SOLUTIONS MANUAL
** All Chapters included
** Class Examples & Resources
** Basic Exercises
,Table of Contents are given below
1. An Introduction to Statistics
2. Data
3. Surveys and Sampling
4. Displaying and Describing Categorical Data
5. Displaying and Describing Quantitative Data
6. Scatterplots, Association, and Correlation
7. Introduction to Linear Regression
8. Randomness and Probability
9. Random Variables and Probability Distributions
10. Sampling Distributions
11. Confidence Intervals for Proportions
12. Testing Hypotheses About Proportions
13. Confidence Intervals and Hypothesis Tests for Means
14. Comparing Two Means
15. Design of Experiments and Analysis of Variance (ANOVA)
16. Inference for Counts: Chi-Square Tests
17. Nonparametric Methods
18. Inference for Regression
19. Understanding Regression Residuals
20. Multiple Regression
21. Building Multiple Regression Models
22. Time Series Analysis
23. Decision Making and Risk
24. Quality Control
, 1-1
Chapter 1
An Introduction to Statistics
What’s It About?
This chapter is about Statistics – what it is and why we care. It also describes the important
features of the text.
Comments
Do expect your students to read the book. Give them specific reading assignments, starting with
this first chapter. We’ve tried to make the book engaging. You can assign a few pages of reading
along with some problems each night. Chapter 1 makes a good opening assignment.
This is the students’ first look at the style of the book, and we do lay it on more heavily here than
we will when discussing, say, confidence intervals. We want to shake things up. We want them to
notice that this is not the same old math or science textbook they’ve seen before. And we’d like to
get them on our side. That’s the reason for the humour and self-deprecating remarks.
Every Statistics text starts with a definition of Statistics. We do too, but ours is different. And the
difference matters. We say that Statistics is a way of reasoning and that the goal is to help us
understand the world. We’ve found it helpful to reinforce this idea throughout the book, especially
when we get into the methods sections of the course. This book is first and primarily about
statistical thinking. Methods, definitions, and skills are all here, but each is presented with the
purpose of understanding the world so we can make better business decisions. That’s why every
guided example follows the Plan, Do, Report pattern, starting with careful reasoning and
concluding with a sentence or two telling what we’ve learned about the world.
It is easy to be drawn into a focus on definitions, on algorithms, and on getting the “right
answer.” Those are easier to teach and certainly easier to grade. Please resist the temptation. If
you can help your students to stay focused on statistical thinking and understanding, this course
can change the way they view the world.
We have included a section on “20th and 21st Century Statistics” that describes how statistics has
evolved, particularly today with its uses in analytics. A great example of real-time analysis of
data which is a “digital twin” was described.
Since this text is designed for business students, we have also included a section on how the
various business disciplines use statistics. This may help to address the commonly heard question
of “why do I need to know this?”
A Note on Teaching
We don’t spend an entire class period on this chapter; in fact, sometimes we just start right in on
Chapter 2. Chapter 1 is meant to be read by students not to them. Discuss the important
definitions, collect some data, and move on as fast as you can. We’ve got a lot to cover and can’t
afford a full class just to get moving.
, 1-2 Part 1 - Exploring and Collecting Data
Looking Ahead
Most of our own students actually do the reading. (Yes, we were surprised at first.) If you can
hook students on reading the text, there are big benefits later. As they read, they learn that the
book is a valuable resource to help them understand sticky concepts, to help lead them through
writing complete and clear solutions, and to help them avoid common mistakes.
Class Do’s
One of our favourite definitions says “Statistics is the art of distilling meaning from data.” Data
have a story to tell. Our objective is to uncover that story. Be sure to distinguish the differences
between data and statistics. Collect some data in class and ask students to look for interesting
facts hiding there. You can also have students gather current economic or business data from the
internet.
Encourage students to think about the concepts and definitions in this chapter. For example, why
do we talk about “a statistic” when we don’t discuss “a mathematic” or “a physic”? Statistics is a
whole that is made up of many parts, and each of those parts has its own meaning and its own
story to tell. Ask students about how different companies may utilise large amounts of data. For
example, what data might a large company such as Walmart or Fairmont Hotels & Resorts look
at and for what purpose?
The Importance of What You Don’t Say
One of the reasons Statistics can be difficult to teach is that we often deal with vague concepts.
Students and instructors both like clear definitions; they’re easier to teach, learn, and grade. But
reasonable people can disagree about whether a histogram is symmetric or skewed, whether a
straggling point is really an outlier or just the largest value, or whether the spread really is the
same in two groups we want to compare. It is important to allow students their own opinions and
insights into data.
Avoid the temptation to lead students in a particular direction or give hints about how to examine
the data you collected. They know some things to do—they’ll find percents and averages, maybe
draw some simple graphs, and write a few sentences about what they see. Just let it happen.
You’ll have plenty of chances to suggest, lead, and modify later.
The motivation of hoping to understand the world is quite sufficient to justify thinking beyond
the numbers at hand. This is not the time to introduce technical concepts of inference. We’d
rather not see these ideas yet (and you won’t find them this early in the text). We all know that
we’ll be heading that way eventually, but if we make reasoning about patterns in the data too
formal too soon, we’ll stifle students’ interest and enthusiasm and burden them with a lot of
terms they don’t have a context for yet.
