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GLOBAL GLOBAL
EDITION EDITION
THIRTEENTH
EDITION
Sincich
Benson
McClave
This is a special edition of an established title widely
used by colleges and universities throughout the world.
Pearson published this exclusive edition for the benefit
of students outside the United States and Canada. If you
purchased this book within the United States or Canada,
EDITION
GLOBAL
3 Probability 156
3.1 Events, Sample Spaces, and Probability 158
3.2 Unions and Intersections 172
3.3 Complementary Events 175
3.4 The Additive Rule and Mutually Exclusive Events 177
3.5 Conditional Probability 184
6.6 Finite Population Correction for Simple Random Sampling (Optional) 365
6.7 Confidence Interval for a Population Variance (Optional) 368
STATISTICS IN ACTION: Medicare Fraud Investigations 330
ACTIVITY 6.1: Conducting a Pilot Study 380
USING TECHNOLOGY: Confidence Intervals 380
Hallmark Strengths
We have maintained the pedagogical features of Statistics for Business and Economics
that we believe make it unique among introductory business statistics texts. These
features, which assist the student in achieving an overview of statistics and an under-
standing of its relevance in both the business world and everyday life, are as follows:
● Use of Examples as a Teaching Device Almost all new ideas are introduced and
illustrated by data-based applications and examples. We believe that students better
understand definitions, generalizations, and theoretical concepts after seeing an
application. All examples have three components: (1) “Problem,” (2) “Solution,” and
(3) “Look Back” (or “Look Ahead”). This step-by-step process provides students with
a defined structure by which to approach problems and enhances their problem-solving
skills. The “Look Back/Look Ahead” feature often gives helpful hints to solving the
problem and/or provides a further reflection or insight into the concept or procedure
that is covered.
● Now Work A “Now Work” exercise suggestion follows each example. The Now Work
exercise (marked with the NW icon in the exercise sets) is similar in style and concept
to the text example. This provides students with an opportunity to immediately test and
confirm their understanding.
● Statistics in Action Each chapter begins with a case study based on an actual
c ontemporary, controversial or high-profile issue in business. Relevant research ques-
tions and data from the study are presented and the proper analysis is demonstrated
in short “Statistics in Action Revisited” sections throughout the chapter. These
motivate students to critically evaluate the findings and think through the statistical
issues involved.
● “Hands-On” Activities for Students At the end of each chapter, students are provided
with an opportunity to participate in hands-on classroom activities, ranging from real
data collection to formal statistical analysis. These activities are designed to be per-
formed by students individually or as a class.
● Applet Exercises. The text is accompanied by applets (short computer programs),
a vailable on the student resource site and in MyLab Statistics. These point-and-click
applets allow students to easily run simulations that visually demonstrate some of the
more difficult statistical concepts (e.g., sampling distributions and confidence intervals.)
Each chapter contains several optional applet exercises in the exercise sets. They are
denoted with the following Applet icon: .
● Real-World Business Cases Seven extensive business problem-solving cases, with real
data and assignments for the student, are provided. Each case serves as a good cap-
stone and review of the material that has preceded it. Typically, these cases follow a
group of two or three chapters and require the student to apply the methods presented
in these chapters.
● Real Data–Based Exercises The text includes more than 1,200 exercises based
on applications in a variety of business disciplines and research areas. All applied
e xercises use current real data extracted from current publications (e.g., newspapers,
magazines, current journals, and the Internet). Some students have difficulty learn-
ing the mechanics of statistical techniques when all problems are couched in terms
of realistic applications. For this reason, all exercise sections are divided into at least
four parts:
Learning the Mechanics. Designed as straightforward applications of new con-
cepts, these exercises allow students to test their ability to comprehend a math-
ematical concept or a definition.
Applying the Concepts—Basic. Based on applications taken from a wide
variety of business journals, newspapers, and other sources, these short exercises
help students to begin developing the skills necessary to diagnose and analyze
real-world problems.
Applying the Concepts—Intermediate. Based on more detailed real-world
applications, these exercises require students to apply their knowledge of the
technique presented in the section.
Applying the Concepts—Advanced. These more difficult real-data exercises
require students to use their critical thinking skills.
Critical Thinking Challenges. Placed at the end of the “Supplementary
xercises” section only, this feature presents students with one or two challenging
E
business problems.
● Exploring Data with Statistical Computer Software and the Graphing Calculator Each
statistical analysis method presented is demonstrated using output from three leading
Windows-based statistical software packages: Excel/XLSTAT, SPSS, and Minitab.
Students are exposed early and often to computer printouts they will encounter in
today’s hi-tech business world.
● “Using Technology” Tutorials At the end of each chapter are statistical software
tutorials with point-and-click instructions (with screen shots) for Minitab, SPSS, and
Excel/XLSTAT. These tutorials are easily located and show students how to best use
and maximize statistical software. In addition, output and keystroke instructions for
the TI-84 Graphing Calculator are presented.
● Profiles of Statisticians in History (Biography) Brief descriptions of famous statisticians
and their achievements are presented in side boxes. In reading these profiles, students
will develop an appreciation for the statistician’s efforts and the discipline of statistics
as a whole.
