Applied Statistics for Business and Management using Microsoft Excel PDF
Preview Applied Statistics for Business and Management using Microsoft Excel
Linda Herkenhoff John Fogli Applied Statistics for Business and Management using Microsoft Excel Applied Statistics for Business and Management using Microsoft Excel Linda Herkenhoff (cid:129) John Fogli Applied Statistics for Business and Management using Microsoft Excel LindaHerkenhoff JohnFogli SaintMary’sCollege SenteniumInc. Orinda,California PleasantHill,California USA USA ISBN978-1-4614-8422-6 ISBN978-1-4614-8423-3(eBook) DOI10.1007/978-1-4614-8423-3 SpringerNewYorkHeidelbergDordrechtLondon LibraryofCongressControlNumber:2013946938 ©SpringerScience+BusinessMediaNewYork2013 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpart of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation,broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionor informationstorageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilar methodologynowknownorhereafterdeveloped.Exemptedfromthislegalreservationarebriefexcerpts inconnectionwithreviewsorscholarlyanalysisormaterialsuppliedspecificallyforthepurposeofbeing enteredandexecutedonacomputersystem,forexclusiveusebythepurchaserofthework.Duplication ofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyrightLawofthe Publisher’s location, in its current version, and permission for use must always be obtained from Springer.PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter. ViolationsareliabletoprosecutionundertherespectiveCopyrightLaw. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexempt fromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. While the advice and information in this book are believed to be true and accurate at the date of publication,neithertheauthorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityfor anyerrorsoromissionsthatmaybemade.Thepublishermakesnowarranty,expressorimplied,with respecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface Mathematical formulas and Greek letters seem to intimidate many people, so this book focuses on providing clear word descriptions and step-by-step Excel instructions,ratherthanincludinglotsofx’sandy’severywhere.Wehavespecifi- cally avoided including a lot of technical information. This book was written for thosewho wantbasicunderstandingofhow touse statistics inthe business world without all the details of statistical theory. It is designed to enhance a practical learning of statistics by nonstatisticians and to make the experience a little easier andmaybeevenfun. Thisbookhasalsobeenwrittenwithmanagersinmindwhomayneedaquick refresheronhowtocompleteExcelanalysiswithouthavingtowadethroughpages oftechnicalexplanations.Thosemoredetailedtechnicalexplanationscanbefound intraditionalstatisticstextbooks.Thekeyconceptsinthisbookaremorecomplex than the presentations in this book might suggest. We have aimed at concisely definingtheconceptsandprovidingsimpledescriptionsandexplanationsonhowto usethem. For instructors, this publication is designed as a companion guide to your core text. Students can practice their skills that have been introduced to them in the classroom. However, at the beginning of each chapter, the key concepts are summarizedtoremindthemofwhatisimportantwiththetopic. We believe thatproblems andcase studies should involve actual data from the businesscommunity.Therefore,thereisacontinuinganalysisthroughoutseveralof thechaptersusingarealbusinesscasefromInfinityAutoInsurance.Thedatasets fortheotherpracticeproblemsineachchapterhavebeenkeptintentionallysmallso that the user can more easily maneuver within the data. The rigorous sample size rules have been put aside to accommodate this design goal. The same Excel proceduresapplytoallsizesofdatasets,smallorlarge. This book was written using Excel 2010; the screenshots may appear slightly differentifyouareusinganolderversionofExcelorifyouareusingaMac.Ifyou arecomfortableinExcel,thesedifferencesshouldbeminor. WehaveincludedonlythoseanalyticExceltoolsthataremostcommonlyused intheworkplacetokeepthingssimple.Thisapproachshouldworkwellforthose v vi Preface havingtoruntheirownanalysis,aswellasforthoseneedingtobetterunderstand statisticalreports,soastomakeinformedbusinessdecisions. No prior Excel experience is necessary, although it may prove helpful. Instructionsareprovided withthemindsetthatthisisthefirsttimeyouhaveused this particular Excel functionality. In other words, each chapter provides simple instructionsforfirst-timeusers. SomeofthetraditionalstatisticaltextsincludeExcelinstructions.Buttheseare typicallyembeddeddeepinthechapterasoneofseveraldifferentsoftwareinstruc- tion packets. This book focuses only on Excel and provides easy-to-find Excel instructionsineachchapter. Inadditiontoofferingthisbookintraditionaltextbookform,itisalsoavailable