Class Examples
Take a quick class survey. Make sure that you have a good mix of quantitative and categorical
variables. Some possible variables are gender identity, Program of Study (Accounting, Finance,
Marketing, etc.) number of siblings, number of provinces visited, and shoe size. Start passing a
survey sheet around at the very beginning of class; it can circulate quickly while you are
** All Chapters included
** Class Examples & Resources
** Basic Exercises
,Table of Contents are given below
1. An Introduction to Statistics
2. Data
3. Surveys and Sampling
4. Displaying and Describing Categorical Data
5. Displaying and Describing Quantitative Data
6. Scatterplots, Association, and Correlation
7. Introduction to Linear Regression
8. Randomness and Probability
9. Random Variables and Probability Distributions
10. Sampling Distributions
11. Confidence Intervals for Proportions
12. Testing Hypotheses About Proportions
13. Confidence Intervals and Hypothesis Tests for Means
14. Comparing Two Means
15. Design of Experiments and Analysis of Variance (ANOVA)
16. Inference for Counts: Chi-Square Tests
17. Nonparametric Methods
18. Inference for Regression
19. Understanding Regression Residuals
20. Multiple Regression
21. Building Multiple Regression Models
22. Time Series Analysis
23. Decision Making and Risk
24. Quality Control
, 1-1
Chapter 1
An Introduction to Statistics
What’s It About?
This chapter is about Statistics – what it is and why we care. It also describes the important
features of the text.
Comments
Do expect your students to read the book. Give them specific reading assignments, starting with
this first chapter. We’ve tried to make the book engaging. You can assign a few pages of reading
along with some problems each night. Chapter 1 makes a good opening assignment.
This is the students’ first look at the style of the book, and we do lay it on more heavily here than
we will when discussing, say, confidence intervals. We want to shake things up. We want them to
notice that this is not the same old math or science textbook they’ve seen before. And we’d like to
get them on our side. That’s the reason for the humour and self-deprecating remarks.
Every Statistics text starts with a definition of Statistics. We do too, but ours is different. And the
difference matters. We say that Statistics is a way of reasoning and that the goal is to help us
understand the world. We’ve found it helpful to reinforce this idea throughout the book, especially
when we get into the methods sections of the course. This book is first and primarily about
statistical thinking. Methods, definitions, and skills are all here, but each is presented with the
purpose of understanding the world so we can make better business decisions. That’s why every
guided example follows the Plan, Do, Report pattern, starting with careful reasoning and
concluding with a sentence or two telling what we’ve learned about the world.
It is easy to be drawn into a focus on definitions, on algorithms, and on getting the “right
answer.” Those are easier to teach and certainly easier to grade. Please resist the temptation. If
you can help your students to stay focused on statistical thinking and understanding, this course
can change the way they view the world.
We have included a section on “20th and 21st Century Statistics” that describes how statistics has
evolved, particularly today with its uses in analytics. A great example of real-time analysis of
data which is a “digital twin” was described.
Since this text is designed for business students, we have also included a section on how the
various business disciplines use statistics. This may help to address the commonly heard question
of “why do I need to know this?”
A Note on Teaching
We don’t spend an entire class period on this chapter; in fact, sometimes we just start right in on
Chapter 2. Chapter 1 is meant to be read by students not to them. Discuss the important
definitions, collect some data, and move on as fast as you can. We’ve got a lot to cover and can’t
afford a full class just to get moving.
, 1-2 Part 1 - Exploring and Collecting Data
Looking Ahead
Most of our own students actually do the reading. (Yes, we were surprised at first.) If you can
hook students on reading the text, there are big benefits later. As they read, they learn that the
book is a valuable resource to help them understand sticky concepts, to help lead them through
writing complete and clear solutions, and to help them avoid common mistakes.
Class Do’s
One of our favourite definitions says “Statistics is the art of distilling meaning from data.” Data
have a story to tell. Our objective is to uncover that story. Be sure to distinguish the differences
between data and statistics. Collect some data in class and ask students to look for interesting
facts hiding there. You can also have students gather current economic or business data from the
internet.
Encourage students to think about the concepts and definitions in this chapter. For example, why
do we talk about “a statistic” when we don’t discuss “a mathematic” or “a physic”? Statistics is a
whole that is made up of many parts, and each of those parts has its own meaning and its own
story to tell. Ask students about how different companies may utilise large amounts of data. For
example, what data might a large company such as Walmart or Fairmont Hotels & Resorts look
at and for what purpose?
The Importance of What You Don’t Say
One of the reasons Statistics can be difficult to teach is that we often deal with vague concepts.
Students and instructors both like clear definitions; they’re easier to teach, learn, and grade. But
reasonable people can disagree about whether a histogram is symmetric or skewed, whether a
straggling point is really an outlier or just the largest value, or whether the spread really is the
same in two groups we want to compare. It is important to allow students their own opinions and
insights into data.
Avoid the temptation to lead students in a particular direction or give hints about how to examine
the data you collected. They know some things to do—they’ll find percents and averages, maybe
draw some simple graphs, and write a few sentences about what they see. Just let it happen.
You’ll have plenty of chances to suggest, lead, and modify later.
The motivation of hoping to understand the world is quite sufficient to justify thinking beyond
the numbers at hand. This is not the time to introduce technical concepts of inference. We’d
rather not see these ideas yet (and you won’t find them this early in the text). We all know that
we’ll be heading that way eventually, but if we make reasoning about patterns in the data too
formal too soon, we’ll stifle students’ interest and enthusiasm and burden them with a lot of
terms they don’t have a context for yet.
Class Examples
Take a quick class survey. Make sure that you have a good mix of quantitative and categorical
variables. Some possible variables are gender identity, Program of Study (Accounting, Finance,
Marketing, etc.) number of siblings, number of provinces visited, and shoe size. Start passing a
survey sheet around at the very beginning of class; it can circulate quickly while you are
