MBA Projects | Type I And Type Ii Errors | Statistical Hypothesis Testing

On Financial & Management Accounting

Submitted To : Submitted By :
Raja Agrawal MBA first semester Mobile No 9893142423

Signature of Teacher

Signature of Student

Every work, however big or small is a result of joint effort a lot of peoples. This Project is also the same. First of all I would like to thanks our Principal for her efforts provided us a harmonious Environment. My thanks go to HOD literature & books at the time of crisis. Last but the least I would like to thanks our friends for providing proper direction & fruitful criticism in completing the Project report. In the end I am also thankful to _____________________ for their guidance & kind cooperation. It would have been impossible for me it complete this project without his help and valuable suggestion for providing me useful

Project Title Business Communication Abstract Communication is neither transmission of message nor message itself. It is the mutual exchange of understanding, originating with the reciever. Communication needs to be effective in business. Communication is essence of management. The basic functions of management (Planning, Organizing, Staffing, Directing and Controlling) cannot be performed well without effective communication. Business communication involves constant flow of information. Feedback is integral part of business communication. Organizations these days are verly large. It involves number of people. There are various levels of hierarchy in an organization. Greater the number of levels, the more difficult is the job of managing the organization. Statistical survey is a method used to collect in a systematic way information from a sample of individuals. Although most people are familiar with public opinion surveys that are reported in the press, most surveys are not public opinion polls (such as political polling), but are used for scientific purposes (HRM) is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business Managerial economics (sometimes referred to as business economics) is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units. As such, it bridges economic theory and economics in practice. It draws heavily from


Human Resource Management

Managerial Economics

methods. For instance. If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity. present especially in American academia. for example through the use of operations research and programming. Another traditional distinction. is between the study of "micro" organizational behavio Management accounting or managerial accounting is concerned with the provisions and use of accounting information to managers within organizations. one textbook[1] divides these multiple viewpoints into three perspectives: modern. and levels of analysis. Lagrangian calculus (linear).quantitative techniques such as regression analysis and correlation. Management Process and Organization Behavior Organizational Behaviour studies encompasses the study of organizations from multiple viewpoints. and postmodern. Financial and Management Accounting . symbolic. to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.

Table of contents  Business Communication  Oral Communication  Written Communication  Online Presentation Introduction  Steps to Improve Online Presentation  The New Concept of Virtual Meeting  Ways to Perform Effectively on a Virtual Team .

Table of contents  Statistics for management  Statistical survey Modes of Data Collection Online surveys Personal in-home survey  Personal mall intercept survey Rules of Probability Rule of Addition  Conditional Probability General Description Statistical error: Type I and Type II .

defining the concepts  Predictive competency Listen to Employee Concerns Provide Feedback  Expectancy theory Theory Developer .Table of contents  Introduction Features Policy Statement Reason for Policy competence .

Table of contents Introduction Price/Output Determination Numerical Example Marginal revenue Explicit cost Price elasticity of demand Point-price elasticity Arc elasticity .

Table of contents  Management Process and Organization Behavior  Introduction  Methods Of Shaping Behavior In Detail  Managerial Roles  Learning styles .

Table of contents  Financial and Management Accounting  Introduction  CONCEPTS & PRINCIPLES  BUSINESS ENTITY CONCEPT  GOING CONCERN CONCEPT     Errors revealed by (the preparation of) trial balance Trial Balance Limitations .Shortcomings of trial balance Errors not revealed by (the preparation of) trial balance Regulation and standardization Time Period .

Business Communication .

between organization and society at large(for example between management and trade unions). Directing and Controlling) cannot be performed well without effective communication. Communication is essence of management. It is essential for success and growth of an organization. The basic functions of management (Planning.Grapevine. Immediate feedback can be obtained and misunderstandings if any can be avoided. originating with the reciever.Business Communication Communication is neither transmission of message nor message itself. Business Communication is regulated by certain rules and norms. Communication gaps should not occur in any organization. Organizations these days are verly large. Staffing.An oral communication can be formal or informal.agenda. 2. It is the mutual exchange of understanding. But now with advent of technology. There are various levels of hierarchy in an organization. . Feedback is integral part of business communication. Oral Communication . Business communication involves constant flow of information. video conferencing. Written Communication . Business Communication can be of two types: 1. In early times. An example of Informal business communication would be . There should be effective communication between superiors and subordinated in an organization. Communication here plays a very important role in process of directing and controlling the people in the oragnization. business communication was limited to paper-work. Effective business communication helps in building goodwill of an organization. interviews.Written means of business communication includes . Communication needs to be effective in business. like : meetings. The rules. Organizing. regulations and policies of a company have to be communicated to people within and outside the organization. telephone calls etc. manuals etc. we have cell phones. speeches etc. Generally business communication is a formal means of communication. group discussion. reports. Business Communication is goal oriented. emails. Greater the number of levels. It involves number of people. the more difficult is the job of managing the organization. satellite communication to support business communication.

