CONCORDIA UNIVERSITY WISCONSIN
SCHOOL OF ADULT AND CONTINUING EDUCATION
AL 169 STATISTICAL METHODS
STUDENT MODULE
By
Steven Montreal, Ph.D.
July 2005
Concordia University Wisconsin is a Lutheran higher education community
committed to helping students develop in mind, body, and spirit for service to Christ
in the Church and the world.
INTRODUCTION
AL 169 Statistical Methods studies the terminology, methodology, and body of
knowledge in statistics. Topics such as mean, median, variation, probabilities, correlation
and regression will be covered in this module. It is recommended that students have
previous knowledge of algebra or take AL 122 prior to this course. 3 credits.
The role of statistics has become vital to business and management professionals as they
seek to understand the forces that impact their companies and look for information to
provide a competitive edge. Statistics is used in quality control, marketing research,
pricing strategies, personnel management, and a host of other areas in an effort to
enhance the information managers use to make decisions. The quantities of data
collected today by businesses, organizations, and governments are enormous, and those
who have the ability to mine that data for useful information are highly valued in the
professional world.
The goal of this course is to introduce you to some of the analytical techniques used in
business statistics. The emphasis of the course will be on applying the concepts; to that
end we will spend more time on interpreting statistics than on calculating statistics.
That’s not to say that we will never use a calculator (in fact you should bring a calculator
to every class) or have to do some math; we will do both. But the bulk of the time will be
spent exploring how statistics is used in business by using real data, have a computer
calculate the relevant statistics, and then making decisions based on those statistics.
This course will be taught using Microsoft Excel so you need to have access to Excel to
complete the homework and the quizzes. On the cd-rom that is packaged with the
textbook, is an add-on program that you will need to install. Brief installation
instructions are on the next few pages.
To help you learn how to use Excel for calculating statistics, the text provides
instructions on many of the commands and procedures necessary. The instructor will
also demonstrate the procedures during class. If you are familiar with Excel you will be
pick this up easily; if you are not familiar with Excel it will take a little longer. You also
may want to print out the MegaStat Getting Started guide which has instructions specific
to that program.
Every week various problems from the text will be assigned as homework. Because the
book focuses on business applications of statistics, these will help you understand the
ways statistics can be used to analyze and understand information while you learn the
material. Many of these problems will also serve as examples to be worked out in class.
Some of the homework will be done by hand using a calculator, so you will need to bring
a calculator to every class; as the course progresses more of the homework will be done
using Excel. The homework will not be graded, but it is very important that you
complete the homework. Statistics is a course that demands practice and repetition: the
more problems you work out the better you will understand the material – and the better
you will do in class.
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The cd-rom that accompanies the text also contains numerous study aids, including
practice quizzes, power point slides, instructional videos, and data sets that we will use
throughout the course. Spend some time reviewing this material; take the practice
quizzes; explore the data sets: this will enhance your experience in the course.
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ADULT EDUCATION PROGRAM REMINDERS
________________________________________________________________________
1. Each student must be registered to take each module and must have paid by the first session
or have enough financial aid in his/her account balance to cover the cost. Students using
employer reimbursement must, nevertheless, pay by the first session.
2. Students should pick up books and the course module at least one week before the first
session. The books are loaned to the student and must be returned within two weeks of the
last session or the student will be charged for them. The assignment(s) due the first week
should be completed and ready to turn in to the instructor at the first session. Fifteen to
twenty hours of preparation are expected for each session of a module.
3. Research papers, response papers and reports should be typed/word processed following the
format guidelines as stated on the Concordia Adult Education Style Sheet. All students
should give proper credit to others for their ideas and not plagiarize in any papers submitted
for CUW courses. Plagiarism is a serious offense and can result in course failure or
dismissal from the program.
4. If all the required material for a module has not been handed in by the final session of the
module, the student may request an extension, and at the discretion of the instructor, receive a
grade of "I" for the module. The instructor will determine the due date, which may not
exceed three weeks.
5.
If the "I" has not been resolved by the due date, the student will receive an "F" for the
module. The "F" will remain on the student's transcript. When the module is retaken the
higher grade will be computed into the GPA. See item #7 below for retake limitations.
6.
A student who withdraws before the first class session, but within two weeks before the
class, will be assessed a $50 drop fee. Students who withdraw after the first week of class but
before the second week will be charged 25% of the class tuition. If a student drops a module
after the second session, he or she will receive a grade of “W/F” or “F” both of which does
affect the grade point average until the class is retaken.
7.
