Chapter 3:
Basic Probability Concepts and Problems in Assessing
Probabilities 83
Introduction 83
Types of Probability 85
Classical, Relative Frequency, Subjective
Simple, Joint, Marginal, Conditional
Computing Conditional Probabilities and Statistical
Independence 90
Intervening Variables 96
Using Probability Trees to Reduce Managerial Judgment
Errors 98
Noncoherence Error:
Unconditional, Joint, Conditional 98
Avaliability Error Bombings in Georgia, Full Moon
103
Anchoring
Error Stock,
Population
103
Concreteness error Car purchase, Employee Assessment
104
Key Ideas 104
Exercises 105
Chapter 4: Sampling and Sampling Distributions 113
The Need for Statistical Inference Methods 113
Review
Chapter 1
Trade off among Sample
size, Margin of Error, Confidence
Exploring the Distribution of the Sample Mean 117
The Normal Distribution 126
Bell shaped Curve
Skip Exploring the Distribution of the Sample
Proportion 133
Skip Exploring the Distribution of the Sample Variance
141
Key Ideas and Overview 149
Exercises 150
Appendices 159