practice in the technique identification skills that are required for statistics exams and,
ultimately, in any real-life application of statistics.
4. Use of Excel
Because the use of spreadsheets is so widespread, we believe that Microsoft® Excel is an
important addition to this book. However, spreadsheets are not designed for use as statistical
xvi P r e fac e
software, although they are increasingly capable in data analysis. Because of this limitation, we
offer workbooks that can be used to solve statistical problems beyond Excel’s existing capabilities.
In this edition we have introduced another Excel Add-in, XLSTAT, which is capable of sophisticated
statistical analysis to complement Excel’s menu of statistical procedures. All statistical techniques
introduced in this book can be calculated using either Excel’s Data Analysis (Analysis ToolPak)
or XLSTAT, which is available to download from the companion website accessible through
https://login.cengagebrain.com/. The website also contains another Excel add-in Data Analysis Plus,
which can also be used to perform a number of statistical calculations that Excel Data Analysis is
unable to perform.
The Excel spreadsheet package is used extensively and presented consistently throughout
the book to calculate sample statistics. Most examples in the chapters present manual (Calculating
manually) and computer (Using the computer) solutions, allowing students to see both methods
together and to use the preferred method. This feature provides flexibility, allowing the instructor to
decide when manual or (Excel) computer calculations should be emphasised. Detailed instructions
and Excel commands provided for the examples make it easy for instructors and students to make
use of the computer. They also eliminate the need for instructors to teach how to use the software.
Data files are provided in Excel format for most of the examples, exercises and cases. The
eighth edition includes hundreds of data files, some consisting of hundreds of observations, which
emphasise a central theme in the book – statistical techniques convert data into information. For
students who will conduct statistical analyses manually, we have also provided the summary
statistics (e.g. means and variances) for exercises, allowing most exercises to be solved manually.
5. Exercises
There are over 1500 exercises of varying levels of difficulty. At the end of most sections we supply,
under the heading ‘Learning the techniques’, exercises that help students to learn the arithmetic
involved in a specific procedure. ‘Applying the techniques’ exercises then stress when and why
the technique is used and how the results assist in the decision-making process. ‘Computer
applications’ help students gain hands-on experience in applying the techniques to solve problems
using real-world data and computer software. Supplementary exercises appear at the end of each
chapter. As they cover all the topics presented in that chapter, they allow students to practise
identifying which of the techniques encountered in that chapter should be employed. They also
tend to be more realistic than the other types of exercises.
We are optimistic that the systematic approach used in this book will be successful in
helping students to understand how, when and why statistics are used. We hope that the realistic
examples, exercises and cases we present, wherever possible with Australasian data, will make
the subject more interesting and will persuade students that statistics can play a vital role in
managerial decision making.
This text is suitable for a one- or two-semester subject in a business program. Although
various sections can be omitted, we strongly urge instructors to attempt to complete most of
the statistical inference part of the book. Like a house under construction, the structure of the
systematic approach is stronger when most of the various components are in place. Nonetheless,
the book has been designed so that chapters can be omitted relatively easily.
Unique features
• Chapter opening examples illustrate the use of techniques introduced in that chapter. These
examples are designed to help students learn the concepts in the chapters. These chapter
opening examples are revisited at the relevant section of the chapter, where they are solved.
P r e fac e xvii
• In addition to the examples provided in each chapter, we have included ‘Real-life applications’
sections which illustrate the fundamental applications of statistics in finance, marketing, human
resources management, operations management, accounting and economics.
• For example, to illustrate graphical techniques, we use an example that compares the
histograms of the returns on two different investments. To explain what financial analysts
look for in the histograms requires an understanding that risk is measured by the amount
of variation in the returns. The example is preceded by a ‘Real-Life Applications’ box that
discusses how return on investment is computed and used.
• Later when we present the normal distribution, we feature another ‘Real-Life Applications’
box to show why the standard deviation of the returns measures the risk of that investment.
• Several ‘Real-Life Application’ boxes are scattered throughout the book.
• ‘In Summary’ boxes are included after each technique has been introduced. These boxes will
allow students to see a technique’s essential requirements, in addition to giving them a way to
easily review their understanding. This is further enhanced by ‘Chapter Summary’ at the end
of each chapter, which also include individual summary flowcharts in most of the Statistical
Inference chapters and an overall summary flowchart in the review chapter.
• Several new exercises are added to each chapter.
• In addition to updating the data in the Examples and Exercises as much as possible, several
new data sets have been added to the existing computer exercises section of each chapter.
For those students who wish to solve the computer exercises containing data sets manually,
summary statistics to these data sets are provided within each exercise.
• A more sophisticated commercially available Excel Add-in XLSTAT has been incorporated, to
enable you to use Excel for almost all statistical procedures introduced in this book.
• In addition to Excel Data Analysis and XLSTAT commands, we have included several Excel
workbooks that feature worksheets for confidence interval estimators and test statistics. By
changing one or more inputs, students can learn, for example, the effect of increasing sample
sizes on confidence intervals or on test statistics.
• Appendix A: Summary solutions for selected exercises is available in the book.
Guide to the text
As you read this text you will find a number of features in every
chapter to enhance your study of Business Statistics and help
you understand how the theory is applied in the real world.
PART-OPENING FEATURES CHAPTER-OPENING FEATURES
Part outlines show the chapters that are included in Identify the key concepts that the chapter will cover
each part. with the learning objectives and get a clear sense
of what you should be able to do after reading the
chapter.
PART ONE 3
Descriptive Graphical descriptive techniques –

Nominal data
measures
and probability Learning objectives
This chapter discusses the graphical descriptive methods used to summarise and describe sets of nominal data.
At the completion of this chapter, you should be able to:
CHAPTER 3 Graphical descriptive techniques – Nominal data LO1 construct charts to summarise nominal data
CHAPTER 4 Graphical descriptive techniques – Numerical data LO2 use Excel to draw appropriate charts for nominal data
CHAPTER 5 Numerical descriptive measures LO3 determine which chart is best for nominal data under a given circumstance
CHAPTER 6 Probability LO4 use charts to describe ordinal data
CHAPTER 7 Random variables and discrete probability distributions LO5 use various tabular and graphical techniques to analyse the relationships between two
CHAPTER 8 Continuous probability distributions nominal variables.
CHAPTER OUTLINE
Introduction
To help you organise the material that you are about to learn, we have divided the rest of 3.1 Graphical techniques to describe nominal data
the book into three parts. 3.2 Describing the relationship between two nominal variables
Part 1 covers descriptive statistics and probability. These topics constitute the
foundation of statistical inference. Chapter 3 introduces the graphical techniques for
S P O T L I G H T O N S TAT I S T I C S
nominal data and Chapter 4 deals with graphical techniques for numerical data. Chapter 5
presents numerical measures that are used to summarise data. The summary measures Break bail, go to jail?
introduced in Chapter 5 will be used to make inferences about parameters in later chapters. XM03-00 An overwhelming majority of Victorian electors (78%) say people charged with a criminal offence who are
In Chapters 6 to 8, we present probability and probability distributions that will provide the given bail and then break a bail condition should be immediately sent to jail, according to a special SMS Morgan Poll
link between sample statistics and population parameters. conducted on the eve of the last Victorian state election.
Everything we do in this book is mostly built upon these six chapters. However, Part 1 Victorian electors were asked: ‘Many people charged with a criminal offence are given bail. If a person given bail then
does much more than just lay the foundation. Both descriptive statistics and probability are breaks a bail condition, should that person be immediately sent to jail or not?’ This special SMS Morgan Poll was conducted on
subjects that are worth learning for their own intrinsic values. Thursday 22 November 2018 with a statewide cross-section of 961 Victorian electors aged
Source: <To be confirmed>

We all make decisions on a daily basis, most of which are made under uncertainty. 18 and over. The responses and party affiliation for a random sample of
Consider an investor who must decide which investment to make, how much money to 200 respondents are stored in file CH03:\XM03-00. Some of the data are
invest and for how long that investment should be held. There are a large number of events listed below. Determine whether the responses differ on the basis of
over which the investor has no control. All that the investor can do is attempt to assess the party affiliation. On pages 71–72 we provide a possible answer.
risks and returns associated with each investment. As you will discover, probability plays a Source: www.roymorgan.com.au, Finding no: 7813
central role in this assessment. ID Party Response

We believe that all business and economics graduates will have many opportunities 1 LNP Yes
to apply statistical inference techniques and concepts. However, not all of them will do so 2 LNP Yes
because of a lack of either knowledge (despite the best efforts of statistics lecturers) or 3 LNP Yes
confidence. Descriptive techniques are so common that it is virtually impossible to ignore 4 Others Yes
them. Newspapers, magazines, company annual reports and presentations are filled with .
. . .
applications of descriptive statistics. Knowing how to use and interpret them is a critical . . ....
skill for all of us. 199 Others No
200 ALP Yes
43 44
BK-CLA-SELVANATHAN_8E-200138-Chp03.indd 43 17/08/20 2:29 PM BK-CLA-SELVANATHAN_8E-200138-Chp03.indd 44 17/08/20 2:29 PM
Part-opening paragraphs introduce the chapters in Spotlight on Statistics are used at the beginning
each part to give you an overview of how the chapters of every chapter. They highlight a specific problem
relate to each other. that can be solved by using the statistical techniques
that will be covered in the chapter. The problem is
answered later in the chapter.
xviii
G U I D E TO T H E TE X T xix
FEATURES WITHIN CHAPTERS
Examples are used throughout each chapter. These are designed to teach you to use the authors’ unique three-step
approach to problem solving, and to help you apply statistics to real business problems.
You will learn to: C H A P T E R 11 E S T I m A T I o N : T w o p o p u L A T I o N S 437
E X A M P L E 11 . 2 LO7
Comparing the clothing purchasing habits of men and women

The manager of a major clothing manufacturer wants to compare the annual expenditure on clothing of men and
women. She decides to estimate the difference in mean annual expenditure to within $100 with 95% confidence.
How large should the two sample sizes be, if we assume that the range of expenditure is $800 for males and
$1200 for females and the populations of male and female expenditures on clothing are normal?
Solution
• identify the right statistical technique to use Identifying the technique
The problem objective is to determine the required sample sizes. The data type is numerical. Both populations of
by focusing on the relationship between the interest are normally distributed and the samples are independent.
Calculating manually
problem and data type and calculate manually. The error bound is $100 and the confidence level is 0.95. Hence, B = $100 and zα/2 = z0.025 = 1.96.
We approximate σ1 and σ2 by using the following formulas:
Range 800
146 PA R T 1 D E S C R I P T I V E M E A S U R E S A N D P R O B A B I L I T Y σ1 ≈ = = $200 ( for males )
4 4
Range 1200
= $300 ( for females )
compute the answer either by hand calculation,
•
σ2 ≈ =
4 4
Thus,
Interpreting the results or by calculating it in Microsoft Excel® when n1 = n2 = 
1.96 2002 + 3002 
2
 = 49.94 ≈ 50
When the four returns contribute unequally in the portfolio, then the centre of the four returns is 10%. However,  100 
you
if the four returns contribute see
equally a ‘Using
in the the
portfolio, then thecomputer’ heading
centre of the returns is 9.25%. with
Interpreting the results
Using the computer instructions and ‘Command’ boxes, which In order to estimate µ1 − µ2 to within $100 with 95% confidence, we should take samples of 50 men and
50 women.
To calculate the weighted mean using Excel, we can proceed as follows.
include step-by-step instructions on how to using the computer
The required sample sizes can be calculated using the Sample size-2Means worksheet in the Estimators
COMMANDS
complete the examples using Microsoft Excel®. workbook. The output is shown below.
Excel output for Example 11.2

1 Type the data into one or more columns of a new Excel spreadsheet or open the data file. Type the titles Return and A B C
Weight in cells A1 and B1. Type the values and the corresponding weights in two adjacent columns (A2:A5 and B2:B5) or 1 Calculating the sample sizes for a fixed width (2B)
open Excel file (XM05-07). 2 Sample 1 Sample 2
2 • interpret the answer in the context of the

Click on any empty cell (e.g. A6).
3
4
Variance
Width/2 = B
40000
100
90000
5 Confidence level 0.95

3
and click OK.
problem.
Click inset function fx, select Math & Trig from the category drop-down menu, then select the function SUMPRODUCT 6 Sample size 50 50
COMMANDS
4 In the Array1 box, type the input range of the returns (A2:A5) and, in Array2 box type the range of the weights (B2:B5)
and click OK. The weighted mean will appear in the active cell. To estimate required sample sizes, open the Sample size-2Means worksheet in the Estimators workbook, then type in the
values of the given population variances (or as calculated above), B and the confidence level.
Alternatively, type the following command in any empty active cell, =SUMPRODUCT([Array1, Array2]); for example,
=SUMPRODUCT(A2:A5,B2:B5). The active cell will show the weighted mean as 10.
CHAPTER 5 N U M ER I C A L D E S C R I P T I V E M E A S U R E S 1
Definition
Geometric mean and Formula boxes enable you to review In Summary boxes are included after each technique
The arithmetic mean is the single most popular and useful measure of central location. We 5.2fbeen
Measures of variability forasordinal
your understanding oftheeach
noted certain situations for which mediannew concept.
is a better measure of central location. However, has introduced, as well at the and
endnominal
of sections, data
there is another circumstance where neither the mean nor the median is the best measure. to
Theallow you to appreciate a technique’s essential
measures of variability introduced
BK-CLA-SELVANATHAN_8E-200138-Chp11.indd 437
in this section can only be used for numerical data.
The next section will feature a measure that can be used to describe the variability of ordinal
17/08/20 10:27 AM
When the variable is a growth rate or rate of change, such as the value of an investment over
periods of time, we need another measure. requirements and oftovariability
data. There are no measures enable you todata.
for nominal review your
The geometric mean is another measure of central location. It is calculated as the nth root We complete this section by reviewing the factors that identify the use of measures of
of the product of a given number of observations. The population geometric mean is denoted
understanding
variability. of each technique.
by µg and the sample geometric mean by xg .
IN SUMMARY
Geometric mean
geometric mean The geometric mean of a population of N observations x1, x2, …, xN is defined as: Factors that identify when to calculate the range, variance, standard deviation
The nth root of and coefficient of variation
Population geometric mean: mg = N x 1x 2 ...x N = (x 1x 2 ...x N )
1/ N
the product of all 1 Objective: to describe a single set of data
observations.
The geometric mean of a sample of n observations x1, x2, …, xn is defined as: 2 Type of data: numerical
1/ n
Sample geometric mean: x g = n x 1x 2 ...x n = (x 1x 2 ...x n ) 3 Descriptive measurement: variability
Geometric mean rate of return

