Important Properties
Mutually exclusive
A property of a set of categories such that an individual or
object is included in only one category
Exhaustive
A property of a set of categories such that each individual or
object must appear in at least one c

Effective for business data because we can show the change in a
variable over time
The variable is scaled along the vertical axis and time along the
horizontal axis
Graphic Presentation of Data: Pie Charts
Shows the percent or proportion that each class

Numerical Descriptive Measures
Measures of Location
Arithmetic Mean
Weighted Mean
Median
Mode
Geometric Mean
Measures of Dispersion
Range
Mean Absolute
Deviation
Variance
Standard
Deviation
The Median
The median is the midpoint of the values af

N is the number of observations
Chebyshevs Theorem
For any set of observations (sample or population), the proportion
of the values that lie within k standard deviations of the mean is at
least 1-1/k2, where k is any constant greater than 1
Allows us to

The zero point is the absence of the characteristic and the ratio
between two numbers is meaningful
EXAMPLES: wages, weight, height
Chapter 2
Frequency Distribution
A grouping of data into mutually exclusive classes showing the number
of observations in

Chapter 1
Statistics is the science of collecting, organizing, presenting,
analyzing, and interpreting data to assist in making more effective
decisions
Types of Statistics
Descriptive Statistics
Methods of organizing, summarizing, and presenting data in

Chapter 4
Probability
A probability is a measure of the likelihood that an event in the
future will happen
It can only assume a value between 0 and 1
A value near zero means the event is not likely to
happen
A value near one means it is likely
Three

Box Plots
A box plot is a graphical display, based on quartiles, that helps to
picture a set of data
Five pieces of data are needed to construct a box plot
1. Minimum value
2. First quartile
3. Median
4. Third quartile
5. Maximum value
Chapter 4
Probabi

The rules of addition refer to the union of events and include the
general and special rule of addition, as well as the complement rule
The rules of multiplication refer to the product of events and include
the general and special rule of multiplication

Summary of Normal Curve Applications
1. To find the area between 0 and z (or -z), look up the probability
directly in the table
2. To find the area beyond z or (-z), locate the probability of z in the
table and subtract that probability from 0.5000
3. To

1. If a sample is selected from a finite population without replacement
2. And if the size of the sample n is more than 5 percent of the
population N
Then the hypergeometric distribution is used to determine the
probability of a specified number of succe

Terms:
Events are mutually exclusive if occurrence of one event means
that none of the other events can occur at the same time
Events are collectively exhaustive if at least one of the events
must occur when an experiment is conducted
If the set of event

If there are m ways of doing one thing and n ways of doing another
thing, there are
m x n ways of doing both
For three events m, n, o:
The total number of arrangements = (m)(n)(o)
Any arrangement of r objects selected from a single group of n
possible o