A company might communicate with their share holders. an old term. Mostly they serve locally. All that you need to do is register as a member of our friendly community and you can start advertising your products. In fact. For example. Public relations is relatively a narrow one compared to Corporate Communication. which is very broad. It seems like just about everyone that has a web presence has some sort of product that they want to advertise and promote. It goes without saying that these companies have to deal externally more than internally. Therefore. They key to advertising and marketing products is to increase the exposure of your product to its target audience. The world has fast changed. services. you can see a lot of Government offices and Public sector companies speaking a lot about "public relations". So. all these sorts of things necessitated for a new name. which is of course unlike "public relations" really bigger and wider with respect to its roles they play. Even today. You find only multi national corporations.This is Muralidharan Kuppuswami Iyer from India. Thanks to internet revolution. You can advertise almost any product on our . the time has evolved to an extent that the word "public relations" is no more there at least in the corporate areana. you can very well assume it as a "local" flavour. responsibilities they have towards different segments. you will find a board hanging right under the head of a person "Public Relations Officer". and other stuff that they want to advertise to other people. The technologies are at their vibrant best. if you go to universities. which is "corporate communication". The world has shrinked so much that you can have the entire world brought right at your desktops. Business is not local anymore. where he serves the students by answering their questions and clarify doubts etc. the audience they address both locally and globally. place itself in high esteem through best branding globally and so on. Corporate communication encapsulates the functions of public relations. We started this product advertising site to give people from around the world a great place to advertise products online. where global business is done throgh global presence. We provide just one more great place for people to get the word out about their products.

website as long as it is in good taste and complies with our rules and posting guidelines. or combination of them) and how it relates to key constituencies: Customers. and so on that become linked to the brand. The art of creating and maintaining a brand is called brand management. the type of stitch: all may be . The psychological aspect. experiences. Careful brand management seeks to make the product or services relevant to the target audience. perceptions. Some people distinguish the psychological aspect. sometimes referred to as the brand image. Brands should be seen as more than the difference between the actual cost of a product and its selling price they represent the sum of all valuable qualities of a product to the consumer. as it demonstrates what the brand owner is able to offer in the marketplace. Maybe your company needs a place to promote itself and tell everyone about all of your great products. feelings. images. service or company (name. Orientation of the whole organization towards its brand is called brand orientation. A brand is therefore one of the most valuable elements in an advertising theme. beliefs. Perhaps you have something that you are selling or a service you are wanting to tell everyone about. is a symbolic construct created within the minds of people and consists of all the information and expectations associated with a product or service. sign. brand associations like thoughts. intangibles left wholly from the income statement and balance sheet which determine how a business is perceived. the type of mental working. The experiential aspect consists of the sum of all points of contact with the brand and is known as the brand experience. of a brand from the experiential aspect. People engaged in branding seek to develop or align the expectations behind the brand experience. attitudes. creating the impression that a brand associated with a product or service has certain qualities or characteristics that make it special or unique. symbol. The learned skill of a knowledge worker. Partners. Investors etc. Brand is the personality that identifies a product. or design. term. There are many intangibles involved in business. Staff.

