![24 EXCEL COMPANION to Chapter 1
sirable manner, click Close (or Close Print Preview in
Excel 2007), make the changes necessary, and reselect the
preview command. You can customize your printout by
clicking Setup (or Page Setup) and making the appropri-
ate entries in the Page Setup dialog box, which is similar
for all Excel versions. For example, to print your worksheet
with grid lines and numbered row and lettered column
headings (similar to the appearance of the worksheet
onscreen), you click the Sheet tab in the Page Setup dialog
box and then click Gridlines and Row and column head-
ings and click OK (see Figure E1.7). (You can find more
information about using Page Setup in Section F4 of
Appendix F.)
cell by either pressing Tab or Enter or clicking the check-
mark button in the formula bar.
You enter individual numeric and label (sometimes
called text) values into cells. You can also enter formulas,
which are instructions to perform a calculation or some
other task. Usually, formulas use values found in other cells
to produce a displayed result. Formulas can automatically
change the displayed result when the values in the support-
ing cells change.
To refer to a cell in a formula, you use a cell address in
the form Sheetname!ColumnRow. For example, Data!A2
refers to the cell in the Data worksheet that is in column A
and row 2. You can also use just the ColumnRow portion of
a full address, for example A2, if you are referring to a cell
on the same worksheet as the one into which you are enter-
ing a formula.
Sometimes you need to refer to a group of cells, called
a cell range. If the group of cells forms a rectangular
area for example, a group composed of cells from
two adjacent columns you use an address in the form
Sheetname!Upperleftcell:Lowerrightcell. For example,
Data!A1:B10 refers to the 20 cells that are in rows 1
through 10 in columns A and B of the Data worksheet. If
your group forms two or more rectangular areas, you enter
the range as a list of rectangular areas separated by com-
mas, for example, Data!A1:A10,Data!C1:C10. If the name
of the sheet contains spaces or special characters, such as
City Data or Figure-1.2 , you must enclose the sheet
name in a pair of single quotes, as in City Data !A1:A10
or Figure-1.2 !A1:A10.3
(Because you use names of sheets in formulas,
you may want to rename sheets from their default
names. As mentioned in Section E1.1, you can rename a
sheet by double-clicking the sheet tab for the sheet, typ-
ing a new, more descriptive name, and then pressing
Enter.)
Entering Formulas
You enter formulas by typing the equal sign (*) followed
by some combination of mathematical or other data pro-
cessing operations. For simple formulas, the symbols +,
,, *, /, and ^ are used for the operations addition, sub-
traction, multiplication, division, and exponentiation (a
number raised to a power), respectively. For example, the
FIGURE E1.7
Sheet tab of the Page Setup dialog box (Excel
2003 version)
3For cases in which you need to distinguish between two
similarly located cells on two similarly named worksheets in two
different workbooks, you use an address in the form
[Workbookname]Sheetname !ColumnRow. For example, you
use [Chapter1]Data !A1 to refer to the first cell on the
Data worksheet in the Chapter1 workbook.
When you are ready to print, you can click Print in the
Print Preview window, but to gain maximum control over
your printout, click Close (or Close Print Preview) and
then select File * Print (Excel 97 2003) or Office Button
* Print (Excel 2007). In the Print dialog box that appears
(see Figure E1.3 on page 20), you can select the printer to
use, make sure you are printing only the currently active
worksheet, or print multiple copies at once.
E1.3 WORKSHEET ENTRIES
As first discussed in Section 1.6 (see page 11), you make
entries into worksheet cells, the intersections of lettered
columns and numbered rows. You use the cursor keys or
your pointing device to move a cell pointer through a
worksheet and to select a cell for entry. As you type an
entry, it appears in the formula bar (see Figures E1.1 and
E1.2 on pages 19 and 20), and you place that entry into the
Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall.
Copyright 2008 by Pearson Education, Inc.](https://image.slidesharecdn.com/2040497-250528061425-1ca1822e/85/Statistics-For-Managers-Using-Microsoft-Excel-Custom-Edition-5th-Edition-David-M-Levine-52-320.jpg)
![This ebook is for the use of anyone anywhere in the United States
and most other parts of the world at no cost and with almost no
restrictions whatsoever. You may copy it, give it away or re-use it
under the terms of the Project Gutenberg License included with this
ebook or online at www.gutenberg.org. If you are not located in the
United States, you will have to check the laws of the country where
you are located before using this eBook.
Title: The Knights Templars
Author: C. G. Addison
Release date: December 6, 2013 [eBook #44376]
Most recently updated: October 23, 2024
Language: English
Credits: E-text prepared by Chris Curnow, Paul Clark, and the Online
Distributed Proofreading Team (http://www.pgdp.net) from
page images generously made available by Internet Archive
(https://archive.org)
*** START OF THE PROJECT GUTENBERG EBOOK THE KNIGHTS
TEMPLARS ***](https://image.slidesharecdn.com/2040497-250528061425-1ca1822e/85/Statistics-For-Managers-Using-Microsoft-Excel-Custom-Edition-5th-Edition-David-M-Levine-60-320.jpg)
![cardinal points; the Bab el D’Jannat, or gate of the garden, on the
north; the Bab el Kebla, or gate of prayer, on the south; the Bab ib’n
el Daoud, or the gate of the son of David, on the east; and the Bab
el Garbi, on the west. By the Arabian geographers it is called Beit
Allah, the house of God, also Beit Almokaddas, or Beit Almacdes, the
holy house. From it Jerusalem derives its Arabic name, el Kods, the
holy, el Schereef, the noble, and el Mobarek, the blessed.
The crescent had been torn down by the crusaders from the summit
of this great Mussulman Temple, and replaced by an immense
golden cross, and the edifice was consecrated to the services of the
christian religion, but retained its simple appellation of “The Temple
of the Lord.” William, Archbishop of Tyre and Chancellor of the
Kingdom of Jerusalem, gives an interesting account of the building
as it existed in his time during the Latin dominion. He speaks of the
splendid mosaic work on the walls; of the Arabic characters setting
forth the name of the founder, and the cost of the undertaking; and
of the famous rock under the centre of the dome, which is to this
day shown by the Moslems as the spot whereon the destroying
angel stood, “with his drawn sword in his hand stretched out over
Jerusalem.”[1] This rock, he informs us, was left exposed and
uncovered for the space of fifteen years after the conquest of the
holy city by the crusaders, but was, after that period, cased with a
handsome altar of white marble, upon which the priests daily said
mass.
To the south of this holy Mussulman temple, on the extreme edge of
the summit of Mount Moriah, and resting against the modern walls
of the town of Jerusalem, stands the venerable christian church of
the Virgin, erected by the Emperor Justinian, whose stupendous
foundations, remaining to this day, fully justify the astonishing
description given of the building by Procopius. That writer informs us
that in order to get a level surface for the erection of the edifice, it
was necessary, on the east and south sides of the hill, to raise up a
wall of masonry from the valley below, and to construct a vast
foundation, partly composed of solid stone and partly of arches and](https://image.slidesharecdn.com/2040497-250528061425-1ca1822e/85/Statistics-For-Managers-Using-Microsoft-Excel-Custom-Edition-5th-Edition-David-M-Levine-81-320.jpg)
![pillars. The stones were of such magnitude, that each block required
to be transported in a truck drawn by forty of the emperor’s
strongest oxen; and to admit of the passage of these trucks it was
necessary to widen the roads leading to Jerusalem. The forests of
Lebanon yielded their choicest cedars for the timbers of the roof,
and a quarry of variegated marble, in the adjoining mountains,
furnished the edifice with superb marble columns.[2] The interior of
this interesting structure, which still remains at Jerusalem, after a
lapse of more than thirteen centuries, in an excellent state of
preservation, is adorned with six rows of columns, from whence
spring arches supporting the cedar beams and timbers of the roof,
and at the end of the building is a round tower, surmounted by a
dome. The vast stones, the walls of masonry, and the subterranean
colonnade raised to support the south-east angle of the platform
whereon the church is erected, are truly wonderful, and may still be
seen by penetrating through a small door, and descending several
flights of steps at the south-east corner of the enclosure. Adjoining
the sacred edifice, the emperor erected hospitals, or houses of
refuge, for travellers, sick people, and mendicants of all nations, the
foundations whereof, composed of handsome Roman masonry, are
still visible on either side of the southern end of the building.
On the conquest of Jerusalem by the Moslems, this venerable church
was converted into a mosque, and was called D’Jamé al Acsa; it was
enclosed, together with the great Mussulman Temple of the Lord
erected by the Caliph Omar, within a large area by a high stone wall,
which runs around the edge of the summit of Mount Moriah, and
guards from the profane tread of the unbeliever the whole of that
sacred ground whereon once stood the gorgeous temple of the
wisest of kings. When the Holy City was taken by the crusaders, the
D’Jamé al Acsa, with the various buildings constructed around it,
became the property of the kings of Jerusalem: and is denominated
by William of Tyre “the palace,” or “royal house to the south of the
Temple of the Lord, vulgarly called the Temple of Solomon.” It was this
edifice or temple on Mount Moriah which was appropriated to the
poor fellow-soldiers of Jesus Christ, as they had no church and no](https://image.slidesharecdn.com/2040497-250528061425-1ca1822e/85/Statistics-For-Managers-Using-Microsoft-Excel-Custom-Edition-5th-Edition-David-M-Levine-82-320.jpg)
![particular place of abode, and from it they derived their name of
Knights Templars.[3] The canons of the Temple of the Lord conceded
to them the large court extending between that building and the
Temple of Solomon; the king, the patriarch, and the prelates of
Jerusalem, and the barons of the Latin kingdom, assigned them
various gifts and revenues for their maintenance and support, and
the order being now settled in a regular place of abode, the knights
soon began to entertain more extended views, and to seek a larger
theatre for the exercise of their holy profession.
Their first aim and object had been, as before mentioned, simply to
protect the poor pilgrims, on their journey backwards and forwards,
from the sea-coast to Jerusalem; but as the hostile tribes of
Mussulmen, which everywhere surrounded the Latin kingdom, were
gradually recovering from the terror into which they had been
plunged by the successful and exterminating warfare of the first
crusaders, and were assuming an aggressive and threatening
attitude, it was determined that the holy warriors of the Temple
should, in addition to the protection of pilgrims, make the defence of
the christian kingdom of Jerusalem, of the eastern church, and of all
the holy places, a part of their particular profession. The two most
distinguished members of the fraternity were Hugh de Payens and
Geoffrey de St. Aldemar, or St. Omer, two valiant soldiers of the
cross, who had fought with great credit and renown at the siege of
Jerusalem. Hugh de Payens was chosen by the knights to be the
superior of the new religious and military society, by the title of “The
Master of the Temple;” and he has, consequently, generally been
called the founder of the order.
Baldwin, king of Jerusalem, foreseeing that great advantages would
accrue to the Latin kingdom by the increase of the power and
numbers of these holy warriors, despatched two Knights Templars to
St. Bernard, the holy Abbot of Clairvaux, with a letter, telling him
that the Templars whom the Lord had deigned to raise up, and
whom in a wonderful manner he preserved for the defence of
Palestine, desired to obtain from the Holy See the confirmation of](https://image.slidesharecdn.com/2040497-250528061425-1ca1822e/85/Statistics-For-Managers-Using-Microsoft-Excel-Custom-Edition-5th-Edition-David-M-Levine-83-320.jpg)
![their institution, and a rule for their particular guidance, and
beseeching him “to obtain from the Pope the approbation of their
order, and to induce his holiness to send succour and subsidies
against the enemies of the faith.”[4] Shortly afterwards Hugh de
Payens himself proceeded to Rome, accompanied by Geoffrey de St.
Aldemar, and four other brothers of the order, who were received
with great honour and distinction by Pope Honorius. A great
ecclesiastical council was assembled at Troyes, (A. D. 1128,) which
Hugh de Payens and his brethren were invited to attend, and the
rules to which the Templars had subjected themselves being there
described, the holy Abbot of Clairvaux undertook the task of revising
and correcting them, and of forming a code of statutes fit and
proper for the governance of the great religious and military
fraternity of the Temple.
Regula Pauperum Commilitonum Christi et
Templi Salomonis.
“The rule of the poor fellow soldiers of Jesus Christ and of the Temple of
Solomon,” arranged by St. Bernard, and sanctioned by the Holy
Fathers of the Council of Troyes, for the government and regulation
of the monastic and military society of the Temple, is principally of a
religious character, and of an austere and gloomy cast. It is divided
into seventy-two heads or chapters, and is preceded by a short
prologue, addressed “to all who disdain to follow after their own
wills, and desire with purity of mind to fight for the most high and
true king,” exhorting them to put on the armour of obedience, and
to associate themselves together with piety and humility for the
defence of the holy catholic church; and to employ a pure diligence,
and a steady perseverance in the exercise of their sacred profession,
so that they might share in the happy destiny reserved for the holy
warriors who had given up their lives for Christ.
The rule enjoins severe devotional exercises, self-mortification,
fasting, and prayer, and a constant attendance at matins, vespers,](https://image.slidesharecdn.com/2040497-250528061425-1ca1822e/85/Statistics-For-Managers-Using-Microsoft-Excel-Custom-Edition-5th-Edition-David-M-Levine-84-320.jpg)
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- 7. STATISTICS FOR MANAGERS USING Microsoft Excel David M. Levine David F. Stephan Timothy C. Krehbiel Mark L. Berenson Custom Edition for UMASS-Amherst Professor Robert Nakosteen Taken from: Statistics for Managers: Using Microsoft Excel, Fifth Edition by David M. Levine, David F. Stephan, Timothy C. Krehbiel, and Mark L. Berenson Business Data Analysis SCH-MGMT 650
- 8. Cover photo taken by Lauren Labrecque. Taken from: Statistics for Managers: Using Microsoft Excel, Fifth Edition by David M. Levine, David F. Stephan, Timothy C. Krehbiel, and Mark L. Berenson Copyright 2008, 2005, 2002, 1999, 1997 by Pearson Education, Inc. Published by Prentice Hall Upper Saddle River, New Jersey 07458 All rights reserved. No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher. This special edition published in cooperation with Pearson Custom Publishing. The information, illustrations, and/or software contained in this book, and regarding the above-mentioned programs, are provided As Is, without warranty of any kind, express or implied, including without limitation any warranty concerning the accuracy, adequacy, or completeness of such information. Neither the publisher, the authors, nor the copyright holders shall be responsible for any claims attributable to errors, omissions, or other inaccuracies contained in this book. Nor shall they be liable for direct, indirect, special, incidental, or consequential damages arising out of the use of such information or material. All trademarks, service marks, registered trademarks, and registered service marks are the property of their respective owners and are used herein for identification purposes only. Printed in the United States of America 10 9 8 7 6 5 4 3 2 1 ISBN 0-536-04080 X 2008600006 KA Please visit our web site at www.pearsoncustom.com PEARSON CUSTOM PUBLISHING 501 Boylston Street, Suite 900, Boston, MA 02116 A Pearson Education Company
- 9. To our wives, Marilyn L., Mary N., Patti K., and Rhoda B., and to our children Sharyn, Mark, Ed, Rudy, Rhonda, Kathy, and Lori
- 10. ABOUT THE AUTHORS vi David M. Levine is Professor Emeritus of Statistics and Computer Information Systems at Bernard M. Baruch College (City University of New York). He received B.B.A. and M.B.A. degrees in Statistics from City College of New York and a Ph.D. degree from New York University in Industrial Engineering and Operations Research. He is nationally recognized as a leading innovator in statistics education and is the co-author of 14 books including such best selling statistics textbooks as Statistics for Managers using Microsoft Excel, Basic Business Statistics: Concepts and Applications, Business Statistics: A First Course, and Applied Statistics for Engineers and Scientists using Microsoft Excel and Minitab. He also recently wrote Even You Can Learn Statistics and Statistics for Six Sigma Green Belts published by Financial Times-Prentice-Hall. He is coauthor of Six Sigma for Green Belts and Champions and Design for Six Sigma for Green Belts and Champions, also published by Financial Times-Prentice-Hall, and Quality Management Third Ed., McGraw-Hill-Irwin (2005). He is also the author of Video Review of Statistics and Video Review of Probability, both published by Video Aided Instruction. He has published articles in various journals including Psychometrika, The American Statistician, Communications in Statistics, Multivariate Behavioral Research, Journal of Systems Management, Quality Progress, and The American Anthropologist and given numerous talks at Decision Sciences, American Statistical Association, and Making Statistics More Effective in Schools of Business conferences. While at Baruch College, Dr. Levine received several awards for outstanding teaching and curriculum development. David F. Stephan is an instructional designer and lecturer who pioneered the teaching of spreadsheet applications to business school students in the 1980 s. He has over 20 years experi- ence teaching at Baruch College, where he developed the first personal computing lab to sup- port statistics and information systems studies and was twice nominated for his excellence in teaching. He is also proud to have been the lead designer and assistant project director of a U.S. Department of Education FIPSE project that brought interactive, multimedia learning to Baruch College. Today, David focuses on developing materials that help users make better use of the informa- tion analysis tools on their computer desktops and is a co-author, with David M. Levine, of EvenYou Can Learn Statistics. The textbook authors meet to discuss statis- tics at Shea Stadium for a Mets v. Phillies game. Shown left to right, Mark Berenson, David Stephan, David Levine, Tim Krehbiel.