There will be no refund for those withdrawing after the second class session, but the
student may be allowed to retake the course at no charge at a future date. Students who
receive an “F” or a “W/F” may be allowed to retake the course. The no-charge retake option
will be limited to one per module and one per academic year (July 1st through June 30th). The
retake must be completed within twelve months of the end of the original course. Please
note: this policy is currently under review and is subject to change.
8.
Because modules in the program are only four to six weeks in length, it is required that
students attend each session. If emergency circumstances dictate missing a session, please
notify the center secretary and the instructor. Students are expected to attend all class periods
of the courses for which they are registered. Absence from a course may result in a lower
grade, depending on the professor’s grading policy. The determination of what constitutes
excessive absence in any course rests with the professor conducting that course. If the
instructor determines that the absences are excessive, the student may be required to drop the
course and repeat it at a later date.
9. Please refer to the Adult Education Student Handbook for clarification of all policies.
Rev. September
2011
Statement on Disabilities
Section 504 of the Rehabilitation Act of 1973 and the Americans with Disabilities Act (ADA) of
1990 prohibit discrimination against individuals with disabilities. If you are a student with a
documented disability and need accommodations for this class, please provide the instructor with
the appropriate letter from The Director of the Learning Resource Center at the Mequon campus.
Contact the Director by calling 262 243 2623.
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Installing Mega-Stat
After you insert the cd-rom, this screen appears:
This is a standard warning that Windows displays. Choose Yes to get to the next screen,
which is presented on the next page. Here you can see the Table of Contents for the
material on the cd-rom. Included on the cd-rom are resource materials for each chapter
of the book such as practice quizzes, data sets, power point slides and the add-on
software that you will need to install, MegaStat. This program will work on all versions
of Excel from 2000 to the present. When it is installed properly MegaStat will be one of
the choices on the Menu Bar when you start Excel.
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On the left, click on the link MegaStat for Excel. This will begin the installation process.
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After clicking the link, the next screen contains this section:
________________________________________________________________________
___________________________________________________________________
Click on MegaStat Installer and follow the instructions to install the Excel add-in. If
you are using Excel 2003, note the instructions provided above.
After the program has installed, start Excel and activate the add-in by selecting
Tools/Add-Ins, and checking MegaStat.
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INTRODUCTION – SESSION TOPICS
SESSION I – An Introduction to Statistics, Data Collection, and Describing Data
This session explains the utility of statistics in today’s business and management
environment. Also covered are methods of collecting data and the typical
methods used to describe characteristics of variables.
SESSION II – Displaying and Exploring Data, and Probability Concepts
Additional ways to graph and understand data are presented in this session. An
introduction to probability and rules used to calculate probabilities are also
presented.
SESSION III – Sampling Methods, Estimation, and Confidence Intervals
This session focuses on inferential statistics and emphasizes the importance of the
random sample and presents a variety of methods to carry out such a sample.
Estimating population values from sample data is also discussed.
SESSION IV – An Introduction to Statistical Hypothesis Testing
The logic and process behind hypothesis testing are covered in this unit.
Concepts introduced include level of significance, Type I and Type II errors, null
and alternative hypothesis, and test statistic.
SESSION V – Analysis of Variance, Linear Regression, and Correlation
A technique to compare multiple groups is presented. Also covered are statistics
that help determine if there is a relationship between two interval variables, and a
method to predict values of a dependent variable.
SESSION VI – Multiple Regression
This unit builds on the regression concepts introduced the previous session,
extending them to include multiple independent variables and a technique to
determine which independent variable has the greatest impact on the dependent
variable.
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OBJECTIVES FOR THE MODULE
As a result of this module, students will
1. Understand a number of the concepts and terms used in statistics, as well as
various sampling techniques necessary for obtaining valid data;
2. Know the difference between descriptive and inferential statistics;
3. Distinguish between qualitative and quantitative variables;
4. Present data graphically;
5. Calculate and interpret the various measures of location and measures of
dispersion;
6. Calculate probabilities;
7. Describe the methods to select a sample;
8. Construct and interpret confidence intervals;
9. Conduct a statistical hypothesis test;
10. Understand the application of anova analysis in a business setting;
11. Understand the difference between dependent and independent variables;
12. Interpret the correlation coefficient;
13. Understand the uses of regression analysis.
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SUGGESTED EVALUATION PROCEDURES
Grades will determined as follows. Five quizzes will be given, one following each of the
first five weeks of the course, and will stress applications and concepts. In completing
the quizzes students are encouraged to use Excel wherever they can. The quizzes may be
either in-class or take-home at the discretion of the instructor. A cumulative final exam
will be given in-class during session six.
Five quizzes @ 15% each
Final exam
75%
25%
100%
Each week has homework problems assigned, though they will not be graded.
