Preface

Index of Application

PART ONE: VARIATION

1. Introduction

1.1 What Is Statistics?

1.2 Previews

2. Data

2.1 Data Tables

2.2 Categorical and Numerical Data

2.3 Recoding and Aggregation

2.4 Time Series

2.5 Further Attributes of Data

   Chapter Summary

3. Describing Categorical Data

3.1 Looking at Data

3.2 Charts of Categorical Data

3.3 The Area Principle

3.4 Mode and Median

   Chapter Summary

4. Describing Numerical Data

4.1 Summaries of Numerical Variables

4.2 Histograms

4.3 Boxplot

4.4 Shape of a Distribution

4.5 Epilog

   Chapter Summary

5. Association between Categorical Variables

5.1 Contingency Tables

5.2 Lurking Variables and Simpson's Paradox

5.3 Strength of Association

   Chapter Summary

6. Association between Quantitative Variables

6.1 Scatterplots

6.2 Association in Scatterplots

6.3 Measuring Association

6.4 Summarizing Association with a Line

6.5 Spurious Correlation

   Chapter Summary

   Statistics in Action: Financial Time Series

   Statistics in Action: Executive Compensation

PART TWO: PROBABILITY

7. Probability

7.1 From Data to Probability

7.2 Rules for Probability

7.3 Independent Events

   Chapter Summary

8. Conditional Probability

8.1 From Tables to Probabilities

8.2 Dependent Events

8.3 O rganizing Probabilities

8.4 O rder in Conditional Probabilities

   Chapter Summary

9. Random Variables

9.1 Random Variables

9.2 Properties of Random Variables

9.3 Properties of Expected Values

9.4 Comparing Random Variables

   Chapter Summary

10. Association between Random Variables

10.1 Portfolios and Random Variables

10.2 Joint Probability Distribution

10.3 Sums of Random Variables

10.4 Dependence between Random Variables

10.5 IID Random Variables

10.6 Weighted Sums

   Chapter Summary

11. Probability Models for Counts

11.1 Random Variables for Counts

11.2 Binomial Model

11.3 Properties of Binomial Random Variables

11.4 Poisson Model

   Chapter Summary

12. The Normal Probability Model

12.1 Normal Random Variable

12.2 The Normal Model

12.3 Percentiles

12.4 Departures from Normality

   Chapter Summary

   Statistics in Action: Managing Financial Risk

   Statistics in Action: Modeling Sampling Variation

PART THREE: INFERENCE

13. Samples and Surveys

13.1 Two Surprising Properties of Samples

13.2 Variation

13.3 Alternative Sampling Methods

13.4 Questions to Ask

   Chapter Summary

14. Sampling Variation and Quality

14.1 Sampling Distribution of the Mean

14.2 Control Limits

14.3 Using a Control Chart

14.4 Control Charts for Variation

   Chapter Summary

15. Confidence Intervals

15.1 Ranges for Parameters

15.2 Confidence Interval for the Mean

15.3 Interpreting Confidence Intervals

15.4 Manipulating Confidence Intervals

15.5 Margin of Error

   Chapter Summary

16. Statistical Tests

16.1 Concepts of Statistical Tests

16.2 Testing the Proportion

16.3 Testing the Mean

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