One of the major applications in business of geometric mean is in rate of return of investment.
EXERCISES
Using the geometric mean, we can calculate the average compounding rate of return on
investment over time.
Learning the techniques 5.34 XR05-34 Calculate the mean, variance, standard
deviation and coefficient of variation for each of the
5.32 a Is it possible for a standard deviation to be
following samples of data:
negative? Explain.
a 14 7 8 11 5
b Is it possible for the standard deviation of a set of
b −3 −2 −1 0 1 2 3
data to be larger than its variance? Explain.
c 4 4 8 8
c Is it possible for the standard deviation of a set of
d 5 5 5 5
data to be zero? Explain.
d Is it possible for a coefficient of variation to be 5.35 XR05-35 Examine the three samples of data shown
negative? Explain. below:
e Is it possible for the coefficient of variation of a
1 27 39 22 36 31
set of data to be zero? Explain.
BK-CLA-SELVANATHAN_8E-200138-Chp05.indd 146 17/08/20 3:09 PM 2 32 28 33 30 27
5.33 XR05-33 Calculate the range, variance, standard
3 34 47 16 49 39
deviation and coefficient of variation for the following
sample of data: a Without performing any calculations, indicate
which sample has the greatest variability and
5 7 12 14 15 15 17 20 21 24
which sample has the least variability. Explain wh
b Calculate the variance and standard deviation of
Refer to the sample of data in the table and try to
the three samples. Was your answer in part (a)
answer each of the following questions without
correct?
performing any calculations. Then verify your
c Calculate ∑ ( x i − x ) for the three samples. Wha
answers by performing the necessary calculations.
can you infer about this calculation in general?
a If we drop the largest value from the sample,
what will happen to the mean, variance, standard 5.36 XR05-36 The number of hours a student spent
deviation and coefficient of variation? studying for a statistics course over the past seven
b If each value is increased by 2, what will happen days was recorded as follows.
to the
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or mean, variance,
duplicated, standard
in whole ordeviation
in part.andWCN 02-200-202
coefficient of variation? 2 5 6 1 4 0 3
c If each value is multiplied by 3, what will happen
Calculate the range, mean, variance, standard
α/2 0.025
where the minus sign defines the lower confidence limit and the plus sign defines the
upper confidence limit. confidence interval estimator of µ.
To apply this formula, we specify the level of confidence (1 − α), from which we determine
xx G U I D E TO T H E TE X T TABLE 10.1
α , α/2 and zα/2 (from Table 3 in Appendix B). Because the levelFour commonly
of confidence is the probabilityused confidence lev
that the interval includes the actual value of µ, we generally set (1 − α) close to 1 (usually
between 0.90 and 0.99).
Confidence level
In Table 10.1, we list three commonly used confidence levels and their associated values
of zα/2. For example, if the level of confidence is (1 − α) = 0.95, α = 0.05, α/2 = 0.025, and
(1 – α)
zα/2 = z0.025 = 1.96. The resulting confidence interval estimator is then called the 95% α
FEATURES WITHIN CHAPTERS confidence interval estimator of µ.
0.90 0.10
TABLE 10.1 Four commonly used confidence levels and z α /2
Confidence level 0.95z 0.05
The text contains over 1500 Exercises, located at the end Data files, highlighted throughout (1 – α)
α the
α/2 text, enable you α /2
0.90 0.10 0.05 z = 1.645

of each section in the chapters. to complete the 0.95 Examples, 0.05Exercises
0.98
0.025 and Case z = 1.96 Studies
0.02 0.05
0.025
in the text without having to spend time inputting raw

0.98 0.02 0.01 z = 2.33
These include: 0.99 0.01 0.005 0.99z = 2.575 0.01 0.01
0.005
data. TheseThedata files are available on the accompanying

• Learning the techniques exercises help you to learn following example illustrates how statistical techniques are applied using the three-stage
student companion
solution processwebsite (http://login.cengagebrain.
outlined in Section 9.3. It also illustrates how we intend to solve problems
in the rest of this book. The process isThe
divided following
into three stages: (1) example
the arithmetic involved in a specific procedure illustrates how statis
identify the appropriate
com), the MindTap platform
statistical techniques, or
(2) calculate vianecessary
the yourstatistics
instructor.
manually or using computer
• Applying the technique exercises highlight when solution process outlined in Section 9.3. It
software, and (3) interpret the results and answer the question presented in the problem.
and why the techniques are used and how the results E X A M P L E 1 0 .1 in the rest of this book. LO4 LO5 The process is divi
assist in the decision-making process Number of hours children spend watching television
statistical techniques, (2) calculate the n
• Computer applications help you gain hands-on
XM10-01 The sponsors of television shows targeted at children wanted to know the amount of time children spend
watching television, since the types and number of programssoftware, and are(3)
and commercials presented interpret
greatly influenced the results and a
experience in applying the techniques to solve by this information. As a result, a survey was conducted to estimate the average number of hours Australian
children spend watching television per week. From past experience, it is known that the population standard
problems using real world data and Microsoft deviation σ is 8.0 hours. The following are the data gathered from a sample of 100 children. Find the 95%
E X A M P L E 1 0 .1
confidence interval estimate of the average number of hours Australian children spend watching television.
73
Excel®. CHAPTER 3 G r A P H I C A l D E s C r I P T I v E T E C H N I q u E s – N o m I N A l D ATA
EXERCISES Number of hours children spend watching televisio C H A P T E R 15 A N A Ly S I S O F V A R I A N C E 617
The technique is called the one-way analysis of variance. Later in Section 15.4, we introduce the
XM10-01 The sponsors of television shows targeted at children wan
single factor model when the experiment is designed so that the sample units are matched pairs.
learning the techniques She recorded their
BK-CLA-SELVANATHAN_8E-200138-Chp10.indd 380
Figure 15.1 depicts the undergraduate
sampling process for drawingdegree
independent (1samples.
= BA,The mean and 17/08/20 2:32 PM
watching television, since the types and number of programs and

variance of population j (j = 1, 2, …, k) are labelled µj and σ 2j respectively. Both parameters are
2 = BEng, 3population,
= BBA,we4 draw = other) as well
unknown. For each independent randomas the For each sample, we
samples.
3.29 XR03-29 The following table summarises the data
universityby this1,information.
2, 3 and 4). Use As
can calculate the mean X j and the variance s2j .
(codes a result, a survey was conducted to estima
a graphical
from a survey on the ownership of iPads for families
technique
FIGURE toscheme
15.1 Sampling determine
children whether
spend the undergraduate
watching
for independent samples
television per week. From past experien
with different levels of income (C1 < C2 < C3). Real-Life
degree and Applications
the university each are included
person appliedthroughout
to the text
deviation σ
Population 1 Population 2
is 8.0 hours.
Population k
Determine whether the two nominal variables are toappear
demonstrate real-world
Mean = µ 1 The
applications following
of
Mean = µ 2 are the data gathered from
statistics Mean = µ k
to be related. Variance = σ 12 Variance = σ 22 Variance = σ k2
related. confidence interval estimate of the average number of hours Aust
in the areas of finance, marketing, human resource
3.32 XR03-32 Is thereSample brand
size: n loyaltySample among
size: n car owners Sample
size: n in
management, Mean = x– accounting and economics.
1 2 k
Mean = x– Mean = x–
Level of income their purchase Variance of= s petrol?Variance
1
2
1 To help =s
2
answer
2
2 the =question
Variance s
k
2
k
Ownership
C1 C2 C3 a70random
PA R T 1 D E ssample
C r I P T I v E m of
EAsu carr E s owners
A N D P r o B A Bwas
IlIT Y asked to record
No 40 32 48 the
R68E APAbrand
LR-T L1 IDFEEs CofA Ppetrol
rIP TPI vLE I m
CEAA TinuI rOtheir
s ENsS A N D last
P r o B Atwo
B I l I T Y purchases (1= BP,
Yes 30 48 52 2Test=using
Shell,
3.25 marketing
3 = Caltex, 4 = Other). Use a graphical
the computer
Refer to Exercise 3.24. The total oil consumption in marital status or relationship. The possible responses
There are several methods by which Excel can produce the cross-classification table. We will use and describe
technique the world
In Chapter 13, we
the PivotTable to
in 2018
formulate
was 97test
indescribed
two toyour
161 865 barrels per
ways: first,marketing,
Use a graphical technique that emphasises the
answer.
create the
day. is
contingencydifferent
which are listed:
advertising
table featuring
1 Single
strategies.
the counts and, second, to produce a
often used
table to assess
showing consumer
the row relativereaction to changes in
frequencies. Some of these experiments are
Applying the techniques XR03-33
one or percentage breakdown
more elements of theofmarketing
the top 10,mix.
middle 10 and
Marketing 2 inMarried
carried out small communities
3.33 managers willThe
the bottom 10 of
conduct costthe of smoking
A selected
experiments 30to countries,
B
determine for Cindividuals,
plus where itD3is easy the
Divorced
to varyE the F
others.3 Count of Reader Newspaper 4 Other
3.30 XR03-30 Self-correcting exercise. The trustee
whether
companies differences
forin sales
4 Occupation
whom exist between
they271work, different
and182particular
society elements
The responsesin3 that the 4
for a sample
Grand Total
of 250 students were
prices
3.26 for the product,
XR03-26 5 Who applies different 1
to MBA package
programs? designs
To helpor manager wishes to investigate.
38 37 Source: Shutterstock.com/
120
43 recorded and21 saved. Draw a15 graph that summarises the
of a company’s superannuation scheme has general determine is
7 in the many
6
the background3 of thebillions
2 29
applicants,
33
aof dollars. In anthat
51 information 22effort 20
you deem necessary.
AlenKadr108
126
sample8 ofGrand 230 applicants
Total to a university’s 89 business 112 81 72 354
solicited the opinions of a sample of the company’s to reduce

school was smoking,
asked to state their
BK-CLA-SELVANATHAN_8E-200138-Chp10.indd campaignsundergraduate about 3.28 the dangers
XR03-28
380 A number of business and economics
E X Adegree. M P LThe E degrees
1 5A.1were recorded B using these C courses
D require theEuse of computers.
LO1 F LO2 LO3 LO4
As a result
employees regarding a proposed revision of the of smoking have beenNewspaper undertaken by various
Commands
3 Count of Reader
government
codes.
Test marketing 4 Occupation
1 5 BA
of
and
boxes
advertising
non-government
can 1
be
strategies found 2
throughout
organisations. asks 98
3
students to identify
the
many students buy their own computer. A survey
4
text
Grand Total
0.31 the computer
and
1.00brand they
scheme. A breakdown of the responses is shown 1 0.23 0.15 0.32
include
XM15-01 An2 apple-juice
7 step-by-step instructions on how to 0.16complete
6 BBus manufacturer
2 has0.27developed a new 0.40product – apurchased.
have liquid concentrate
0.19 0.14 that,are
The responses when mixed
recorded
1.00 with
with
in the following table. Use an appropriate graphical Most of 8these

water, produces
3 BEng1 litre
Grand Total have been0.25directed at
of apple 3
juice. 0.26
The product has 0.40
0.32 young people.
several attractive
the
0.17
features.
following
0.23
codes. First,
0.20
it is more 1.00
convenient
1.00
than
presentation to determine whether the responses exercises

canned apple
This
in cans is
4 BSc
raises
actually
5 Other in
made Microsoft
question,
from concentrate, ‘Are Excel®.
juice, which is the way its apple juice is currently sold.1 Second,
the the you
quality more
of the newlikely
product
2
The data must be stored in (at least) three columns, as we’ve done in file XM03-07. Put the cursor somewhere in
Apple because the apple juice that is sold
to
Dellis at least as high as canned apple juice.
Third, Determine
adatacost
thethe of thethe new frequency
productdistribution.
is slightly lower than that of canned 3 appleToshibajuice.
differ among the three groups of employees. smoke ifrange.
Draw
Thebmarketing
your
a bar parents
chart.
manager
smoke?’ To shed light
has to decide how to market the new product. 4 on HP She can create advertising that
cM ADraw D Saa pie chart. quality or price. In order to facilitate a decision,
this
C O Missue,
emphasises
d
Nconvenience,
What do the
sample
charts tell
of
you
20-
about the
to 40-year-old
sample of
5 Acer
people
6
she conducts an experiment.
Otherthat highlights the convenience of the
In three different small cities, she launches the product with advertising
Responses Blue-collar White- Managers was
liquid1 Openasked
MBA
the data
concentrate whether
applicants? theyfrom
file (XM03-07). Highlight
(e.g. easy to carry thesmoked
data including the
store to home and andwhether
column
takes lesstheir
Use a graphical
a (A1:C355).
titles
up room intechnique
the freezer) that depicts the
in one city, the
frequencies.
workers collar 2 Click
quality
3.27
parents
of INSERT
the
XR03-27 Mostand
product
smoked.
PivotTable
(‘average’
universities
The
under
shoppers
have the Charts
several
results
are submenu.
depictedThen
different
were recorded
select Pivot
discussing how Chart
good & Pivot Table.juice tastes) in the second
the apple
in thedepict the proportions.
b Graphically
city,3 and thesure
kinds
Make relatively
of that the low
residences oncost
campus.
Table/Range of is theTo liquid
helpand
correct inconcentrate
long-
click OK. in the third city. The number of packages sold weekly
workers c What do the charts tell you about the brands of
following
is recordedtermthe
4 Drag
of themarketing
way:
forOccupation
the 20
planning,
box.students
one
Drag the
weeksbuttonfrom
universityfrom the
surveyed beginning
the menu
button
athat
sample ofoftheoncampaign.
appears the right of thePart of the
screen data
to the is Row
Drop listedFields
computers used by the students?
in theHereaccompanying
section
For 67 32 11 table. The graduate Newspaper

and asked
manager wants them tototo the Drop
report
know iftheirColumn Fields
differences Here section.
in sales Drag the Reader
exist between the threebutton to the Drop
cities.
Column produce 1:
Value Fields Here section. Right-click any number in the table, click Summarize Values By, and check Count. This will
a contingency table for the counts (frequencies).
Against 63 18 9 5 1, 2, ...,to row
To convert 225 Parent
percentages, Identification
right-click any number in the table, (ID)click Summarize Values By, More options…, and
Show values as. Select % of rows from the drop-down menu and then click OK. Format the data into decimals by
highlighting all cells 3.2 Describing theSelectrelationship
Number Format…, select between two
Column select the 2:number ofwith percentages and right-clicking. Number under Category
Decimal places. Click OK. This will produce the contingency table for the row relative frequencies.
and
Computer applications 1 = do not smoke nominal variables

Interpreting the results In Sections 3.1–3.3 we presented graphical techniques used to summarise single sets of
3.31 XR03-31 The associate dean of a business school 2 =that
Notice smoke the relative nominal data; techniques
frequencies in the second applied to single
and third rows are data sets are
similar and called univariate.
that there are largeThere are many
differences
between row 1 and rows situations
2 and where3. Thiswe tellswish
us thatto depict the workers
blue-collar relationship tend between two variables;
to read different newspapers in suchfromcases
was looking for ways to improve the quality of Column
Definitions
both
bivariate
3:
white-collar
methods or explanations of important key terms are
bivariate
workers and methods
professionals are and required.
that There
white-collar are two
workers types
and of such methods
professionals have commonly
quite similar used,
Techniques involving
choices. namely, tabular methods and graphical techniques.
applicants to its MBA program. In particular she 1 =
newspaper
neither parent smoked
locatedGraphicalin the margins for quick reference.
or dependent on two
BK-CLA-SELVANATHAN_8E-200138-Chp15.indd 617 17/08/20 8:17 PM
variables.
method
3.2a Tabulating the relationship between two nominal
wanted to know whether the undergraduate To2 = father
determine whether smoked
there is a relationship between the two variables, we can also choose to draw three
bar charts – one for each variables
occupation depicting the four newspapers. We will use Excel for this purpose. The
degrees of applicants to her school and the three 3 = mother
manually drawn charts
smoked
To are identical.
describe the relationship between two nominal variables, we must remember that we
nearby universities with MBA programs differed. 4There
= both are several parentsways
are only smoked
to graphically
permitted display
to determine the relationship
the frequency between twovalues.
of the nominalAvariables.
variationWe havebar
of the chosen
chart
two-dimensional barintroduced charts for each of the3.1
in Section three occupations.
is used to describeThe thecharts can bebetween
relationship created twofromnominal
the output of the
(categorical)
She sampled 100 applicants of her program and an Use a(either
PivotTable
cross-classification graphical
counts as we
variables technique
inhave done or
graphical toAs
row
form. produce
proportions)
a first step, aswe the
shown
needintoFigure
produce 3.15.
a cross-classification table
table (also known as contingency table or cross-tabulation table), which lists the frequency of each
equal number from each of the other universities. information
A first step in graphing you need.
the relationship between combination of the values of the two variables. We will illustrate the use of graphs to describe
two nominal variables. the relationship between two nominal variables using data from the newspaper readership
case in Example 3.7.
G U I D E TO T H E TE X T xxi
END-OF-CHAPTER FEATURES
At the end of each chapter you will find several tools to help you to review, practise and extend your knowledge of the
key learning objectives including:
Study Tools
• A summary section that consolidates your CHAPTER SUMMARY
The concept of a random variable permits us to summarise the results of an experiment in
knowledge of the content of the chapter by terms of numerically valued events. Specifically, a random variable assigns a numerical value
to each simple event of an experiment. There are two types of random variables. A discrete
reviewing key concepts and drawing out their random variable is one whose values are countable. A continuous random variable can assume
an uncountable number of values. In this chapter we discussed discrete random variables and
wider significance their probability distributions.