- 11. Timothy C. Krehbiel is Professor of Decision Sciences and Management Information Systems at the Richard T. Farmer School of Business at Miami University in Oxford, Ohio. He teaches undergraduate and graduate courses in business statistics. In 1996 he received the pres- tigious Instructional Innovation Award from the Decision Sciences Institute. In 2000 he received the Richard T. Farmer School of Business Administration Effective Educator Award. He also received a Teaching Excellence Award from the MBA class of 2000. Krehbiel s research interests span many areas of business and applied statistics. His work appears in numerous journals including Quality Management Journal, Ecological Economics, International Journal of Production Research, Journal of Marketing Management, Communications in Statistics, Decision Sciences Journal of Innovative Education, Journal of Education for Business, Marketing Education Review, and Teaching Statistics. He is a co- author of three statistics textbooks published by Prentice Hall: Business Statistics: A First Course, Basic Business Statistics, and Statistics for Managers Using Microsoft Excel. Krehbiel is also a co-author of the book Sustainability Perspectives in Business and Resources. Krehbiel graduated summa cum laude with a B.A. in history from McPherson College in 1983, and earned an M.S. (1987) and Ph.D. (1990) in statistics from the University of Wyoming. Mark L. Berenson is Professor of Management and Information Systems at Montclair State University (Montclair, New Jersey) and also Professor Emeritus of Statistics and Computer Information Systems at Bernard M. Baruch College (City University of New York). He cur- rently teaches graduate and undergraduate courses in statistics and in operations management in the School of Business and an undergraduate course in international justice and human rights that he co-developed in the College of Humanities and Social Sciences. Berenson received a B.A. in economic statistics and an M.B.A. in business statistics from City College of New York and a Ph.D. in business from the City University of New York. Berenson s research has been published in Decision Sciences Journal of Innovative Education, Review of Business Research, The American Statistician, Communications in Statistics, Psychometrika, Educational and Psychological Measurement, Journal of Management Sciences and Applied Cybernetics, Research Quarterly, Stats Magazine, The New York Statistician, Journal of Health Administration Education, Journal of Behavioral Medicine, and Journal of Surgical Oncology. His invited articles have appeared in The Encyclopedia of Measurement & Statistics and in Encyclopedia of Statistical Sciences. He is co-author of 11 statistics texts published by Prentice Hall, including Statistics for Managers using Microsoft Excel, Basic Business Statistics: Concepts and Applications, and Business Statistics: A First Course. Over the years, Berenson has received several awards for teaching and for innovative contribu- tions to statistics education. In 2005 he was the first recipient of The Catherine A. Becker Service for Educational Excellence Award at Montclair State University. About the Authors vii
- 13. BRIEF CONTENTS Preface xix 1 INTRODUCTION AND DATA COLLECTION 1 2 PRESENTING DATA IN TABLES AND CHARTS 31 3 NUMERICAL DESCRIPTIVE MEASURES 95 4 BASIC PROBABILITY 147 5 SOME IMPORTANT DISCRETE PROBABILITY DISTRIBUTIONS 179 6 THE NORMAL DISTRIBUTION AND OTHER CONTINUOUS DISTRIBUTIONS 217 7 SAMPLING AND SAMPLING DISTRIBUTIONS 251 8 CONFIDENCE INTERVAL ESTIMATION 283 9 FUNDAMENTALS OF HYPOTHESIS TESTING: ONE-SAMPLE TESTS 327 10 SIMPLE LINEAR REGRESSION 369 11 INTRODUCTION TO MULTIPLE REGRESSION 429 Appendices A-F 471 Self-Test Solutions and Answers to Selected Even-Numbered Problems 513 Index 535 CD-ROM TOPICS 4.5 COUNTING RULES CD4-1 5.6 USING THE POISSON DISTRIBUTION TO APPROXIMATE THE BINOMIAL DISTRIBUTION CD5-1 6.6 THE NORMAL APPROXIMATION TO THE BINOMIAL DISTRIBUTION CD6-1 7.6 SAMPLING FROM FINITE POPULATIONS CD7-1 8.7 ESTIMATION AND SAMPLE SIZE DETERMINATION FOR FINITE POPULATIONS CD8-1 9.7 THE POWER OF A TEST CD9-1 ix
- 15. CONTENTS Preface xix 1 INTRODUCTION AND DATA COLLECTION 1 1.1 Why Learn Statistics 2 1.2 Statistics for Managers 2 How This Text is Organized 3 Using Statistics @ Good Tunes 4 1.3 Basic Vocabulary of Statistics 4 1.4 Data Collection 6 1.5 Types of Variables 8 Levels of Measurement and Measurement Scales 9 1.6 Microsoft Excel Worksheets 11 Worksheet Cells 11 Designing Effective Worksheets 12 Summary 13 Key Terms 13 Chapter Review Problems 14 End-of-Chapter Cases 15 Learning with the Web Cases 16 References 17 Excel Companion to Chapter 1 18 Key Terms 30 2 PRESENTING DATA IN TABLES AND CHARTS 31 Using Statistics @ Choice Is Yours, Part I 32 2.1 Tables and Charts for Categorical Data 32 The Summary Table 33 The Bar Chart 33 The Pie Chart 34 The Pareto Diagram 35 2.2 Organizing Numerical Data 40 The Ordered Array 41 The Stem-and-Leaf Display 41 2.3 Tables and Charts for Numerical Data 44 The Frequency Distribution 44 The Relative Frequency Distribution and the Percentage Distribution 46 The Cumulative Distribution 47 The Histogram 48 The Polygon 50 The Cumulative Percentage Polygon (Ogive) 51 2.4 Cross Tabulations 54 The Contingency Table 55 The Side-by-Side Bar Chart 56 xi
- 16. 2.5 Scatter Plots and Time-Series Plots 58 The Scatter Plot 58 The Time-Series Plot 59 2.6 Misusing Graphs and Ethical Issues 62 Microsoft Excel Graphs 64 Summary 66 Key Terms 66 Chapter Review Problems 67 Managing the Springville Herald 73 Web Case 74 References 74 Excel Companion to Chapter 2 75 3 NUMERICAL DESCRIPTIVE MEASURES 95 Using Statistics @ Choice Is Yours, Part II 96 3.1 Measures of Central Tendency 96 The Mean 97 The Median 99 The Mode 100 Quartiles 101 The Geometric Mean 103 3.2 Variation and Shape 105 The Range 105 The Interquartile Range 106 The Variance and the Standard Deviation 106 The Coefficient of Variation 110 Z Scores 111 Shape 112 Visual Explorations: Exploring Descriptive Statistics 113 Microsoft Excel Descriptive Statistics Results 114 3.3 Numerical Descriptive Measures for a Population 118 The Population Mean 118 The Population Variance and Standard Deviation 119 The Empirical Rule 120 The Chebyshev Rule 120 3.4 Exploratory Data Analysis 122 The Five-Number Summary 123 The Box-and-Whisker Plot 124 3.5 The Covariance and the Coefficient of Correlation 127 The Covariance 127 The Coefficient of Correlation 128 3.6 Pitfalls in Numerical Descriptive Measures and Ethical Issues 133 Ethical Issues 133 Summary 134 Key Equations 134 Key Terms 135 Chapter Review Problems 135 xii Contents Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 17. Managing the Springville Herald 142 Web Case 142 References 142 Excel Companion to Chapter 3 143 4 BASIC PROBABILITY 147 Using Statistics @ The Consumer Electronics Company 148 4.1 Basic Probability Concepts 149 Events and Sample Spaces 150 Contingency Tables 151 Simple (Marginal) Probability 151 Joint Probability 152 General Addition Rule 154 4.2 Conditional Probability 157 Computing Conditional Probabilities 157 Decision Trees 159 Statistical Independence 161 Multiplication Rules 162 Marginal Probability Using the General Multiplication Rule 163 4.3 Bayes Theorem 166 4.4 Ethical Issues and Probability 171 4.5 (CD-ROM Topic) Counting Rules 172 Summary 172 Key Equations 172 Key Terms 172 Chapter Review Problems 173 Web Case 176 References 176 Excel Companion to Chapter 4 177 5 SOME IMPORTANT DISCRETE PROBABILITY DISTRIBUTIONS 179 Using Statistics @ Saxon Home Improvement 180 5.1 The Probability Distribution for a Discrete Random Variable 180 Expected Value of a Discrete Random Variable 181 Variance and Standard Deviation of a Discrete Random Variable 182 5.2 Covariance and Its Application in Finance 184 Covariance 184 Expected Value, Variance, and Standard Deviation of the Sum of Two Random Variables 186 Portfolio Expected Return and Portfolio Risk 186 5.3 Binomial Distribution 189 5.4 Poisson Distribution 197 5.5 Hypergeometric Distribution 201 5.6 (CD-ROM Topic) Using the Poisson Distribution to Approximate the Binomial Distribution 204 Summary 204 Key Equations 204 Contents xiii Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 18. Key Terms 205 Chapter Review Problems 206 Managing the Springville Herald 209 Web Case 209 References 210 Excel Companion to Chapter 5 211 6 THE NORMAL DISTRIBUTION AND OTHER CONTINUOUS DISTRIBUTIONS 217 Using Statistics @ OurCampus! 218 6.1 Continuous Probability Distributions 218 6.2 The Normal Distribution 219 Visual Explorations: Exploring the Normal Distribution 229 6.3 Evaluating Normality 234 Comparing Data Characteristics to Theoretical Properties 234 Constructing the Normal Probability Plot 236 6.4 The Uniform Distribution 238 6.5 The Exponential Distribution 241 6.6 (CD-ROM Topic) The Normal Approximation to the Binomial Distribution 243 Summary 243 Key Equations 243 Key Terms 243 Chapter Review Problems 244 Managing the Springville Herald 246 Web Case 246 References 246 Excel Companion to Chapter 6 247 7 SAMPLING AND SAMPLING DISTRIBUTIONS 251 Using Statistics @ Oxford Cereals 252 7.1 Types of Sampling Methods 252 Simple Random Samples 253 Systematic Samples 256 Stratified Samples 256 Cluster Samples 257 7.2 Evaluating Survey Worthiness 258 Survey Error 259 Ethical Issues 260 7.3 Sampling Distributions 261 7.4 Sampling Distribution of the Mean 262 The Unbiased Property of the Sample Mean 262 Standard Error of the Mean 264 Sampling from Normally Distributed Populations 265 Sampling from Non-Normally Distributed Populations The Central Limit Theorem 268 Visual Explorations: Exploring Sampling Distributions 270 7.5 Sampling Distribution of the Proportion 272 xiv Contents Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 19. 7.6 (CD-ROM Topic) Sampling From Finite Populations 275 Summary 275 Key Equations 276 Key Terms 276 Chapter Review Problems 276 Managing the Springville Herald 279 Web Case 279 References 280 Excel Companion to Chapter 7 281 8 CONFIDENCE INTERVAL ESTIMATION 283 Using Statistics @ Saxon Home Improvement 284 8.1 Confidence Interval Estimation for the Mean (* Known) 285 8.2 Confidence Interval Estimation for the Mean (* Unknown) 290 Student s t Distribution 290 Properties of the t Distribution 290 The Concept of Degrees of Freedom 291 The Confidence Interval Statement 292 8.3 Confidence Interval Estimation for the Proportion 296 8.4 Determining Sample Size 299 Sample Size Determination for the Mean 300 Sample Size Determination for the Proportion 302 8.5 Applications of Confidence Interval Estimation in Auditing 306 Estimating the Population Total Amount 307 Difference Estimation 308 One-Sided Confidence Interval Estimation of the Rate of Noncompliance with Internal Controls 311 8.6 Confidence Interval Estimation and Ethical Issues 313 8.7 (CD-ROM Topic) Estimation and Sample Size Determination for Finite Populations 314 Summary 314 Key Equations 314 Key Terms 315 Chapter Review Problems 315 Managing the Springville Herald 320 Web Case 321 References 321 Excel Companion to Chapter 8 322 9 FUNDAMENTALS OF HYPOTHESIS TESTING: ONE-SAMPLE TESTS 327 Using Statistics @ Oxford Cereals, Part II 328 9.1 Hypothesis-Testing Methodology 328 The Null and Alternative Hypotheses 328 The Critical Value of the Test Statistic 330 Regions of Rejection and Nonrejection 330 Risks in Decision Making Using Hypothesis-Testing Methodology 331 Contents xv Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 20. 9.2 Z Test of Hypothesis for the Mean (* Known) 334 The Critical Value Approach to Hypothesis Testing 334 The p-Value Approach to Hypothesis Testing 337 A Connection Between Confidence Interval Estimation and Hypothesis Testing 340 9.3 One-Tail Tests 342 The Critical Value Approach 342 The p-Value Approach 343 9.4 t Test of Hypothesis for the Mean (* Unknown) 346 The Critical Value Approach 347 The p-Value Approach 349 Checking Assumptions 349 9.5 Z Test of Hypothesis for the Proportion 353 The Critical Value Approach 354 The p-Value Approach 355 9.6 Potential Hypothesis-Testing Pitfalls and Ethical Issues 357 9.7 (CD-ROM Topic) The Power of a Test 359 Summary 359 Key Equations 360 Key Terms 360 Chapter Review Problems 360 Managing the Springville Herald 363 Web Case 363 References 363 Excel Companion to Chapter 9 364 10 SIMPLE LINEAR REGRESSION 369 Using Statistics @ Sunflowers Apparel 370 10.1 Types of Regression Models 370 10.2 Determining the Simple Linear Regression Equation 372 The Least-Squares Method 373 Visual Explorations: Exploring Simple Linear Regression Coefficients 376 Predictions in Regression Analysis: Interpolation Versus Extrapolation 377 Computing the Y Intercept, b0, and the Slope, b1 377 10.3 Measures of Variation 382 Computing the Sum of Squares 382 The Coefficient of Determination 384 Standard Error of the Estimate 386 10.4 Assumptions 387 10.5 Residual Analysis 388 Evaluating the Assumptions 388 10.6 Measuring Autocorrelation: The Durbin-Watson Statistic 392 Residual Plots to Detect Autocorrelation 392 The Durbin-Watson Statistic 394 10.7 Inferences About the Slope and Correlation Coefficient 397 t Test for the Slope 397 F Test for the Slope 398 xvi Contents Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 21. Confidence Interval Estimate of the Slope (*1) 400 t Test for the Correlation Coefficient 400 10.8 Estimation of Mean Values and Prediction of Individual Values 404 The Confidence Interval Estimate 404 The Prediction Interval 405 10.9 Pitfalls in Regression and Ethical Issues 408 Summary 412 Key Equations 413 Key Terms 414 Chapter Review Problems 414 Managing the Springville Herald 420 Web Case 421 References 421 Excel Companion to Chapter 10 422 11 INTRODUCTION TO MULTIPLE REGRESSION 429 Using Statistics @ OmniFoods 430 11.1 Developing a Multiple Regression Model 430 Interpreting the Regression Coefficients 431 Predicting the Dependent Variable Y 433 11.2 r2,Adjusted r2, and the Overall F Test 435 Coefficient of Multiple Determination 436 Adjusted r2 436 Test for the Significance of the Overall Multiple Regression Model 437 11.3 Residual Analysis for the Multiple Regression Model 439 11.4 Inferences Concerning the Population Regression Coefficients 441 Tests of Hypothesis 441 Confidence Interval Estimation 443 11.5 Testing Portions of the Multiple Regression Model 445 Coefficients of Partial Determination 448 11.6 Using Dummy Variables and Interaction Terms in Regression Models 450 Interactions 453 Summary 460 Key Equations 462 Key Terms 462 Chapter Review Problems 463 Managing the Springville Herald 466 Web Case 466 References 466 Excel Companion to Chapter 11 467 Appendices 471 A. Review of Arithmetic,Algebra, and Logarithms 472 B. Summation Notation 474 C. Statistical Symbols and Greek Alphabet 477 D. Student CD-ROM Contents 478 Contents xvii Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 22. E. Tables 485 F. FAQs About Using Microsoft Excel and PHStat2 510 Self-Test Solutions and Answers to Select Even-Numbered Problems 513 Index 535 CD-ROM Topics 4.5 Counting Rules CD4-1 5.6 Using the Poisson Distribution To Approximate the Binomial Distribution CD5-1 6.6 The Normal Approximation to the Binomial Distribution CD6-1 7.6 Sampling From Finite Populations CD7-1 8.7 Estimation and Sample Size Determination for Finite Populations CD8-1 9.7 The Power of a Test CD9-1 xviii Contents Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 23. PREFACE Educational Philosophy In our many years of teaching business statistics, we have continually searched for ways to improve the teaching of these courses. Our active participation in a series of Making Statistics More Effective in Schools and Business (MSMESB), Decision Sciences Institute (DSI), and American Statistical Association conferences as well as the reality of serving a diverse group of students at large universities have shaped our vision for teaching these courses. Over the years, our vision has come to include these key principles: 1. Students need to be shown the relevance of statistics. Students need a frame of reference when learning statistics, especially when statistics is not their major. That frame of reference for business students should be the functional areas of business that is, accounting, finance, information systems, management, and marketing. Each statistical topic needs to be presented in an applied context related to at least one of these functional areas. The focus in teaching each topic should be on its application in business, the interpreta- tion of results, the presentation of assumptions, the evaluation of the assumptions, and the discussion of what should be done if the assumptions are violated. 2. Students need to be familiar with the software used in the business world. Integrating spreadsheet software into all aspects of an introductory statistics course allows the course to focus on interpretation of results instead of computations. Introductory business statistics courses should recognize that in business, spreadsheet software is typically available on a decision maker s desktop. 3. Students need to be given sufficient guidance on using software. Textbooks should provide enough instructions so that students can effectively use the software integrated with the study of statistics, without having the software instruction dominate the course. 4. Students need ample practice in order to understand how statistics is used in business. Both classroom examples and homework exercises should involve actual or realistic data as much as possible. Students should work with data sets, both small and large, and be encouraged to look beyond the statistical analysis of data to the interpretation of results in a managerial context. New to This Edition: Statistics Coverage This new fifth edition of Statistics for Managers Using Microsoft Excel enhances the statistical coverage of previous editions in a number of ways: Every chapter has been rewritten to use a more engaging, conversational writing style that students will appreciate. Complex topics are discussed in simple, straightforward sentences. From the Authors Desktop essays provide greater background for the topic just covered and raise important issues. This edition includes many more examples from everyday life. Notable examples include what you would do with $1,000 (Chapter 2), time to get ready in the morning (Chapter 3), and waiting time at a fast-food restaurant (Chapter 9). Many new applied examples and exercises with data from The Wall Street Journal, USA Today, Consumer Reports, and other sources have been added to the book. Many problems have been restructured to contain no more than four parts, allowing stu- dents to break down the concepts and apply the material more easily. A Key Equations list at the end of each chapter lists the equations used in the chapter. Worked-out solutions to self-test questions are provided at the back of the book. xix Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 24. xx Preface A roadmap for selecting the proper statistical method is included at the front of the text to help students select the proper technique and to make connections between topics. Student surveys are included as an integrating theme for exercises across many chapters. New to This Edition: Excel Coverage This new fifth edition of Statistics for Managers Using Microsoft Excel enhances the Excel cov- erage of previous editions in a number of ways: Totally rewritten Excel sections have been organized into end-of-chapter Excel Companions for easy reference. Wherever possible, Excel Companions present step-by-step instructions and Excel command sequences that are compatible across all current versions of Excel, including Excel 2007. Clearly marked separate Excel 97 2003 and Excel 2007 instructions are provided for those Excel techniques that are fundamentally different in Excel 2007. Basic Excel sections allow the use of Excel without any outside enhancement, and PHStat2 sections describe the use of the PHStat2 add-in included on the student CD-ROM. Margin notes link worksheet and chart illustrations to the instructions of Excel Companion sections. Worksheet illustrations, like the following example, display underlying cell formulas that show how results are computed: Chapter-by-Chapter Changes in the Fifth Edition Each chapter includes a new opening page that displays the chapter sections and subsections. Accompanying each chapter is an Excel Companion that discusses how to apply Microsoft Excel to the statistical techniques of the chapter. In addition, the Excel Companion includes completely new material for using Excel in most chapters. The following changes have been made to this fifth edition: Chapter 1 has rewritten Sections 1.1 (Why Learn Statistics), 1.2 (Statistics for Managers), and 1.3 (Basic Vocabulary of Statistics) and a completely new Section 1.6 (Microsoft Excel Worksheets). The sections on survey sampling have been moved to Chapter 7. Chapter 2 includes a new data set concerning mutual fund returns for 2001 2005. Graphs for a single variable are covered prior to graphs for two variables. Graphs for categorical variables are covered prior to graphs for numerical variables. The examples in this chapter refer to what to do with $1,000 and the cost of restaurant meals in addition to mutual fund returns. Chapter 3 includes a new data set concerning mutual fund returns for 2001 2005. The examples in this chapter refer to the time to get ready in the morning as well as mutual fund Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 25. Preface xxi returns. Z scores for detecting outliers are now included. The sample covariance is now included, as is the coefficient of correlation. Chapter 4 now includes additional examples. Chapter 5 covers the Poisson distribution prior to the hypergeometric distribution. Chapter 6 has a simplified section on the normal probability plot. Coverage of sampling distributions has been moved to a new Chapter 7. Chapter 7 now covers sampling distributions along with types of survey sampling methods and survey worthiness. Chapter 8 has 28 new problems. Chapter 9 uses a simple, six-step method to perform hypothesis tests using the critical value approach and a straightforward five-step method to perform hypothesis tests using the p- value. Chapter 10 (formerly Chapter 13) now includes computations for the regression coeffi- cients and sum of squares in chapter examples. Chapter 11 (formerly Chapter 14) now covers R2, and adjusted R2 prior to residual analysis. Hallmark Features We have continued many of the traditions of past editions and have highlighted some of those fea- tures below: Using Statistics business scenarios Each chapter begins with a Using Statistics example that shows how statistics is used in accounting, finance, information systems, management, or marketing. Each scenario is used throughout the chapter to provide an applied context for the concepts. Emphasis on data analysis and interpretation of Excel results We believe that the use of computer software is an integral part of learning statistics. Our focus emphasizes analyz- ing data by interpreting the results from Microsoft Excel while reducing emphasis on doing computations. For example, in the coverage of tables and charts in Chapter 2, the focus is on the interpretation of various charts, not on their construction by hand. In our coverage of hypothesis testing in Chapter 9, extensive computer results have been included so that the p-value approach can be emphasized. Pedagogical aides An active writing style, boxed numbered equations, set-off examples to provide reinforcement for learning concepts, problems divided into Learning the Basics and Applying the Concepts, key equations, and key terms are included. Answers Most answers to the even-numbered exercises are provided in an appendix at the end of the book. PHStat2 This add-in, which is included on the student CD-ROM, extends the statistical capabilities of Microsoft Excel and executes the low-level menu selection and worksheet entry tasks associated with implementing statistical analysis in Excel. When combined with the Analysis ToolPak add-in, virtually all statistical methods taught in an introductory statistics course can be demonstrated using Microsoft Excel. Web Cases A chapter-ending Web Case is included for each of the first 11 chapters. By visiting Web sites related to the companies and researching the issues raised in the Using Statistics scenarios that start each chapter, students learn to identify misuses of statistical information. The Web Cases require students to sift through claims and assorted informa- tion in order to discover the data most relevant to the case. Students then determine whether the conclusions and claims are supported by the data. (Instructional tips for using the Web Cases and solutions to the Web Cases are included in the Instructor s Solutions Manual.) Case studies and team projects Detailed case studies are included in numerous chap- ters. A Springville Herald case is included at the end of most chapters as an integrating theme. A team project relating to mutual funds is included in many chapters as an integrat- ing theme. Visual Explorations Microsoft Excel add-in workbook that allows students to interac- tively explore important statistical concepts in