such as you may put pictures. the technique to propose a presentation does not fall in the place.without an 'accounting cost' but for those who truly know the product. Proposing an Online Presentation Though a Power Point presentation can be a successful tool when proposing an online presentation for an oversea client. this tool is called the internet. Steps to Improve Online Presentation • Use a font that is readable as well as a font size that is visible. . it haves a setting. In this article you will learn how to propose an online presentation for you overseas clients. Online Presentation Introduction In the modern world we have a special tool to where we can communicate with a person or party within a significantly short time. and a solution. plot. Online Presentation Tools Tools are meant to help you to do a certain thing. the difference is incomparable. sound affects. for it is these people the company should wish to find and keep. To have well online presentation you must propose a good story. conflict. etc. characters. allowing us to perform business with employees overseas and with clients overseas. and fortunately there are tools that help you propose an online presentation. How do I tell a good story? A presentation either online or not it is like a story. Power Point is considered to be very effective in business presentations is. animation. Sponsored Links With business conducted over the internet this brings the need of online presentations. now that’s where the technique falls in. Using Power Point you can design slides without a limit. Since modern technology has moved its way in to our modern world we are able to work business with the internet.

Sponsored Links If you are planning to use the Power Point software do not do overdo your presentation. months. If you attend to present a lot of data. • When you are proposing an online presentation for the oversea client. charts will certainly summarize your work and make much simpler to visualize. Wagonwheel. or even a years work information then it will be difficult for the client to analyze the data if it where in a written format. if you use a smaller font size your presentation will be too small for the person to see.Elegant and blocky fonts are many times difficult to read so it is important for you to avoid such fonts. • A suggestion on the font size is to keep your font size 32 if not greater. to guide you to present your persuasive message. In order to propose a persuasive message. Then you want to. you . • Avoid overdoing your transitions. maybe of a weeks. the Venetian blinds. After lunch you get an e-mail concerning a complaint from the customer stating that the product isn’t working properly. this will then make the person meditate. and the checkerboard transitions can be rather amusing but it is difficult to look between slides. you want to start by studying the person or audience. charts will help your client view the data with much ease. such as facts. Later on that day you hang visual graphs of production rates of the past few weeks. you begin a day's work with a brief meeting with your employees. with the knowledge of the gathered information. where everyone can see. Thus is important you have the skills to persuade a client. instead use charts. so then. you are doing it with the purpose to persuade the client. What is Business Communication Service? You have a company. After you use that strategy begin with citing important information that is relevant to the topic. Then you want to use the opportunity of explaining the reasons of why should the person do such thing and how will it benefit the person.

The best tool to guide a child is without doubt communication. . Take for example of a father and son. all these actions you made are considered internal communication. containing parts that you’ve been waiting for to finish assembling your product. if the father provides good communication service to his own son the results will indeed be positive. which is. as when you notified them about the product failure. but why would communicating properly be of any importance? In this article you will be notified of the truth to the importance of having good communication service. which is considered to be an internal communication. Finally at the end of the day. the father must first be a part his son’s life to guide him. if the father is thinking about his son’s future and how his son could achieve great accomplishments along the way. it turns out to be a customer who is interested in buying your product. the arrival of the shipment. The way you communicated at work is what you call “service”. By the end of the day a shipment has finally arrived from the vendors. in order for this to happen. once again you notify your employees so they can begin preparing. good communication service will help lead the company to success. you receive a call. Not only did you use internal communication but you used external communication also. When you had your meeting you communicated with your employees. What you practically did for a day’s work was communicating. and when you hung the Productivity Graphs. beginning with the brief meeting you had with your employees to the customer you spoke to at the end of the day.notify your employees and explain the case after apologizing to the customer about the inconvenience. for instance when you received the e-mail and apologized to the complaining customer. Communication is used so frequently in business. the truth because it will bring positive results to the table. also when you spoke to the client who was interested in purchasing your product.

simply because the job demands for him to be always in the move. In the modern world to achieve and accomplish a set goal people must be sift in operating a job or task. What can be done as a solution for communication to be performed though these obstacles? Ways to Perform Effectively on a Virtual Team To become successful in working with a virtual team you may want to consider applying the following.Another example. giving you the opportunity to fix the issue. Sponsored Links Take for example of a case of a person who depended on a certain information that a person from the other side of the world obtained. That is why it is very important to provide good communication service internal and external. The results can be dramatic. simply because your skills used in communicating with customer made the customer feel more tranquil about the problem. Now it is certain that many have experienced situations like these in which they needed to communicate but couldn’t get to the person or party to meet on time or couldn’t even find the person or party because the person or party was on the run. since you will always end with great results. of when good communication service is used is when dealing with an angry customer complaining about a defect on the product. and using soothing words with a calm attitude. due to the demands of the clients. Sometimes communication can’t be successfully performed for the reason being that people can’t communicate because they’re always on the move. . You take action by dealing with the customer with patience. because you will convert the customer’s negative attitude into a positive attitude and satisfy the customer’s needs. only that person form the other side of the world is able to send that important information but the person is in the run. The New Concept of Virtual Meeting Many times in a business people have stalled in there work simply because of communication glitches.

