ñòð. 4 |

C H A P T E R 1 0 STATISTICS TOOLS 169

10.1 Descriptive statistics 170

10.2 Rank and Percentile 175

Interpreting the output: 177

10.3 Bivariate relationsâ€” correlation, covariance 178

Correlation analysis 178

Interpreting the output 179

10.3.a Covariance tool and formula 180

10

Intoduction & Contents

C H A P T E R 1 1 HYPOTHESIS TESTING 183

11.1 Z-testing for population means when population variances are known 184

Interpreting the output 189

11.2 T-testing means when the two samples are from distinct groups 189

11.2.a The pretestâ€” F-testing for equality in variances 189

Interpreting the output 191

11.2.b T-test: Twoâ€“Sample Assuming Unequal Variances 193

Interpreting the output 196

11.2.c T-test: Twoâ€“Sample Assuming Equal Variances 199

11.3 Paired Sample T-tests 199

11.4 ANOVA 205

Interpreting the output 207

C H A P T E R 1 2 REGRESSION 211

12.1 Assumptions Underlying Regression Models 211

12.1.a Assumption 1: The relationship between any one independent series and

the dependent series can be captured by a straight line in a 2â€“axis graph

213

12.1.b Assumption 2: The independent variables do not change if the sampling is

replicated 213

12.1.c Assumption 3: The sample size must be greater than the number of

independent variables (N should be greater than Kâ€“1) 214

12.1.d Assumption 4: Not all the values of any one independent series can be the

same 215

12.1.e Assumption 5: The residual or disturbance error terms follow several rules

216

Assumption 5a: The mean/average or expected value of the disturbance

equals zero 216

Assumption 5b: The disturbance terms all have the same variance 216

Assumption 5c: A disturbance term for one observation should have no

relation with the disturbance terms for other observations or with any

of the independent variables 217

Assumption 5d: There is no specification bias 217

Assumption 5e: The disturbance terms have a Normal Density Function 218

12.1.f Assumption 6: There are no strong linear relationships among the

independent variables 218

12.2 Conducting the Regression 219

12.3 Brief guideline for interpreting regression output 222

12.4 Breakdown of classical assumptions: validation and correction 226

C H A P T E R 1 3 OTHER TOOLS FOR STATISTICS 229

13.1 Sampling analysis 229

13.2 Random Number Generation 231

11

Statistical Analysis with Excel

13.3 Time series 234

Exponential Smoothing 234

Moving Average analysis 235

C H A P T E R 1 4 THE SOLVER TOOL FOR CONSTRAINED LINEAR OPTIMIZATION

239

14.1 Defining the objective function (Choosing the optimization criterion) 239

14.2 Adding constraints 243

14.3 Choosing Algorithm Options 244

Running the Solver 245

INDEX 245

12

Intoduction & Contents

Mapping of menu options with sections of the book

and in the series of books

You may be looking for a section that pertains to a particular menu option

in Excel. I now briefly lay out where to find (in the series) a discussion of

a specific menu option of Excel.

Table 1: Mapping of the options in the â€œFILEâ€œ menu

Menu Option Section that discusses the option

OPEN

Volume 1: Excel For Beginners

SAVE

SAVE AS Volume 4: Managing & Tabulating Data in Excel

Volume 1: Excel For Beginners

SAVE AS WEB PAGE

Volume 4: Managing & Tabulating Data in Excel

SAVE WORKSPACE Volume 4: Managing & Tabulating Data in Excel

SEARCH Volume 1: Excel For Beginners

PAGE SETUP Volume 1: Excel For Beginners

PRINT AREA Volume 1: Excel For Beginners

PRINT PREVIEW Volume 1: Excel For Beginners

Volume 1: Excel For Beginners

PROPERTIES Volume 1: Excel For Beginners

Table 2: Mapping of the options in the â€œEDITâ€œ menu

Menu Option Section that discusses the option

UNDO Volume 1: Excel For Beginners

REDO Volume 1: Excel For Beginners

CUT Various

ñòð. 4 |