● Data and Applets The text is accompanied by a website (www.pearsonglobal
editions.com/mcclave) that contains files for all of the data sets marked with an
icon in the text. These include data sets for text examples, exercises, Statistics
in Action, and Real-World cases. All data files are saved in multiple formats: Excel,
Minitab, and SPSS. This website also contains the applets that are used to illustrate
statistical concepts.
Flexibility in Coverage
The text is written to allow the instructor flexibility in coverage of topics. Suggestions
for two topics, probability and regression, are given below.
● Probability and Counting Rules One of the most troublesome aspects of an introductory
statistics course is the study of probability. Probability poses a challenge for i nstructors
because they must decide on the level of presentation, and students find it a difficult
subject to comprehend. We believe that one cause for these problems is the mixture of
probability and counting rules that occurs in most introductory texts. Consequently, we
have included the counting rules (with examples) in an appendix (Appendix B) rather
than in the body of Chapter 3. Thus, the instructor can control the level of coverage of
probability.
● Multiple Regression and Model Building This topic represents one of the most useful
statistical tools for the solution of applied problems. Although an entire text could be
devoted to regression modeling, we feel that we have presented coverage that is
understandable, usable, and much more comprehensive than the presentations in other
introductory statistics texts. We devote two full chapters to discussing the major types
of inferences that can be derived from a regression analysis, showing how these results
appear in the output from statistical software, and, most important, selecting multiple
regression models to be used in an analysis. Thus, the instructor has the choice of a
one-chapter coverage of simple linear regression (Chapter 11), a two-chapter treatment
of simple and multiple regression (excluding the sections on model building in
Chapter 12), or complete coverage of regression analysis, including model building
and regression diagnostics. This extensive coverage of such useful statistical tools will
provide added evidence to the student of the relevance of statistics to real-world
problems.
● Role of Calculus in Footnotes Although the text is designed for students with a non-
calculus background, footnotes explain the role of calculus in various derivations.
Footnotes are also used to inform the student about some of the theory underlying
certain methods of analysis. These footnotes allow additional flexibility in the math-
ematical and theoretical level at which the material is presented.
CALIFORNIA Joyce Curley-Daly, Jim Daly, Robert K. Smidt, California Polytechnic State
University • Jim Davis, Golden Gate University • Carol Eger, Stanford University • Paul
W. Guy, California State University, Chico • Judd Hammack, P. Kasliwal, California State
University, Los Angeles • Mabel T. King, California State University, Fullerton • James
Lackritz, California State University, San Diego • Beth Rose, University of Southern
California • Daniel Sirvent, Vanguard University COLORADO Rick L. Edgeman, Charles
F. Warnock, Colorado State University • Eric Huggins, Fort Lewis College • William J.
Weida, United States Air Force Academy CONNECTICUT Alan E. Gelfand, Joseph Glaz,
Timothy J. Killeen, University of Connecticut DELAWARE Christine Ebert, University of
Delaware DISTRICT OF COLUMBIA Phil Cross, Jose Luis Guerrero-Cusumano,
Georgetown University • Gaminie Meepagala, Howard University FLORIDA John M.
Charnes, University of Miami • C. Brad Davis, Clearwater Christian College • Fred
Leysieffer, Pi-Erh Lin, Doug Zahn, Florida State University • P. V. Rao, University of
Florida • Laura Reisert, Florida International University • Jeffrey W. Steagall, University
of North Florida • Edna White, Florida Atlantic University GEORGIA Robert Elrod,
Georgia State University • Karen Smith, West Georgia University HAWAII Steve Hora,
University of Hawaii, Hilo ILLINOIS Arunas Dagys, St. Xavier University • Edward
Minieka, University of Illinois at Chicago • Don Robinson, Illinois State University •
Chipei Tseng, Northern Illinois University • Pankaj Vaish, Arthur Andersen & Company
IOWA Dileep Dhavale, University of Northern Iowa • William Duckworth II, William Q.
Meeker, Iowa State University • Tim E. McDaniel, Buena Vista University KANSAS Paul
I. Nelson, Kansas State University • Lawrence A. Sherr, University of Kansas KENTUCKY
Richard N. McGrath, Bowling Green State University LOUISIANA James Willis, Louisiana
State University MARYLAND John F. Beyers, Michael Kulansky, University of Maryland–
University College • Glenn J. Browne, Mary C. Christman, University of Maryland
M ASSACHUSETTS Warren M. Holt, Southeastern Massachusetts University • Remus
Osan, Boston University MICHIGAN Atul Agarwal, Petros Ioannatos, GMI Engineering
and Management Institute • Richard W. Andrews, Peter Lenk, Benjamin Lev, University
of Michigan • Leszek Gawarecki, Kettering University • Toni M. Somers, Wayne State
University • William Welch, Saginaw Valley State University • T. J. Wharton, Oakland
University MINNESOTA Gordon J. Alexander, Donald W. Bartlett, David M. Bergman,
Atul Bhatia, Steve Huchendorf, Benny Lo, Karen Lundquist, Vijay Pisharody, Donald N.