We defined the expected value, variance and standard deviation of a population represented
by a discrete probability distribution. We also presented two most important discrete
distributions: the binomial and the Poisson. Finally, in this chapter we also introduced bivariate
discrete distributions for which an important application in finance was discussed.
• A recap of relevant symbols SYMBOL

Symbol Pronounced Represents
∑x Sum of x for all values of x Summation

all x
C xn n-choose-x Number of combinations
n! n-factorial n(n − 1)(n − 2) … (3)(2)(1)

e exponential 2.718…
• A summary of formulas from the chapter. SUMMARY OF FORMULAS

Expected value (mean) E ( X ) = m = ∑ xp ( x )
all x
Variance V ( X ) = s 2 = ∑ (x − m ) p (x ) = ∑ x p (x ) − m2
2 2
all x all x
Standard deviation SD ( X ) = s = V ( X )
Covariance COV ( X ,Y ) = s XY = ∑ (x − m )(y − m ) p (x ,y )

X Y
all x
= ∑ ∑ xy p ( x ,y ) − m X mY
all x all y
s XY
Coefficient of correlation r=
s XsY
Laws of expected value and variance 1 E(cX + d) = cE(X ) + d

2 V(cX + d) = c 2V(X )
Supplementary Exercises at the end of each chapter give Case Studies are included (
at
)
the (end
Binomial probability
)
of each chapter to p X =x =
n!
p x 1− p
n −x
for x = 0,1,2,⋅ ⋅ ⋅,n
( ) x! n − x !
you the opportunity to further test your understanding of assist you in applying the( statistical
) techniques you are E X = m = np
( ) V X = s 2 = npq , q = 1− p
the key concepts covered.
372 PA R T 2 S T A T I S T I c A l I n F e r e n c e
learning to real-world problems.
( ) SD X = s = npq
Case Studies
S U P P L E M E N TA R Y E X E R C I S E S
9.33 The dean of a business school claims that the location they seek, rather than ask for directions. To
average Master of Business Management graduate examine this belief, he took a random sample of 350
is offered an annual starting salary of $109 500. The male drivers and asked each what they did when
standard deviation of the offers is $9900. What is the lost. If the belief is true, determine the probability CASE 8.1 Average salary of popular business professions in 303
probability that for a random sample of 38 Master of that less than 75% said they continue driving.
Australia
Business Management graduates, the mean starting
9.39 The Red Lobster restaurant chain regularly surveys
annual salary is less than $105 000? C08-01 Based on a recent publication (payscale.com/index/au/job), the average salaries of 10
its customers. On the basis of these surveys,
popular business-related
BK-CLA-SELVANATHAN_8E-200138-Chp07.indd 303 jobs in Australia are listed below. It is believed that salaries can be 17/08/20 1:23 PM
9.34 Refer to Exercise 9.33. Suppose that a random management claims that 75% of customers rate the
considered as following a normal distribution with a standard deviation of $1500. A high school
sample of 38 Master of Business Management food as excellent. A consumer testing service wants
student would like to choose a degree that could lead to the profession which has a higher
graduates report that their mean starting salary is to examine the claim by asking 460 customers to
probability of gaining a reasonably good salary. What is the likelihood of him receiving an annual
$105 000. What does this tell you about the dean’s rate the food. What is the probability that less than
salary greater than $60 000 for each of the 10 jobs listed in the table?
claim? 70% rate the food as excellent?
Average salary in Australia, 10 popular business jobs
9.35 A restaurant in a large commercial building provides 9.40 An accounting professor claims that no more than
coffee for the building’s occupants. The restaurateur one-quarter of undergraduate business students will Job title Average salary ($)
has determined that the mean number of cups of major in accounting. Accountant 57 139
coffee consumed in one day by all the occupants is a What is the probability that in a random sample Business Data Analyst 69 823
2.0, with a standard deviation of 0.6. A new tenant of 1200 undergraduate business students, 336 or Finance Manager 93 835
of the building intends to have a total of 125 new more will major in accounting? Financial Planner 76 004
employees. What is the probability that the new b A survey of a random sample of 1200 HR Manager 89 328
employees will consume more than 240 cups of undergraduate business students indicates that
Marketing Manager 78 847
coffee per day? there are 336 students who plan to major in
Personal Banker 53 285
accounting. What does this tell you about the
9.36 The number of pages photocopied each day by the Retail Manager 51 413
professor’s claim?
admin staff in a busy office is normally distributed
Supply Chain Manager 103 724
with a mean of 550 and a standard deviation of 150. 9.41 Statisticians determined that the mortgages of
Tax Accountant 56 316
Determine the probability that in one business week homeowners in a city is normally distributed with
Source: payscale.com/index/au/job
(i.e. 5 days) more than 3000 pages will be copied. a mean of $500 000 and a standard deviation of
$100 000. A random sample of 100 homeowners
9.37 A university bookstore claims that 50% of its
was drawn. What is the probability that the mean is
customers are satisfied with the service and the
greater than $524 000?
CASE 8.2 Fuel consumption of popular brands
prices.
a If this claim is true, what is the probability that 9.42 Refer to Exercise 9.41. Does your answer change
of motor vehicles
in a random sample of 600 customers less than
45% are satisfied?
if you discover that mortgages are not normally
distributed? Appendix 5.A
C08-02 With ever-increasing fuel prices, motorists are looking for cars with the most fuel
efficiency; that is, low fuel consumption per kilometre. The fuel consumption of different brands
b Suppose that in a random sample of 600 of passenger cars are listed in the table. A car salesperson conveys to the purchaser that the
9.43 In a survey, Australians were asked how many
customers, 270 express satisfaction with the standard deviation of fuel consumption is 3 litres per 100 km. What is the probability that a
sources or platforms they use to access news. If
Summation notation
bookstore. What does this tell you about the randomly selected car from each of the 6 brands will use less than 8 litres per 100 km? Which
21% of the population report that they use a single
bookstore’s claim? car has the highest probability of achieving this?
source to access news, find the probability that in
This appendix offers an introduction to the use of summation notation. Because summation
9.38 A psychologist believes that 80% of male drivers a sample of 500 at least 22% say that they use a Vehicle is
notation name Litres/100
used extensively throughout statistics, you should review km
this appendix even if you
when lost continue to drive, hoping to find the single source to get their news. have
Fordhad previous
Fiesta exposure
1.0 Ecoboost start to summation notation. Our coverage of the
8.0topic begins with
Appendices throughout the text included step-by-step anHonda

introduction to the necessary terminology and notation, follows with7.0
CR-V Turbo 4WD
concludes with four rules that are useful in applying summation notation.
some examples, and
KiaConsider
Sportage n numbers x , x , …, x . A concise way of representing their
7.8sum is:
instructions on how to perform complex statistical Mazda CX-3 n
∑x
i
1 2 n
7.0
Nissan Navarai =Double Cab auto 8.2
calculations.
1
That is:
Toyota Auris 1.2 Comfort 7.6
n
∑x i = x 1 + x 2 + ⋅⋅⋅ + x n
i =1
Terminology and notation

1 The symbol S is the capital Greek letter sigma, and means ‘the sum of’.
2 The letter i is called the index of summation. The letter chosen to represent the index of 343
summation is arbitrary.
n
3 The expression ∑ x i is read as ‘the sum of the terms xi where i assumes the values from 1
i =1
to n inclusive’.
4 The numbers 1 and n are called the lower and upper limits of summation respectively.
BK-CLA-SELVANATHAN_8E-200138-Chp08.indd 343 17/08/20 9:44 AM
Summation notation is best illustrated by means of examples.
Examples
1 Suppose that x1 = 5, x2 = 6, x3 = 8 and x4 = 10. Then:
4
∑ x = x + x + in
Copyright 2021 Cengage Learning. All Rights Reserved. May not be copied, scanned, or aduplicated, x +whole
x or in part. WCN 02-200-202 i 1 2 3 4
i =1
= 5 + 6 + 8 + 10
= 29
Guide to the online resources
FOR THE INSTRUCTOR
Cengage Learning is pleased to provide you with a selection of

resources that will help you prepare your lectures and assessments.
These teaching tools are accessible via cengage.com.au/instructors
for Australia or cengage.co.nz/instructors for New Zealand.
MINDTAP
Premium online teaching and learning tools are available on the MindTap platform – the personalised eLearning
solution.
MindTap is a flexible and easy-to-use platform that helps build student confidence and gives you a clear picture of
their progress. We partner with you to ease the transition to digital – we’re with you every step of the way.
The Cengage Mobile App puts your course directly into students’ hands with course materials available on their
smartphone or tablet. Students can read on the go, complete practice quizzes or participate in interactive real-time
activities.
MindTap for Selvanathan’s Business Statistics is full of innovative resources to support critical thinking, and help your
students move from memorisation to mastery! Includes:
• Selvanathan’s Business Statistics eBook
• Data sets for Examples, Exercises and Cases
• Downloadable Workbooks to perform some of the statistical estimations and tests discussed in the book
• Videos and animations
• Selected solutions for the self-correcting exercises
• Revision quizzes
• Interactive assignment quizzes
• Aplia problem sets
• Interactive flashcards to revise key terms.
MindTap is a premium purchasable eLearning tool. Contact your
Cengage learning consultant to find out how MindTap can transform
your course.
SOLUTIONS MANUAL
The Solutions Manual includes solutions for all the exercises and supplementary exercises in each chapter.
WORD-BASED TEST BANK

This bank of questions has been developed with the text for the creation of quizzes, tests and exams for your students.
Deliver tests from your LMS and your classroom.
POWERPOINT™ PRESENTATIONS
Use the chapter-by-chapter PowerPoint presentations to enhance your lecture presentations and handouts to
reinforce the key principles of your subject.
xxii
G U I D E TO T H E ON L I NE RE S O U R C E S xxiii
ARTWORK FROM THE TEXT

Add the digital files of graphs, pictures and flow charts into your course management system, use them in student
handouts, or copy them in your lecture presentations
FOR THE STUDENT
This book is accompanied by a companion website that can be

accessed via https://login.cengagebrain.com, which contains
the data sets for Examples, Exercises and Cases.
MINDTAP
A new approach to highly personalised online learning, MindTap is designed to match your learning style and provides
you with an engaging interface that allows you to interact with the course content and multimedia resources as well
as with your peers, lecturers and tutors. In the MindTap Reader you can make notes, highlight text and even find a
definition directly from the page.
To purchase your MindTap experience for Business Statistics, please contact your instructor.
MindTap also includes:
• Data sets for examples, exercises and cases
• Workbooks for examples, exercises and cases
• Excel estimator workbooks
• Animations plus assistance documentation
• Solutions to selected self-correcting exercises
• Data Analysis Plus with assistance documentation
• Revision quizzes
• Chapter 24 [Online].
ACKNOWLEDGEMENTS
We are grateful to the publishing, editorial and production teams at Cengage Learning for their help
and support. We are particularly grateful to Cengage Learning’s Senior Publishing Editor, Geoff
Howard, for his patience, guidance and encouragement; to Emily Spurr for developmental work; to
Marta Veroni for her thorough editing work; and to Nathan Katz, whose firm hand on the editorial
process kept us on task and whose production process converted our manuscript into the polished
final product. Their advice and suggestions have made our task much easier.
We would like to thank the many colleagues, survey participants, reviewers and students
for their helpful suggestions, comments and criticisms on various chapters of the book, which
have contributed to improving this edition and the previous editions. In particular, we would like to
thank Professor Prasada Rao and Dr Mohammed Alauddin, University of Queensland; Professor
Ken Clements, University of Western Australia; Professor Bill Griffiths, Melbourne University; Dr
Patti Cybinski, Associate Professor Helen Higgs, Dr Suri Rajapakse, Dr Lucille Wong, Dr Tommy
Soesmanto, Dr Ripon Mondal, Alexander Gardendal and Danny Williams, Griffith University; Andrew
Paultridge, Queensland University of Technology; Dr Christine Williams, Assistant Director General
– Science Division, Queensland Government; Professor Eric Sowey, University of New South Wales;
Associate Professor Brett Inder, Dr Ann Maharaj, Dr Mindi Nath, John Betts, Bruce Stephens and
Lesley Tissera, Monash University; Associate Professor John MacFarlane, Dr Kevin Donegan, Dr
Than Pe and Neil Hopkins, University of Western Sydney; Professor Alan Woodland, Tig Ihnatko
and John Goodhew, University of Sydney; Dr Geoff Coates, Anne Arnold and Margaret Meyler,
University of Adelaide; Dr G.V. Crockett and Dr Fay Rola-Rubzen, Curtin University of Technology;
Damon Chernoff, Edith Cowan University; Dr Maneka Jayasinghe, Charles Darwin University; Dr
Eddie Oczkowski, Kerrie Cullis, William Collen and Sue Moffatt, Charles Stuart University; Dr Jim
Bates, Victoria University; Joy Ross and Lisa Yong, RMIT; Iain Fraser and Suzanne Sommer, La
Trobe University; Dr S. Ganesalingam, Massey University, New Zealand; Professor Christine Lim,
Waikato University, New Zealand; Professor Brinda Viswanathan, Madras School of Economics,
India; Dr N Ravinthirakumaran, University of Colombo; and Dr C. Elankumaran and Dr S. Kalamani,
University of Jaffna, Sri Lanka.
Cengage and the authors would like to thank the following reviewers for their incisive and helpful
feedback:
• Boris Choy (The University of Sydney)
• Joe Hirschberg (University of Melbourne)
• Diane Morien (Curtin University)
• Vivian Piovesan (University of Adelaide)
• Shahadat Uddin (University of Sydney).
Every effort has been made to trace and acknowledge copyright. However, if any
infringement has occurred, the publishers tender their apologies and invite the copyright holders
to contact them.
xxiv
ABOUT THE AUTHORS
Professor Eliyathamby A Selvanathan
Eliyathamby ‘Selva’ Selvanathan is a Professor in Econometrics and Director of the Economics
Policy Analysis Program (EPAP) at Griffith University, Queensland, Australia. He is also a Visiting
Professor at the Madras School of Economics, Anna University, Chennai, India. Selva has also
taught previously at the University of Jaffna, Murdoch University, The University of Western
Australia and University of Queensland. He has held positions such as the Deputy Dean (Staffing)
– Faculty of International Business, Director of Bachelor of International Business Program and
Deputy Director of the Statistics and Research Design (STARDS) Unit at Griffith University. Selva
was educated at the University of Jaffna, University of Bucharest, Murdoch University and The
University of Western Australia. He is the recipient of several individual and group Excellence
in Teaching Awards, such as 75th Anniversary Distinguished Teaching Award, The University
of Western Australia, 1988, 2006 Minister’s Awards for Outstanding Contribution to Improving
Literacy and/or Numeracy, Queensland state winner, Griffith Awards for Excellence in Teaching
2005 – Innovation Across the Institution, Pro-Vice Chancellor’s Research Excellence Award 2014
– Research Supervision, and has received numerous competitive teaching and national research
grants. Selva has published six research monographs and has published widely in international
refereed journals such as Journal of Econometrics, Review of Economics and Statistics, Journal
of Business and Economic Statistics, Review of Economic Studies, Energy Economics, Economic
Letters, Tourism Analysis, Tourism Analysis and Marketing Science, several chapters in books, and
several editions of two textbooks.
Professor Saroja Selvanathan

Dr Saroja Selvanathan is Professor in Econometrics at Griffith University and a Visiting Professor
at the Madras School of Economics, Anna University, Chennai, India. She has held positions
such as such as Deputy Dean (Research and Postgraduate Studies), Acting Dean, Deputy
Head of Department, Head of Discipline, Higher Degree Research Convenor and the Director
of the Statistics and Research Design Support Unit at Griffith University. Saroja was educated
at the University of Jaffna, Murdoch University and The University of Western Australia, and
has published several research monographs and a number of research papers in international
refereed journals such as the Review of Economics and Statistics, Transportation Research,
Economics Letters, Empirical Economics, Economic Modelling, Tourism Economics and Applied
Economics. She has received several awards, including Vice Chancellor’s Research Excellence
Award 2019 – Higher Degree Research Supervision, Pro-Vice Chancellor’s Research Excellence
Award 2018 – Research Supervision, Griffith Awards for Excellence in Teaching 2011 – Group
Learning and Teaching Citation, and Griffith Awards for Excellence in Teaching 2005 – Innovation
Across the Institution.
Professor Gerald Keller