descriptive statistics, the normal distribution, Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 26. sampling distributions, and regression analysis. For example, in descriptive statistics, stu- dents observe the effect of changes in the data on the mean, median, quartiles, and standard deviation. With the normal distribution, students see the effect of changes in the mean and standard deviation on the areas under the normal curve. In sampling distributions, students use simulation to explore the effect of sample size on a sampling distribution. In regression analysis, students have the opportunity of fitting a line and observing how changes in the slope and intercept affect the goodness of fit. Supplement Package The supplement package that accompanies this text includes the following: Instructor s Solutions Manual This manual includes solutions for end-of-section and end-of-chapter problems, answers to case questions, where applicable, and teaching tips for each chapter. Electronic solutions are provided in Excel and Word formats. Student Solutions Manual This manual provides detailed solutions to virtually all the even-numbered exercises and worked-out solutions to the self-test problems. Test Item File The Test Item File contains true/false, multiple-choice, fill-in, and prob- lem-solving questions based on the definitions, concepts, and ideas developed in each chapter of the text. TestGen software A test bank has been designed for use with the TestGen test-generating software. This computerized package allows instructors to custom design, save, and gener- ate classroom tests. The test program permits instructors to edit, add, or delete questions from the test bank; edit existing graphics and create new graphics; analyze test results; and organize a database of tests and student results. This software allows for flexibility and ease of use. It provides many options for organizing and displaying tests, along with a search and sort feature. The program is available on the instructor s CD-ROM, and associated conver- sion files can be found online at the Instructor s Resource Center. Instructor s Resource Center The Instructor s Resource Center contains the electronic files for the complete Instructor s Solutions Manual, the Test Item File, and Lecture PowerPoint presentations (www.prenhall.com/levine). Course and Homework Management Tools Prentice Hall s OneKey This tool offers the best teaching and learning resources, all in one place. OneKey for Statistics for Managers Using Microsoft Excel, is all an instruc- tor needs to plan and administer a course and is all students need for anytime, anywhere access to course materials. Conveniently organized by textbook chapter, the compiled resources include links to quizzes, PowerPoint presentations, data files, links to Web Cases, a PHStat2 download, a Visual Explorations download, the Student Solutions Manual, and additional instructor resources. WebCT and Blackboard With a local installation of either course management sys- tem, Prentice Hall provides content designed especially for this textbook to create a com- plete course suite, tightly integrated with the system s course management tools. PH GradeAssist This online homework and assessment system allows the instructor to assign problems for student practice, homework, or quizzes. The problems, taken directly from the text, are algorithmically generated, so each student gets a slightly different prob- lem with a different answer. This feature allows students multiple attempts for more prac- tice and improved competency. PH GradeAssist grades the results and can export them to Microsoft Excel worksheets. Companion Web site www.prenhall.com/levine contains the following: An online study guide with true/false, multiple-choice, and essay questions designed to test students comprehension of chapter topics PowerPoint presentation files with chapter outlines and key equations Student data files for text problems in Excel PHStat2 Web site PHStat2 has a home page at www.prenhall.com/phstat. xxii Preface Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 27. Preface xxiii Index page Web site An index page for the supporting material for all the Web Cases included in the text can be found at www.prenhall.com/Springville/ SpringvilleSFM5e.htm. Acknowledgments We are extremely grateful to the Biometrika Trustees, American Cyanimid Company, the RAND Corporation, the American Society for Testing and Materials for their kind permission to publish various tables in Appendix E and the American Statistical Association for its permission to publish diagrams from the American Statistician. Also, we are grateful to Professors George A. Johnson and Joanne Tokle of Idaho State University and Ed Conn, Mountain States Potato Company, for their kind permission to incorporate parts of their work as our Mountain States Potato Company case in Chapter 15. A Note of Thanks We would like to thank John Beyers, University of Maryland, University College; Ephrem Eyob, Virginia State University; Mickey Hepner, University of Central Oklahoma; Bill Jedicka, Harper College; Morgan Jones, University of North Carolina; Michael Lewis, West Virginia State University; Susan Pariseau, Merrimack College; Rupert Rhodd, Florida Atlantic University; Jim Robison, Sonoma State University; Abdulhamid Sukar, Cameron University; and Gary Tikriti, University of South Florida, St. Petersburg, for their comments, which have made this a better book. We would especially like to thank Mark Pfaltzgraff, Jeff Shelstad, Eric Frank, Anne Graydon, Cynthia Zonneveld, Nancy Welcher, Ashley Lulling, Barbara Witmer, Kelly Loftus, and Laura Cirigliano of the editorial, marketing, and production teams at Prentice Hall. We would like to thank our statistical reader and accuracy checker Annie Puciloski for her diligence in checking our work; Kitty Jarrett for her copyediting; Julie Kennedy for her proofreading; and Heidi Allgair, Sandra Krausman, and Cindy Miller of GGS Book Services, for their work in the production of this text. Finally, we would like to thank our parents, wives, and children for their patience, under- standing, love, and assistance in making this book a reality. It is to them that we dedicate this book. Concluding Remarks We have gone to great lengths to make this text both pedagogically sound and error free. If you have any suggestions or require clarification about any of the material, or if you find any errors, please contact us at David_Levine@baruch.cuny.edu or KREHBITC@muohio.edu. Include the phrase SMUME edition 5 in the subject line of your email. For more information about using PHStat2, see Appendix F, review the PHStat2 readme file on the student CD-ROM, and visit the PHStat2 Web site, at www.prenhall.com/phstat. David M. Levine David F. Stephan Timothy C. Krehbiel Mark L. Berenson Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 29. CHAPTER 1 1.1 WHY LEARN STATISTICS 1.2 STATISTICS FOR MANAGERS How This Text Is Organized USING STATISTICS @ Good Tunes 1.3 BASIC VOCABULARY OF STATISTICS 1.4 DATA COLLECTION 1.5 TYPES OF VARIABLES Levels of Measurement and Measurement Scales 1.6 MICROSOFT EXCEL WORKSHEETS Worksheet Cells Designing Effective Worksheets EXCEL COMPANION TO CHAPTER 1 E1.1 Preliminaries: Basic Computing Skills E1.2 Basic Workbook Operations E1.3 Worksheet Entries E1.4 Worksheet Formatting E1.5 Copy-and-Paste Operations E1.6 Add-ins: Making Things Easier for You Introduction and Data Collection LEARNING OBJECTIVES This chapter will help you learn: * How statistics is used in business * The sources of data used in business * The types of data used in business * The basics of Microsoft Excel Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 30. 2 CHAPTER ONE Introduction and Data Collection 1The statistical terms population and sample are formally defined in Section 1.3, on page 5. 1.1 WHY LEARN STATISTICS The reality TV series The Apprentice stars the real estate developer Donald Trump. When it premiered several years ago, Trump assigned two teams of contestants the task of setting up and running a lemonade stand. At the time, a number of businesspeople criticized that task as not being a realistic business task. They saw the task of selling lemonade as a sim- ple act of salesmanship that was more dependent on the persuasive skills of the seller than anything else. If you have ever sold lemonade or held other childhood jobs such as selling cookies or delivering daily newspapers, you know your task was fairly simple. For example, to deliver newspapers, you need only to keep track of a list of addresses and perhaps record the weekly or monthly payments. In contrast, sales and marketing managers of the newspaper need to keep track of much more data including the incomes, education levels, lifestyles, and buying pref- erences of their subscribers in order to make appropriate decisions about increasing circula- tion and attracting advertisers. But unless that newspaper has a tiny circulation, those managers are probably not looking at data directly. Instead, they are looking at summaries, such as the percentage of subscribers who attended at least some college, or trying to uncover useful pat- terns, such as whether more subscriptions are delivered to single-family homes in areas associ- ated with heavy sales of luxury automobiles. That is to say, the managers at the newspaper are using statistics, the subject of this text. Statistics is the branch of mathematics that transforms data into useful information for decision makers. These transformations often require complex calculations that are practi- cal only if done by computer, so using statistics usually means also using computers. This is especially true when dealing with the large volumes of data that a typical business collects. Attempting to do statistics using manual calculations for such data would be too time- consuming to benefit a business. When you learn statistics, you learn a set of methods and the conditions under which it is appropriate for you to use those methods. And because so many statistical methods are practi- cal only when you use computers, learning statistics also means learning more about using computer programs that perform statistical analyses. 1.2 STATISTICS FOR MANAGERS Today, statistics plays an ever increasing important role for business managers. These decision makers use statistics to: * Present and describe business data and information properly * Draw conclusions about large populations, using information collected from samples1 * Make reliable forecasts about a business activity * Improve business processes Statistics for managers means knowing more than just how to perform these tasks. Managers need a conceptual understanding of the principles behind each statistical analysis they undertake in order to have confidence that the information produced is correct and appro- priate for a decision-making situation. To help you master these necessary skills, every chapter of Statistics for Managers Using Microsoft Excel has a Using Statistics scenario. While the scenarios are fictional, they represent realistic situations in which you will be asked to make decisions while using Microsoft Excel to transform data into statistical information. For example, in one chapter, you will be asked to decide the location in a supermarket that best enhances sales of a cola drink, and in another chapter, you will be asked to forecast sales for a clothing store. (You will not be asked, as the television apprentices were asked, to decide how best to sell lemonade on a NewYork City street corner.) Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 31. 1.2: Statistics for Managers 3 TABLE 1.1 Organization of This Text Presenting and Describing Information Data Collection (Chapter 1) Presenting Data in Tables and Charts (Chapter 2) Numerical Descriptive Measures (Chapter 3) Drawing Conclusions About Populations Using Sample Information Basic Probability (Chapter 4), a prerequisite for the rest of the chapters of this group Some Important Discrete Probability Distributions (Chapter 5) The Normal Distribution and Other Continuous Distributions (Chapter 6) and Sampling and Sampling Distributions (Chapter 7), which lead to Confidence Interval Estimation (Chapter 8) and Hypothesis Testing (Chapter 9) Making Reliable Forecasts Simple Linear Regression (Chapter 10) Introduction to Multiple Regression (Chapter 11) How This Text Is Organized Table 1.1 shows the chapters of Statistics for Managers Using Microsoft Excel organized according to the four activities for which decision makers use statistics. Methods presented in the Chapters 1 3 are all examples of descriptive statistics, the branch of statistics that collects, summarizes, and presents data. Methods discussed in Chapters 7 through 9 are examples of inferential statistics, the branch of statistics that uses sample data to draw conclusions about an entire population. (Chapters 4 6 provide the foun- dation in probability and probability distributions needed for Chapters 7 9.) The definition of inferential statistics uses the terms sample and population, the second time you have encountered these words in this section. You can probably figure out that you cannot learn much about statistics until you learn the basic vocabulary of statistics. Continue now with the first Using Statistics scenario, which will help introduce you to several important terms used in statistics. USING STATISTICS @ Good Tunes Good Tunes, a growing four-store home entertainment systems retailer, seeks to dou- ble their number of stores within the next three years. The managers have decided to approach local area banks for the cash needed to underwrite this expansion. They need to prepare an electronic slide show and a formal prospectus that will argue that Good Tunes is a thriving business that is a good candidate for expansion. You have been asked to assist in the process of preparing the slide show and prospectus. What data would you include that will convince bankers to extend the credit it needs to Good Tunes? How would you present that data? Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 32. 4 CHAPTER ONE Introduction and Data Collection In this scenario, you need to identify the most relevant data for the bankers. Because Good Tunes is an ongoing business, you can start by reviewing the company s records, which show both its current and recent past status. Because Good Tunes is a retailer, presenting data about the company s sales seems a reasonable thing to do.You could include the details of every sales transaction that has occurred for the past few years as a way of demonstrating that Good Tunes is a thriving business. However, presenting the bankers with the thousands of transactions would overwhelm them and not be very useful. As mentioned in Section 1.1, you need to transform the transac- tions data into information by summarizing the details of each transaction in some useful way that would allow the bankers to (perhaps) uncover a favorable pattern about the sales over time. One piece of information that the bankers would presumably want to see is the dollar sales totals by year. Tallying and totaling sales is a common process of transforming data into infor- mation and a very common statistical analysis. When you tally sales or any other relevant data about Good Tunes you choose to use you follow normal business practice and tally by a business period such as by month, quarter, or year. When you do so, you end up with multiple values: sales for this year, sales for last year, sales for the year before that, and so on. How best to refer to these multiple values requires learning the basic vocabulary of statistics. 1.3 BASIC VOCABULARY OF STATISTICS Variables are characteristics of items or individuals and are what you analyze when you use a statistical method. For the Good Tunes scenario, sales, expenses by year, and net profit by year are variables that the bankers would want to analyze. VARIABLE A variable is a characteristic of an item or individual. When used as an adjective in everyday speech, variable suggests that something changes or varies, and you would expect the sales, expenses, and net profit to have different values from year to year. These different values are the data associated with a variable, and more simply, the data to be analyzed. In later sections, you will be sometimes asked to enter the cell range of a variable in Excel. When you see such an instruction, you should enter the cell range of the different values that collectively are the data to be analzyed. (Section 1.6 on page 11 explains what a cell range is and further discusses how to enter data in Excel.) Variables can differ for reasons other than time. For example, if you conducted an analysis of the composition of a large lecture class, you would probably want to include the variables class standing, gender, and major field of study. Those variables would vary, too, because each student in the class is different. One student might be a freshman male Economics major, while another may be a sophomore female Finance major. You also need to remember that values are meaningless unless their variables have opera- tional definitions. These definitions are universally accepted meanings that are clear to all associated with an analysis. While the operational definition for sales per year might seem clear, miscommunication could occur if one person was referring to sales per year for the entire chain of stores and another to sales per year per store. Even individual values for variables sometimes need definition for the class standing variable, for example, what exactly is meant by the words sophomore and junior? (Perhaps the most famous example of vague definitions was the definition of a valid vote in the state of Florida during the 2000 U.S. presidential elec- tion. Vagueness about the operational definitions there ultimately required a U.S. Supreme Court ruling.) Understanding the distinction between variables and their values helps in learning four other basic vocabulary terms, two of which you have already encountered in previous sections. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 33. 1.3: Basic Vocabulary of Statistics 5 suits how you like to learn. Do you like to learn by building things from scratch, one step at a time? If so, using the Basic Excel way would be the best way for you. Do you worry about the time it takes to build things and the typing errors you might make? Or do you like to learn by closely examining a solution to discover its details, a discovery process some call reverse engineering? In either of these cases, using PHStat2 would be your best choice. For a few statistical methods, you will not find either a Basic Excel way or a PHStat2 way, due to the limitations of Excel. For such meth- ods, you will find Excel workbook files on the book s CD that you can open and use as a tem- plate for creating your own solutions. (Actually, you will find files that contain template exam- ples for every statistical method discussed in the Excel Companions and for every Excel work- sheet or chart illustrated in this book. A good starting point for these examples are the Excel workbook files named for the chapters of this text, such as Chapter 2.xls.) Regardless of the way you use and learn Microsoft Excel, you are invited to go online and From the Authors Desktop Using and Learning Microsoft Excel A lthough we have talked a lot about statistics to this point, we haven t mentioned much about using Microsoft Excel. Using any computer program is a two-step process that begins with learning to operate the program and then advances to mastering how to apply the program to a decision- making task and Excel is no exception. The Excel Companion to this chapter will help you become familiar with operating Excel. In writing that Companion, we have assumed that you have operated a personal computer in the past to do something such as surf the Web, send an instant message, play music or games, or write homework assign- ments. If you have never used a personal com- puter for any of these or similar activities, you should ask a friend to introduce you to per- sonal computers before you read the Com- panion for this chapter. While this Companion was primarily written for novices, experienced Excel users will benefit from learning the words used to describe the Excel operations in this book. The Excel Companion to Chapter 2 and those for later chapters will help you under- stand how you can apply the statistical meth- ods discussed in this book by using Microsoft Excel. For each method discussed, you will typically learn two ways that you can use Excel. One way, labeled Basic Excel, uses Excel without any outside enhancements to the program.The other way, labeled PHStat2, uses the free PHStat2 statistics add-in* that is included on this book s CD. These two ways are truly interchange- able. The Excel solutions you create using either way will be identical (or nearly so) to each other and the example worksheets and charts you see in this book. You can switch between the two ways at any time as you use this text without losing any comprehension of the Excel material.That this book includes two complementary ways of learning Microsoft Excel is a distinctive feature of the book. Which way is best for you? Unless your instructor requires you to use one way, you may want to choose a way that best POPULATION A population consists of all the items or individuals about which you want to draw a conclusion. SAMPLE A sample is the portion of a population selected for analysis. PARAMETER A parameter is a numerical measure that describes a characteristic of a population. STATISTIC A statistic is a numerical measure that describes a characteristic of a sample. All the Good Tunes sales transactions for a specific year, all the customers who shopped at Good Tunes this weekend, all the full-time students enrolled in a college, and all the registered voters in Ohio are examples of populations. Examples of samples from these four populations would be 200 Good Tunes sales transactions randomly selected by an auditor for study, 30 Good Tunes customers asked to complete a customer satisfaction survey, 50 full-time students selected for a marketing study, and 500 registered voters in Ohio contacted via telephone for a political poll. In each sample, the transactions or people in the sample represent a portion of the items or individuals that make up the population. The average amount spent by all customers who shopped at Good Tunes this weekend is an example of a parameter because the amount spent in the entire population is needed. In contrast, the average amount spent by the 30 customers completing the customer satisfaction survey is an example of a statistic because the amount spent from only the sample of 30 people is required. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 34. 6 CHAPTER ONE Introduction and Data Collection 1.4 DATA COLLECTION The managers at Good Tunes believe that they will have a stronger argument for expansion if they can show the bankers that the customers of Good Tunes are highly satisfied with the ser- vice they received. How could the managers demonstrate that good service was the typical cus- tomer experience at Good Tunes? Unlike the earlier Good Tunes scenario, in which sales per year was automatically collected as part of normal business activities, the managers now face the twin challenges to first identify relevant variables for a customer satisfaction study and then devise a method for data collection that is, collecting the values for those variables. Many different types of circumstances, such as the following, require data collection: * A marketing research analyst needs to assess the effectiveness of a new television advertisement. * A pharmaceutical manufacturer needs to determine whether a new drug is more effective than those currently in use. * An operations manager wants to monitor a manufacturing process to find out whether the quality of product being manufactured is conforming to company standards. * An auditor wants to review the financial transactions of a company in order to determine whether the company is in compliance with generally accepted accounting principles. In each of these examples, and for the GoodTunes managers as well, collecting data from every item or individual in the population would be too difficult or too time-consuming. Because this is the typical case, data collection almost always involves collecting data from a sample. (Chapter 7 discusses methods of sample selection.) Unlike the Good Tunes example that begins this section, the source of the data to be col- lected is not always obvious. Data sources are classified as being either primary sources or secondary sources. When the data collector is the one using the data for analysis, the source is primary. When the person performing the statistical analysis is not the data collector, the source is secondary. Sources of data fall into one of four categories: * Data distributed by an organization or an individual * A designed experiment * A survey * An observational study Organizations and individuals that collect and publish data typically use that data as a pri- mary source and then let others use it as a secondary source. For example, the United States federal government collects and distributes data in this way for both public and private pur- poses. The Bureau of Labor Statistics collects data on employment and also distributes the monthly consumer price index. The Census Bureau oversees a variety of ongoing surveys It is true that other add-ins, including add- ins for other introductory business statistics textbooks, can obscure Microsoft Excel by not building an Excel-based solution and only reporting outcomes and statistical information that the add-in has internally (and invisibly) computed. Using such add-ins would not be truly learning Microsoft Excel, and using such add-ins would leave you dependent on their use. In contrast, PHStat2 creates model Excel solutions that you can examine and incorporate into your own Excel solutions. *Section E1.6 that begins on page 28 explains what an add-in is. explore theWeb site for this book.There,you will find supplementary material about using Excel, including discussions of Excel techniques that the authors were not able to include in the book because of space limitations. Postscript: Isn t Using an Add-in a Bad Thing? If you are an experienced Microsoft Excel user, you may have concerns about using an add-in such as PHStat2. You may be concerned that you will become dependent on something you would not be able to use in business or think that using PHStat2 somehow means that you are not really using and learning Microsoft Excel. Both of these concerns are unfounded. PHStat2 is a learning tool whose sole purpose is to help you understand how Excel can be used to support specific statistical methods. PHStat2 is designed to make using Microsoft Excel more convenient, by doing the busy work activities of creating an Excel solution, such as cell formatting, for you. When you read the Excel Companions, you will under- stand what PHStat2 is doing for you in a gen- eralized way as well as what it is doing specif- ically for a problem (following the Basic Excel instructions). Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 35. 1.4: Data Collection 7 regarding population, housing, and manufacturing and undertakes special studies on topics such as crime, travel, and health care. Market research firms and trade associations also distribute data pertaining to specific indus- tries or markets. Investment services such as Mergent s provide financial data on a company-by- company basis. Syndicated services such as AC Nielsen provide clients with data that enables the comparison of client products with those of their competitors. Daily newspapers are filled with numerical information regarding stock prices, weather conditions, and sports statistics. Outcomes of a designed experiment are another data source. These outcomes are the results of an experiment, such as a test of several laundry detergents to compare how well each detergent removes a certain type of stain. Developing proper experimental designs is a subject mostly beyond the scope of this text because such designs often involve sophisticated statistical procedures. Conducting a survey is a third type of data source. People being surveyed are asked ques- tions about their beliefs, attitudes, behaviors, and other characteristics. For example, people could be asked their opinion about which laundry detergent best removes a certain type of stain. (This could lead to a result different from a designed experiment seeking the same answer.) Conducting an observational study is the fourth important data source. A researcher col- lects data by directly observing a behavior, usually in a natural or neutral setting. Observational studies are a common tool for data collection in business. Market researchers use focus groups to elicit unstructured responses to open-ended questions posed by a moderator to a target audi- ence. Other, more structured types of studies involve group dynamics and consensus building. Observational study techniques are also used in situations in which enhancing teamwork or improving the quality of products and service is a management goal. Identifying the most appropriate source is a critical task because if biases, ambiguities, or other types of errors flaw the data being collected, even the most sophisticated statis- tical methods will not produce useful information. For the Good Tunes example, variables relevant to the customer experience could take the form of survey questions related to various aspects of the customer experience, examples of which are shown in Figure 1.1. FIGURE 1.1 Questions about the Good Tunes customer experience 1. How many days did it take from the time you ordered your merchandise to the time you received it?__________ 2. Did you buy any merchandise that was featured in the Good Tunes Sunday newspaper sales flyer for the week of your purchase? Yes __________ No__________ 3. Was this your first purchase at Good Tunes? Yes __________ No__________ 4. Are you likely to buy additional merchandise from Good Tunes in the next 12 months? Yes __________ No__________ 5. How much money (in U.S.dollars) do you expect to spend on stereo and consumer electronics equipment in the next 12 months?__________ 6. How do you rate the overall service provided by Good Tunes with respect to your recent purchase? Excellent Very good Fair Poor 7. How do you rate the selection of products offered by Good Tunes with respect to other retailers of home entertainment systems? Excellent Very good Fair Poor 8. How do you rate the quality of the items you recently purchased from Good Tunes? Excellent Very good Fair Poor Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 36. 8 CHAPTER ONE Introduction and Data Collection What would you say about a ratings Web site that accepts advertising from merchants that are rated on the site? What would you say about a ratings Web site that gets paid a commission if a visitor first views a rating and then clicks on a link for the merchant? These are among the several practices that may raise ethical concerns for some. If you do use a ratings Web site, be sure to check out the fine print on your next visit. Although you will find a privacy state- ment that explains how the Web site uses data that can personally identify you, most likely you will not find a data collection statement that explains the methods the Web site uses to collect its data. Perhaps you should find such a statement. From the Authors Desktop Web Surveys W eb-based surveys and rat- ings seem to be of growing importance for many mar- keters. Their use and mis- use raise many concerns. By coincidence, while writing Section 1.4, one of us received an email requesting that he rate the Marriott Rewards travel loyalty program a perfect 10 in the vot- ing for the InsideFlyer Freddie Awards. The author had never heard of those awards, but soon he received other emails from various other travel loyalty programs, also asking that the same high rating be submitted. He even got an email for a program for which he had just signed up in the prior month (and for a travel company of which he was not yet a customer). At the same time, another one of us found an article in The New York Times that reported that Internet travel sites had to closely monitor submitted reviews to avoid fraudulent claims (C. Elliott, Hotel Reviews Online: In Bed with Hope, Half-Truths and Hype, The New York Times, February 7, 2006, pp. C1, C8).The article also reported that a hotel in Key West, Florida, offered its guests a 10% discount if they pub- lished a rave review of that hotel on a particu- lar travel Web site! Our co-author with all the Freddie emails felt cheated. Have you ever received an email asking you to rate an online merchant? Many of us have, especially when we have just pur- chased something from an online merchant. Often, such emails come with an incentive, not unlike the Key West hotel s discount. Would an incentive cause you to rate the mer- chant?Would the incentive affect your opinion? The survey might also ask questions that seek to classify customers into groups for later analysis. One good way for Good Tunes to avoid data-collection flaws would be to distribute the questionnaire to a random sample of customers (as discussed in Chapter 7). A poor way would be to rely on a business rating Web site that allows online visitors to rate a merchant. Such Web sites cannot provide assurance that those who do the rating are customers. FIGURE 1.2 Types of variables Data Type Question Types Responses Categorical Do you currently own any stocks or bonds? Yes No Numerical Discrete Continuous To how many magazines do you currently subscribe? How tall are you? Number Inches 1.5 TYPES OF VARIABLES Statisticians classify variables as either being categorical or numerical and further classify numerical variables as having either discrete or continuous values. Figure 1.2 shows the rela- tionships and provides examples of each type of variable. Categorical variables (also known as qualitative variables) have values that can only be placed into categories, such as yes and no . Questions 2 4 in Figure 1.1 are examples of categorical variables, all of which have yes or no as their values. Categorical variables can also result in more than two possible responses. An example of this type of variable is asking customers to indicate the day of the week on which they made their purchases. Questions 6 8 result in one of four possible responses. Numerical variables (also known as quantitative variables) have values that represent quantities. For example, Questions 1 and 5 in Figure 1.1 are numerical variables. Numerical variables are further subdivided as discrete or continuous variables. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 37. 1.5: Types of Variables 9 Discrete variables have numerical values that arise from a counting process. The number of magazines subscribed to is an example of a discrete numerical variable because the response is one of a finite number of integers. You subscribe to zero, one, two, and so on magazines. The number of days it takes from the time you ordered your merchandise to the time you receive it is a discrete numerical variable because you are counting the number of days. Continuous variables produce numerical responses that arise from a measuring process. The time you wait for teller service at a bank is an example of a continuous numerical vari- able because the response takes on any value within a continuum, or interval, depending on the pre- cision of the measuring instrument. For example, your waiting time could be 1 minute, 1.1 min- utes, 1.11 minutes, or 1.113 minutes, depending on the precision of the measuring device you use. Theoretically, with sufficient precision of measurement, no two continuous values will be identical. As a practical matter, however, most measuring devices are not precise enough to detect small differences, and tied values for a continuous variable (i.e., two or more items or individuals with the same value) are often found in experimental or survey data. Levels of Measurement and Measurement Scales Using levels of measurement is another way of classifying data. There are four widely recog- nized levels of measurement: nominal, ordinal, interval, and ratio scales. Nominal and Ordinal Scales Data from a categorical variable are measured on a nom- inal scale or on an ordinal scale. A nominal scale (see Figure 1.3) classifies data into distinct categories in which no ranking is implied. In the Good Tunes customer satisfaction survey, the answer to the question Are you likely to buy additional merchandise from Good Tunes in the next 12 months? is an example of a nominal scaled variable, as are your favorite soft drink, your political party affiliation, and your gender. Nominal scaling is the weakest form of mea- surement because you cannot specify any ranking across the various categories. FIGURE 1.3 Examples of nominal scales Categorical Variable Categories Personal Computer Ownership Type of Stocks Owned Internet Provider Growth Value Microsoft Network Other Other AOL None Yes No Categorical Variable Ordered Categories Student class designation Freshman Sophomore Junior Senior Product satisfaction Very Unsatisfied Fairly Unsatisfied Neutral Fairly Satisfied Very Satisfied Faculty rank Professor Associate Professor Assistant Professor Instructor Standard & Poor s bond ratings AAA AA A BBB BB B CCC CC C DDD DD D Student grades A B C D F Student class designation Freshman Sophomore Junior Senior Product satisfaction Very Unsatisfied Fairly Unsatisfied Neutral Fairly Satisfied Very Satisfied Faculty rank Professor Associate Professor Assistant Professor Instructor Standard & Poor s bond ratings AAA AA A BBB BB B CCC CC C DDD DD D Student grades A B C D F FIGURE 1.4 Examples of ordinal scales An ordinal scale classifies data into distinct categories in which ranking is implied. In the Good Tunes survey, the answers to the question How do you rate the overall service provided by Good Tunes with respect to your recent purchase? represent an ordinal scaled variable because the responses excellent, very good, fair, and poor are ranked in order of satisfaction level. Figure 1.4 lists other examples of ordinal scaled variables. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 38. 10 CHAPTER ONE Introduction and Data Collection FIGURE 1.5 Examples of interval and ratio scales Ordinal scaling is a stronger form of measurement than nominal scaling because an observed value classified into one category possesses more of a property than does an observed value classified into another category. However, ordinal scaling is still a relatively weak form of measurement because the scale does not account for the amount of the differences between the categories. The ordering implies only which category is greater, better, or more preferred not by how much. Interval and Ratio Scales Data from a numerical variable are measured on an interval or a ratio scale. An interval scale (see Figure 1.5) is an ordered scale in which the difference between measurements is a meaningful quantity but does not involve a true zero point. For example, a noon- time temperature reading of 67 degrees Fahrenheit is 2 degrees warmer than a noontime reading of 65 degrees. In addition, the 2 degrees Fahrenheit difference in the noontime temperature readings is the same as if the two noontime temperature readings were 74 and 76 degrees Fahrenheit because the difference has the same meaning anywhere on the scale. PROBLEMS FOR SECTION 1.5 Learning the Basics 1.1 Three different beverages are sold at a fast- food restaurant soft drinks, tea, and coffee. a. Explain why the type of beverage sold is an example of a categorical variable. b. Explain why the type of beverage sold is an example of a nominal scaled variable. 1.2 Soft drinks are sold in three sizes at a fast-food restaurant small, medium, and large. Explain why the size of the soft drink is an example of an ordinal scaled variable. 1.3 Suppose that you measure the time it takes to down- load an MP3 file from the Internet. a. Explain why the download time is a continuous numeri- cal variable. b. Explain why the download time is a ratio scaled variable. Applying the Concepts 1.4 For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. In addition, determine the level of measurement for each of the following. a. Number of telephones per household b. Length (in minutes) of the longest long-distance call made per month SELF Test Numerical Variable Level of Measurement Temperature (in degrees Celsius or Fahrenheit) Standardized exam score (e.g., ACT or SAT) Height (in inches or centimeters) Weight (in pounds or kilograms) Age (in years or days) Salary (in American dollars or Japanese yen) Interval Ratio Interval Ratio Ratio Ratio A ratio scale is an ordered scale in which the difference between the measurements involves a true zero point, as in height, weight, age, or salary measurements. In the Good Tunes customer satisfaction survey, the amount of money (in U.S. dollars) you expect to spend on stereo equipment in the next 12 months is an example of a ratio scaled variable. As another example, a person who weighs 240 pounds is twice as heavy as someone who weighs 120 pounds. Temperature is a trickier case: Fahrenheit and Celsius (centigrade) scales are interval but not ratio scales; the zero value is arbitrary, not real.You cannot say that a noontime temperature reading of 4 degrees Fahrenheit is twice as hot as 2 degrees Fahrenheit. But a Kelvin temperature reading, in which zero degrees means no molecular motion, is ratio scaled. In con- trast, the Fahrenheit and Celsius scales use arbitrarily selected zero-degree beginning points. Data measured on an interval scale or on a ratio scale constitute the highest levels of measurement. They are stronger forms of measurement than an ordinal scale because you can determine not only which observed value is the largest but also by how much. PH Grade ASSIST Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 39. 1.6: Microsoft Excel Worksheets 11 c. Whether someone in the household owns a cell phone d. Whether there is a high-speed Internet connection in the household 1.5 The following information is collected from students upon exiting the campus bookstore dur- ing the first week of classes: a. Amount of time spent shopping in the bookstore b. Number of textbooks purchased c. Academic major d. Gender Classify each of these variables as categorical or numeri- cal. If the variable is numerical, determine whether the variable is discrete or continuous. In addition, determine the level of measurement for these variables. 1.6 For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. In addition, determine the level of measurement for each of the following. a. Name of Internet provider b. Amount of time spent surfing the Internet per week c. Number of emails received in a week d. Number of online purchases made in a month 1.7 For each of the following variables, determine whether the variable is categorical or numerical. If the variable is numerical, determine whether the variable is discrete or continuous. In addition, determine the level of measurement for each of the following. a. Amount of money spent on clothing in the past month b. Favorite department store c. Most likely time period during which shopping for clothing takes place (weekday, weeknight, or weekend) d. Number of pairs of winter gloves owned 1.8 Suppose the following information is collected from Robert Keeler on his application for a home mortgage loan at the Metro County Savings and Loan Association: a. Monthly payments: $1,427 b. Number of jobs in past 10 years: 1 c. Annual family income: $86,000 d. Marital status: Married Classify each of the responses by type of data and level of measurement. 1.9 One of the variables most often included in surveys is income. Sometimes the question is phrased What is your income (in thousands of dollars)? In other surveys, the respondent is asked to Place an X in the circle corre- sponding to your income level and given a number of income ranges to choose from. a. In the first format, explain why income might be consid- ered either discrete or continuous. b. Which of these two formats would you prefer to use if you were conducting a survey? Why? c. Which of these two formats would likely bring you a greater rate of response? Why? 1.10 If two students score a 90 on the same examination, what arguments could be used to show that the underlying variable test score is continuous? 1.11 The director of market research at a large department store chain wanted to conduct a survey throughout a metro- politan area to determine the amount of time working women spend shopping for clothing in a typical month. a. Describe both the population and the sample of interest, and indicate the type of data the director might want to collect. b. Develop a first draft of the questionnaire needed in (a) by writing a series of three categorical questions and three numerical questions that you feel would be appro- priate for this survey. 1.6 MICROSOFT EXCEL WORKSHEETS When you use Microsoft Excel, you place the data you have collected in worksheets. Worksheets appear as pages containing gridlines that separate individually lettered columns from numbered rows. While worksheets look like the simple tables you can create in a word processing program, worksheets have special features that are particularly suited to data analy- sis. Understanding the special features of worksheets will help you to better understand the interplay of data and results in Microsoft Excel. Worksheet Cells The intersections of the columns and rows of worksheets form boxes called cells. You refer to a cell by its column letter and row number. For example, you refer to the cell in the first column and second row as cell A2 and the cell in the fifth column and first row as cell E1.You enter in a cell a single value or an expression that can include a reference to another cell. This flexibility, as explained further in Section E1.3 of the Excel Companion to this chapter, is one of the special features that makes Microsoft Excel more than just a fancy table-oriented word processor. PH Grade ASSIST PH Grade ASSIST PH Grade ASSIST Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 40. 12 CHAPTER ONE Introduction and Data Collection You can refer to more than one cell in a cell reference. If you want to refer to a group of cells that forms a contiguous rectangular area, you can use a cell range in which references to the upper leftmost cell and the lower rightmost cell are joined with a colon. For example, the cell range A1:C2 refers to the six cells found in the first two rows and three columns of a work- sheet. Excel also allows ranges such as A:A or 4:4, as a shorthand way of referring to all the cells in a column or a row. Later in this text, you will see cell ranges such as D1:D8,F1:F8 that refer to cells from two non-adjacent area of a worksheet. Worksheets exist inside a workbook, a collection of worksheets and other types of sheets, including chart sheets that help visualize data. Usually, you will use only one sheet at any given time and open to a worksheet by clicking its sheet tab (see Section E1.1). If someone says that they are opening an Excel file, they are most likely opening a workbook file. All versions of Excel can open workbook files saved using the .xls file format (and all Excel files on the Student CD are in this format). Excel 2007 can also open workbooks saved in the newer .xlsx format discussed in Appendix F. Designing Effective Worksheets Because thousands of cells are available on individual worksheets, you will never have to worry about running out of cells to use. This spaciousness of worksheets invites careless use and causes some to ignore the important process of effectively arranging worksheet data. Poor arrangements can increase the chance of user errors, create confusing results, lead to unattrac- tive printouts, or worse. To be consistent with standard business usage, you should associate column cell ranges with variables. In this arrangement, you use the first (row 1) cell of a column for a name label for a variable and place the data for the variable in the subsequent cells of the column.You do not skip any rows as you enter data, so column cell ranges will never contain any empty cells. (Empty cells can interfere with Excel ability s to process your data and can lead to inaccurate results.) This standard practice is always used in this text and in all of the Excel files on the student CD. Because all of the Excel instructions assume this data arrangement, you should never devi- ate from this practice when you use this book. Another good practice is to place all the variables on a worksheet that is separate from the worksheet containing the results. Such separation will increase the reusability of your results worksheet and minimize the chance of inadvertent changes to the values of your variables as you construct your results. In the workbooks found on the book s CD as well as the work- books produced by PHStat2, you will generally find a Results worksheet showing the results separate from the worksheet containing the variables. Sometimes, worksheets used in this book require only the values of certain parameters or statistics and not the values associated with a variable. For such worksheets, good practice is to place the parameters and statistics at the top of the worksheet so that a user can easily perform what-if analyses, changing values to see their effects on the results. In this book, these values always appear in bold, in cells tinted a shade Excel calls light turquoise and under the heading Data. When you see such tinted cells, you know that you can change the values in those cells to perform what-if analyses and solve other, similar problems. Another good design practice is to allow the user to be able to explicitly see the chain of calculations from the starting data, through any intermediate calculations, to the results. This practice is particularly advantageous when preparing statistical worksheets because most inter- mediate calculations are statistics themselves. Showing the chain of calculations helps you review your worksheet for errors and helps others better understand what your worksheet does. In the worksheets