Homework problems are chosen to have students practice the key concepts in each
chapter. However, students are encouraged to do some of the problems in the book that
are not assigned as a way to increase their skills and understanding of statistics. We will
use many of the problems, assigned and unassigned, in class to illustrate the material we
are covering.
REQUIRED MATERIALS
TEXTS:
Lind, Douglas A., William G. Marchal, and Samuel A. Wathan. Business Statistics for
Business & Economics, 5th ed. Boston: McGraw-Hill Irwin. 2006.
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SESSION I
An Introduction to Statistics, Data Collection, and Describing Data
Objectives for Session I
As a result of this session, students will:
1. Understand the importance and value of statistics;
2. Know the difference between descriptive and inferential statistics
3. Distinguish between qualitative and quantitative variables;
4. Understand and be able to identify the four different levels of measurement;
5. Create a frequency distribution and a histogram;
6. Present data graphically;
7. Calculate and interpret the various measures of location and measures of
dispersion;
8. Identify the appropriate statistics to use for symmetric and skewed distributions;
9. Understand the Empirical Rule.
Assignments to be completed prior to Session One:
1. Read chapters 1 – 3 in the Lind text
2. Do the following exercises:
Chapter 1:
1
5
7
Chapter 2:
1
7
9
Chapter 3:
1
3
9
11
11a-c 13
37
45
17
23
31
67(use Excel)
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SESSION II
Displaying and Exploring Data, and Probability Concepts
Objectives for Week Two
As a result of this session, students will:
1. Learn additional ways to graphically present data;
2. Develop and interpret quartiles and percentiles;
3. Create and interpret a scatter diagram;
4. Interpret a contingency table;
5. Describe the classical, experimental, and subjective approaches to probability;
6. Understand the terms conditional probability and joint probability;
7. Calculate probabilities.
Assignments to be completed prior to Session Two:
1. Read chapters 4 – 5 in the Lind text
2. Do the following exercises (use Excel where appropriate):
Chapter 4:
7
9a,c 15
17
21a,c 23
25
Chapter 5:
47
51
61
31
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SESSION III
Sampling Methods, Estimation, and Confidence Intervals
Objectives for Week Three
As a result of this session, students will:
1. Understand the difference between a sample and a population;
2. Describe the methods to select a sample;
3. Understand the applications of the central limit theorem;
4. Define level of confidence;
5. Construct and interpret confidence intervals;
6. Calculate and interpret z-scores.
Assignments to be completed prior to Session Three:
1. Read chapters 7 – 9 in the Lind text
2. Do the following exercises (use Excel where appropriate):
Chapter 7:
9
11
33
55
Chapter 8:
7
15
17
23
27
31
Chapter 9:
1
5
7
11
13
15a,c 17a,c 63
13
SESSION IV
An Introduction to Statistical Hypothesis Testing
Objectives for Week Four
As a result of this session, students will:
1. Define a hypothesis and hypothesis testing;
2. Conduct a statistical hypothesis test;
3. Distinguish between a one-tailed and a two-tailed hypothesis test;
4. Understand the difference between a Type I and a Type II error;
5. Conduct a hypothesis test about the difference between two independent
population means;
6. Conduct a hypothesis test about the mean difference between paired observations.
Assignments to be completed prior to Session Four:
1. Read chapters 10 – 11 in the Lind text
2. Do the following exercises (use Excel where appropriate):
Chapter 10: 27
29
31
33
55
57
Chapter 11: 3
5
9
11
21
23
27
51a-c 53
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SESSION V
Analysis of Variance, Linear Regression, and Correlation
Objectives for Week Five
As a result of this session, students will:
1. Understand the application of anova analysis in a business setting;
2. Conduct a hypothesis test among three or more group means;
3. Understand the difference between dependent and independent variables;
4. Interpret the correlation coefficient;
5. Conduct a hypothesis test to determine the statistical significance of a correlation
coefficient;
6. Understand the meaning of the line of best fit.
Assignments to be completed prior to Session Five:
1. Read chapters 12 – 13 in the Lind text;
2. Do the following exercises (use Excel where appropriate):
Chapter 12: 7
9
21
23
27
37
Chapter 13: 3
5
13
15
41
43
49
61
63
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SESSION VI
Multiple Regression
Objectives for Week Six
As a result of this session, students will:
1. Understand the relationship between a dependent variable and several
independent variables;
2. Conduct a hypothesis test on each regression coefficient;
3. Understand and interpret the beta statistic;
4. Explore practical applications of statistics.
Assignments to be completed prior to Session Six:
1. Read chapter 14, pp. 421 - 441 in the Lind text
2. Do the following exercises (use Excel where appropriate):
Chapter 14: 1
3
17a-e 29a-e
3. Review for final exam
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