Dr Gerald Keller is Emeritus Professor of Business at Wilfred Laurier University, where he has taught
statistics, management science and operations management since 1974. He has also taught at the
xxv
xxvi A b o u t t h e au t h o r s
University of Toronto, the University of Miami, McMaster University, the University of Windsor and
the Beijing Institute of Science and Technology. Gerald has consulted with banks on credit scoring
and credit card fraud and has conducted market surveys for the Canadian government on energy
conservation. The author of Applied Statistics with Microsoft Excel, BSTAT, Essentials of Business
Statistics (co-authored), Australian Business Statistics (co-authored), and Statistics Laboratory
Manual Experiments Using Minitab, Gerald has also been published in Omega, IIE Transactions,
Decision Sciences, INFOR, Economics Letters and Archives of Surgery.
1
What is statistics?
Learning objectives
This chapter provides an introduction to the two general bodies of methods that together constitute
the subject called statistics: descriptive statistics and inferential statistics.
LO1 describe the two major branches of statistics – descriptive statistics and inferential statistics
LO2 understand the key statistical concepts – population, sample, parameter, statistic and census
LO3 provide examples of practical applications in which statistics have a major role to play and
understand how statistics are used by business managers
LO4 understand the basics of the computer spreadsheet package Microsoft Excel and its capabilities
in aiding with statistical data analysis for large amounts of data.
CHAPTER OUTLINE
Introduction to statistics
1.1 Key statistical concepts
1.2 Statistical applications in business
1.3 How managers use statistics
1.4 Statistics and the computer
1.5 Online resources
Census in Australia
Information (or data) gathering on various characteristics CENSUS
of different populations of interest is an important part of 2016
statistics. When we use all units of the population to record
information about the characteristics of interest, this type
of data gathering is called a census. Due to cost and other
resource implications, a census of the whole population is done
once in a while in most countries. A census takes place only
every five years in Australia. The peak Australian government
statistics agency, the Australian Bureau of Statistics (ABS),
carries out the census. The two most recent censuses were
carried out on the nights of 9 August 2011 and 2016. A census
provides a snapshot of the population characteristics in the
year it is held. We will discuss census and other forms of data
collection in detail in this and the next chapter.
Source: Australian Bureau of Statistics. © Commonwealth of Australia CC
BY 4.0. https://creativecommons.org/licenses/by/4.0/
1
2 B U S I N E S S S TAT I S T I C S
Introduction to statistics
Statistics is a way to get information from data. That’s it! Most of this textbook is devoted
to describing how, when and why managers and statistics practitioners conduct statistical
procedures. You might ask, ‘If that’s all there is to statistics, why is this book (and most other
statistics books) so large?’ The answer is that students of applied statistics will be exposed to
different kinds of information and data. We demonstrate some of these with case studies and
examples throughout this book.
Statistics is a body of principles and methods concerned with extracting useful information
from a set of data to help people make decisions. In general, statistics can be subdivided into
two basic areas: descriptive statistics and inferential statistics.
E X A M P L E 1 .1
Australia’s trade with the world

The total value of imports into Australia continues to exceed the total value of its exports. The Australian
government has signed various trade agreements with our major trading partners to relax certain trade
restrictions and increase our exports. Over the past decade, successive governments have pledged to reduce
the trade deficit (= Imports – Exports) and have only been able to experience the turnaround recently. The picture
below shows some useful information on Australian imports and exports in 2017–18 with its major trading
partners. For example, the United States (US) is one of our major trading partners and our total imports from
the US are about two and a half times our exports to the US. We will discuss various descriptive graphical and
numerical techniques to summarise such data in the following chapters.
A$403.2 BILLION A$395.4 BILLION

TOTAL VALUE OF EXPORTS 2017–18 TOTAL VALUE OF IMPORTS 2017–18
............................................. ............................................
TOP 5 EXPORT MARKETS A$M TOP 5 IMPORT MARKETS A$M
China China
123 274 71 346
Japan United States
51 328 48 752
Republic of Korea Republic of Korea
23 628 28 674
United States ..................................... Japan
21 424 AUSTRALIA TRADING 26 267
India Germany
21 145 WITH THE WORLD 2017–18 18 185
.............................. ..............................
TOP 5 EXPORTS A$M TOP 5 IMPORTS A$M
Personal travel
Iron ores
42 496
61 357
Passenger motor vehicles
Coal
23 299
60 356
Education-related travel Refined petroleum
32 434 21 655
Natural gas Ships, boats and floating structures
30 907 14 897
Personal travel Telecom and parts
21 580 13 412
Source: Department of Foreign Affairs and Trade CC BY 3.0 AU https://creativecommons.org/licenses/by/3.0/au/legalcode
C H A P T E R 1 W hat is statistics ? 3
E X A M P L E 1. 2 LO1
Summarising the business statistics marks

A student enrolled in a business program is attending his first lecture of the compulsory business statistics
course. The student is somewhat apprehensive because he believes the myth that the course is difficult. To
alleviate his anxiety, the student asks the lecturer about the exam marks for last year’s business statistics course.
Because, like all statistics lecturers, this one is friendly and helpful, the lecturer obliges and provides a list of
the final marks. The overall marks are compiled from all the within-semester assessment items plus the end-of-
semester final exam. What information can the student obtain from the list?
This is a typical statistics problem. The student has the data (marks) and needs to apply
statistical techniques to get the information he requires. This is a function of descriptive
statistics.
Descriptive statistics
Descriptive statistics deals with methods of organising, summarising and presenting data descriptive statistics
Methods of organising,
in a convenient and informative form. One form of descriptive statistics uses graphical
summarising and
techniques that allow statistics practitioners to present data in ways that make it easy for the presenting data in ways
reader to extract useful information. The main attraction of a graphical presentation is that that are useful, attractive
the message can be easily understood by any layperson. In Chapters 3 and 4 we will present and informative to the
reader.
a variety of graphical methods.
Another form of descriptive statistics uses numerical techniques to summarise data.
One such method you would have already used frequently is calculating an average or mean.
Chapter 5 introduces several numerical statistical measures that describe different features
of the data.
The actual descriptive statistical technique we use depends on what specific information
we would like to extract from a given data set. In Example 1.2, there are at least three important
pieces of summary information. The first is the ‘typical’ mark. We call this a measure of
central location. The average is one such measure we will introduce in Chapter 5. The student
calculated the average mark of the business statistics course, from the list of marks provided
by the lecturer, by summing all the marks and dividing the total by the number of students,
which was 74. In Chapter 5 we will also introduce another useful measure of central location,
the median. In the above example, the median is 81, which is the middle mark of the class
when the marks are arranged in ascending or descending order. That is, 50% of the students
obtained marks less than the median mark, while 50% received marks greater than the
median value.
Now the student knows that the average mark was 74. Is this enough information to reduce
his anxiety? The student would likely respond ‘no’ because he would like to know whether
most of the marks were close to the average mark of 74 or were scattered far below and
above the average. He needs a measure of variability. The simplest such measure is the range
(discussed further in Chapter 5), which is calculated by subtracting the smallest mark from
the largest. The student noticed that the largest mark is 100 and the smallest is 11, thus the
range is (100 – 11) = 89. Unfortunately, this provides little information, as the range doesn’t
indicate where most of the marks are located. Whether most data are located near 11 or near
100 or somewhere in the middle, the range is still 89. He needs other measures of variability,
such as the variance and standard deviation, to reflect the true picture of the spread of the
data. These will be introduced in Chapter 5. Moreover, the student must determine more
about the marks. In particular he needs to know how the marks are distributed between
11 and 100. The best way to do this is to use a graphical technique, the histogram, which is
introduced in Chapter 4.
E X A M P L E 1. 3 LO1 LO3
Comparing weekly sales between two outlets

A fast-food franchisee wishes to compare the weekly sales level over the past year at two particular outlets.
Descriptive statistical methods could be used to summarise the actual sales levels (perhaps broken down by
food item) in terms of a few numerical measures, such as the average weekly sales level and the degree of
variation from this average that weekly sales may undergo. Tables and charts could be used to enhance the
presentation of the data so that a manager could quickly focus on the essential differences in sales performance
at the two outlets.
There is much more to statistics, however, than these descriptive methods. Decision-
makers are frequently forced to make decisions based on a set of data that is only a small
subgroup (sample) of the total set of relevant data (population).
inferential statistics Inferential statistics

Methods used to draw
conclusions about a Inferential statistics is a body of methods for drawing conclusions (i.e. making inferences)
population based on about characteristics of a population, based on data available in a sample taken from the
information provided
population. The following example illustrates the basic concepts involved in inferential
by a sample of the
population. statistics.
E X A M P L E 1. 4 LO1 LO2 LO3 LO4
Profitability of a new life insurance policy

An Australia-wide automobile club (consisting of about 2 million members) is contemplating extending its
services to its members by introducing a new life insurance policy. After some careful financial analysis, the
club has determined that the proposed insurance policy would break even if at least 10% of all current members
subscribing to the club also purchase the policy. The question here is how can inferential statistics be used by the
automobile club to make a decision about introducing their new life insurance policy?
To answer this question, we need to first obtain additional information before reaching a
decision on whether or not to proceed with the new insurance policy, the automobile club has
decided to conduct a survey of 500 randomly selected current members. The collection of all its
current 2 million or so members is called the population. The 500 members selected from the
entire population for the analysis are referred to as a sample. Each member in the sample is asked
if they would purchase the policy if it were offered at some specified price. Suppose that 60 of
the members in this sample reply positively. While a positive response by 60 out of 500 members
(12%) is encouraging, it does not assure the automobile club that the proposed insurance policy
will be profitable. The challenging question here is how to use the response from these 500
sampled members to conclude that at least 10% of all 2 million or so members would also
respond positively. The data are the proportion of positive responses from the 500 members in
the sample. However, we are not so much interested in the response of the 500 members as we
are in knowing what the response would be from all of the club’s 2 million current members. To
accomplish this goal we need another branch of statistics – inferential statistics.
If the automobile club concludes, based on the sample information, that at least 10% of
all its members in the population would purchase the proposed insurance policy, the club
is relying on inferential statistics. The club is drawing a conclusion, or making a statistical
inference, about the entire population of its 2 million or so members on the basis of information
provided by only a sample of 500 members taken from the population. The available data tell
us that 12% of this particular sample of members would purchase the policy; the inference
that at least 10% of all its members would purchase the new insurance policy may or may
not be correct. It may be that, by chance, the club selected a particularly agreeable sample
and that in fact no more than 5% of the entire population of members would purchase the
new policy.
Whenever an inference is made about an entire population on the basis of evidence
provided by a sample taken from the population, there is a chance of drawing an incorrect
conclusion. Fortunately, other statistical methods allow us to determine the reliability of the
statistical inference. They enable us to establish the degree of confidence we can place in
the inference, assuming the sample has been properly chosen. These methods would enable
the automobile club in Example 1.4 to determine, for example, the likelihood that less than
10% of the population of its members would purchase the policy, given that 12% of the
members sampled said they would purchase. If this likelihood is deemed small enough,
the automobile club would probably proceed with its new venture.
1.1 Key statistical concepts

Statistical inference problems involve three key concepts: the population, the sample and the
statistical inference. We now discuss each of these concepts in more detail.
1.1a Population
A population is the group of all items of interest to a statistics practitioner. It is frequently very population
large and may, in fact, be infinitely large. In the language of statistics, the word ‘population’ The set of all items of
interest.
does not necessarily refer to a group of people. It may, for example, refer to the population of
parameter
diameters of ball bearings produced at a large plant. In Example 1.4, the population of interest A descriptive measure of
consists of all 2 million or so members. a population.
A descriptive measure of a population is called a parameter. The parameter of interest in
Example 1.4 was the proportion of all members who would purchase the new policy.
1.1b Sample
A sample is a subset of data drawn from the target or studied population. In Example 1.4, the sample
A set of data drawn from
sample of interest consists of the 500 selected members. the studied population.
A descriptive measure of a sample is called a statistic. We use sample statistics to make
statistic
inferences about population parameters. In Example 1.4, the proportion ( p̂) of the 500 A descriptive measure of
members who would purchase the life insurance policy would be a sample statistic that a sample.
could be used to estimate the corresponding population parameter of interest, the population
proportion (p) who would purchase the life insurance policy. Unlike a parameter, which is a
constant, a statistic is a variable whose value varies from sample to sample. In Example 1.4,
12% is a value of the sample statistic based on the selected sample.
1.1c Statistical inference

Statistical inference is the process of making an estimate, prediction/forecast or decision
about a population parameter based on the sample data. Because populations are usually very
large, it is impractical and expensive to investigate or survey every member of a population.
(Such a survey is called a census.) It is far cheaper and easier to take a sample from the
population of interest and draw conclusions about the population parameters based on
sample statistics. In Example 1.4, we make a conclusion about the population proportion, p ,
based on the sample proportion p̂.
For instance, political pollsters predict, on the basis of a sample of about 1500 voters, how
the entire 16 million eligible voters from the Australian population will cast their ballots; and
quality-control supervisors estimate the proportion of defective units being produced in a
massive production process from a sample of only several hundred units.
Because a statistical inference is based on a relatively small subgroup of a large population,
statistical methods can never decide or estimate with certainty. As decisions involving large
amounts of money often hinge on statistical inferences, the reliability of the inference is very
important. As a result, each statistical technique includes a measure of the reliability of the
inference. For example, if a political pollster predicts that a candidate will receive 40% of the
vote, the measure of reliability might be that the true proportion (determined on election day)
will be within 3% of the estimate on 95% of the occasions when such a prediction is made.
For this reason, we build into the statistical inference a measure of reliability. There are two
such measures: the confidence level and the significance level. The confidence level is the
proportion of times that an estimating procedure would be correct if the sampling procedure
was repeated a very large number of times. For example, a 95% confidence level would mean
that for a very large number of repeated samples, estimates based on this form of statistical
inference will be correct 95% of the time. When the purpose of the statistical inference is
to draw a conclusion about a population, the significance level measures how frequently the
conclusion will be wrong in the long run. For example, a 5% significance level means that in
repeated samples this type of conclusion will be wrong 5% of the time. We will introduce
these terms in Chapters 10 and 12. The outcome of the 2019 Australian federal election is
an example of how conclusions or predictions can go wrong if the samples selected do not
represent the target population.
1.2 Statistical applications in business

Throughout the text, you will find examples, exercises and cases that describe actual
situations from the business world in which statistical procedures have been used to help
make decisions. For each example, exercise or case, you will be asked to choose and apply
the appropriate statistical technique to the given data and to reach a conclusion. We cover
such applications in accounting, economics, finance, management and marketing. Below is
a summary of some of the case studies we analyse in this textbook, with partial data, to
illustrate additional applications of inferential statistics. But you will have to wait until you
work through these cases in the relevant chapters (where some data are also presented) to
find out the conclusions and results.
The objective of the problem described in Case 3.6 is to use the descriptive graphical
and numerical techniques to analyse the differences in weekly earnings of men and women
in Australia. Case 4.2 uses graphical techniques to depict the cross-country spread of the
global coronavirus pandemic. In Case 5.5 the objective is to compare the central location
and variability of the house prices in Sydney and Melbourne. In Case 14.1 it is to compare
two populations, the variable of interest being the salary of MBA graduates specialising in
marketing and finance. Case 16.1 is a day-to-day real-life application. The objective of the
problem is to see how statistical inference can be used to determine whether some numbers
in a lotto draw occur more often than others. Case 17.3 illustrates another statistical objective.
In this case, we need to analyse the relationship between two variables: rate of unemployment
and the rate of inflation in New Zealand. By applying the appropriate statistical technique,
we will be able to determine whether the two variables are related. As you will discover,
the technique also permits statistics practitioners to include other variables to analyse the
relationship between the rate of unemployment and inflation.
Case Studies
CASE 3.6 Differing average weekly earnings of men and

women in Australia
Although a lot has been achieved in Australia to reduce the difference between men and
women in a number of social status indicators, wage differences are still a matter of concern.
The following table presents the average weekly cash earnings of male and female adults for
each Australian state and territory and for Australia as a whole. Present the information using
appropriate graphical techniques.
Average weekly (all full-time employees total) cash earnings (A$), 2018
State/Territory Males Females