of this book, intermediate calculations appear under the heading Intermediate Calculations and are in a cell range that immediately precedes the cell range containing the results. The results appear in cells that are tinted a light yellow and contain boldfaced text. There is also a heading over the results cells that varies with the type of statis- tical analysis performed. Whether you use the worksheet design of this book or your own design, do not overlook the importance of skipping rows or columns to create white space to separate different regions Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 41. Key Terms 13 produces. Unfortunately, some investigators have determined that certain Microsoft Excel statistical capabilities contain flaws that can lead to invalid results, especially when data sets are very large or have unusual statistical properties (see reference 1, 2, and 4). Even using Microsoft Excel with small data sets to produce the relatively simple descriptive sta- tistics can lead to nonstandard results. (As an example, see the discussion for creating his- tograms in the Excel Companion to chapter 2 on page 86.) Clearly, when you use Microsoft Excel, you must be careful about the data and the method you are using. Whether this com- plication outweighs the benefits of Excel s attractive features is still an unanswered question in business today. From the Authors Desktop When to Excel P erhaps you have heard from some people that Microsoft Excel shouldn t be used for statistics or you have searched the Internet and discovered that statistics educators have had a long-running discussion over the use of Excel in the classroom. As authors of a text whose title includes the phrase Using Microsoft Excel, we believe that Microsoft Excel provides a good way to introduce you to basic statistical methods and demonstrate how to apply these methods in business decision making. Many managers, noting the prevalence of Microsoft Excel on the computers in their businesses, have simi- larly considered using Excel, rather than a specialized statistical program, for statistical analysis. Microsoft Excel seems like an attrac- tive choice because: Using Excel means not having to incur the extra costs of using specialized statistical programs. Most business users already have some familiarity with Excel. Excel is easy to use and easy to learn, at least for casual users. Excel graphical and statistical functions can use the same worksheet-based data that users have created for other business purposes. Some Excel graphical functions produce more vivid visual outputs than some spe- cialized statistical programs. While these traits are attractive, those who have chosen Microsoft Excel have not necessarily considered the accuracy and com- pleteness of the statistical results that Excel S U M M A R Y In this chapter, you have been introduced to the role of sta- tistics in turning data into information and the importance of using computer programs such as Microsoft Excel. In addition, you have studied data collection and the various types of data used in business. In conjunction with the Using Statistics scenario, you were asked to review the cus- tomer survey used by the Good Tunes company (see page 7). The first and fifth questions of the survey shown will pro- duce numerical data. Questions 2, 3, and 4 will produce nominal categorical data. Questions 6 8 will produce ordi- nal categorical data. The responses to the first question (number of days) are discrete, and the responses to the fifth question (amount of money spent) are continuous. In the next two chapters, tables and charts and a variety of descriptive numerical measures that are useful for data analysis are developed. K E Y T E R M S categorical variable 8 cell 11 cell range 12 chart sheet 12 continuous variable 9 data 4 descriptive statistics 3 discrete variable 9 inferential statistics 3 interval scale 10 nominal scale 9 numerical variable 8 operational definition 4 ordinal scale 9 parameter 5 population 5 primary source 6 qualitative variable 8 quantitative variable 8 ratio scale 10 sample 5 secondary source 6 statistic 5 statistics 2 variable 4 workbook 12 worksheet 11 of the worksheet that present results. In this book, worksheets tend to skip only a single row or a single column. This choice is due more to making all illustrations compact than any hard or fast rule.You should experiment with your own worksheets with an eye to making them easy to follow on both the display screen and the printed page. Do not hesitate to create two copies of your worksheets one optimized for the screen, the other for the printer, if you have anything but the simplest worksheet to produce. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 42. 14 CHAPTER ONE Introduction and Data Collection C H A P T E R R E V I E W P R O B L E M S Checking Your Understanding 1.12 What is the difference between a sample and a population? 1.13 What is the difference between a statistic and a parameter? 1.14 What is the difference between descriptive and inferential statistics? 1.15 What is the difference between a categori- cal variable and a numerical variable? 1.16 What is the difference between a discrete variable and a continuous variable? 1.17 What is an operational definition and why is it so important? 1.18 What are the four levels of measurement scales? Applying the Concepts 1.19 The Data and Story Library, lib.stat.cmu.edu/ DASL, is an online library of data files and stories that illustrate the use of basic statistical methods. The stories are classified by method and by topic. Go to this site and click on List all topics. Pick a story and summarize how statistics were used in the story. 1.20 Go to the official Microsoft Excel Web site, www.microsoft.com/office/excel. Explain how you think Microsoft Excel could be useful in the field of statistics. 1.21 The Gallup organization releases the results of recent polls at its Web site, www.galluppoll.com. Go to this site and read today s top analysis. a. Give an example of a categorical variable found in the poll. b. Give an example of a numerical variable found in the poll. c. Is the variable you selected in (b) discrete or continuous? 1.22 The U.S. Census Bureau site, www.census.gov, con- tains survey information on people, business, geography, and other topics. Go to the site and click on Housing in the People and Households section. Then click on American Housing Survey. a. Briefly describe the American Housing Survey. b. Give an example of a categorical variable found in this survey. c. Give an example of a numerical variable found in this survey. d. Is the variable you selected in (c) discrete or continuous? 1.23 On the U.S. Census Bureau site, www.census.gov, click on Survey of Business Owners in the Business & Industry section and read about The Survey of Business Owners. Click on Sample SBO-1 Form to view a survey form. a. Give an example of a categorical variable found in this survey. b. Give an example of a numerical variable found in this survey. c. Is the variable you selected in (b) discrete or continuous? 1.24 An online survey of almost 53,000 people (N. Hellmich, Americans Go for the Quick Fix for Dinner, USA Today, February 14, 2005, p. B1) indicated that 37% decide what to make for dinner at home at the last minute and that the amount of time to prepare dinner aver- ages 12 minutes, while the amount of time to cook dinner averages 28 minutes. a. Which of the four categories of data sources listed in Section 1.4 on page 6 do you think were used in this study? b. Name a categorical variable discussed in this article. c. Name a numerical variable discussed in this article. 1.25 According to a Harris Interactive survey of 502 senior human resource executives, 58% responded that referrals were one of the methods for finding the best can- didates. ( USA Snapshots, USA Today, February 9, 2006, p. A1). a. Describe the population for the Harris Interactive survey. b. Is a response to the question By which methods do you feel you find the best candidates? categorical or numerical? c. Fourteen percent of the senior human resources execu- tives polled indicated that professional associations were one of the methods for finding the best candidates. Is this a parameter or a statistic? 1.26 A manufacturer of cat food was planning to survey households in the United States to determine purchasing habits of cat owners. Among the questions to be included are those that relate to 1. where cat food is primarily purchased. 2. whether dry or moist cat food is purchased. 3. the number of cats living in the household. 4. whether the cat is pedigreed. a. Describe the population. b. For each of the four items listed, indicate whether the variable is categorical or numerical. If it is numerical, is it discrete or continuous? c. Develop five categorical questions for the survey. d. Develop five numerical questions for the survey. PH Grade ASSIST PH Grade ASSIST PH Grade ASSIST PH Grade ASSIST Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 43. Student Survey Data Base 1.27 A sample of 50 undergraduate students answered the following survey. 1. What is your gender? Female___ Male___ 2. What is your age (as of last birthday)?___ 3. What is your height (in inches)?___ 4. What is your current registered class designation? Freshman___ Sophomore___ Junior___ Senior___ 5. What is your major area of study? Accounting___ Economics/Finance___ Information Systems___ International Business___ Management___ Marketing/Retailing___ Other___ Undecided___ 6. At the present time, do you plan to attend graduate school? Yes___ No___ Not sure___ 7. What is your current cumulative grade point average?___ 8. What would you expect your starting annual salary (in $000) to be if you were to seek employment immediately after obtaining your bachelor s degree?___ 9. What do you anticipate your salary to be (in $000) after five years of full-time work experience?___ 10. What is your current employment status? Full-time___ Part-time___ Unemployed___ 11. How many clubs, groups, organizations, or teams are you currently affiliated with on campus? 12. How satisfied are you with the student advisement services on campus?___ Extremely 1 2 3 4 5 6 7 Extremely unsatisfied Neutral satisfied 13. About how much money did you spend this semester for textbooks and supplies?___ The results of the survey are in the file undergradsurvey.xls. a. Which variables in the survey are categorical? b. Which variables in the survey are numerical? c. Which variables are discrete numerical variables? 1.28 A sample of 50 MBA students answered the follow- ing survey: 1. What is your gender? Female___ Male___ 2. What is your age (as of last birthday)?___ 3. What is your height (in inches)?___ 4. What is your current major area of study? Accounting ___ Economics/Finance___ Information Systems___ International Business___ Management___ Marketing/Retailing___ Other___ Undecided___ 5. What is your graduate cumulative grade point index?___ 6. What was your undergraduate area of specialization? Biological Sciences___ Business Administration___ Computers or Math___ Education___ Engineering___ Humanities___ PerformingArts___ Physical Sciences___ Social Sciences___ Other___ 7. What was your undergraduate cumulative grade point average?___ 8. What was your GMAT score?___ 9. What is your current employment status?___ Full-time___ Part-time___ Unemployed___ 10. How many different full-time jobs have you held in the past 10 years?___ 11. What do you expect your annual salary (in $000) to be immediately after completion of the MBA program?___ 12. What do you anticipate your salary to be (in $000) after five years of full-time work experience follow- ing the completion of the MBA program?___ 13. How satisfied are you with the student advisement services on campus? Extremely 1 2 3 4 5 6 7 Extremely unsatisfied Neutral satisfied 14. About how much money did you spend this semester for textbooks and supplies?___ The results of the survey are in the file gradsurvey.xls. a. Which variables in the survey are categorical? b. Which variables in the survey are numerical? c. Which variables are discrete numerical variables? End-of-Chapter Cases 15 End-of-Chapter Cases At the end of most chapters, you will find a continuing case study that allows you to apply statistics to problems faced by the management of the Springville Herald, a daily newspaper. Complementing this case are a series of Web Cases that extend many of the Using Statistics scenarios that begin each chapter. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 44. 16 CHAPTER ONE Introduction and Data Collection Learning with the Web Cases People use statistical techniques to help communicate and present important information to others both inside and outside their businesses. Every day, as in these examples, people misuse these techniques: A sales manager working with an easy-to-use chart- ing program chooses an inappropriate chart that obscures data relationships. The editor of an annual report presents a chart of rev- enues with an abridged Y-axis that creates the false impression of greatly rising revenues. An analyst generates meaningless statistics about a set of categorical data, using analyses designed for numer- ical data. Identifying and preventing misuses of statistics, whether intentional or not, is an important responsibility for all managers. The Web Cases help you develop the skills nec- essary for this important task. Web Cases send you to Web sites that are related to the Using Statistics scenarios that begin each chapter. You review internal documents as well as publicly stated claims, seeking to identify and correct the misuses of sta- tistics. Unlike a traditional case study, but much like real- world situations, not all of the information you encounter will be relevant to your task, and you may occasionally dis- cover conflicting information that you need to resolve before continuing with the case. To assist your learning, the Web Case for each chap- ter begins with the learning objective and a summary of the problem or issue at hand. Each case directs you to one or more Web pages where you can discover information to answer case questions that help guide your exploration. If you prefer, you can view these pages by opening corresponding HTML files that can be found on this Web Case folder on the Student CD. You can find an index of all files/pages by opening the SpringvilleCC.htm file in the Web Case folder or by visiting the Springville Chamber of Commerce page, at www.prenhall.com/ Springville/SpringvilleCC.htm. Web Case Example To illustrate how to learn from a Web Case, open a Web browser and link to www.prenhall.com/Springville/ Good_Tunes.htm, or open the Good_Tunes.htm file in the WebCase folder on the book s CD. This Web page rep- resents the home page of Good Tunes, the online retailer mentioned in the Using Statistics scenario in this chapter. Recall that the privately held Good Tunes is seeking financing to expand its business by opening retail loca- tions. Since it is in management s interest to show that Good Tunes is a thriving business, it is not too surprising to discover the our best sales year ever claim in the Good Times at Good Tunes entry at the top of their home page. The claim is also a hyperlink, so click on our best sales year ever to display the page that supports the claim. How would you support such a claim? with a table of numbers? a chart? remarks attributed to a knowledgeable source? Good Tunes has used a chart to present two years ago and latest twelve months sales data by category. Are there any problems with the choices made on this Web page? Absolutely! First, note that there are no scales for the symbols used, so it is impossible to know what the actual sales volumes are. In fact, as you will learn in Section 2.6, charts that incorporate symbols in this way are considered examples of chartjunk and would never be used by people seeking to properly use graphs. This important point aside, another question that arises is whether the sales data represent the number of units sold or something else. The use of the symbols cre- ates the impression that unit sales data are being pre- sented. If the data are unit sales, does such data best sup- port the claim being made or would something else, such as dollar volumes be a better indicator of sales at Good Tunes? Then there are those curious chart labels. Latest twelve months is ambiguous; it could include months from the current year as well as months from one year ago and therefore may not be an equivalent time period to two years ago. Since the business was established in 1997, and the claim being made is best sales year ever, why hasn t management included sales figures for every year? Is Good Tunes management hiding something, or are they just unaware of the proper use of statistics? Either way, they have failed to properly communicate a vital aspect of their story. In subsequent Web Cases, you will be asked to provide this type of analysis, using the open-ended questions of the case as your guide. Not all the cases are as straightforward as this sample, and some cases include perfectly appropri- ate applications of statistics. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 45. R E F E R E N C E S 3. Microsoft Excel 2007 (Redmond, WA: Microsoft Corporation, 2007). 4. Nash, J. C., Spreadsheets in Statistical Practice Another Look, The American Statistician, 60, (2006), 287 289. 1. McCullough, B. D., and B. Wilson, On the Accuracy of Statistical Procedures in Microsoft Excel 97, Com- putational Statistics and DataAnalysis, 31 (1999), 27 37. 2. McCullough, B. D. and B. Wilson, On the Accuracy of Statistical Proucedures in Microsoft Excel 2003, Computational Statistics and Data Analysis, 49, (2005), 1244 1252. References 17 Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 46. This Excel Companion serves as a primer for Microsoft Excel, helping you become familiar with the concepts and commands that everyday use of Microsoft Excel requires. Before you intensely study this Companion, you should first consider how you plan to use Excel as you learn statistics. If you skipped reading the From the Authors Desktop: Using and Learning Microsoft Excel on page 5, you may want to review it now so that you have a better understanding of the choices you have in using Excel with this text. How you plan to use Excel will affect which Excel skills you immediately need to know. If you plan to use the Basic Excel instructions in later companions, you should know, or at least have some awareness of, just about every skill discussed in the rest of this Companion. If you plan to use PHStat2, you will have a less immediate need for the skills related to worksheet entries and formulas discussed in Sections E1.3, E1.4, and E1.5. (You can master such skills later, as you read through this book.) The rest of this companion presents skills in an increas- ing order of difficulty. Make sure you have mastered the skills presented in the first sections before going on to the later sections. If you consider yourself an experienced Excel user, you might want to take the time to scan this compan- ion if only to become familiar with the terms used through- out the book to describe Excel objects and operations. E1.1 PRELIMINARIES: BASIC COMPUTING SKILLS If you have ever surfed the Web, sent an instant message, played music or games, or written word-processed assign- ments, you have already mastered the skills necessary in order to use Microsoft Excel. However, if you are new to computing, you should use the following countdown of skills on your mark, get ready, get set, go to master the basic computing skills needed with this book. (If you are an experienced computer user, you will want to skim this sec- tion and note the definitions of the boldfaced terms.) On Your Mark! Like many other programs, Microsoft Excel makes fre- quent use of a keyboard and a mouse-type pointing device. Microsoft Excel expects your pointing device to have two 18 EXCEL COMPANION to Chapter 1 buttons: a primary button (typically the left button) and a secondary button (typically the right). You move your pointing device and use one of the buttons to execute one of these six basic operations1: Click Move the mouse pointer over an object and press the primary button.You click links on a Web page and many of the user interface elements identified in the Get Set! part of this section. The book also uses the verb clear when telling you to click on a check box to remove its check mark. Select Similar to click, but when you press the primary but- ton, another list of menu commands or choices appear. You click the Microsoft Windows Start menu and then select Programs or All Programs (depending on the version) to display a list of programs and program folders installed on your system. Double-click Move the mouse pointer over an object and click the primary button twice in rapid succession. You double-click Desktop program icons to open programs, and you double-click the icons that represent files to open and use those files. Right-click Move the mouse pointer over an object and click the secondary button. You typically right-click an object to reveal a shortcut menu of commands that apply to that object. Drag A multipart mouse operation. First, you move the mouse pointer over an object and then, while pressing and holding down the primary button, you move the mouse pointer somewhere else on the screen and release the primary button. You use drag to resize windows and, in Microsoft Excel, to select a group of adjacent worksheet cells. Drag-and-drop A multipart mouse operation. First, you move the mouse pointer over an object and then, while pressing and holding down the primary button, you move the mouse pointer over another onscreen object and release the primary button. Drag-and-drop has many applications, but in this text, you mostly use this operation when defin- ing PivotTables (discussed in the Excel Companion to Chapter 2). Excel Companion to Chapter 1 1Alternate methods of interaction, such as using speech recognition input, are possible on suitably equipped systems. If you are using an alternate method, make sure you know the equivalents to the mouse operations defined in this section. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 47. If these operations are new to you, you can practice them by opening the Mousing Practice.xls file on the Student CD. (If you do not know how to open a file, ask a friend or use the instructions available in Section E1.2.) Otherwise, you are ready to advance to the Get Ready! stage. Get Ready! When you start Microsoft Excel, you see a window that con- tains the Excel user interface and a workspace area that dis- plays open workbooks. If you start any Excel version other than 2007, you will see a window very much like the one shown in Figure E1.1, the actual window for Excel 2003. If you start Excel 2007, you will see the very different- looking window, similar to the one shown in Figure E1.2 on page 20. In designing Excel 2007, Microsoft tried to minimize the find-and-seek process that many users of earlier versions experience trying to find a particular command or Excel fea- ture. Generally, Excel 2007 displays all relevant commands for a particular task at the top of the window. If you are new to Microsoft Excel and have a choice of using Excel 2007 or an earlier version, you will most likely benefit from choos- ing Excel 2007 because displaying all relevant commands lessens the initial training you need. However, Excel 2007 is functionally equivalent to earlier Excel versions, and every Excel activity in this text can be done with any version of Excel, starting with Excel 97, although sometimes there are special instructions specific to Excel 2007. Get Set! To get started using Microsoft Excel, you need to be famil- iar with the objects you will commonly see when using Excel. When opening Excel, you see a window that is either similar to Figure E1.1 if you use Excel 97, 2000, 2002, or 20032 or Figure E1.2 if you use Excel 2007. (Should your Excel window not contain some of the ele- ments shown in the figure appropriate for the Excel version you use, see the Microsoft Excel FAQs section in Appendix F. As you begin using Excel, you will encounter dialog boxes, special windows that display messages to allow you to make entries or selections. Because you will be frequently interacting with dialog boxes, you should be familiar with the objects you will commonly see in these special windows (see Figure E1.3 on page 20). The rest of this section defines the objects labeled in Figures E1.1, E1.2, and E1.3. You should be familiar with the objects that apply to the Excel version you use before continuing to the next section. Excel Window Elements (all versions) Minimize, resize, and close buttons minimize (that is, hide without closing), resize, and close windows. When you click the sets of labeled buttons in Figures E1.1 and E1.2, you affect the Excel window itself; other, similar buttons operate on other elements in the Excel window, such as the currently opened workbook. Workspace area displays the currently opened workbook or workbooks. (Although you will not need to open more than one workbook at a time when using this text, you can open multiple workbooks and view all of them by resizing them to fit in the workspace area.) E1.1: Preliminaries: Basic Computing Skills 19 FIGURE E1.1 The Excel 2003 window Formula bar Menu bar Title bar Standard toolbar Workspace area with opened workbook Formatting toolbar Task pane Minimize, resize, and close buttons Scroll bars Sheet tabs 2In the remainder of the book, the labels Excel 97 2003 or 97 2003 are used when collectively referring to one of these Excel versions. Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 48. 20 EXCEL COMPANION to Chapter 1 FIGURE E1.2 The Excel 2007 window Formula bar shows the name of the currently selected worksheet cell (see Section E1.3) and the current contents of that cell. Sheet tabs display the name of each sheet in the opened workbook. You click a sheet tab to select a sheet and make it the currently active sheet. You double-click a sheet tab to rename the sheet. Scroll bars allow you to travel horizontally or verti- cally through parts of a worksheet that are offscreen (for example, row 100 or column T in Figures E1.1 or E1.2). Title bar displays the name of the currently active work- book and contains the minimize, resize, and close buttons for the Excel window. You drag the title bar to reposition the Excel window on your screen. Additional Window Objects (Excel 97 2003) Menu Bar The horizontal list of words at the top of the window that represent sets of commands. You click a menu bar word and pull down lists of command choices, some of which lead to further menu choices. Office Button Formula bar Group Sheet tabs Tabs (Home tab selected) Workspace area with opened wookbook Launcher button Scroll bars Title bar Quick access toolbar Minimize, Resize, and Close buttons List box Drop-down lists Set of option buttons OK & Cancel buttons Check box Edit box (with spinner buttons Question-mark buttons FIGURE E1.3 Commonly encountered elements