With a virtual meeting you are also able to perform training session where you can train as many as you want since everyone can see the same information you expose. This will allow opinions and answers to be given at a rapid pace. You may also use instant message for training sessions. If you thought you can only present a power point presentation by being present at a meeting.• Use instant messaging • Use a virtual conference • Set up a sharing website • Keep in touch Instant Messaging: Use instant when proposing a meeting. Virtual Conference: A virtual conference room will be beneficial when you are presenting a formal meeting. Pretend you are attending a meeting to where you are to be present. In instant messaging is like if everyone where gathered around a table where everyone exploit their opinions and answers. Instant messaging is also a great tool since it allows you to share files and won’t find the need to wait for a file through e-mail. well think again. and you are sitting in a table where everyone debates there opinions and respond with answers to questions. . In a virtual conference room you are able to make a slide presentation. well instant messaging isn’t different at all. beneficial and easy especially if you wish to train someone from a distant place.


or factual information(e. Surveys provide important information for all kinds of research fields. e. depending on its purpose. but are used for scientific purposes. taste/smell samples) unreliable for consumer surveys in rural areas where telephone density is low[4] three types: o traditional telephone interviews o computer assisted telephone dialing .g. 4) respondents’ willingness to participate and 5) response accuracy. fairly cost efficient. 3) flexibility of asking questions.. marketing research.g. Modes of Data Collection There are several ways of administering a survey. behavior (smoking and drinking behavior).. most surveys are not public opinion polls (such as political polling). [1].. Het e the most common modes of administration are listed [2]: Telephone • • • • • • • • use of interviewers encourages sample persons to respond. A survey may focus on different topics such as preferences (e.g. leading to higher response rates. for a presidential candidate) . 2) coverage of the target population. Although most people are familiar with public opinion surveys that are reported in the press. the success of the research is dependent on the representativeness of the population of concern (see also sampling (statistics)). including 1) costs. income).g. health professionals and sociology. depending on local call charge structure good for large national (or international) sampling frames some potential for interviewer bias (e. demonstrations. some people may be more willing to discuss a sensitive issue with a female interviewer than with a male one) cannot be used for non-audio information (graphics. psychology. The choice between administration modes is influenced by several factors.Statistical survey is a method used to collect in a systematic way information from a sample of individuals.[3] interviewers can increase comprehension of questions by answering respondents' questions. Since survey research is always based on a sample of the population.

o computer assisted telephone interviewing (CATI) Mail • • • • • • • • the questionnaire may be handed to the respondents or mailed to them. before the surveys are returned and statistical analysis can begin not suitable for issues that may require clarification respondents can answer at their own convenience (allowing them to break up long surveys. also useful if they need to check records to answer a question) no interviewer bias introduced large amount of information can be obtained: some mail surveys are as long as 50 pages response rates can be improved by using mail panels o members of the panel have agreed to participate o panels can be used in longitudinal designs where the same respondents are surveyed several times Online surveys • • • • • • • • • • can use web or e-mail. often several months.members of the panel have agreed to participate honesty of responses can be an issue if not password-protected. An advantage is. but in all cases they are returned to the researcher via mail. DAP or other statistical analysis software data sets created in real time some are incentive based (such as Survey Vault or YouGov) . easy to manipulate by completing multiple times to skew results data creation. Web is preferred over e-mail because interactive HTML forms can be used often inexpensive to administer very fast results easy to modify response rates can be improved by using Online panels . since bulk postage is cheap in most countries long time delays. is that cost is very low. manipulation and reporting can be automated and/or easily exported into a format that can be read by PSPP.

