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Business Statistics, 6E David M. Levine Timothy C. Krehbiel Solution Manual

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Type:

Solution Manual

Resource:

Business Statistics

Edition:

6th Edition

Author(s):

David M. Levine Timothy C. Krehbiel MarkL. Berenson David F. Stephan


Table of Contents

Teaching Tips

1

Instructional Tips and Solutions for Digital Cases

29

Solutions to the Managing Ashland MultComm Services Case

60

Chapter 1

Introduction

104

Chapter 2

Organizing and Visualizing Data

108

Chapter 3

Numerical Descriptive Measures

213

Chapter 4

Basic Probability

271

Chapter 5

Discrete Probability Distributions

298

Chapter 6

The Normal Distribution

326

Chapter 7

Sampling and Sampling Distributions

366

Chapter 8

Confidence Interval Estimation

392

Chapter 9

Fundamentals of Hypothesis Testing: One-Sample Tests

417

Chapter 10

Two-Sample Tests and One-Way ANOVA

453

Chapter 11

Chi-Square Tests

640

Chapter 12

Simple Linear Regression

680

Chapter 13

Introduction to Multiple Regression

723

Chapter 14

Statistical Applications in Quality Management

766


Preface The first part of the Instructor’s Solutions Manual contains our educational philosophy and teaching tips for each chapter of the text. Instructional tips and solutions for the digital cases follow. Answers to parts of the Managing Ashland MultComm Services Case that is integrated throughout the text are provided next. Solutions to End-of-Section Problems and Chapter Review Problems in each chapter are included last. The purpose of this Instructor’s Solutions Manual is to facilitate grading of assignments or exams by instructors and/or teaching assistants. Screen shots using output from PHStat2, and Minitab are integrated throughout. Most of the problems are solved using PHStat2 or Minitab. To present the steps involved in solving a problem, some intermediate numerical results are presented accurate to only a reasonable number of significant digits. Hence, instructors are reminded that the final results presented in this manual that are obtained using PHStat2 or Minitab can sometimes be different from those obtained with a hand calculator computed using the intermediate values due to rounding.

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Teaching Tips

1

Teaching Tips for Business Statistics: A First Course, Sixth Edition Educational Philosophy In our many years of teaching business statistics, we have continually searched for ways to improve the teaching of business statistics courses. We actively participate in Decision Sciences Institute (DSI), American Statistical Association (ASA), and Making Statistics More Effective in Schools and Business (MSMESB) conferences. We use the Guidelines for Assessment and Learning (GAISE) reports as well as our reflections on teaching busines statistics to a diverse group of students at several large universities. These experiences have shaped our vision that has come to include these key principles: 1. Students need to be shown the relevance of statistics. • Students need a frame of reference when learning statistics, especially when statistics is not their major. That frame of reference for business students should be the functional areas of business—accounting, finance, information systems, management, and marketing. Each statistical topic needs to be presented in an applied context related to at least one of these functional areas. • The focus in teaching each topic should be on its application in business, the interpretation of results, the presentation of assumptions, the evaluation of the assumptions, and the discussion of what should be done if the assumptions are violated. 2. Students need to be familiar with the software used in the business world. • Integrating spreadsheet and/or statistical software into all aspects of an introductory statistics course allows the course to focus on interpretation of results instead of computations. • Introductory business statistics courses should recognize that in business, spreadsheet software is typically available on a decision-maker’s desktop and statistical software is often also available. 3. Students need to be given sufficient guidance on using software. • Textbooks should provide enough instructions so that students can effectively use the software integrated with the study of statistics, without having the software instruction dominate the course.


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Teaching Tips

4. Students need ample practice in order to understand how statistics is used in business. • Both classroom examples and homework exercises should involve actual or realistic data as much as possible. • Students should work with data sets, both small and large, and be encouraged to look

beyond the statistical analysis of data to the interpretation of results in a managerial context.


Teaching Tips

3

Chapter 1 One way to begin the course is by discussing why a businessperson needs to know about statistics. This will provide a reason for why the student has been required to take this course. The first day is extremely important to driving out preexisting fear that some students have concerning the course. You should talk about the fact that this course is different from a mathematics course in that you will not be deriving any proofs, but instead will be focusing on how statistics can be used in the different functional areas of business. You can talk a little about the DCOVA problem solving approach that will be used starting in Chapter 2 as a way of solving problems that will occur on the job when students graduate. This can be followed by a brief explanation of the basic vocabulary of statistics including the distinction between descriptive and inferential statistics. Then you need to discuss the types of variables. Be sure to discuss the different types carefully since the ability to distinguish between categorical and numerical data will be crucial later in the course. Go over examples of each type of variable and have students provide examples of each type. ® At this time, if you are going to use Microsoft Excel, ask the class whether they are ® familiar with Microsoft Excel. Depending on the degree to which the instructor wishes to

integrate Excel into the course, point out that, since most managers will have integrated products ® such as Microsoft Office on their desktops, it would be useful to understand how Excel can be

used to analyze data. If you are going to use Minitab, you can talk about statistical packages and the advantages of using them instead of or in addition to using Excel in certain circumstances. The chapter also introduces a continuing case related to the Managing Ashland MultiComm Services that appears at the end of many chapters. The Digital cases are

introduced in this chapter also. In these cases, students visit Web sites related to companies and issues raised in the Using Statistics scenarios that start each chapter. The goal of the Digital cases is for students to develop skills needed to identify misuses of statistical information. As would be the situation with many real world cases, in Digital cases students often need to sift through claims and assorted information in order to discover the data most relevant to a case task. They will then have to examine whether the conclusions and claims are supported by the data. (Instructional tips for using the Managing Ashland MultiComm Services and Digital cases and solutions to the Managing


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Teaching Tips

Ashland MultiComm Services and Digital cases are included in this Instructor’s Solutions

Manual.). If you are using Excel, make sure that students read the Excel Guide at the end of the chapter. The first section explains the different types of Excel instructions. The In-Depth Excel instructions provide step-by-step instructions and live worksheets that automatically update when data changes. These instructions can also be used with Mac Excel and OpenOffice.org Calc 3. The PHStat2 add-in instructions provide instructions for using the PHStat2 add-in. Analysis ToolPak instructions provide instructions for using the Analysis ToolPak, the Excel add-in packages with many versions of Excel. The reminder of the Excel Guide in this chapter goes over Excel basics including entering data, opening and saving workbooks, creating, printing, and copying worksheets, cell references, and entering formulas. Those students with limited knowledge of Excel should read Appendix B and F and all students should read Appendices C, D, and G. If you are using Minitab, make sure that students read the Minitab Guide at the end of the chapter. Topics covered include entering data, opening, creating, and saving worksheets and projects, and printing projects and/or worksheets. Those students with limited knowledge of computers should read Appendix B.


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