- 49. E1.1: Preliminaries: Basic Computing Skills 21 Standard Toolbar The toolbar that contains shortcuts to many file-oriented commands, including the common workbook operations discussed in Section E1.4. Formatting Toolbar The toolbar that contains shortcuts to many common worksheet cell formatting commands (see Section E1.4). Task Pane A closable window that contains clickable links that represent shortcuts to menu and toolbar operations (Excel 2002 and 2003 only). Additional Windows Objects Excel 2007 Office Button displays a menu of commonly issued com- mands similar to the File menu in Excel 97 2003. The Office Button also gives you access to many Excel options settings. Quick Access Toolbar (to the right of the office button) Displays buttons that are shortcuts to commonly used com- mands. When you first see Excel 2007, the Save, Undo, and Redo buttons are displayed, but you can add or remove buttons in this toolbar (see Microsoft Excel 2007-Specific FAQs in Appendix F to add or remove buttons.) Tabs Displays groups of commands and features associ- ated with a single type of Excel task. The Home Tab (seen in Figure E1.2) displays all commands and features associ- ated with making worksheet cell entries. Tab Groups Display named collections of related commands and features. Some tab groups, such as the Font, Alignment, and Number groups shown in Figure E1.2 contain launcher buttons that open related dialog boxes or task panes. Contextual Tabs Additional tabs that appear only when you are doing a specific task (that is, working in a specific context ), such as creating charts. Contextual tabs are dis- played with a title (for example, Chart Tools ) that appears in the title bar. Ribbon is the collective name for the tab-and-group user interface exclusive to Excel 2007. (See Microsoft Excel 2007-Specific FAQs in Appendix F if your Excel 2007 window does not display the ribbon.) Common Dialog Box Objects List boxes Display lists of choices available to you. Should a list exceed the dimensions of a list box, you will see scroll buttons and a slider that you can click in order to see the other choices available. Drop-down lists Display lists of commands or choices when you click over them. Many drop-downs in Excel 2007 display galleries, which are illustrated (and some- times annotated) sets of choices. Edit boxes Areas into which you type entries. Some edit boxes also contain drop-down lists or spinner buttons that you can use to complete the entry. Cell range edit boxes typically include a button that allows you to point to a cell range instead of typing the range. Option buttons Present a set of mutually exclusive choices. When you click one option button, all the other option buttons in the set are cleared. Check boxes Present optional actions that are not mutually exclusive choices. Unlike with option buttons, clicking a check box does not affect the status of other check boxes, and more than one check box can be checked at a time. If you click an already checked check box, you clear the check from the box. OK buttons (in dialog boxes) Allow you to execute tasks using the current values and settings of the currently dis- played dialog box. Sometimes the OK button will have a different legend, such as Finish, Create, Open, or Save. Cancel buttons Close dialog boxes and cancel operations represented by the dialog boxes. In most contexts, clicking the Cancel button is equivalent to clicking the Close button in the title bar of the dialog box. Question-mark buttons Display Excel help messages. Many dialog boxes contain a button with the legend Help that also displays help messages. Go! To start using Microsoft Excel, you need to understand the conventions used in Excel menus and be familiar with commonly used special keys and keystroke combinations. Excel menus use these conventions (labeled in Figure E1.4): * An underlined letter in a menu choice represents an accelerator key, a keystroke that is equivalent to selecting the choice with your mouse. * An ellipsis indicates that when you select a menu choice, a dialog box will appear. * A triangle marker indicates that when you select that menu choice, you will see either another menu of choices or a gallery of choices. You can execute a number of frequently used menu choices or Excel operations by using a combination keystroke that is, holding down one or more keys while pressing another key. In Excel versions other than Excel 2007, many of these combinations appear next to the menu choices they represent. You can print your currently active worksheet by pressing the combination Ctrl+P (that is, while holding down the Ctrl key, press the P key) and save your currently active workbook by pressing Ctrl+S. You can copy (or cut) and paste worksheet cell entries by press- ing Ctrl+C (or Ctrl+X) and Ctrl+V. You can use some of the special keys to execute fre- quently used operations. When you type an entry, pressing the Escape key usually cancels that entry. Pressing the Backspace key when typing an entry erases typed characters Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 50. 22 EXCEL COMPANION to Chapter 1 to the left of the cursor, one character at a time. Pressing the Delete key when typing erases characters to the right of the cursor, one character at a time. Pressing either the Enter or Tab keys finalizes a typed worksheet cell entry. When viewing a dialog box, pressing Escape usually cancels its operation. After clicking a workbook object such as a chart, pressing Delete deletes that object. If you get stuck while using Excel, you can move the mouse pointer over an object and then pause to see if Excel dis- plays a Tool Tip, a pop-up help message, about the object. At any time, you can also press the F1 key to display either a help message or help search box. Textbook Conventions In this book, dialog box objects are usually referred to by their names or labels. You will find instructions such as Click Labels or Click OK when referring to check boxes and command buttons. You will find instructions such as Select the Lower-Tail option when referring to option boxes or drop-down lists. When object names or labels can vary due to context, the book uses italics, as in Select variable name. To describe a sequence of menu (Excel 97 2003) or ribbon (Excel 2007) choices, the book uses an arrow sym- bol to link selections. For example, in Excel versions other than 2007, select Tools * Data Analysis means that you would first select Tools from the Excel menu bar and then select Data Analysis from the submenu of choices that appears after you select Tools. The equivalent Excel 2007 sequence select Data * Data Analysis means select the Formulas tab and then select Data Analysis (from the Solutions group). E1.2 BASIC WORKBOOK OPERATIONS As you work with Microsoft Excel, you will need to open workbooks to use data and results created by you or others at an earlier time. You will also need to save workbooks to ensure their future availability and to protect yourself against any computer system failures that might occur as you work with Excel.You may also need to create new workbooks and may want to print out individual sheets for your workbooks for later study or use in projects and assignments. In all Excel versions, including Excel 2007, these oper- ations involve dialog boxes that differ only in minor ways. While the dialog box of the version you are using may sub- tly differ from the ones shown in Figure E1.3 (see page 21), the instructions in this section apply to all Excel versions, except when otherwise noted. Opening and Saving Workbooks You open and save workbooks by selecting the storage folder to use and then specifying the file name of the workbook. You begin the process by selecting File from the Excel menu bar in Excel 97 2003 or by clicking the Office Button in Excel 2007. In either case, a menu of commands appears, as partially shown in Figure E1.4. While the contents of the menus differ (the Excel 2007 menu is on the right in Figure E1.4), they both have Open and Save As choices. These choices lead to similar dialog boxes, shown in Figure E1.3 and Figure E1.5. You select the storage folder using the drop-down list at the top of these dialog boxes. You enter (or select from the list box) a file name for the workbook in the File name box. You click Open (obscured in Figure E1.3) or Save to complete the task. Sometimes when saving files, you will want to change the file type before you click Save. If you use Excel 2007 and want to save your workbook in the format used by ear- lier Excel versions, you select Excel 97-2003 Workbook (*.xls) from the Save as type drop-down list before you click Save (shown in Figure E1.5). If you use any version of Excel and want to save data in a form that can be opened by programs that cannot open Excel workbooks, you might select either Text (Tab delimited) (*.txt) or CSV (Comma delimited) (*.csv) as the save type. Keyboard shortcuts Accelerator keys Ellipses Triangle markers FIGURE E1.4 Excel menu conventions Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 51. E1.2: Basic Workbook Operations 23 Likewise, if you are opening a data file that is not an Excel workbook format, you can change the file type (labeled as File of type in Figure E1.3). If you cannot find a file that you are sure is in the current Look in folder, changing the file type to All Files (*.*) can reveal an inad- vertent misspelling or missing file extension (the part of the file name after the period) that otherwise prevents the file from being displayed. Although all versions of Microsoft Excel include a Save command, you should avoid this choice until you gain expe- rience. Using Save makes it too easy for you to inadvertently overwrite your work, and in Excel 2007, it saves your work- book in the new .xlsx workbook format that cannot be used by Excel 97 2003. In contrast, using Save As always pre- sents you with an opportunity to name your file and choose its file type, and using Save As is also the simplest way you can create a backup copy of your workbook as you work. If you open a workbook from a nonmodifiable source, such as a CD-ROM, Excel marks the workbook read- only. You must use Save As to save a modified version of such a workbook, which is another good reason for always using this command. Creating New Workbooks You create a new workbook through a straightforward process that varies depending on the version of Excel you are using. In Excel 97 or 2000, you select File * New. In Excel 2002 (also known as Excel XP) or 2003, you select File * New and then click Blank workbook in the New Workbook task pane. In Excel 2007, you click Office button * New and in the New Workbook dialog box, you first click Blank workbook and then Create. New workbooks are created with a fixed number of worksheets. You can delete extra worksheets or insert more sheets by right-clicking a sheet tab and clicking either Delete or Insert. Printing Worksheets When you want to print the contents of a workbook, you should print one sheet at a time to get the best results. You print sheets by first previewing their printed form onscreen and then making any adjustments to the worksheet and/or to the print setup settings. To print a specific worksheet, you first click on the sheet tab of that worksheet to make the worksheet the currently active one. Then you display the Print Preview window. If you use a version of Excel other than 2007, select File * Print Preview. If you use Excel 2007, click Office Button, move the mouse pointer over Print (do not click) and select Print Preview from the Preview and Print gallery. The Print Preview windows for all Excel versions are similar to one another. Figure E1.6 shows a partial window for Excel 2003 (top) and Excel 2007 (bottom). If the pre- view contains errors or displays the worksheet in an unde- FIGURE E1.5 Save As dialog box (Excel 2007 version) FIGURE E1.6 Partial Print Preview windows (Excel 2003 and 2007 versions) Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 52. 24 EXCEL COMPANION to Chapter 1 sirable manner, click Close (or Close Print Preview in Excel 2007), make the changes necessary, and reselect the preview command. You can customize your printout by clicking Setup (or Page Setup) and making the appropri- ate entries in the Page Setup dialog box, which is similar for all Excel versions. For example, to print your worksheet with grid lines and numbered row and lettered column headings (similar to the appearance of the worksheet onscreen), you click the Sheet tab in the Page Setup dialog box and then click Gridlines and Row and column head- ings and click OK (see Figure E1.7). (You can find more information about using Page Setup in Section F4 of Appendix F.) cell by either pressing Tab or Enter or clicking the check- mark button in the formula bar. You enter individual numeric and label (sometimes called text) values into cells. You can also enter formulas, which are instructions to perform a calculation or some other task. Usually, formulas use values found in other cells to produce a displayed result. Formulas can automatically change the displayed result when the values in the support- ing cells change. To refer to a cell in a formula, you use a cell address in the form Sheetname!ColumnRow. For example, Data!A2 refers to the cell in the Data worksheet that is in column A and row 2. You can also use just the ColumnRow portion of a full address, for example A2, if you are referring to a cell on the same worksheet as the one into which you are enter- ing a formula. Sometimes you need to refer to a group of cells, called a cell range. If the group of cells forms a rectangular area for example, a group composed of cells from two adjacent columns you use an address in the form Sheetname!Upperleftcell:Lowerrightcell. For example, Data!A1:B10 refers to the 20 cells that are in rows 1 through 10 in columns A and B of the Data worksheet. If your group forms two or more rectangular areas, you enter the range as a list of rectangular areas separated by com- mas, for example, Data!A1:A10,Data!C1:C10. If the name of the sheet contains spaces or special characters, such as City Data or Figure-1.2 , you must enclose the sheet name in a pair of single quotes, as in City Data !A1:A10 or Figure-1.2 !A1:A10.3 (Because you use names of sheets in formulas, you may want to rename sheets from their default names. As mentioned in Section E1.1, you can rename a sheet by double-clicking the sheet tab for the sheet, typ- ing a new, more descriptive name, and then pressing Enter.) Entering Formulas You enter formulas by typing the equal sign (*) followed by some combination of mathematical or other data pro- cessing operations. For simple formulas, the symbols +, ,, *, /, and ^ are used for the operations addition, sub- traction, multiplication, division, and exponentiation (a number raised to a power), respectively. For example, the FIGURE E1.7 Sheet tab of the Page Setup dialog box (Excel 2003 version) 3For cases in which you need to distinguish between two similarly located cells on two similarly named worksheets in two different workbooks, you use an address in the form [Workbookname]Sheetname !ColumnRow. For example, you use [Chapter1]Data !A1 to refer to the first cell on the Data worksheet in the Chapter1 workbook. When you are ready to print, you can click Print in the Print Preview window, but to gain maximum control over your printout, click Close (or Close Print Preview) and then select File * Print (Excel 97 2003) or Office Button * Print (Excel 2007). In the Print dialog box that appears (see Figure E1.3 on page 20), you can select the printer to use, make sure you are printing only the currently active worksheet, or print multiple copies at once. E1.3 WORKSHEET ENTRIES As first discussed in Section 1.6 (see page 11), you make entries into worksheet cells, the intersections of lettered columns and numbered rows. You use the cursor keys or your pointing device to move a cell pointer through a worksheet and to select a cell for entry. As you type an entry, it appears in the formula bar (see Figures E1.1 and E1.2 on pages 19 and 20), and you place that entry into the Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 53. E1.4: Worksheet Formatting 25 formula *Data!B2 + Data!B3 + Data!B4 + Data!B5 adds the contents of cells B2, B3, B4, and B5 of the Data worksheet and displays the sum as the value of the cell containing the formula. You can also use worksheet functions to simplify formulas. For example, the formula =SUM(Data!B2:B5) uses the worksheet SUM function to create a shorter equivalent to the example in this para- graph. When you are using worksheet functions, you can use the Function Wizard to minimize your typing. To use this wizard, which is similar in all Excel versions, you select Insert * Function (Excel 97 2003) or Formulas * Function Wizard (Excel 2007) and then make entries and selections in one or more dialog boxes. For example, to enter the formula =SUM(Data!B2:B5) using this wizard, you select the function SUM and click OK in the Insert Function dialog box (obscured in Figure E1.8). You then type or point to the cell range B2:B5 in the Number1 box and click OK in the Function Argument dialog box (also shown in Figure E1.8). The wizard then enters the com- pleted formulas in the currently active cell. As Figure E1.8 shows, the Function Wizard also pre- views the results of the SUM function (13) and displays the contents of the range B2:B5 (4, 2, 2, and 5). Verifying Formulas Whether you enter formulas on your own in a new work- sheet, open a workbook that contains formulas, or use com- mands that add formulas to worksheets, you should review and verify formulas before you use their results. To view the formulas in a worksheet, press Ctrl+` (backtick key). To restore the original view, the results of the formulas, press Ctrl+ a second time. As you create and use more complicated worksheets, you may want to visually examine the relationships among a formula and the cells it uses (called the prece- dents) and the cells that use the results of the formula (the dependents). To display arrows that show these relation- ships, use the formula auditing feature of Excel. For Excel 97 or 2000, select Tools * Auditing and for Excel 2002 2003, select Tools * Formula Auditing. Then select one of the choices on the auditing submenu. To use this feature In Excel 2007, select Formulas and then select one of the choices from the Formula Auditing group. The Remove All Arrows choice restores your display by removing all auditing arrows when you are fin- ished auditing the formulas. E1.4 WORKSHEET FORMATTING You can use various formatting commands to enhance the appearance of your worksheets. If you use Excel 97 2003, you will find many of the common formatting operations on the Formatting Toolbar (see Figures E1.1 and E1.9) and the rest inside the Format Cells dialog box (select Format * Cells to view this dialog box). If you use Excel 2007, most formatting operations are visible on the Home tab (see Figures E1.2 and E1.9), and the rest are available through the launcher buttons of several groups or the Format choice of the Cells group. Use Figure E1.9 as a visual guide for locating the com- mon formatting operations. FIGURE E1.8 Insert Function dialog box of the Function Wizard Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 54. 26 EXCEL COMPANION to Chapter 1 Common Formatting Operations Font Face & Size Drop-down lists set the font face and font size for the currently selected cells. You will get best results if you select entire rows before changing the font face or size. Boldface Displays the values of the currently selected cells, using boldface type. Consider using this for cells that con- tain titles, column headings, or important results. You can also use the Italic and Underline buttons to the immediate right of Boldface for additional type effects. Left Displays the values of the currently selected cells left- justified in their cells. The Center and Right buttons next to Left, center, and right-justify values, respectively. In a worksheet with many filled columns, using Center for the values of categorical variables can sometimes improve readability. Merge-and-Center Combines the currently selected cells, merges them into one, and displays the value in the first cell of the group, centered across the merged cells. Consider using this for a worksheet title or a title that applies to several contiguous rows or columns. Percent Displays numeric values in the currently selected cells as percentages. The value 0.01 displays as 1%, the value 1 as 100%, and the value 100 as 10000%. Increase Decimal and Decrease Decimal Increases/ decreases the number of decimal places that will be used to display numeric values in the currently selected cells. Particularly useful to align the decimal points in a column of numeric values. Borders Drops down a gallery of border effects from which you can choose to change the borders for the cur- rently selected cells. Many worksheet examples in this text use one or more of these border effects: All Borders, Outside Borders, and Top Border. Fill Color and Font Color Drop down a gallery from which you can choose to change the cell background color and the type color for the currently selected cells. Many worksheet examples in this text use the color Light Turquoise to tint areas that contain user-changable data values and the color Light Yellow to tint areas that con- tain results. These colors are available in the Excel 2002 2003 galleries and by clicking More Colors in the Excel 2007 gallery. In addition to these operations, you may want to adjust the width of a worksheet column so that its column heading and all its values are clearly visible. To do this, select the entire column and then select Format * Column * AutoFit Selection (Excel 97 2003) or Home * Format (in the Cells group) * AutoFit Selection (Excel 2007). E1.5 COPY-AND-PASTE OPERATIONS There will be times that you will want to copy cell entries to another part of the same worksheet or to another work- sheet as well as copy an entire worksheet for insertion into another workbook. Copying and pasting cell entries entirely composed of numeric or text values is fairly straightforward. You select the cells to be copied, press Ctrl+C, move to the first cell of the range in which you want to paste the copy, and press Ctrl+V. However, often you will copy cells that contain one or more formulas. Copying cells that contain formulas is not necessarily as straightforward as you might expect. Likewise, copying cells or entire worksheets between workbooks raises some issues you need to understand in order to get the best results possible. Copying Formulas Copying entries that contain formulas requires extra atten- tion because exact duplicates may or may not result, depending on how you have entered cell addresses. If you entered addresses using the Sheetname!ColumnRow or ColumnRow form, as introduced in Section E1.3, Excel Font Face & Size Boldface Left Merge-and-Center Percent Borders Fill & Font Color Borders Fill & Font Color Increase & Decrease Decimal FIGURE E1.9 Formatting Toolbar (Excel 97 2003) and Home tab groups (Excel 2007) Statistics for Managers Using Microsoft Excel, Fifth Edition, by David M. Levine, Mark L. Berenson, and Timothy C. Krehbiel. Published by Prentice Hall. Copyright 2008 by Pearson Education, Inc.
