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Business Analytics Third Edition Jeffrey D. Camm Wake Forest University James J. Cochran University of Alabama Michael J. Fry University of Cincinnati Jeffrey W. Ohlmann University of Iowa David R. Anderson University of Cincinnati Dennis J. Sweeney University of Cincinnati Thomas A. Williams Rochester Institute of Technology Australia • Brazil • Mexico • Singapore • United Kingdom • United States Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

Analytic Solver® www.solver.com/aspe Your new textbook, Business Analytics, 3e, uses this software in the eBook (MindTap Reader). Here’s how to get it for your course. For Instructors: Setting Up the Course Code To set up a course code for your course, please email Frontline Systems at academic@solver.com, or call 775-831-0300, press 0, and ask for the Academic Coordinator. Course codes MUST be set up each time a course is taught. A course code is free, and it can usually be issued within 24 to 48 hours (often the same day). It will enable your students to download and install Analytic Solver, use the software free for 2 weeks, and continue to use the software for 20 weeks (a typical semester) for a small charge, using the course code to obtain a steep discount. It will enable Frontline Systems to assist students with installation, and provide technical support to you during the course. Please give the course code, plus the instructions on the reverse side, to your students. If you’re evaluating the book for adoption, you can use the course code yourself to download and install the software as described on the reverse. Instructions for Students: See reverse. Installing Analytic Solver Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

For Students: Installing Analytic Solver® 1) To download and install Analytic Solver (also called Analytic Solver® Basic) from Frontline Systems to work with Microsoft® Excel® for Windows®, please visit: www.solver.com/student 2) Fill out the registration form on this page, supplying your name, school, email address (key information will be sent to this address), course code (obtain this from your instructor), and textbook code (enter CCFOEBA3). 3) On the download page, click the Download Now button, and save the downloaded file (SolverSetup.exe). 4) Close any Excel® windows you have open. Make sure you’re still connected to the Internet. 5) Run SolverSetup.exe to install the software. Be patient – all necessary files will be down- loaded and installed. If you have problems downloading or installing, your best options in order are to (i) visit www.solver. com and click the Live Chat link at the top; (ii) email support@solver.com and watch for a reply; (iii) call 775-831-0300 and press 4 (tech support). Say that you have Analytic Solver for Education, and have your course code and textbook code available. If you have problems setting up or solving your model, or interpreting the results, please ask your instructor for assistance. Frontline Systems cannot help you with homework problems. If you have this textbook but you aren’t enrolled in a course, visit www.solver.com or call 775-831-0300 and press 0 for advice on courses and software licenses. If you have a Mac, your options are to (i) use a version of Analytic Solver through a web browser at https://analyticsolver.com, or (ii) install “dual-boot” or VM software, Microsoft Windows®, and Excel® for Windows®. Excel® for Mac will NOT work. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

This is an electronic version of the print textbook. Due to electronic rights restrictions, some third party content may be suppressed. Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. The publisher reserves the right to remove content from this title at any time if subsequent rights restrictions require it. For valuable information on pricing, previous editions, changes to current editions, and alternate formats, please visit www.cengage.com/highered to search by ISBN#, author, title, or keyword for materials in your areas of interest. Important Notice: Media content referenced within the product description or the product text may not be available in the eBook version. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Business Analytics, Third Edition Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson, Dennis J. Sweeney, Thomas A. Williams Senior Vice President, Higher Ed Product, Content, and Market Development: Erin Joyner Vice President, B&E, 4LTR, and Support Programs: Mike Schenk Senior Product Team Manager: Joe Sabatino Senior Product Manager: Aaron Arnsparger Senior Digital Content Designer: Brandon Foltz Content Developer: Anne Merrill © 2019, 2017 Cengage Learning, Inc. Unless otherwise noted, all content is © Cengage. ALL RIGHTS RESERVED. No part of this work covered by the copyright herein may be reproduced or distributed in any form or by any means, except as permitted by U.S. copyright law, without the prior written permission of the copyright owner. For product information and technology assistance, contact us at Cengage Customer & Sales Support, 1-800-354-9706 or support.cengage.com. For permission to use material from this text or product, submit all requests online at www.cengage.com/permissions. Content Project Manager: D. Jean Buttrom Screenshots are ©Microsoft Corporation unless otherwise noted. Product Assistant: Renee Schnee Senior Marketing Manager: Nathan Anderson Production Service: SPi Global Senior Art Director: Michelle Kunkler Cover and Text Designer: Beckmeyer Design Cover Image: iStockPhoto.com/tawanlubfah Intellectual Property Analyst: Reba Frederics Intellectual Property Project Manager: Nick Barrows Library of Congress Control Number: 2017963667 ISBN: 978-1-337-40642-0 Cengage 20 Channel Center Street Boston, MA 02210 USA Cengage is a leading provider of customized learning solutions with employees residing in nearly 40 different countries and sales in more than 125 countries around the world. Find your local representative at www.cengage.com. Cengage products are represented in Canada by Nelson Education, Ltd. To learn more about Cengage platforms and services, visit www.cengage.com. To register or access your online learning solution or purchase materials for your course, visit www.cengagebrain.com. Printed in the United States of America Print Number: 01 Print Year: 2018 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Brief Contents ABOUT THE AUTHORS XIX PREFACE XXIII Introduction 2 Descriptive Statistics 18 Data Visualization 82 Descriptive Data Mining 138 Probability: An Introduction to Modeling Uncertainty 166 Statistical Inference 220 Linear Regression 294 Time Series Analysis and Forecasting 372 Predictive Data Mining 422 Spreadsheet Models 464 CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 CHAPTER 9 CHAPTER 10 CHAPTER 11 Monte Carlo Simulation 500 CHAPTER 12 CHAPTER 13 CHAPTER 14 Nonlinear Optimization Models 646 CHAPTER 15 Decision Analysis 678 APPENDIX A APPENDIX B APPENDIX C Linear Optimization Models 556 Integer Linear Optimization Models 606 Basics of Excel 724 Database Basics with Microsoft Access 736 Solutions to Even-Numbered Questions (MindTap Reader) REFERENCES INDEX 774 776 Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

Fit your coursework into your hectic life. Make the most of your time by learning your way. Access the resources you need to succeed wherever, whenever. Study with digital flashcards, listen to audio textbooks, and take quizzes. Review your current course grade and compare your progress with your peers. Get the free MindTap Mobile App and learn wherever you are. Break Limitations. Create your own potential, and be unstoppable with MindTap. MINDTAP. POWERED BY YOU. cengage.com/mindtap Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it. Copyright 2019 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203

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