Business Statistics – Spring 2006
Chapter Overviews and Objectives

Chapter 1
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Understand why we study statistics

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Explain what is meant by descriptive statistics and inferential statistics.

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Distinguish between a qualitative variable and a quantitative variable.

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Distinguish between a discrete variable and a continuous variable.

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Distinguish among nominal, ordinal, interval, and ratio levels of measurement.

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Define the terms mutually exclusive and exhaustive.                     

Chapter 2
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Organize raw data into a frequency distribution.

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Portray a frequency distribution as a histogram, a frequency polygon, and a cumulative frequency distribution.

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Develop and interpret a stem-and-leaf display.

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Present data using such graphic techniques as line charts, bar charts, and pie charts.

Chapter 3
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Calculate the arithmetic mean, weighted mean, median, mode, and the geometric mean.

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Explain the characteristics, use, advantages, and disadvantages of each measure.

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Identify the position of the arithmetic mean, median, and mode for both symmetric and skewed distributions.

Chapter 4
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Compute and interpret the range, the mean deviation, the variance, and the standard deviation of ungrouped data.

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Compute and interpret the range, the variance, and the standard deviation of grouped data.

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Explain the characteristics, uses, advantages, and disadvantages of each measure.

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Understand Chebyshev's Theorem and the Normal, or Empirical Rule, as they relate to a set of observations.

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Compute and interpret quartiles and the interquartile range.

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Construct and interpret box plots.

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Compute and understand the coefficient of skewness and the coefficient of variation.

Chapter 5
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Define probability.

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Describe the classical, the empirical, and the subjective approaches to probability.

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Understand the terms: experiment, event, outcome, permutations and combinations.

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Define the terms: conditional probability and joint probability.

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Calculate probabilities, using the rules of addition and the rules of multiplication.

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Use a tree diagram to organize and compute probabilities.

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Calculate a probability using Bayes' Theorem.

Chapter 6
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Define the terms probability distribution and random variable.

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Distinguish between discrete and continuous probability distributions.

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Calculate the mean, variance, and standard deviation of a discrete probability distribution.

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Describe the characteristics and compute probabilities using the binomial probability distribution.

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Describe the characteristics and compute probabilities using the hypergeometric distribution.

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Describe the characteristics and compute probabilities using the Poisson distribution.

Chapter 7
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List the characteristics of a normal probability distribution.

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Define and calculate z values. Determine the probability an observation is between two points on a normal distribution using the standard normal distribution.

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Determine the probability that an observation is above (or below) a point on a normal distribution using the standard normal distribution.

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Compare two or more observations that are on different probability distributions. Use the normal probability distribution to approximate the binomial probability distribution.

Chapter 8
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Explain why a sample is often the only feasible way to learn something about a population.

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Describe methods to select a sample.

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Define and construct a sampling distribution of the sample means.

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Explain the Central Limit Theorem

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Use the Central Limit Theorem to find probabilities of selecting possible sample means from a specified population.