- 55. Another Random Scribd Document with Unrelated Content
- 59. The Project Gutenberg eBook of The Knights Templars
- 60. This ebook is for the use of anyone anywhere in the United States and most other parts of the world at no cost and with almost no restrictions whatsoever. You may copy it, give it away or re-use it under the terms of the Project Gutenberg License included with this ebook or online at www.gutenberg.org. If you are not located in the United States, you will have to check the laws of the country where you are located before using this eBook. Title: The Knights Templars Author: C. G. Addison Release date: December 6, 2013 [eBook #44376] Most recently updated: October 23, 2024 Language: English Credits: E-text prepared by Chris Curnow, Paul Clark, and the Online Distributed Proofreading Team (http://www.pgdp.net) from page images generously made available by Internet Archive (https://archive.org) *** START OF THE PROJECT GUTENBERG EBOOK THE KNIGHTS TEMPLARS ***
- 61. The Project Gutenberg eBook, The Knights Templars, by C. G. (Charles Greenstreet) Addison Note: Images of the original pages are available through Internet Archive. See https://archive.org/details/knightstemplars00addirich The Knights Templars, BY C. G. ADDISON ESQE . BARRISTER AT LAW
- 62. DESIGNED & LITHOGRAPHED BY J. BRANDARD FROM SKETCHES BY C.G.ADDISON ESQRE. THE ADMISSION OF A NOVICE TO THE VOWS OF THE ORDER OF THE TEMPLE M & N Hanhart, lith Printers 64 Charlotte St. Rathbone Pl.
- 63. PREFACE TO THE FIRST EDITION. Having some years ago, during a pilgrimage to the Holy City of Jerusalem, gained admission to the courts of the ancient Temple of the Knights Templars, which still exists on Mount Moriah in a perfect state of preservation as a Mussulman Mosque, and having visited many of the ruined fortresses and castles of the ancient order of the Temple, whose shattered walls are still to be seen at intervals in Palestine and in Syria, from Gaza to Antioch, and from the mountains of the Dead Sea to the shores of the Mediterranean, I naturally became greatly interested in the history of the order, and in the numerous remains and memorials of the Knights Templars still to be met with in various stages of decay and ruin in almost every part of Europe. The recent restoration of the Temple Church at London, the most beautiful and the best preserved of all the ancient ecclesiastical edifices of the western provinces of the Temple, first suggested to me the idea of writing a short historical account of the varied fortunes of that great religious and military fraternity of knights and monks by whom it was erected, and of their dark and terrible end. Born during the first fervour of the Crusaders, the Templars were flattered and aggrandized as long as their great military power and religious fanaticism could be made available for the support of the Eastern church and the retention of the Holy Land; but when the crescent had ultimately triumphed over the cross, and the religious and military enthusiasm of Christendom had died away, they encountered the basest ingratitude in return for the services they had rendered to the Christian faith, and were plundered, persecuted, and condemned to a cruel death by those who ought in justice to have been their defenders and supporters.
- 64. The memory of these holy warriors is embalmed in all our recollections of the wars of the cross; they were the bulwarks of the Latin kingdom of Jerusalem during the short period of its existence, and were the last band of Europe’s host that contended for the possession of Palestine. To the vows of the monk and the austere life of the convent, they added the discipline of the camp, and the stern duties of the military life, joining “the fine vocation of the sword and lance” with the holy zeal and body-bending toil of a poor brotherhood. The vulgar notion that they were as wicked as they were fearless and brave, has not yet been entirely exploded; but it is hoped that the copious account of the proceedings against the order in this country given in the ensuing volume, will dispel many unfounded prejudices still entertained against the fraternity, and excite emotions of admiration for their constancy and courage, and of pity for their unmerited and cruel fate. The accounts, even of the best of the ancient historians concerning the Templars ought not to be implicitly relied upon. William of Tyre, for instance, tells us that Nassr-ed-deen, son of sultan Abbas, was taken prisoner by the Templars, and whilst in their hands became a convert to Christianity; that he had learned the rudiments of the Latin language, and earnestly sought to be baptized, but that the Templars were bribed with sixty thousand pieces of gold to surrender him to his enemies in Egypt, where certain death awaited him; and that they stood by to see him bound hand and foot with chains, and placed in an iron cage, to be conducted across the desert to Cairo. The Arabian historians, on the other hand, tell us that Nassr-ed-deen and his father murdered the caliph, threw his body into a well, and then fled into Palestine; that the sister of the murdered caliph wrote immediately to the commander of the garrison of the Knights Templars at Gaza, offering a handsome reward for the capture of the fugitives; that they were accordingly intercepted, and Nassr-ed-deen was sent to Cairo, where the female relations of the caliph caused his body to be cut into small pieces in the seraglio! The above act has constantly been made a matter of grave accusation against the Templars; but what a different
- 65. complexion does the case assume on the testimony of the Arabian authorities! It must be remembered that William, archbishop of Tyre, was hostile to the order on account of its vast powers and privileges, and carried his complaints to a general council of the Church at Rome. He is abandoned, in everything that he says to the prejudice of the fraternity, by James of Vitry, bishop of Acre, a learned and most talented prelate, who wrote in Palestine subsequently to William of Tyre, and has copied largely from the history of the latter. The bishop of Acre speaks of the Templars in the highest terms, and declares that they were universally loved by all men for their piety and humility. The celebrated orientalist Von Hammer has recently brought forward various extraordinary and unfounded charges, destitute of all authority, against the Templars; and Wilcke, who has written a German history of the order, seems to have imbibed all the vulgar prejudices against the fraternity. I might have added to the interest of the ensuing work, by making the Templars horrible and atrocious villains; but I have endeavoured to write a fair and impartial account of the order, not slavishly adopting everything I find detailed in ancient writers, but such matters only as I believe, after a careful examination of the best authorities, to be true.
- 66. PREFACE TO THE THIRD EDITION. The favourable reception given to the first edition of the ensuing work, and the interest that was taken in the extraordinary and romantic career of the Knights Templars, induced me to publish a second edition greatly enlarged, and to introduce various collateral matters of an antiquarian and local character, interesting only to a comparatively small number of readers. This enlarged edition having been exhausted, it occurred to me, in preparing a third edition for the press, that the work might be materially shortened and reduced in price without in anywise detracting from its value and interest as a record of the chief events of one of the most remarkable and interesting periods of history, and of the extraordinary and romantic achievements of the first and most ancient of the great religio- military orders of knights and monks established during the crusades. The dry matters of detail, of local and partial interest, which interfered with the continuity of the main narrative, have been struck out of the body of the work, and the more striking incidents of the history have been thus brought into greater prominence. The long Latin and French extracts from the old chronicles have also been discarded from the notes, but the historical references have been preserved to enable the reader, if he thinks fit, to study the quaint and curious language of the originals. By these means, and by enlarging the size of the page, the work has been compressed into a smaller compass, and the price reduced nearly one half. It is hoped that these alterations will be found to be improvements. Inner Temple, December 8, 1851.
- 68. Page 5 CONTENTS. CHAPTER I. The pilgrimages to Jerusalem—Origin of the Templars—The dangers to which pilgrims were exposed—The formation of the brotherhood of the poor fellow-soldiers of Jesus Christ to protect them—Their location in the Temple—A description of the Temple—Origin of the name Templars—Hugh de Payens chosen Master of the Temple—Is sent to Europe by King Baldwin—Is introduced to the Pope—The assembling of the Council of Troyes —The formation of a rule for the government of the Templars— The most curious parts of the rule displayed—The confirmation of the rule by the Pope—The visit of Hugh de Payens, the Master of the Temple, to England—His cordial reception—The foundation of the Order in this country—Lands and money granted to the Templars—Their popularity in Europe—The rapid increase of their fraternity—St. Bernard takes up the pen in their behalf—He displays their valour and piety CHAPTER II. Hugh de Payens returns to Palestine—His death—Robert de Craon made Master—Success of the Infidels—The second Crusade— The Templars assume the Red Cross—Their gallant actions and high discipline—Lands, manors, and churches granted them in England—Bernard de Tremelay made Master—He is slain by the Infidels—Bertrand de Blanquefort made Master—He is taken prisoner, and sent in chains to Aleppo—The Pope writes letters in praise of the Templars—Their religious and military enthusiasm—Their war banner called Beauseant—The rise of the
- 69. 24 44 68 rival religio-military order of the Hospital of St. John—The contests between Saladin and the Templars—The vast privileges of the Templars—The publication of the bull, omne datum optimum—The Pope declares himself the immediate Bishop of the entire Order—The Master of the Temple is taken prisoner, and dies in a dungeon—Saladin’s great success—The Christians purchase a truce—The Master of the Temple and the Patriarch Heraclius proceed to England for succour—The consecration of the Temple Church at London CHAPTER III. The Temple at London—The vast possessions of the Templars in England—The territorial divisions of the order—The different preceptories in this country—The privileges conferred on the Templars by the kings of England—The Masters of the Temple at London—Their power and importance CHAPTER IV. The Patriarch Heraclius quarrels with the king of England—He returns to Palestine without succour—The disappointment and gloomy forebodings of the Templars—They prepare to resist Saladin—Their defeat and slaughter—The valiant deeds of the Marshal of the Temple—The fatal battle of Tiberias—The captivity of the Grand Master and the true cross—The captive Templars are offered the Koran or death—They choose the latter, and are beheaded—The fall of Jerusalem—The Moslems take possession of the Temple—They purify it with rose-water, say prayers, and hear a sermon—The Templars retire to Antioch —Their letters to the king of England and the Master of the Temple at London—Their exploits at the siege of Acre CHAPTER V.
- 70. 129 180 Richard Cœur de Lion joins the Templars before Acre—The city surrenders, and the Templars establish the chief house of their order within it—Cœur de Lion takes up his abode with them—He sells to them the island of Cyprus—The Templars form the van of his army—Their foraging expeditions and exploits—Cœur de Lion quits the Holy Land in the disguise of a Knight Templar— The Templars build the Pilgrim’s Castle in Palestine—The exploits of the Templars in Egypt—The letters of the Grand Master to the Master of the Temple at London—The Templars reconquer Jerusalem—The state of the order in England—King John resides in the Temple at London—The barons come to him at that place, and demand Magna Charta—Consecration of the nave or oblong portion of the Temple Church at London CHAPTER VI. The conquest of Jerusalem by the Carizmians—The slaughter of the Templars, and the death of the Grand Master—Rise and progress of the Comans—They are defeated and destroyed by the Templars—The exploits of the Templars in Egypt—King Louis of France visits the Templars in Palestine—He assists them in putting the country into a defensible state—Henry III., king of England, visits the Temple at Paris—The magnificent hospitality of the Templars in England and France—Bendoedar, sultan of Egypt, invades Palestine—He defeats the Templars, takes their strong fortresses, and decapitates six hundred of their brethren —The Grand Master comes to England for succour—The renewal of the war—The fall of Acre—The Templars establish their head- quarters in the island of Cyprus—Their alliance with the king of Persia—The reconquest of Jerusalem—The desolation of the Holy Land—The final extinction of the Templars in Palestine CHAPTER VII.
- 71. 236 The downfall of the Templars—The cause thereof—The Grand Master comes to Europe at the request of the Pope—He is imprisoned, with all the Templars in France, by command of king Philip— They are put to the torture, and confessions of the guilt of heresy and idolatry are extracted from them—Edward III., king of England, stands up in defence of the Templars, but afterwards persecutes them at the instance of the Pope—The imprisonment of the Master of the Temple and all his brethren in England—Their examination upon eighty-seven horrible and ridiculous articles of accusation before foreign inquisitors appointed by the Pope—A council of the church assembles at London to pass sentence upon them—The curious evidence adduced as to the mode of admission into the order, and of the customs and observances of the fraternity—The Templars in France having revoked their rack-extorted confessions, are treated as relapsed heretics, and burnt at the stake—Solitary confinement of the Templars in England in separate dungeons— Torture—Confessions and recantations—The Master of the Temple at London dies in the Tower—The Grand Master is burnt at the stake—The abolition of the order and disposal of its property. Grant of the Temple at London to a body of lawyers— Introduction into the profession of the law of an order of knights and serving-brethren
- 72. INTRODUCTION. “Go forth to battle and employ your substance and your persons for the advancement of God’s religion. Verily, God loveth those who fight for his religion in battle array.”—Koran, chapter 56, entitled Battle Array. “O Prophet, stir up the faithful to war! If twenty of you persevere with constancy they shall overcome two hundred, and if there be one hundred of you they shall overcome one thousand of those who believe not.”—Chapter 8, entitled The Spoils. “Verily, if God pleased, he could take vengeance on the unbelievers without your assistance, but he commandeth you to fight his battles that he may prove the one of you by the other; and as to those who fight in defence of God’s true religion, God will not suffer their works to perish.”—Koran, chapter 47, entitled War. To be propagated by the sword was a vital principle of Mahommedanism. War against infidels for the establishment and extension of the faith was commanded by the Prophet, and the solemn injunction became hallowed and perpetuated by success. A century after the death of Mahomet, the Moslems had extended their religion and their arms from India to the Atlantic Ocean; they had subdued and converted, by the power of the sword, Persia and Egypt, and all the north of Africa, from the mouth of the Nile to the extreme western boundary of that vast continent; they overran Spain, invaded France, and turning their footsteps towards Italy they entered the kingdoms of Naples and Genoa, threatened Rome, and subjected the island of Sicily to the laws and the religion of their
- 73. Prophet. But at the very period when they were about to plant the Koran in the very heart of Europe, and were advancing with rapid strides to universal dominion, intestine dissensions broke out amongst them which undermined their power, and Europe was released from the dread and danger of Saracen dominion. In the tenth century of the Christian era, however, the ferocious and barbarous Turcomans appeared as the patrons of Mahommedanism, and the propagators of the Koran. These were wild pastoral tribes of shepherds and hunters, who descended from the frozen plains to the north of the Caspian, conquered Persia, embraced the religion and the law of Mahomet, and became united under the standard of the Prophet into one great and powerful nation. They overran the greater part of the Asiatic continent, destroyed the churches of the Christians and the temples of the Pagans, and appeared (A. D. 1084) in warlike array on the Asiatic shore of the Hellespont in front of Constantinople. The terrified emperor Alexius sent urgent letters to the Pope and the christian princes of Europe, exhorting them to assist him and their common Christianity in the perilous crisis. The preachings of Peter the hermit, and the exhortations of the Pope, forthwith aroused Christendom; Europe was armed and precipitated upon Asia; the Turkish power was broken; the Christian provinces of the Greek empire of Constantinople were recovered from the grasp of the infidels; and the Latin kingdom of Jerusalem was reared upon the ruins of the Turkish empire of sultan Soliman. The monastic and military order of the Temple was then called into existence for the purpose of checking the power of the infidels, and fighting the battles of Christendom in the plains of Asia. “Suggested by fanaticism,” as Gibbon observes, but guided by an intelligent and far reaching policy, it became the firmest bulwark of Christianity in the East, and mainly contributed to preserve Europe from Turkish desolation, and probably from Turkish conquest. Many grave and improbable charges have been brought against the Templars by monks and priests who wrote in Europe concerning events in the Holy Land, and who regarded the vast privileges of the
- 74. order with indignation and aversion. Matthew Paris tells us that they were leagued with the infidels, and fought pitched battles with the rival order of Saint John; but as contemporary historians of Palestine, who describe the exploits of the Templars, and were eye- witnesses of their career, make no mention of such occurrences, and as no allusion is made to them in the letters of the Pope addressed to the Grand Master of the order of Saint John shortly after the date of these pretended battles, I have omitted all mention of them, feeling convinced, after a careful examination of the best authorities, that they never did take place. At this distant day, when the times and scenes in which the Templars acted are changed, and the deep religious fervour and warm fresh feelings of bygone ages have given way to a cold and calculating philosophy, we may doubt the sincerity of the military friars, exclaim against their credulity, and deride their zeal; but when we call to mind the hardships and fatigues, the dangers, sufferings, and death, to which they voluntarily devoted themselves in a far distant land, the sacrifice of personal comforts, of the ties of kindred, and of all the endearments of domestic life, which they made without any prospect of worldly gain or temporal advantage, for objects which they believed to be just, and noble, and righteous, we must ever rank the generous impulses by which they were actuated among the sublime emotions which can influence the human character in those periods when men feel rather than calculate, before knowledge has chilled the sensibility, or selfish indifference hardened the heart.