New South Wales 1807.80 1502.00
Victoria 1696.20 1490.30
Queensland 1777.60 1409.50
South Australia 1585.40 1393.30
Western Australia 2040.00 1495.30
Tasmania 1565.50 1320.00
Northern Territory 1877.90 1552.60
ACT 1977.90 1671.60
Australia 1823.70 1534.10
Source: Australian Bureau of Statistics, Average Weekly Earnings, February 2019, cat. no. 6302.0, ABS, Canberra.
CASE 4.2 Analysing the spread of the Global Coronavirus

Pandemic
The coronavirus (COVID-19) pandemic outbreak was first identified in Wuhan, China, in
December 2019 and by June 2020 it had spread to more than 200 countries, infected more than
10 million people and resulted in the death of more than 500 000 people globally. Daily data
for the number of confirmed cases and deaths are recorded.1 Depict graphically the number
of confirmed cases and number of deaths during the six-month period for the top 10 affected
countries and globally.
CASE 5.5 Sydney and Melbourne lead the way in the growth

in house prices
A number of recent reports, including those published by the Commonwealth Bank, and two
other national housing reports indicated that there is some improvement in house sales activity
in Australia combined with a sharp increase in house prices. Some economists attributed this
housing market recovery to the low interest rates and first-home owner grants and exemption
from stamp duties in some states. The data below show the median (established) house prices
in the capital cities of the six states and two territories in Australia for the March quarter of
2002–19. Prepare a summary report using the data below, analysing the movement in house
prices in Australia as a whole and in the six states and two territories.
1 https://ourworldindata.org/coronavirus-source-data, accessed 29 June 2020
7
Median house prices ($’000) in eight Australian capital cities, 2002–19, March quarter
Year Sydney Melbourne Brisbane Adelaide Perth Hobart Darwin Canberra

2002 365.0 241.0 185.0 166.0 190.0 123.3 190.0 245.0
2003 434.5 270.0 225.0 209.4 216.0 145.0 198.0 300.0
2004 523.0 305.0 302.7 250.0 255.0 200.0 239.5 375.0
2005 486.0 310.0 312.0 270.0 290.0 240.0 275.0 374.7
. . . . . . . . .
. . . . . . . . .
2016 850.0 568.0 483.5 436.0 518.0 360.0 570.0 590.0
2017 930.0 657.5 510.0 451.3 510.0 389.5 530.0 654.5
2018 958.0 730.3 526.0 465.0 510.0 450.0 495.0 699.0
2019 875.0 685.0 533.5 474.0 499.0 471.5 480.0 690.0
Source: Australian Bureau of Statistics, March 2018, Residential Property Price Indexes: Eight Capital Cities, March Quarter 2018, cat. no. 6416.0, ABS,
Canberra, www.abs.gov.au/AUSSTAT/abs@.nsf/DetailsPage/6416.0 Dec %202018?opendocument.
CASE 14.1 Comparing salary offers for finance and

marketing MBA majors – I
In the last few years, there has been an increase in the number of web-based companies that
offer job placement services. The manager of one such company wanted to investigate the job
offers recent MBAs were obtaining. In particular, she wanted to know whether finance majors
were being offered higher salaries than marketing majors. In a preliminary study, she randomly
sampled 50 recently graduated MBAs, half of whom majored in finance and half in marketing.
For each, she recorded the highest salary offer (including benefits). Can we infer that MBAs
with finance majors obtain higher salary offers than do MBAs with marketing majors? Verify the
underlying assumptions.
CASE 16.1 Gold lotto

Gold lotto is a national lottery that operates as follows. Players select eight different numbers
(six primary and two supplementary numbers) between 1 and 45. Once a week, the corporation
that runs the lottery selects eight numbers (six primary and two supplementary numbers) at
random from 1 to 45. Winners are determined by how many numbers on their tickets agree
with the numbers drawn. In selecting their numbers, players often look at past patterns as a
way to help predict future drawings. A regular feature that appears in the newspaper identifies
the number of times each number has occurred since Draw 413 (Saturday 6 July 1985). The
data recorded in the following table appeared in the Saturday Gold Lotto website (https://www.
thelott.com/saturday-gold-lotto/results) after the completion of draw 4047 (2 May 2020). What
would you recommend to anyone who believes that past patterns of the lottery numbers are
useful in predicting future drawings?
Drawing frequency of lotto numbers since draw 413 (as at 2 May 2020)
Lotto number Number of times Lotto number Number of times Lotto number Number of times
drawn drawn drawn
1 361 16 324 31 318
2 312 17 301 32 320
. . . . . .
. . . . . .
14 301 29 320 44 290
15 333 30 301 45 309
CASE 17.3 Does unemployment affect inflation in New

Zealand?
A social science research student is interested in investigating the relationship between
unemployment and inflation in New Zealand. The student found quarterly data on the rate
of unemployment and the quarterly rate of inflation for the period 2015(1) to 2019(1) on the
government website, Statistics New Zealand. Can you help him to establish the relationship
between the two variables using the data he has collected?
1.3 How managers use statistics

As we have already pointed out, statistics is about acquiring and using information. However,
the statistical result is not the end product. Managers use statistical techniques to help them
make decisions. In general, statistical applications are driven by the managerial problem.
The problem creates the need to acquire information. This in turn drives the data-gathering
process. When a manager acquires data, they must convert the data into information by
means of one or more statistical techniques. The information then becomes part of the
decision process.
Many business students will take or have already taken a subject in marketing. In the
introductory marketing subject, students are taught about market segmentation. Markets are
segmented to develop products and services for specific groups of consumers. For example,
the Coca-Cola Company produces several different cola products.
There is Coca-Cola Classic, Coca-Cola Vanilla, Coca-Cola Zero, Coca-Cola Life, Coke,
Diet Coke and Caffeine-Free Diet Coke. Each product is aimed at a different market segment.
For example, Coca-Cola Classic is aimed at people who are older than 30, Coca-Cola Vanilla
is aimed primarily at women, Coke is aimed at the teen market, Coca-Cola Life and Diet
Coke are marketed towards individuals concerned about their weight or sugar intake, and
Caffeine-Free Diet Coke is for people who are health-conscious. In order to segment the cola
market, the Coca-Cola Company had to determine that all consumers were not identical in
their wants and needs. The company then had to determine the different parts of the market
and ultimately design products that were profitable for each part of the market. As you might
guess, statistics plays a critical but not exclusive role in this process.
10 B U S I N E S S S T A T I S T I C S
Because there is no single way to segment a market, managers must try different
segmentation variables. Segmentation variables include geographic (e.g. states, cities,
country towns), demographic (e.g. age, gender, occupation, income, religion), psycho-graphic
(e.g. social class, lifestyle, personality) and behaviouristic (e.g. brand loyalty, usage, benefits
sought). Consumer surveys are generally used by marketing researchers to determine which
segmentation variables to use. For example, the Coca-Cola Company used age and lifestyle.
The age of consumers generally determines whether they buy Coca-Cola Classic or Coke.
Lifestyle determines whether they purchase regular, diet or caffeine-free cola. Surveys and
statistical techniques would tell the marketing manager that the ‘average’ Coca-Cola Classic
drinker is older than 30, whereas the ‘average’ Coke drinker is a teenager. Census data and
surveys are used to measure the size of the two segments. Surveys would also inform about the
number of cola drinkers who are concerned about kilojoules and/or caffeine. The conversion
of the raw data in the survey into statistics is only one part of the process. The marketing
manager must then make decisions about which segments to pursue (not all segments are
profitable), how to sell and how to advertise.
With the mass availability of data these days, decision making based on data analysis
involves advanced data analytic techniques. Below we briefly discuss the topic business data
analytics (BDA).
1.3a Business data analytics

Business data analytics provides methods by which companies explore, collect, organise and
analyse data using statistical methods. When the decision making is data driven, business
data analytics becomes an important tool that businesses use to make their informed
decisions. As the data are unique to the company, a company can employ business data
analytics to analyse their data and to make informed decisions in a competitive business
environment. Data are the backbone of decision making, so the quality of the data is crucial
for the successful application of business data analytics.
Business data analytics methods can be subdivided into two major areas: (a) business
intelligence and (b) statistical analysis. Business intelligence involves a company analysing
historical data related to its own organisation; for example, analysing the performance of its
own staff members.
Statistical analysis comprises three major areas of analytical techniques: (1) descriptive
analytics, (2) predictive analytics and (3) perspective analytics.
1.3b Descriptive analytics

Descriptive analytics involves a number of techniques that can be used to describe historical
data to track the path and key performance indicators to provide understanding of the current
state of a business. Such techniques could take the form of data queries, reports, summary
statistics, graphical presentations, data dashboards and data mining.
• A data query, for example, can be the details in raw data form of the starting and finishing
times, travel times and distances travelled by all taxi fleets owned by a taxi company. A
report can be prepared using descriptive summary statistics techniques (such as mean,
median, mode, standard deviation) or in graphical summary presentation form (such
as tables, charts and maps) and showing a pattern of the movement of a variable (such
as trends, swings etc.) or showing the relationship between variables (e.g. linear, non-
linear etc.).
• Data dashboards are specific tools used by managers to make decisions in a dynamic
fashion. For example, a report on the dashboard shows the information on the past data
in the form of summary statistics and graphical representations. If some new data (or
information) is received, the analytic techniques would update the summary statistics and
graphical representations on the dashboard instantaneously so that managers can use the
additional information in their decision making. For example, if there is a sudden traffic
jam due to an accident in a particular area, the manager in charge of the operations in the
taxi office can give new instructions to all taxi drivers on the run about the changes they
need to follow with their assignments.
• Data mining techniques are designed to identify patterns of individual variables and
the relationship between variables when analysing large-scale data sets. For example,
in Section 1.3, the Coca-Cola company can use data mining techniques to identify the
different parts of its soft drink market using data from various sources such as sample
surveys, social media, web-based reviews etc.
1.3c Predictive analytics

Predictive analytics involves applying statistical algorithms to past or historical data to analyse
the trend in the data, to assess the likelihood of future outcomes and make predictions about
the activities of a business, such as predicting the demand for a product for a future time
period. Another example is using advanced predictive analytics techniques such as cluster
analysis to identify similarities across various consumer groups in order to target marketing
campaigns.
1.3d Prescriptive analytics

Prescriptive analytics uses the knowledge gained from descriptive and predictive analysis to
generate recommendations for a course of action to take when similar situations arise in the
future.
In this book, we will address the part of the process that collects the raw data and produces
the statistical result. By necessity, we must leave the remaining elements of the decision
process to the other subjects that constitute business programs. We will demonstrate,
however, that all areas of business and management can, and do, use statistical techniques as
part of the information system.
1.4 Statistics and the computer

In almost all applications of statistics, the statistics practitioner must deal with large amounts
of data. For example, Case 4.1 (Global warming) involves hundreds of observations. To
estimate the average temperature anomalies, the statistics practitioner would have to perform
calculations on the data. Although the calculations do not require any great mathematical
skill, the sheer number of calculations makes this aspect of the statistical method time-
consuming and tedious. Fortunately, there are numerous commercially available computer
programs to perform these calculations. We have chosen to use Microsoft Excel in the belief
that almost all university graduates use it now and will in the future. We have also used
XLSTAT to perform any calculation that cannot be performed by Excel.
In most of the examples used to illustrate statistical techniques in this book, we will
provide two methods for answering the question: calculating manually and using Microsoft
Excel on a computer.
1.4a Calculating manually

Except where doing so is prohibitively time-consuming, we will show how to answer the
questions using hand calculations (with only the aid of a calculator). It is useful for you to
produce some solutions in this way, because by doing so you will gain insights into statistical
concepts.
1.4b Using a computer
Excel
Excel can perform statistical procedures in several ways.
1 Statistical (which includes probability) and other functions ƒx: We use some of these
functions to help create graphical techniques in Chapters 3 and 4, calculate statistics in
Chapter 5, and to compute probabilities in Chapters 7 and 8.
2 Spreadsheets: We use statistical functions to create Excel workbooks that calculate
statistical inference methods in Chapters 10–15 and 20. These can be downloaded from the
companion website (accessible through https://login.cengagebrain.com/). Additionally,
the spreadsheets can be used to conduct what-if analyses.
3 Analysis ToolPak: This group of procedures comes with every version of Excel. The
techniques are accessed by clicking ‘Data’ and ‘Data Analysis’. One of its drawbacks is that
it does not offer a complete set of the statistical techniques we introduce in this book.
4 XLSTAT: This is a commercially created add-in that can be loaded onto your computer
to enable you to use Excel for almost all statistical procedures introduced in this book.
XLSTAT commands are provided for those examples that cannot be completed using the
Data Analysis tool in Excel.
Data Analysis Plus

We have offered Data Analysis Plus in the past five editions of this book. Unfortunately, we
have encountered problems with some of the combinations of Excel versions and operating
systems. As a result, it is no longer possible to offer Data Analysis Plus as a universal tool for all
Excel users of this book. Section 1.5 provides further information and lists the combinations
that do work. Data Analysis Plus can be downloaded from the companion website.
1.4c Our approach

We expect that most instructors will choose both methods described above. For example,
many instructors prefer to have students solve small-sample problems involving few
calculations manually, but turn to the computer for large-sample problems or more
complicated techniques.
To allow as much flexibility as possible, most examples, exercises and cases are
accompanied by a set of data that you can obtain from the companion website or your
course instructor.
You can solve these problems using a software package. In addition, we have provided the
required summary statistics of the data so that students without access to a computer can
solve these problems using a scientific calculator.
Ideally, students will solve the small-sample, relatively simple problems by manual
calculation and use the computer to solve the others. The approach we prefer to take is
to minimise the time spent on manual calculations and to focus instead on selecting the
appropriate method for dealing with a problem, and on interpreting the output after the
computer has performed the necessary calculations. In this way, we hope to demonstrate
that statistics can be as interesting and as practical as any other subject in your curriculum.
1.4d Excel spreadsheets

Books written for statistics courses taken by mathematics or statistics students are
considerably different from this one. Not surprisingly, such courses feature mathematical
proofs of theorems and derivations of most procedures. When the material is covered in this
way, the underlying concepts that support statistical inference are exposed and relatively easy
to see. However, this book was created for an applied course in statistics. Consequently, we
will not address directly the mathematical principles of statistics. As we have pointed out
above, one of the most important functions of statistics practitioners is to properly interpret
statistical results, whether produced manually or by computer. And, to correctly interpret
statistics, students require an understanding of the principles of statistics.
To help students understand the basic foundation, we have created several Excel
spreadsheets that allow for what-if analyses. By changing some of the inputs, students can see
for themselves how statistics works. (The name derives from ‘What happens to the statistics
if I change this value?’)
1.5 Online resources

