CHAPTER 4

Statistics

Chapter Objectives

• Define basic terms in statistics

• Stress the connections among statistics, probability, and random variables

• Introduce estimators

• Introduce sampling distributions

• Introduce confidence intervals

• Discuss ways of determining the necessary sample size

• Discuss techniques of assessing normality

4.1   What Is Statistics?

Suppose a grocery store manager is studying ways to improve customer satisfaction. One item of interest may be the amount of time customers spend waiting in line at the checkout stand. Some questions the manager might ask include these:

1.  What is the expected waiting time?

2.  What is the probability that a randomly selected customer waits longer than 10 min?

3.  How much variation ...

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