- 76. CHAPTER I. The pilgrimages to Jerusalem—Origin of the Templars—Their location in the Temple—Hugh de Payens chosen Master of the Temple— His introduction to the Pope—The assembling of the Council of Troyes—The formation of a rule for the government of the Templars—The most curious parts of the rule displayed—Visit of Hugh de Payens to England—The foundation of the Order in this country—Lands and money granted to the Templars—St. Bernard displays their valour and piety. “Yet ’midst her towering fanes in ruin laid, The pilgrim saint his murmuring vespers paid; ’Twas his to mount the tufted rocks, and rove The chequer’d twilight of the olive grove; ’Twas his to bend beneath the sacred gloom, And wear with many a kiss Messiah’s tomb.” The natural desire of visiting those holy spots which have been sanctified by the presence, and rendered memorable by the sufferings, of the Son of God, drew, during the early ages of Christianity, crowds of devout worshippers and pilgrims to Jerusalem. Among the most illustrious and enthusiastic of the many wanderers to the Holy City was the empress Helena, the mother of Constantine, who, with the warm feelings of a recent conversion, visited in person every place and every object in Palestine associated with the memory of him who died for mankind on the blessed cross. With a holy zeal and a lively enthusiasm, she attempted to fix by unquestionable tradition the scene of each memorable event in the
- 77. gospel narrative; and Christendom is indebted to her for the real or pretended discovery (about two hundred and ninety-eight years after the death of Christ) of the Holy Sepulchre. Over this sacred monument the empress and her son Constantine caused to be erected the magnificent church of the Resurrection, or, as it is now called, the church of the Holy Sepulchre; and they adorned all those places in the Holy Land which remind us most forcibly of the earthly existence and death of Jesus Christ, with magnificent churches and religious houses. The example of this pious princess, and the pretended discoveries made by her of holy relics, caused a great increase in the pilgrimages to Jerusalem. The conquest of Palestine by the Arabians, (A. D. 637,) stimulated rather than suppressed them; it added to the merit by increasing the danger and difficulty of the undertaking, whilst the enthusiasm which prompted the long and perilous journey was increased by the natural feelings of sorrow and indignation at the loss of the holy places, and the possession of them by the conquering infidels. Year after year, and century after century, hundreds and thousands of both sexes, of all ranks and every age, the monarch and the peasant, the noble and the beggar, flocked to the shrines and the altars of Palestine. They visited, with pious affection, Bethlehem, where the Saviour first saw the light; they bathed in the waters of the river Jordan, wherein he was baptized, and wept and prayed upon Mount Calvary, where he was crucified. On the conquest of Jerusalem by the Arabians, the security of the christian population had been provided for in a solemn guarantee given under the hand and seal of the caliph Omar, to Sophronius the patriarch. One fourth of the entire city, with the church of the Resurrection, the Holy Sepulchre, and the great Latin convent, had been left in the hands of the Christians and the pilgrims were permitted, on payment of a trifling tribute, freely to visit the various objects of their regard. When the sceptre was transferred from the family of the Abassides to the Fatimites, and the caliphs of Egypt obtained possession of Palestine, the same mild and tolerant
- 78. government was continued. In the eleventh century, the zeal of pilgrimage had reached its height, and the caravans of pilgrims had become so numerous as to be styled the armies of the Lord. The old and the young, women and children, flocked in crowds to Jerusalem, and in the year 1064 the Holy Sepulchre was visited by an enthusiastic band of seven thousand pilgrims. The year following, however, Jerusalem was conquered by the wild Turcomans, three thousand of the citizens were massacred, and the command over the holy city and territory was confided to the emir Ortok, the chief of a savage pastoral tribe. Under the iron yoke of these fierce northern strangers, the Christians were fearfully oppressed; they were driven from their churches; divine worship was ridiculed and interrupted; and the patriarch of the Holy City was dragged by the hair of his head over the sacred pavement of the church of the Resurrection, and cast into a dungeon, to extort a ransom from the sympathy of his flock. The pilgrims who, through innumerable perils, had reached the gates of the Holy City, were plundered, imprisoned, and frequently massacred; a piece of gold, was exacted as the price of admission to the holy sepulchre, and many, unable to pay the tax, were driven by the swords of the Turcomans from the very threshold of the object of all their hopes, the bourne of their long pilgrimage, and were compelled to retrace their weary steps in sorrow and anguish to their distant homes. The intelligence of these cruelties aroused the religious chivalry of Christendom; “a nerve was touched of exquisite feeling, and the sensation vibrated to the heart of Europe.” Then arose the wild enthusiasm of the crusades, and men of all ranks, and even monks and priests, animated by the exhortations of the pope and the preachings of Peter the Hermit, flew to arms, and enthusiastically undertook “the pious and glorious enterprize” of rescuing the holy sepulchre of Christ from the foul abominations of the heathen. When intelligence of the capture of Jerusalem by the Crusaders (A. D. 1099) had been conveyed to Europe, the zeal of pilgrimage blazed
- 79. forth with increased fierceness: it had gathered intensity from the interval of its suppression by the wild Turcomans, and promiscuous crowds of both sexes, old men and children, virgins and matrons, thinking the road then open and the journey practicable, successively pressed forwards towards the Holy City. The infidels had indeed been driven out of Jerusalem, but not out of Palestine. The lofty mountains bordering the sea coast were infested by warlike bands of fugitive Mussulmen, who maintained themselves in various impregnable castles and strongholds, from whence they issued forth upon the high-roads, cut off the communication between Jerusalem and the sea-ports, and revenged themselves for the loss of their habitations and property by the indiscriminate pillage of all travellers. The Bedouin horsemen, moreover, making rapid incursions from beyond the Jordan, frequently kept up a desultory and irregular warfare in the plains; and the pilgrims, consequently, whether they approached the Holy City by land or by sea, were alike exposed to almost daily hostility, to plunder, and to death. To alleviate the dangers and distresses to which they were exposed, to guard the honour of the saintly virgins and matrons, and to protect the gray hairs of the venerable palmer, nine noble knights, who had greatly distinguished themselves at the siege and capture of Jerusalem, formed a holy brotherhood in arms, and entered into a solemn compact to aid one another in clearing the highways, and in protecting the pilgrims through the passes and defiles of the mountains to the Holy City. Warmed with the religious and military fervour of the day, and animated by the sacredness of the cause to which they had devoted their swords, they called themselves the Poor Fellow-soldiers of Jesus Christ. They renounced the world and its pleasures, and in the holy church of the Resurrection, in the presence of the patriarch of Jerusalem, they embraced vows of perpetual chastity, obedience, and poverty, after the manner of monks. Uniting in themselves the two most popular qualities of the age, devotion and valour, and exercising them in the most popular of all enterprises, they speedily acquired a famous reputation.
- 80. At first, we are told, they had no church, and no particular place of abode, but in the year of our Lord 1118, (nineteen years after the conquest of Jerusalem by the Crusaders,) they had rendered such good and acceptable service to the Christians, that Baldwin the Second, king of Jerusalem, granted them a place of habitation within the sacred inclosure of the Temple on Mount Moriah, amid those holy and magnificent structures, partly erected by the Christian Emperor Justinian, and partly built by the Caliph Omar, which were then exhibited by the monks and priests of Jerusalem, whose restless zeal led them to practise on the credulity of the pilgrims, and to multiply relics and all objects likely to be sacred in their eyes, as the Temple of Solomon, whence the Poor Fellow-soldiers of Jesus Christ came thenceforth to be known by the name of “the Knighthood of the Temple of Solomon.” By the Mussulmen, the site of the great Jewish temple on Mount Moriah has always been regarded with peculiar veneration. Mahomet, in the first year of the publication of the Koran, directed his followers, when at prayer, to turn their faces towards it, and pilgrimages have constantly been made to the holy spot by devout Moslems. On the conquest of Jerusalem by the Arabians, it was the first care of the Caliph Omar to rebuild “the Temple of the Lord.” Assisted by the principal chieftains of his army, the Commander of the Faithful undertook the pious office of clearing the ground with his own hands, and of tracing out the foundations of the magnificent mosque which now crowns with its dark and swelling dome the elevated summit of Mount Moriah. This great house of prayer, the most holy Mussulman Temple in the world after that of Mecca, is erected over the spot where “Solomon began to build the house of the Lord at Jerusalem on Mount Moriah, where the Lord appeared unto David his father, in the place that David had prepared in the threshing-floor of Ornan the Jebusite.” It remains to this day in a state of perfect preservation, and is one of the finest specimens of Saracenic architecture in existence. It is entered by four spacious doorways, each door facing one of the
- 81. cardinal points; the Bab el D’Jannat, or gate of the garden, on the north; the Bab el Kebla, or gate of prayer, on the south; the Bab ib’n el Daoud, or the gate of the son of David, on the east; and the Bab el Garbi, on the west. By the Arabian geographers it is called Beit Allah, the house of God, also Beit Almokaddas, or Beit Almacdes, the holy house. From it Jerusalem derives its Arabic name, el Kods, the holy, el Schereef, the noble, and el Mobarek, the blessed. The crescent had been torn down by the crusaders from the summit of this great Mussulman Temple, and replaced by an immense golden cross, and the edifice was consecrated to the services of the christian religion, but retained its simple appellation of “The Temple of the Lord.” William, Archbishop of Tyre and Chancellor of the Kingdom of Jerusalem, gives an interesting account of the building as it existed in his time during the Latin dominion. He speaks of the splendid mosaic work on the walls; of the Arabic characters setting forth the name of the founder, and the cost of the undertaking; and of the famous rock under the centre of the dome, which is to this day shown by the Moslems as the spot whereon the destroying angel stood, “with his drawn sword in his hand stretched out over Jerusalem.”[1] This rock, he informs us, was left exposed and uncovered for the space of fifteen years after the conquest of the holy city by the crusaders, but was, after that period, cased with a handsome altar of white marble, upon which the priests daily said mass. To the south of this holy Mussulman temple, on the extreme edge of the summit of Mount Moriah, and resting against the modern walls of the town of Jerusalem, stands the venerable christian church of the Virgin, erected by the Emperor Justinian, whose stupendous foundations, remaining to this day, fully justify the astonishing description given of the building by Procopius. That writer informs us that in order to get a level surface for the erection of the edifice, it was necessary, on the east and south sides of the hill, to raise up a wall of masonry from the valley below, and to construct a vast foundation, partly composed of solid stone and partly of arches and
- 82. pillars. The stones were of such magnitude, that each block required to be transported in a truck drawn by forty of the emperor’s strongest oxen; and to admit of the passage of these trucks it was necessary to widen the roads leading to Jerusalem. The forests of Lebanon yielded their choicest cedars for the timbers of the roof, and a quarry of variegated marble, in the adjoining mountains, furnished the edifice with superb marble columns.[2] The interior of this interesting structure, which still remains at Jerusalem, after a lapse of more than thirteen centuries, in an excellent state of preservation, is adorned with six rows of columns, from whence spring arches supporting the cedar beams and timbers of the roof, and at the end of the building is a round tower, surmounted by a dome. The vast stones, the walls of masonry, and the subterranean colonnade raised to support the south-east angle of the platform whereon the church is erected, are truly wonderful, and may still be seen by penetrating through a small door, and descending several flights of steps at the south-east corner of the enclosure. Adjoining the sacred edifice, the emperor erected hospitals, or houses of refuge, for travellers, sick people, and mendicants of all nations, the foundations whereof, composed of handsome Roman masonry, are still visible on either side of the southern end of the building. On the conquest of Jerusalem by the Moslems, this venerable church was converted into a mosque, and was called D’Jamé al Acsa; it was enclosed, together with the great Mussulman Temple of the Lord erected by the Caliph Omar, within a large area by a high stone wall, which runs around the edge of the summit of Mount Moriah, and guards from the profane tread of the unbeliever the whole of that sacred ground whereon once stood the gorgeous temple of the wisest of kings. When the Holy City was taken by the crusaders, the D’Jamé al Acsa, with the various buildings constructed around it, became the property of the kings of Jerusalem: and is denominated by William of Tyre “the palace,” or “royal house to the south of the Temple of the Lord, vulgarly called the Temple of Solomon.” It was this edifice or temple on Mount Moriah which was appropriated to the poor fellow-soldiers of Jesus Christ, as they had no church and no
- 83. particular place of abode, and from it they derived their name of Knights Templars.[3] The canons of the Temple of the Lord conceded to them the large court extending between that building and the Temple of Solomon; the king, the patriarch, and the prelates of Jerusalem, and the barons of the Latin kingdom, assigned them various gifts and revenues for their maintenance and support, and the order being now settled in a regular place of abode, the knights soon began to entertain more extended views, and to seek a larger theatre for the exercise of their holy profession. Their first aim and object had been, as before mentioned, simply to protect the poor pilgrims, on their journey backwards and forwards, from the sea-coast to Jerusalem; but as the hostile tribes of Mussulmen, which everywhere surrounded the Latin kingdom, were gradually recovering from the terror into which they had been plunged by the successful and exterminating warfare of the first crusaders, and were assuming an aggressive and threatening attitude, it was determined that the holy warriors of the Temple should, in addition to the protection of pilgrims, make the defence of the christian kingdom of Jerusalem, of the eastern church, and of all the holy places, a part of their particular profession. The two most distinguished members of the fraternity were Hugh de Payens and Geoffrey de St. Aldemar, or St. Omer, two valiant soldiers of the cross, who had fought with great credit and renown at the siege of Jerusalem. Hugh de Payens was chosen by the knights to be the superior of the new religious and military society, by the title of “The Master of the Temple;” and he has, consequently, generally been called the founder of the order. Baldwin, king of Jerusalem, foreseeing that great advantages would accrue to the Latin kingdom by the increase of the power and numbers of these holy warriors, despatched two Knights Templars to St. Bernard, the holy Abbot of Clairvaux, with a letter, telling him that the Templars whom the Lord had deigned to raise up, and whom in a wonderful manner he preserved for the defence of Palestine, desired to obtain from the Holy See the confirmation of
- 84. their institution, and a rule for their particular guidance, and beseeching him “to obtain from the Pope the approbation of their order, and to induce his holiness to send succour and subsidies against the enemies of the faith.”[4] Shortly afterwards Hugh de Payens himself proceeded to Rome, accompanied by Geoffrey de St. Aldemar, and four other brothers of the order, who were received with great honour and distinction by Pope Honorius. A great ecclesiastical council was assembled at Troyes, (A. D. 1128,) which Hugh de Payens and his brethren were invited to attend, and the rules to which the Templars had subjected themselves being there described, the holy Abbot of Clairvaux undertook the task of revising and correcting them, and of forming a code of statutes fit and proper for the governance of the great religious and military fraternity of the Temple. Regula Pauperum Commilitonum Christi et Templi Salomonis. “The rule of the poor fellow soldiers of Jesus Christ and of the Temple of Solomon,” arranged by St. Bernard, and sanctioned by the Holy Fathers of the Council of Troyes, for the government and regulation of the monastic and military society of the Temple, is principally of a religious character, and of an austere and gloomy cast. It is divided into seventy-two heads or chapters, and is preceded by a short prologue, addressed “to all who disdain to follow after their own wills, and desire with purity of mind to fight for the most high and true king,” exhorting them to put on the armour of obedience, and to associate themselves together with piety and humility for the defence of the holy catholic church; and to employ a pure diligence, and a steady perseverance in the exercise of their sacred profession, so that they might share in the happy destiny reserved for the holy warriors who had given up their lives for Christ. The rule enjoins severe devotional exercises, self-mortification, fasting, and prayer, and a constant attendance at matins, vespers,
- 85. and on all the services of the church, that “being refreshed and satisfied with heavenly food, instructed and stablished with heavenly precepts, after the consummation of the divine mysteries,” none might be afraid of the fight, but be prepared for the crown. The following extracts from this rule may be read with interest. “VIII. In one common hall, or refectory, we will that you take meat together, where, if your wants cannot be made known by signs, ye are softly and privately to ask for what you want. If at any time the thing you require is not to be found, you must seek it with all gentleness, and with submission and reverence to the board, in remembrance of the words of the apostle, Eat thy bread in silence, and in emulation of the psalmist, who says, I have set a watch upon my mouth; that is, I have communed with myself that I may not offend, that is, with my tongue; that is, I have guarded my mouth, that I may not speak evil. “XI. Two and two ought in general to eat together, that one may have an eye upon another.... “XVII. After the brothers have once departed from the hall to bed, it must not be permitted any one to speak in public, except it be upon urgent necessity. But whatever is spoken must be said in an under tone by the knight to his esquire. Perchance, however, in the interval between prayers and sleep, it may behove you, from urgent necessity, no opportunity having occurred during the day, to speak on some military matter, or concerning the state of your house, with some portion of the brethren, or with the Master, or with him to whom the government of the house has been confided: this, then, we order to be done in conformity with that which hath been written: In many words thou shalt not avoid sin; and in another place, Life and death are in the hands of the tongue. In that discourse, therefore, we utterly prohibit scurrility and idle words moving unto laughter, and on going to bed, if any one among you hath uttered a foolish saying, we enjoin him, in all humility, and with purity of devotion, to repeat the Lord’s Prayer.
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