This book is accompanied by a companion website that can be accessed via https://login.
cengagebrain.com.
You will find the following available for download:
Data sets: There are approximately 1100 data sets stored in folders for examples, exercises
and cases.
Solutions for self-correcting exercises
Excel workbooks: There are several workbooks containing spreadsheets that perform
many of the Excel procedures.
Excel instructions for Mac users
Formula card that lists every formula in the book.
DATA ANALYSIS PLUS:
Data Analysis Plus is a collection of macros we created to augment Excel’s list of
statistical procedures. Data Analysis Plus (stats.xls) can be downloaded from the
companion website and can be accessed via Excel Add-ins.
Here are the Excel Versions and Operating Systems that work with Data Analysis Plus.
(Some other combinations may work.) Excel Version Operating System:
2016 Windows
2013 Windows
2007 Windows
2003 Windows
2011 Mac Mac OS
2004 Mac Mac OS
2001 Mac Mac OS
Note that in the 2013 and 2016 versions of Excel, Data Analysis Plus conflicts with Data
Analysis. As a result, in order to use Data Analysis Plus, it is necessary to temporarily
remove the Analysis ToolPak (i.e. disable Data Analysis).
EXERCISES
1.1 In your own words, define and give an example of 1.5 Suppose you believe that, in general, the salaries
each of the following statistical terms: offered to graduates of business programs are higher
a population than those offered to graduates of arts and science
b sample programs. Describe a statistical experiment that
c parameter could help test your belief.
d statistic
1.6 You are shown a coin that its owner says is fair in the
e statistical inference
sense that it will produce the same number of heads
1.2 Briefly describe the difference between descriptive and tails when flipped repeatedly.
statistics and inferential statistics. a Describe an experiment to test this claim.
b What is the population in your experiment?
1.3 The manager of a bank with 12 000 customers
c What is the sample?
commissions a survey to gauge customer views on
d What is the parameter?
internet banking, which would incur lower bank fees.
e What is the statistic?
In the survey, 21% of the 300 customers interviewed
f Describe briefly how statistical inference can be
said they are interested in internet banking.
used to test the claim.
a What is the population of interest?
b What is the sample? 1.7 Suppose that in Exercise 1.6 you decide to flip the
c Is the value 21% a parameter or a statistic? coin 100 times.
a What conclusion would you be likely to draw if
1.4 A light bulb manufacturer claims that fewer than 5%
you observed 95 heads?
of his bulbs are defective. When 1000 bulbs were
b What conclusion would you be likely to draw if
drawn from a large production run, 1% were found to
you observed 55 heads?
be defective.
c Do you believe that, if you flip a perfectly fair
a What is the population of interest?
coin 100 times, you will always observe exactly
b What is the sample?
50 heads? If you answered ‘no’, what numbers
c What is the parameter?
do you think are possible? If you answered ‘yes’,
d What is the statistic?
how many heads would you observe if you
e Does the value 5% refer to the parameter or to
flipped the coin twice? Try it several times, and
the statistic?
report the results.
f Is the value 1% a parameter or a statistic?
g Explain briefly how the statistic can be used to
make inferences about the parameter to test the
claim.
Appendix 1.A
Introduction to Microsoft Excel
The purpose of this appendix is to introduce you to Microsoft Excel and to provide enough
instructions to allow you to use Excel to produce the statistical results discussed in this
textbook. We suggest that you obtain an Excel instruction book to help you learn about the
software in more detail. (e.g. for Office 2016, use Selvanathan et al, Learning Statistics and
Excel in Tandem, 5th edition, Cengage, 2020).
Opening Excel
Usually an Excel icon will be on your computer desktop. To execute Excel, just double-click the
icon. Alternatively, to run Microsoft Excel, just click Start, All Programs, Microsoft Office
2016 and Excel 2016. A blank workbook will appear, or if a menu appears, click on Blank
workbook.2
The Excel screen depicted in Figure A1.1 will then appear. (Unless stated otherwise,
‘clicking’ refers to tapping the left button on your mouse once; ‘double-clicking’ means quickly
tapping the left button twice.) The screen that appears may be slightly different from that
illustrated, depending on your version of Excel.
FIGURE A1.1 Blank Excel screen
Source: © 2016 Microsoft
The Excel workbook and worksheet

Excel files are called workbooks, which contain worksheets. A worksheet consists of rows and
columns. The rows are numbered, and the columns are identified by letters.
2 Instructions and screen view may be different for different versions of Excel. Excel can be accessed by typing Excel in 'Type here
to search' and the icon with Excel will appear. Click on the icon and access Excel.
15
If you click the FILE tab on the top left-hand corner of the Excel screen and select New and
then Blank workbook, you will see a worksheet like that in Figure A1.1. Notice that the cell in
row 1 column A is active, which means that you can type in a number, word or formula in cell A1.
To designate any cell as active, move the cursor (or the mouse pointer), which now appears as a
large plus sign) over the cell and click. Alternatively, you can use any of the four Up, Down, Left
or Right arrow keys to move to a different cell. (The keys appear on your keyboard as arrows
pointing up, down, left and right respectively.)
At the bottom left-hand corner of the screen you will see the word Ready. As you begin
to type something into the active cell, the word Ready changes to Enter. Above this word
you will find the tab Sheet1, the worksheet that comprises this workbook. You can click the
‘+’ icon next to this tab to add more worksheets to the workbook. To change worksheet, use
your cursor and click the tab for the sheet you wish to move to. To change the name of the
worksheet, for example ‘Sheet2’ to ‘mydata’, double-click on ‘Sheet2’ and type ‘mydata’, then
hit the Enter key.
Inputting data
To input data, open a new workbook by clicking the FILE tab and then selecting New and then
Blank workbook. Data are usually stored in columns. Activate the cell in the first row of the
column in which you plan to type the data. If you wish, you may type the name of the variable.
For example, if you plan to type your assignment marks in column A you may type ‘Assignment
marks’ into cell A1. Hit the Enter key and cell A2 becomes active. Begin typing the marks.
Follow each entry by Enter to move to the next row. Use the arrow keys or mouse to move to
a new column if you wish to enter another set of numbers.
Importing data files

Data files accompany many of the examples, exercises and cases in this book. These data
files can be downloaded from the companion website, which can be accessed at https://login.
cengagebrain.com.
The file names reflect the chapter number and the example, exercise or case number. For
example, the data set accompanying Example 4.1 contains 200 electricity bills. These data
are stored in a file called XM04-01, which is stored in a directory (or folder) called CH04,
which refers to the chapter number. (The XM refers to files used for eXaMples, XR is used for
eXeRcises, and C refers to Cases.) To open this file in Excel 2016, click the FILE tab and then
select Open. You can then browse your computer to select the required file.
Performing statistical procedures

There are several ways to conduct a statistical analysis in Excel. These include Data Analysis,
XLSTAT and the Insert function fx (fx is displayed on the formula bar). There are also some
workbooks, available for download from the companion website, that we have created that will
allow you to perform some of the statistical estimations and tests discussed in this book.
Data Analysis/Analysis ToolPak

The Analysis ToolPak is a group of statistical functions that comes with Excel. The Analysis
ToolPak can be accessed through the Menu bar. Click the DATA tab on the menu bar and then
select Data Analysis from the Analysis submenu. If the Analysis submenu does not appear, click on
the FILE tab (on the top left-hand corner of the Excel screen), select Options and, on the window that
A P P E N D I X 1A I N T R O D U C T I O N T O M I C R O S O F T E X C E L 17
appears, click on the Add-Ins tab. At the bottom of the window, select Excel Add-ins in the drop-
down menu that appears next to Manage, and then click Go. Select Analysis ToolPak and Analysis
ToolPak–VBA by ticking them and then click OK. Now, if you go back to DATA on the menu bar, you
will find Data Analysis added to the Analysis submenu. (Note that Analysis ToolPak is not the same
as Analysis ToolPak-VBA.) If Analysis ToolPak did not show up as an option in the Add-ins menu,
you will need to install it from the original Excel or Microsoft Office CD by running the setup program
and following the instructions.
If you click on Data Analysis, there are 19 menu items available. Click the one you wish to
use, and follow the instructions described in this book. For example, one of the techniques in
the menu, Descriptive Statistics, is described in Chapter 5.
Formula bar and insert function fx

On the formula bar you will find the fx insert function. Clicking this button produces other
menus that allow you to specify functions that perform various calculations.
Saving workbooks
To save a file (either one you created or one we created that you have altered) click the FILE
tab on the top left-hand corner of the screen and select the option Save as on the drop-down
menu. Select the folder in which you would like to save the file, then enter the new file name
and click Save. If you want to save changes to an already saved file with the same name,
choose Save on the drop-down menu. Caution, the original file will now be overwritten.
2
Types of data, data collection and
sampling
Learning objectives
This chapter discusses the types of data and various methods of collecting data.
LO1 describe different types of data
LO2 understand the primary and secondary sources of statistical data
LO3 explain the various methods of collecting data
LO4 explain the basic sampling plans
LO5 identify the appropriate sampling plan for data collection in a particular experiment
LO6 understand the main types of errors involved in sampling.
CHAPTER OUTLINE
Introduction
2.1 Types of data
2.2 Methods of collecting data
2.3 Sampling
2.4 Sampling plans
2.5 Sampling and non-sampling errors
Source: Shutterstock.com/Vlada Young

Sampling and the census
The census, which is conducted by the Australian Bureau
of Statistics (ABS) every five years in Australia, performs
an important function. The two most recent censuses were
carried out on the nights of 9 August 2011 and 2016. On
census night, every person present in Australia, excluding
foreign diplomats and their families, should be included on a
census form at the place where they stayed. The federal, state
and territory governments in Australia use various aspects of
the census information for economic planning. Businesses
often use the information derived from the census to help make
decisions about products, advertising and business locations.
One of the problems with the census is the issue of
undercounting. In the census, some people are missed and
some are counted more than once. Usually, more people are
missed than are overcounted. The difference between the
18
Another random document with
no related content on Scribd:
— En tarkoita kuka ne muodollisesti tekee, vaan lähimmäisen
olosuhteitten huomioon ottamattomuutta asioita uloshakuun
annettaissa.
— Esimerkkiä?
— Kun niin tahdot. Äskettäin on talolliselta Kaihlaselta haettu ulos

saatava ja pantu se ryöstöön, vaikka hän nyt ei ole tilaisuudessa sitä
suorittamaan. Tuonnempana hän olisi voinut maksaa, nyt hänelle voi
tulla pahoja ikävyyksiä.
— Mistä sinä tämän tiedät?
— Kaihlanen kävi siitä minulle puhumassa ja pyytämässä että

paperit otettaisiin takaisin ruununvoudilta.
— Miksei Kaihlanen ole käynyt minun puheillani?
— On luullut sitä turhaksi.
— Mutta näitten kiertoteitten kautta pitäisi vaikka minkä

onnistuman.
— Ei vaikka minkä, ainoastaan mikä on kohtuullista.
— Mitä kohtuutta sitten on tässä Kaihlasen asiassa? Sinä olet

hyväntahtoisuuudessasi valmis uskomaan jokaista, joka sinulle vaan
jotain vakuuttaa. Mutta ihmiset eivät aina ole todellisia. Kaihlanenkin
olisi jo monta kertaa voinut maksaa, jos olisi tahtonut. Mutta ei.
Juoda ressaa kaupungissa käydessään, ei vastaa yhteenkään
kirjeesen, on siirtänyt kauppansa Koskiseen — josta en ole
pahoillani — kun ei meiltä enää saa velaksi, eikä millään tavalla ole
osoittanut olevansa nyt vaikeammassa asemassa kuin ennen tahi
tuonnempana. Ja toisekseen, ei kukaan meidänkään velkojistamme
kysy koska meille on soveliain aika maksaa, vaan ovat maksut
suoritettavat silloin kun ne lankeavat. Totta kai muitten ihmisten
velvollisuudet ovat samat.
— Vetoaminen sellaisiin velvollisuuksiin, joita ei voi täyttää, ei ole

paikallaan. Sääliä pitää myöskin olla vaa'assa.
— Sääliä! Se on kaunista teoriiassa ja soveltuu naisten

hyväntekeväisyysiltamien ohjelmaan. Mutta rupea sitä kauppiaana
päivät pitkät harjoittamaan, niin et pitkällekään tule. Onko sinusta
parempi ruveta harjoittamaan hyväntekeväisyyttä ammatissaan,
joutua itse aineelliseen vaurioon ja viedä sinne joukko syyttömiä,
hyväntahtoisuudessaan meitä auttaneita ihmisiä mukanaan. Onko se
kauniimpaa?
— Sinä liiottelet. Minä olen kyllä uudelleen tullut siihen

mielipiteesen että kaikki kaupan teoriiat ovat vääriä ja minä
haluaisinkin tästä erilleni, jos se olisi mahdollista. Mutta siitähän ei
ole kysymys. Kysymys on koettaa päästä menettelyssä kohtuuden
keskitielle.
Sen rajat ovat vaikeat määritellä ja riippuvat itsekunkin

silmälaseista.
— Hyvällä tahdolla voi paljon.
— Voi, mutta jos sinä hyvällä tahdolla tarkoitat samaa kuin minä
oikeutetun etunsavalvomisen laiminlyömisellä, niin tulos sen
käyttämisestä on, että saa nähdä toisen vievän mitä etupäässä
itselle kuuluisi. Niin juuri tässä Kaihlasenkin tapauksessa.
Saatavamme perimisen myöstäminen on sama kuin antaa hänen
kylliksi velkaannuttaa itseään muualla ja sitten katsella kuinka nämä
toiset, ilman sääliä nutun taskussa, ottavat häneltä omansa. Me kyllä
saisimme iloita jalomielisyydestämme, mutta siihen meillä ei ole
varaa. Kaikki mitä meillä on, on muilta lainassa. — Sanot kaiken
kaupan teoriian olevan väärän. Ehkä, en tunne asiata
uudenaikaisten oppien kannalta. Mutta sen tiedän että tämäkin liike
on välttämätön jo senkin vuoksi etteivät vieraat ihmiset joutuisi heille
kuulumattomiin maksuihin ja että paitsi muuta Nurhosen perhe voisi
tulla toimeen.
— Sinä et minua käsitä. Minä nyt ainakin tahtoisin että Kaihlasen

ryöstö peruutettaisiin.
— Käyköön Kaihtanen puhumassa siitä konttorissa ja antamassa

jonkun vakuuden.
Asplund sytytti tupakan ja vaikeni.
Minä kävelin edestakaisin lattialla.
Hetken vaitiolon jälkeen aloitti hän tyynesti:
— Sinä mainitsit Nurhosen perhettä. Olisi minulta siinäkin

suhteessa toivomuksia.
— Vai puristaa kenkä siltäkin taholta.
— Älä ole Nurhosille ilkeä. Tämä liike on kuitenkin alkujaan heidän

ja vielä nytkin yhtä paljon kuin meidänkin. Sitäpaitse sinä tiedät
minun olevan heidän sukulaisensa ja velvollisuuteni siis on perheen
etuja valvoa.
— Kyllä, kyllä, aivan kuin minun velvollisuuteni tämän liikkeen
etuja.
— No, mistä on kysymys?
— Ne kaksituhatta markkaa ja vähän korkoja, jotka rouva

vuosittain saa vanhaa kauppahintaa, eivät hänelle riitä. Minä olen
häntä auttanut, mutta en paljoa jaksa minäkään, kun on niin suuret
korotkin maksettavana. Johnin palkka on pieni, se menee kaikki
hänen yksityismenoihinsa, Selimin täytyy jatkaa kauppakoulua, ja
sitten on vielä Miia. Tällainen joukko vie paljon. Minä olen senvuoksi
ajatellut, kun yhtiön toiminta nyt kahtena vuotena on mennyt näin
hyvästi, että eikö hänelle voitaisi maksaa jotain vuotuista
ylläpitoapua?
— Mitenkä se voisi tulta kysymykseen ja mistä varoista?
— Tuossa sinun ynseä mielesi jälleen näyttäytyy. Me kaikki

olemme velvollisia häntä auttamaan.
— Kohta sinä saat koko maailman meidän säälimme esineeksi.