asane-bookinrecognitionofbeingenvironmentallyresponsible. TheauthorsbringauniqueperspectiveasguidesthroughtheWorldofStatistics. Theircombinedskillsandexpertiseintheworkplaceandtheclassroomequipthem tounderstandthechallengesstudentsandmanagersfaceastheynavigatetheWorld ofStatistics.Theiractiveconsultingandteachingliveskeepthemuptodateonthe commonreal-worldissuesinunderstandingandapplyingstatisticalconcepts. Wehaveworkeddiligentlytomakesurethatthisbookisaccurateanderrorfree. Butifyouhappentofindanyerrorsorhavesuggestionsforimprovements,please [email protected]@stmarys-ca.edu. Many of you have survived statistics courses through pure memorization, but hopefullythisbookwillencouragebothlogicalreasoningandintuitiveunderstand- ing.Webelievethatlogicalreasoningisfundamentaltoretaininganalyticalskills thatcanbepracticedintherealworld.Enjoy.... Orinda,CA,USA LindaHerkenhoff PleasantHill,CA,USA JohnFogli Acknowledgments The foundation of this book was laid with numerous statistical discussions on the tenniscourt.ThankstoDr.LindaHerkenhoffforconvincingmetoworkwithher onthisideathatfinallyresultedintothefirsteditionofourbook.Thankyoutoour reviewers as well as several Diablo Valley College students in Pleasant Hill, California. A big thank you to Eva Meng from Sentenium, Inc., who spent hours helping with screenshots and editing this text. Finally, thanks to my parents and especiallytomywifewhostoodbesidemetotakethisbookforward. PleasantHill,CA,USA JohnFogli We would like to thank several of our colleagues who tirelessly reviewed each and every word and number in our book: Dr. Michael Wagner, Dr. Diana Borova, Margery Connor, and Eva Meng. Your fastidiousreviews let ussleep at night.But additionallywehadevenmorecolleagueswhogenerouslyreviewedvarioussections ofthebook,andtothemalsoweoweourthanks:Dr.PeterHosie,Dr.MadelineWu, Dr.JoAnnHeydenfeldt,Dr.BrianSholey,andDr.RodolfoMartell. WeexpressappreciationtoallofourpastStatisticsstudentswhoallowedusto betterunderstandthechallengesinbringingStatisticsaliveasapowerfulbusiness tool.Thisbookreflectsourmanyyearsofstudentinputandobservationbothinthe UnitedStatesandabroad. SpecialrecognitionispaidtoInfinityLifeInsuranceCompanyforallowingusto usetheirdataforourreal-worldcasestudy. vii viii Acknowledgments Thanks to my husband Frederic and three sons Brett, Kyle and Eric for their patienceandsupportthroughoutthewritingprocess. Orinda,CA,USA LindaHerkenhoff We have done our best to make this book accessible online for comments and suggestions.Inaddition,wehavemadeitconvenientforstudentsandprofessionals to download our data files available at http://www.sentenium.com/springer.html. Thesedatafilesareusedinvariouspracticeproblemsattheendofcertainchapters. Ourintentionistogiveyoupracticewithdataanalysisandinterpretationofresults usingMicrosoftExcel. Wewelcomecommentsaboutthebookandsuggestionsforimprovement. Email:[email protected] Contents 1 DataandStatistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 KeyConcepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 CommonPitfalls.. . . .. . . .. . . .. . . .. . . .. . . .. . .. . . .. . . .. . . .. 5 FinalThoughtsandActivities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PracticeProblems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 DiscussionBoards.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 6 GroupActivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 PartingThought. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 ProblemSolutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 2 IntroductiontoExcelandBasicCharts. . . . . . . . . . . . . . . . . . . . . . 11 KeyConcepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Discussion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 BasicConcepts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 BarandColumnCharts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 PieCharts. . . . . . .. . . . . . . .. . . . . . .. . . . . . .. . . . . . .. . . . . . .. 27 LineChartsandAreaCharts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 OtherCharts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 PivotTables(AkaCrosstabs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 Excel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 CommonPitfalls. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 FinalThoughtsandActivities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 PracticeProblems. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 DiscussionBoards.. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . .. 43 GroupActivity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 PartingThought. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 ProblemSolutions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 ix
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