Steinnes, Robert W. Van Cleave, Steve Wickstrom, University of Minnesota • Daniel G.
Brick, Leigh Lawton, University of St. Thomas • Susan Flach, General Mills, Inc. • David
17
D. Krueger, Ruth K. Meyer, Jan Saraph, Gary Yoshimoto, St. Cloud State University
• Paula M. Oas, General Office Products • Fike Zahroom, Moorhead State University
MISSISSIPPI Eddie M. Lewis, University of Southern Mississippi • Alireza Tahai,
Mississippi State University MISSOURI James Holstein, Lawrence D. Ries, University of
Missouri, Columbia • Marius Janson, L. Douglas Smith, University of Missouri, St. Louis
• Farroll Tim Wright, University of Missouri NEBRASKA James Wright, Chadron State
College NEW HAMPSHIRE Ken Constantine, University of New Hampshire NEW JERSEY
Lewis Coopersmith, Cengiz Haksever, Rider University • Lei Lei, Xuan Li, Zina Taran,
Rutgers University • Philip Levine, Leonard Presby, William Paterson University NEW
MEXICO S. Howard Kraye, University of New Mexico NEW YORK James Czachor,
Fordham-Lincoln Center, AT&T • Bernard Dickman, Hofstra University • Joshua Fogel,
Brooklyn College of City University of New York • Martin Labbe, State University of New
York, College at New Paltz • Kenneth Leong, College of New Rochelle • Mark R. Marino,
Niagara University/Erie Community College • G. E. Martin, Clarkson University
• Thomas J. Pfaff, Ithaca College • Gary Simon, New York University, Stern School of
Business • Rungrudee Suetorsak, SUNY-Fredonia NORTH CAROLINA Golam Azam,
North Carolina Agricultural & Technical University • Edward Carlstein, Douglas A.
Elvers, University of North Carolina at Chapel Hill • Barry P. Cuffe, Wingate University
• Don Holbert, East Carolina University • J. Morgan Jones, University of North Carolina
• Douglas S. Shafer, University of North Carolina, Charlotte OHIO William H. Beyer,
University of Akron • Michael Broida, Tim Krehbiel, Miami University of Ohio
• Chih-Hsu Cheng, Douglas A. Wolfe, Ohio State University • Ronald L. Coccari,
Cleveland State University • Richard W. Culp, Wright-Patterson AFB, Air Force Institute
of Technology OKLAHOMA Larry Claypool, Brenda Masters, Rebecca Moore, Oklahoma
State University • Robert Curley, University of Central Oklahoma PENNSYLVANIA
Mohammed Albohali, Douglas H. Frank, Indiana University of Pennsylvania
• Sukhwinder Bagi, Bloomsburg University • Carl Bedell, Philadelphia College of Textiles
and Science • Ann Hussein, Philadelphia University • Behnam Nakhai, Millersville
University • Rose Prave, University of Scranton • Farhad Saboori, Albright College
• Kathryn Szabet, LaSalle University • Christopher J. Zappe, Bucknell University SOUTH
CAROLINA Iris Fetta, Robert Ling, Clemson University • Kathleen M. Whitcomb,
University of South Carolina TENNESSEE Francis J. Brewerton, Middle Tennessee State
University TEXAS Larry M. Austin, Texas Tech University • Jim Branscome, Robert W.
Brobst, Mark Eakin, Grace Esimai, Michael E. Hanna, Craig W. Slinkman, University of
Texas at Arlington • Katarina Jegdic, University of Houston–Downtown • Virgil F. Stone,
Texas A & M University VIRGINIA Edward R. Clayton, Virginia Polytechnic Institute and
State University WASHINGTON June Morita, Kim Tamura, University of Washington
WISCONSIN Ross H. Johnson, Madison College WASHINGTON, D.C. Keith Ord,
Georgetown University CANADA Clarence Bayne, Concordia University • Edith Gombay,
University of Alberta TURKEY Dilek Onkal, Bilkent University, Ankara OTHER Michael
P. Wegmann, Keller Graduate School of Management
Other Contributors
Special thanks are due to our supplements authors, Nancy Boudreau and Mark
Dummeldinger, both of whom have worked with us for many years. Accuracy checkers
Engin Sungur and Joan Saniuk helped ensure a highly accurate, clean text. Finally, the
Pearson Education staff of Deirdre Lynch, Patrick Barbera, Christine O’Brien, Karen
Wernholm, Joe Vetere, Justin Billing, Peggy McMahon, Barbara Atkinson, Jean Choe,
Tiffany Bitzel, and Jennifer Myers, along with Cenveo’s Chere Bemelmans and Marilyn
Dwyer, helped greatly with all phases of the text development, production, and
marketing effort.
Pearson would also like to thank Ralph Scheubrein, Heilbronn University; Alicia Tan,
Taylor’s University; Hakan Carlqvist, KTH Royal Institute of Technology; Sanjay
Nadkarni, Emirates Academy of Hospitality Management; and Pon Subramaniam,
American University in Dubai for their work on the Global Edition.
www.mystatlab.com
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