Mutta mistä varat?
— Esittämääni tarkoitukseen voitaisiin kait käyttää viime vuosien

voittovaroja.
— Mutta nehän ovat jo varemmin päätetyt käyttää velkojen

lyhennykseen ja uutisrakennukseen.
— Vaikkakin, niin voitaisiin hänen kohdaltaan tehdä poikkeus.
—- En oikein käsitä miten se käytännössä olisi mahdollinen. Joka

tapauksessa tarvitaan siitä asiasta päättämässä myös Helander. —
Tässä me nyt ollaan. Nyt olisivat rahat toisaalle hyviä, mutta
kuitenkaan niitä ei saisi ihmisiltä periä.
— En tahtoisikaan sellaisia rahoja, joitten saaminen on

aikaansaanut puutetta muille ihmisille.
— Hm, jos niin syvällisesti otamme, niin eiköhän silloin pitäisi

kieltäytyä kaikkia rahoja vastaanottamasta.
— Älkäämme poiketko asiasta. Kutsummeko Helanderin tänne?
Teimme niin.
Helander nauroi meidän kuohullemme.
— Kun aikamiehet viitsivät, sanoi hän. No, ja Asplund, joko sinä

olet aivan puhdistanut itsestäsi kaiken sen käytännöllisen
ymmärryksen, jonka jo toivoimme itse käytännönmiehenä ollessasi
saavuttaneesi?
— Minun ymmärrykseni on minun vakuutukseni oikeasta, oli

Asplundin vastaus.
Rouva Nurhosen asiassa ei Helander katsonut voitavan muuta

kuin yhtiön puolesta lainata hänelle joku summa vastaisia jako-
osuuksia vastaan.
Tähän yhdyin minäkin. Asplundia ei päätös tyydyttänyt. Hänen

mielestään ei rouvalle enää annettu tarpeellista huomiota, vaikka
oikeastaan toimittiin hänen miehensä entisyydellä.
— Näyttää siltä, jatkoi hän, kuin Saarelakin aivan tahallisesti

Nurhosia vihaisi. Johniakin hän kohtelee kovin sopimattomasti.
Uusi sytyke oli heitetty.
— Mitenkä niin? kysyin.
— Sinä käsket ja komennat häntä kuin renkiä. Oletpa uhannut

hänet erottaakin. Sinun tulisi vallan päinvastoin osoittaa hellyyttä ja
rakkautta vielä kasvatuksen alaista nuorukaista kohtaan.
— Rakkautta ja teidän kasvatusoppianne minä en tunne. Mutta

sen huomaan että paljon sinä saat tietoja, vääriä ja väritettyjä, jotka
osoittavat että minä alan olla tiellä täällä. Eiköhän tämä kuitenkin ole
liian aikaista. — Mitä käskemiseen ja komentamiseen tulee, niin olen
minä pitänyt Johnia muitten apulaisten asemassa. Se kasvatusoppi,
jonka minä tunnen, on tinkimättä työtä ja tottelevaisuutta. Sillä tavalla
minä olen nähnyt työtätekeviä, käytännöllisiä kauppiaita parhaiten
kasvatettavan.
— Kaikilla ihmisillä pitää alamaisiinsakin olla rakkautta.
— Mutta joka taskusta ja sormenpäästä sen ei tarvitse roikkua.

Sitäpaitse kerrotaan sinulle asiat väritettyinä, kuten jo sanoin.
— Kenties, enkä minä kaikkia sellaisenaan uskokaan. Mutta minä

haluaisin ettet sinä niin varmasti aina luottaisi itseesi.
— Sitä liikkeen hoidossa juuri pitää tehdä. Muuten, erottakaa

minut, niin kaikki muuttuu hyväksi.
Helander, joka koko ajan oli kuunnellut, sekaantui nyt puheeseen:
— No, no, sanoi hän. Eiköhän se ole parempi että Saarela hoitaa
liikettä, ja sinä Asplund teet tehtäväsi koulussa ja sanomalehdessäsi
kaikkien uusien aatteittesi mukaan, kenenkään sinua häiritsemättä.
— Pitää sitä sentään mielipiteensä saada sanotuksi, vastasi
Asplund. Eikähän nuo ihmiset sitäpaitse anna minunkaan rauhassa
tehdä tehtäviäni. Rehtori vähän päästä muistuttelee "vaarallisista
opeista", joita minä muka levitän. Ja sanomalehtijohtokunnan
puheenjohtajalla on tuon tuostakin yhtä ja toista tyytymättömyyden
syytä, useimmiten sellaisista asioista, joista ei ollenkaan ole
lehdessä kirjoitettu. Minä en hänen tie- ja tonttiasioitaan tunne, enkä
niistä ole huvitettu. Mutta aina niistä pitäisi kirjoittaa. Nyt sillä taitaa
olla joku juoni tekeillä, koska on johtokunnan kutsunut huomenillaksi
kokoon „erään lehden kirjoituksen takia".
— Luultavasti hän tarkoittaa viime numerossa ollutta kirjoitusta

kaupungin poroporvarillisista vallassäätyläisistä.
— Sitä kai, vastasi Asplund, ja täten siirtyi keskustelu

äskeisestään aivan toiselle alalle.
— Se on kai rouva Löfbergin kirjoittama? kysyi Helander.
— Niin on, meidän kesken sanottuna.
— No, Granberg aikoo kai antaa sinulle pienen muistutuksen, eikä

sen pahempaa tarkoittane. Kyllähän tuo kirjoitus olikin äärimmäistä
liioittelua.
—- Oli, mutta sellaista näissä oloissa tarvitaan.
Poislähdettäessä näytti Asplund jo melkein unohtaneen äskeisen

väittelymme. Hymyillen kehoitti hän minua huomenillalla saapumaan
sanomalehtijohtokunnan kokoukseen "velkaani maksamaan".
IX.
Heinäkuun 1 p.
On kaiken päivää satanut, ja minä olen keinutuolissa tupakkaa

poltellen muistellut Asplundin vastoinkäymisiä sanomalehden
toimittajana. Pari ensi vuotta häneltä tosin meni ilman
mainittavampia ikävyyksiä. Hän kirjoitteli etupäässä suurista uusista
aatteista ja väitteli Kansalaisen kanssa. Nämä eivät ketään yksityistä
loukanneet, ja paikallispolitiikassa ei lehdellä ollut mitään jyrkempää
itsenäistä kantaa. Mutta sikäli kun se tätä alkoi saavuttaa ja sen
mukaan esiintyä ja varsinkin Asplundin aatteitten kehityttyä siihen
suuntaan, että hän katsoi niitten elämään sovelluttamisen tärkeäksi
yksilön velvollisuudeksi, alkoivat keskenäiset ristituulet puhallella.
Varsinkin oli kunnallinen politiikka paha loukkauskivi.
Valtuusmiesvaalien aikana siitä jo varemminkin merkkiä näyttäytyi,
eivätkä muutkaan lähemmin ympäristöä koskevat nuhdekirjoitukset
menneet pienettä murinatta.
Asplundin omat kirjoitukset eivät suinkaan olleet pahimpia

silmätikkuja, sillä niissä alkoi yhä enemmän pohjasävelenä olla puhe
ihmisten velvollisuuksista rakkauden ja omantunnon kannalta, ja
tämä alkoi esiintyä yksin katujenhoito kysymyksissäkin. Niille vaan
hymyiltiin. Mutta rouva Löfberg, joka näinä ensi aikoina oli uuteen
lehteen hyvin innostunut ja tahtoi "paukuttaa", kirjoitteli intohimoja
nostattavia kirjoituksia. Pahimpia näistä ei Asplund kuitenkaan ensi
aikoina julkaissut, mutta kun hän itsekin alkoi huomata
tehokkaamman toiminnan välttämättömyyden, saivat yhä
rohkeammin ympäristön keskuuteen tähtäävät kirjoitukset lehdessä
enemmän ja enemmän huomiota.
Nyt oli siinä ollut uhotteleva kirjoitus nimeltä "Poroporvarillinen

vallassäätymme", joka kohdistui yksinomaan kaupungin yläluokkaan
ja jolle tässä annettiin "niin että paukkui". Papit nukuttivat kansaa,
opettajat nuorisoa, virkamiesten ainoa harrastus on toti- ja
peliseurat, naisten uusien leninkimallien etsiminen muotilehdistä. Ja
kuitenkin osoittavat naistemme puvutkin, sanottiin kirjoituksessa,
ettei makuaisti heissä ole vähääkään kehittynyt, ei se enempää kuin
mikään muukaan. Tämän paikkakunnan n.s. herrasväen pitäisi
uudesta syntyä, oppia käsittämään sivistyneen nimissä kulkevilta
ihmisiltä vaadittavankin jotain, jo yksin sen esimerkin ja
vaikutuksenkin vuoksi, joka heillä aina on kansaan, vaan jota tällä
paikkakunnalla ei suinkaan saisi olla, sillä meillä soveltuisi kansa
näille nimisivistyneille esimerkiksi. Kansan piireissä on monta, jotka
seuraavat aikaansa ja lukevat kirjallisuutta, mutta kuinka monta
"sivistynyttä" meillä on jotka jotain tietäisivät esimerkiksi nykyajan
suurista miehistä, tuntisivat heitä edes nimiltään, kun nämät eivät ole
ollut mainittuja niissä vanhentuneissa oppikirjoissa, joita he nuorena
koulussa lienevät lukeneet.
Kirjoitus aiheutui suuttumuksesta, kun vallassäätyläiset eivät

ollenkaan ottaneet osaa paikkakunnalle perustetun
työväenyhdistyksen toimeenpanemiin arpajaisiin kansanopiston
hyväksi, ja loppui sanoilla:
"Tässä kaupungissa on henkisesti alhaiso ylhäisöä, ja
päinvastoin."
Hyökkäys sai aikaan tavattoman touhakan ja suuttumusta

kaikkialla. Varsinkin olivat naiset loukkaantuneita. Yleiseen arvattiin
kirjoituksen kirjoittaja, eikä tuomioita hänestä suinkaan säästetty.
Tämän johdosta oli pankinjohtaja Granberg kutsunut sanomalehden
johtokunnankin koolle.
Kokouksen alussa selitti Granberg syyn tähän johtokunnan

kokoonkutsumiseen. Sanomalehdessä oli tuon tuostakin näkynyt
vähemmän hyväksyttäviä kirjoituksia, sanoi hän, ja nyt on lehden
viime numerossa artikkeli, josta hän yksilönä ei mitään välittäisi,
vaan joka loukkaa häntä kaupunkilaisena, sillä se loukkaa koko
meidän yhteiskuntaamme. Se levittää maailmalle vääriä tietoja
meidän oloistamme, esittää meidät raakalaisia kauheimpina.
— Minä kyllä tiedän, hän jatkoi, että ulkomailla löytyy

kumousopillisia sanomalehtiä, jotka tahtovat kaikki olevat olot
kukistaa, mutta täällä Suomessa ja varsinkin meidän rauhallisessa
kaupungissamme ei näitä oppeja vielä ole ennen saarnattu. Nyt
puheena oleva kirjoitus on suoranainen yllytyskirjoitus, joka
ymmärtämätöntä kansaa kiihottaa toisia säätyluokkia vastaan. Eikä
se ainoastaan tee sitä, mutta oloja tuntemattomien silmissä vaikuttaa
se myöskin, että tämän kaupungin vallassäätyisten täytyy tästä
lähtien kulkea häpeän pilkku otsassaan, minne ikänään menevätkin.
Ja tämän kunnian on meille hankkinut oman kaupungin sanomalehti,
meidän oma lehtemme, jonka me joku aika sitten yhteisesti olemme
perustaneet, kun emme voineet tyytyä paikkakunnan entiseen,
kunnan asioissa määrämisvaltaan pyrkivään sanomalehteen.
Asplund istui sanaakaan vastaamatta, mutta selvästi huomasi ettei
hän ollut tyyni.
Granberg esitti että johtokunta lausuisi kirjoituksen johdosta

toimittajalle paheksumisensa, vaikkei kirjoitus olisikaan hänen
itsensä kirjoittama, kun hän on sen lehteensä ottanut.
Rouva Löfberg puolusti innokkaasti kirjoitusta. Enempäänkin

sanomiseen olisi ollut syytä, väitti hän, ja lisäsi että se oli kuin hänen
kädestään. (Kaikki hymyilivät ja rouva Löfberg rupesi itsekin
nauramaan). Maisteri Hellfors piti kirjoitusta liioittelevana, mutta
katsoi ettei johtokunta sen takia voi toimittajalle mitään muistutusta
antaa.
Helander sanoi hänen selkänsä tämän löylyn vielä kestävän,

mutta ei
hänkään ollut tällaisista palo-artikkeleista suuremmin huvitettu.
Vastusti virallista muistutusta ja asian mainitsemista pöytäkirjassa.
Yksityinen ystävällinen neuvo hänen mielestään riitti.
Tähän asia jäikin, kun kukaan ei Granbergin ehdotusta

kannattanut.
Kokouksen lopussa sanoi Asplund:
— Minä en ole tahtonut selityksilläni vaikuttaa johtokuntaan, mutta

nyt kun tuo hirmuinen asia on päätetty, tahdon vaan ilmoittaa olleeni
valmis siinä tapauksessa että johtokunta olisi virallisesti minua
muistuttanut, eroamaan toimittajan virasta. Yksityiset neuvot ja
huomautukset minä sen sijaan aina otan mielelläni vastaan, ja
koettelen niitä noudattaa niin paljon kuin ne minun
maailmankatsomukseeni soveltuvat.
Granberg murahti kuivasti:
— No, sanoi hän, me siis toivomme ettei samallaisia kirjoituksia

vasta ilmesty lehteen.
— Niitä juuri tarvitaankin, vastasi rouva Löfberg.
— Tjaa, sanoi Granberg samalla kuin hyvästeli, kyllähän meillä

taitaa olla kovin erilaiset käsitykset sanomalehden tehtävistä.
Poismentäessä saimme rouva Löfbergiltä kiivaanlaisen

nuhdesaarnan.
— Semmoisia nahjuksia tekin. Myöntelette ja myöntelette, ja

olisitte valmiit laittamaan lehdestä uuden Kansalaisen. Ja tekin
Asplund, olette vaiti kuin suuri syyllinen olisitte.
— Minua ei miellytä tällainen väittely, vastasi Asplund.
— Teidän täytyy sanomalehden toimittajana vastustaa vaikka itse

paholaista, oli rouva Löfbergin tulinen vastaus, jonka sanottuaan hän
nauroi, mutta heti taas jatkoi entiseen tapaansa.
Jäätyämme kolmen kulkemaan, naurahti Helander:
— Granbergin ovat naiset saaneet sotajalalle, sanoi hän. Nehän

tätä maailmaa hallitsevat suurien valtakuntien hoveista tänne meidän
pikkukaupunkiimme asti, vaikka aina näkymättöminä.
Sitten kääntyi hän erityisesti Asplundiin:
— Vanhana ystävänä annan minä sinulle nyt ajoissa lakimiehen

neuvon. Jos olet sanomalehteesi kiintynyt ja haluat sen säilyttää, niin
ole kaukaa varoillasi. Myrsky voi pian tulla entistä pahempana.
Yhtiön osakkeita on maaseudulla siellä täällä sellaisissakin käsissä,
jotka niistä eivät ollenkaan välitä. Ovat vaan agitaattoreista
päästäkseen jonkun ostaneet. Keräile niitä itsellesi niin paljon kuin
suinkin, että saat yhtiössä enemmistön. Paljoa niistä ei suinkaan
maksaa tarvitse. Tee tämä ajoissa, sillä Granberg pankkimiehenä
kyllä keksii saman juonen, silloin kun hän näkee sen asialleen
tarpeelliseksi.
Asplund sanoi tällaisen homman olevan hänelle vastenmielisen,

mutta lupasi kuitenkin sitä miettiä.
Myrsky, josta Helander mainitsi, ei kuitenkaan pitempään aikaan

vaaralliseksi noussut.
X.
Heinäkuun 5 p.
Viime päivinä olen melkein joka ilta käynyt kaupungissa. Olen

Raivalaisten kanssa ollut veneretkillä ja istunut kaupungin
lukusalissa selaillen vanhoja Asplundin lehden vuosikertoja. On ollut
hyvin huvittavaa uudestaan lukea näitä sen aikuisen kunnallisen
taistelun kirjoituksia. Niitä lukiessa tuntuu aivan kuin eläisi entisissä
oloissa, kuin vielä olisi itsekin pyörteessä mukana.
Eilen luin kaikki kirjoitukset, jotka koskivat aikansa kuumaa

kysymystä, „ministeristön kukistamista” ja sen edelläkäyneitä
väitteitä.
Paikkakunnalla työskenteli jo tähän aikaan raittiusseura, koettaen

luentojen ja selontekojen kautta vaikuttaa ihmisten vakuutukseen.
Poliitillista ohjelmaa ei seuralla ollut, eikä siihen aikaan muutenkaan
väkijuomain kauppiaan ammatti millään tavalla ollut huonossa
huudossa eikä huomion esineenä. Mutta uuden asetuksen kautta,
joka lakkautti n.k. miedompainkin väkijuomain myynnin vapaana
elinkeinona ja antoi kaupunkikunnille oikeuden päättää näitten
myömisestä samalla tavalla kuin väkijuomainkin, kiintyi
koulunopettajapiirissä huomio asiaan ja päätettiin koettaa saada
kaikki juomakauppa-oikeudet siirretyiksi yksityisiltä hyväntekevässä
tarkoituksessa toimivalle yhtiölle.
Maistraatti lähetti valtuusmiehille tavallisen kysymyksen, kuinka

monelle kauppiaalle on oikeuksia annettava. Ennenkuin tähän
ennätettiin vastata, ilmestyi Kansalaiseen kirjoitus, jossa uusi
vaatimus esitettiin. Tämä ehdotus herätti suurta huomiota ja
liikemiesten taholta vaadittiin Asplundia ryhtymään kiivaaseen
taisteluun näitä mielipiteitä vastaan. Tiedettiin että asian
valtuustossa tulisivat ratkaisemaan muutamat vähemmän itsenäiset
jäsenet, sillä varmoja liikemies- ja lehtori-puolueen miehiä oli jotenkin
tasaväkisesti.
Asplund joutui täten tähän kysymykseen suorastaan käytännössä,

ilman että hän sitä oli ajatellut. Hän naurahteli ensin asialle. Mutta
kun paikkakunnan raittiusseura, jonka puheenjohtaja oli lehtori
Renfors, heti kutsui koolle kansalaiskokouksen asiasta
neuvottelemaan, päätti hän ensin kuulla yleisempää mielipidettä,
ennenkuin omasta puolestaan lehdessä siihen sekaantui. Tällä
välillä julkaisi hän pari lähetettyä kirjoitusta, jotka jotenkin jyrkin
sanoin selittivät ehdotuksen tahtovan loukata yksityisen vapaata
elinkeinoa, ilman että raittiusasia siitä mitään voittaisi, koska
yhtiökaupasta ostettuja juomia on sen, joka niin tekee, yhtä helppo
väärinkäyttää kuin yksityiseltäkin ostettuja.
Paria päivää ennen kokousta sisälsi lehtorien lehti kiivaan

hyökkäyksen Uutta Aikaa ja sen toimittajaa vastaan. Sanottiin että
tämä uusien, muka jalojen aatteitten lehti vaikenee tärkeimmän
uuden ajan kysymyksen, mikä kunnassamme on moniin aikoihin
esillä ollut. Tässä olisi lehdellä nyt tilaisuus käytännössä osoittaa
etteivät sen puheet korkeista periaatteista ole olleet vaan vasken
helinätä. Mutta tämä lehti, joka aina on pitänyt suurta suuta
ulkomaitten sairaloisten ilmiöitten puolesta, onkin tällä
paikkakunnalla katsonut tehtävänsä supistuvan sille vastenmielisten
henkilöitten parjaamiseen, eikä suinkaan tosi parannusten
aikaansaamiseen. Niinpä nytkin. Samalla kun se muka koettaa
omasta puolestaan vaieta koko asian, antaa se vastalauseetta tilaa
kirjoituksille, jotka ovat juomakauppiaitten sepittämiä ja joitten valtaa
pönkittämässä tämä lehti on olemassakin. Tiedettyhän on, että
lehden osakkeet ovat etupäässä kauppiaspuolueen miehillä ja että
sen johtokunnan enemmistönä ovat saman puolueen miehet. Ja
tiedetäänpä vielä muutakin: lehden päätoimittaja on itse
juomakauppias, ollen Nurhosen jälk. & Kumpp. juomakaupan
omistaja. Näin ollen on ymmärrettävää ettei hänen sovellu ryhtyä
omia aineellisia etujaan vastustamaan — niin paljoa eivät uuden
ajan "uudet aatteet" sentään vaadi.
Asplundiin kirjoitus vaikutti kovin kiusallisesti, ja oli hän sen

johdosta hyvin neuvoton. Olin saman päivän iltana Helanderissa,
jonne Asplundikin saapui asiasta neuvottelemaan.
Hän sanoi täytyvänsä myöntää kirjoituksessa olevan paljon

oikeutettua ja hänen asemansa ikävän ja kiusallisen. Luonnotonta
onkin, — sanoi hän, että sanomalehden toimittaja ja koulunopettaja
samalla on juomatavarain kauppias.
Helander vastusti häntä varmalla tavallaan. Sanoi Asplundin

vaikka piispana ollen voivan pitää hyvää omaatuntoa
kauppiasammattinsa vuoksi. Elämässä ei löydy mitään määrättyjä
rajoja, mihin asti mikin saa mennä tai ei saa mennä. Sinä olet
kohtalon määräyksestä tullut kauppiaaksi, jatkoi Helander, ja
ruvetessasi siksi ilman että sinulla oli siihen kutsumusta, olet tehnyt
uhraantuvaisen työn ahdinkoon joutuneen perheen hyväksi, joka
teko ehdottomasti on sinun ansiopuolellesi luettava. Sitäpaitse,
ethän sinä enää ole mikään varsinainen kauppias, ainoastaan
kauppaliikkeen osuuden omistaja.
— Siveellisesti olen liikkeenkin puolesta yhä vielä vastuunalainen,

vastasi Asplund.
— Siveellisesti, toisti Helander. Sitä siveellisyyttä on tässä

maailmassa niin monenlaista, ja useimmilla se on vaan suurten
paheitten peitteenä.
Asplund naurahti, ja jatkoi sitten:
— Mutta minulla on myös lehden toimittajana velvollisuuksia, jotka

eivät saa muilla velvollisuuksilla olla sidottuja. Nyt esimerkiksi luulen
täytyväni yhtiöasianajajiin yhtyä.
— Puhutaan nyt kuivaa järkeä ja vähemmän välitetään

velvollisuuksista, vastasi Helander. Sellaisen kirjoituksen jälkeen
mikä sinusta tänään on julkaistu, on aivan mahdotonta ajatellakin
että rupeaisit lehtorien persoonallisuus-vihan hännänkantajaksi. Etkö
sinä huomaa että koko kysymys on vaan syötti, jolla aijotaan päästä
kaupungin kunnallista elämää hallitsemaan. Sitä paitsi tuottaisi sille
puolen siirtyminen paljon ikävyyksiä lehdelle ja itsellesi, paitsi että
kaikki ihmiset sille nauraisivatkin.
— Naurajista en välittäisi, kun vaan pääsisin vakuutetuksi asian

oikeudesta.
— Etkö myös ajattele jatkuvia velvollisuuksiasi Nurhosia kohtaan
ja tämän vallankumouksen seurauksia liikkeellemme?
— Ajattelen kyllä, mutta oikeuden noudattaminen on minulle

tärkeä ennen kaikkea muuta.
— Onko yhtiön juomista hankittu humala siveellisempää lajia kuin

yksityisen kaupasta ostetusta tavarasta saatu?
— Kunta saa edellisessä tapauksessa voiton.
— Jolla se ylläpitää kansaa turmelevaa armeliaisuutta. Mutta onko

yksityisen, paikkakuntaan kiinni kasvaneen kauppiaan aineelliseen
perikatoon saattaminen kunnan kannalta oikeutetumpaa?
— Siinähän se sotkeutunut vyyhti onkin, vastasi Asplund.
Kun hän oli poistunut, pyöritteli Helander sikaariaan ja sanoi

pelkäävänsä tästä johtuvan koko joukon pikku harmia. Samaa
pelkäsin minäkin, enkä koko seuraavana yönä saanut nukuttua. Olin
huomaavinani ikävyyksiä ja työtäni liikkeessä häiritseviä
ristiriitaisuuksia tältäkin taholta nousemassa. Ensimäisiä kertoja
mietin vakavasti olenko minä mahdollinen tähän liikkeesen
kuulumaan ja voinko siihen työni uhrata ja tulevaisuuteni perustaa.
Mutta mitään tietä irtaantumiselle en keksinyt, siksi asioihin
sotkeutuneena pidin itseni. Ja samalla tuntui minusta kuin olisi minun
mahdoton uudestaan ryhtyä toimialaa itselleni puuhaamaan, jos
tämä pohja särkyisi. Innokkain ja rohkein nuoruuden aika alkaa olla
elettyä, ajattelin.
Mutta aamu pyyhkäsi pois toivottomat ajatukset. Menin liikkeesen,

järjestin kaikki päivän tehtävät kuin mitään ei olisi tapahtunut ja itse
ryhdyin, unettoman yön väsymyksestä hieman hermostuneena,
suunnittelemaan erityisen maanviljelyskalustokaupan sijoitusta
tekeillä olevan uuteen rakennukseen.
Myöhemmin päivällä ilmestyi Asplundin lehti ja oli siinä kehoitus

yleisölle lukuisasti saapumaan kansalaiskokoukseen ja tyynesti ja
asiallisesti neuvottelemaan parhaasta menettelytavasta
juomakauppakysymyksen vastaiseksi järjestämiseksi. Kansan
tahdolle on tällaisessa läheisesti kansaa koskevassa asiassa
annettava suuri merkitys, sanottiin kirjoituksessa; sen tieltä saavat
yksityiset edut, jos ne ovat tämän kanssa ristiriidassa, väistyä. Mutta
muistettakoon aina että yksinomaan kunnan hyödyn katsominen ei
ole oikea peruste periaatteelle, vaan otettakoon tarkoin huomioon
mikä aatteelle kokonaisuudessaan on edullisinta ja sitä lopulliseen
päämaaliinsa enimmän lähentävää. Esimerkiksi kysymys siitä
keneltä, yksityisiltäkö vai kunnalta, on helpompi kerran saada nämä
oikeudet kokonaan lakkautetuiksi, on punnittava asia.
Kokous oli seuraavana iltana ja saapui siihen paljon väkeä

työväen ja muun alhaison piiristä sekä koulunopettajia. Liike- ja
virkamiehiä ei ollut saapunut kuin pari kuuntelijaa. Lehtori Renfors
aloitti kokouksen pitemmällä puheella, jossa pääasiassa toistettiin
mitä hänen sanomalehdessään jo oli sanottu. Hän kääntyi suoraan
Asplundin lehdenkin puoleen:
— Vastustavalta taholta on sanottu että aatteelle tulee antaa

suurempi huomio kuin kunnan hyödylle. Tämä on hyvin
hämmästyttävä asian sotkemiskeino. Sekö olisi suurempaa aatetta
että annettaisiin näitten myrkkyjen yhä edeskinpäin joka puodin
hyllyltä valua, annettaisiin yksityisten voitonhimossaan väärinkäyttää
asetuksia, kuin se, että meillä olisi järjestetty yhtiö ilman yksityisten
etuja, jossa tarkoin noudatettaisiin lain määräyksiä, ja josta — on
sekin sentään lukuun otettava — voitto tulisi kunnan yleishyödyllisiin
tarkoituksiin. Onpa vielä tehty sellainenkin kysymys, kummalta,
yksityisiltä vaiko kunnalta, on helpompi saada pois kaikki oikeudet.
Kysymys sekin. Lapsikin voisi vastata että kunta nämä oikeudet
helpommin voi lakkauttaa — sitten kun niin pitkälle tullaan että
sellainen vaatimus uskalletaan esille ottaa.
Kaikki toisetkin puhujat puolustivat yhtiöaatetta. Ei ainoatakaan

vastakkaista mielipidettä lausuttu eikä Asplund, joka oli kokouksessa
läsnä, ollenkaan esiintynyt. Yksimielisesti päätettiin
kaupunginvaltuusmiehille lähettää lausunto, jossa kuntalaisten
nimessä pyydetään nyt kysymyksessä olevat juomakauppaoikeudet
annettaviksi ainoastaan hyväntekevässä tarkoituksessa toimivalle
yhtiölle.
Asplund lähti kokouksesta hyvin mietteissään. Ja mikäli

jälestäpäin kuulin, oli hän myöhään yöhön istunut työhuoneessaan.
Seuraavana päivänä tuli hän konttoriin ja tiedusteli viini- ja

punssikaupan kannattavaisuutta ja sen suhdetta muuhun liikkeesen.
Oli helppoa arvata mitä hänen mielessään liikkui, vaikkei hän sitä
suoraan sanonutkaan. Melkein itsetiedottomasti liiottelin jonkun
verran tämän liikkeen osan kannattavaisuutta ja muutuin
tyytymättömäksi kun huomasin ettei hän sanoihini luottanut, vaan
puhutteli Kemppaista ja John Nurhosta sekä pyysi Kemppaisen
kirjoittamaan hänelle otteita eri vuosien väkijuomakontosta.
— Tässä ovat kirjat katseluksesi, Kemppaisella on muuta

tärkeämpää työtä, sanoin.

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Business Statistics: Australia and New

Zealand Eliyathamby A. Selvanathan

Eliyathamby A. Selvanathan Saroja Selvanathan Gerald Keller

Eliyathamby A. Selvanathan Saroja Selvanathan Gerald Keller

Late Professor Balan Selliah

Eliyathamby A. Selvanathan Saroja Selvanathan Gerald Keller

Cengage Learning Australia

Cengage Learning New Zealand

For learning solutions, visit cengage.com.au

Printed in Singapore by 1010 Printing International Limited.

PART 1 Descriptive measures and probability 43

PART 2 Statistical inference 349

PART 3 Applications 989

2 Types of data, data collection and sampling 18

PA R T 1: D E S CR IP T I V E ME A S URE S A ND P R OBA BIL I T Y 43

3 Graphical descriptive techniques – Nominal data 44

Case 3.3 Trends in CO2 emissions 78

4 Graphical descriptive techniques – Numerical data 85

5 Numerical descriptive measures 135

7 Random variables and discrete probability distributions 260

8 Continuous probability distributions 309

PA R T 2: S TAT IS T ICA L INF ER ENCE 349

9 Statistical inference and sampling distributions 350

10 Estimation: Single population 373

11 Estimation: Two populations 429

12 Hypothesis testing: Single population 466

12.6 Testing the population proportion p 517

13 Hypothesis testing: Two populations 530

14 Inference about population variances 582

15 Analysis of variance 615

16 Chi-squared tests 682

17 Simple linear regression and correlation 727

18 Multiple regression 789

19 Model building 846

20 Nonparametric techniques 891

21 Statistical inference: Conclusion 946

PA R T 3: A P P L ICAT IONS 989

22 Time series analysis and forecasting 990

Chapter summary 1038

23 Index numbers 1041

24 Decision Analysis [Online] 24-1

Key features of our approach

PART-OPENING FEATURES CHAPTER-OPENING FEATURES

Descriptive Graphical descriptive techniques –

Source: <To be confirmed>

central role in this assessment. ID Party Response

BK-CLA-SELVANATHAN_8E-200138-Chp03.indd 43 17/08/20 2:29 PM BK-CLA-SELVANATHAN_8E-200138-Chp03.indd 44 17/08/20 2:29 PM

FEATURES WITHIN CHAPTERS

Comparing the clothing purchasing habits of men and women

Excel output for Example 11.2

2 • interpret the answer in the context of the

5 Confidence level 0.95

Geometric mean rate of return

0.90 0.10 0.05 z = 1.645

in the text without having to spend time inputting raw

data. TheseThedata files are available on the accompanying

EXERCISES Number of hours children spend watching televisio C H A P T E R 15 A N A Ly S I S O F V A R I A N C E 617

watching television, since the types and number of programs and

solicited the opinions of a sample of the company’s to reduce

in the following table. Use an appropriate graphical Most of 8these

presentation to determine whether the responses exercises

For 67 32 11 table. The graduate Newspaper

Computer applications 1 = do not smoke nominal variables

CASE 3.6 Differing average weekly earnings of men and

CASE 4.2 Analysing the spread of the Global Coronavirus

CASE 5.5 Sydney and Melbourne lead the way in the growth

CASE 14.1 Comparing salary offers for finance and

CASE 17.3 Does unemployment affect inflation in New