• • • may skew sample towards a younger demographic compared with CATI often difficult to determine/control selection probabilities. Questionnaire can be returned without answering all the questions but.6. in their homes (or at the front door) very high cost suitable when graphic representations. Personal in-home survey • • • • • • • respondents are interviewed in person. Questionnaire can be filled by anyone but schedule is always filled by enumerator.people feel that a mall is a more appropriate place to do research than their home potential for interviewer bias fast easy to manipulate by completing multiple times to skew results Questionnaire can be sent via mail but schedule is done only personally2. taken to a room and interviewed. Respondent should be literate & co-operative in Questionnaire but schedule can be filled by illiterate. hindering quantitative analysis of data used in large scale industries. in schedule. Physical appearance of Questionnaire has to be .5. enumerator ensures the filling all the questions. or demonstrations are involved often suitable for long surveys (but some respondents object to allowing strangers into their home for extended periods) suitable for locations where telephone or mail are not developed skilled interviewers can persuade respondents to cooperate. Risk of incomplete & wrong information is more in Questionnaire.4. smells.they are either interviewed on the spot. improving response rates potential for interviewer bias Personal mall intercept survey • • • • • shoppers at malls are intercepted .7. Questionnaire is cheaper method than schedule (for schedule you have to move everywhere3. or taken to a room and given a self-administered questionnaire socially acceptable .

education. The table shows the data of Expenditure of a family on food. we want to compute the probability of an event from the known probabilities of other events. This lesson covers some important rules that simplify those computations.8.Success of Questionnaire depends on its design but in case of Schedule it depends on honesty & competency of Enumerator.attractive but not such case is necessary with schedule. rent and other items. . Items Food Clothing Education Rent Others Expenditure 4300 1200 700 2000 600 Depict the data shown in the table using Pie chart. Expenditure Food Clothing Education Rent Others Rules of Probability Often. clothing.

we state the following definitions:     Two events are mutually exclusive if they have no sample points in common. Probability Calculator Use the Probability Calculator to compute the probability of an event from the known probabilities of other events. Probability Calculator Rule of Subtraction In the previous lesson. is denoted by the symbol P(A|B). The rule of subtraction follows directly from these properties. we learned two important properties of probability:   The probability of a sample point ranges from 0 to 1. which appears in the header of every Stat Trek web page. given that Event B has occurred. The sum of probabilities of all the sample points in a sample space equals 1. The conditional probability of A. is called a conditional probability. given B. The probability that Event A occurs. It can be found under the Stat Tools tab. .Definitions and Notation Before discussing the rules of probability. The Probability Calculator is free and easy to use. The probability that event A will not occur is denoted by P(A').

there are 9 marbles in the urn. We have two events from the same sample space. there are 10 marbles in the urn. based on the rule of multiplication: P(A ∩ B) = P(A) P(B|A) P(A ∩ B) = (4/10)*(3/9) = 12/90 = 2/15 Example 2 Suppose we repeat the experiment of Example 1. P(A) = 1 . Rule of Multiplication If events A and B come from the same sample space. the probability that both A and B occur is equal to the probability the event A occurs times the probability that B occurs. Therefore. given that A has occurred. P(A ∩ B) = P(A) * P(B|A) Example 1 An urn contains 6 red marbles and 4 black marbles. but this time we select . and let B = the event that the second marble is black. Therefore.Rule of Subtraction The probability that event A will occur is equal to 1 minus the probability that event A will not occur. P(B|A) = 3/9. and we want to know the probability that both events occur. What is the probability that both of the marbles are black? Solution: Let A = the event that the first marble is black. After the first selection. Therefore. We know the following:   In the beginning. 3 of which are black. P(A) = 4/10. 4 of which are black. Two marbles are drawn without replacement from the urn.P(A') Rule of Multiplication The rule of multiplication applies to the following situation.

we replace the selected marble. and we want to know the probability that either event occurs. based on the rule of multiplication: P(A ∩ B) = P(A) P(B|A) P(A ∩ B) = (4/10)*(4/10) = 16/100 = 4/25 Rule of Addition The rule of addition applies to the following situation. We have two events from the same sample space. We know the following:   In the beginning. Rule of Addition If events A and B come from the same sample space. After the first selection. what is the probability that both of the marbles are black? Solution: Let A = the event that the first marble is black. When we select with replacement. Therefore. P(A ∪ B) = P(A) + P(B) . there are 10 marbles in the urn. and then replace it in the urn before making the second selection.marbles with replacement. the probability that event A and/or event B occur is equal to the probability that event A occurs plus the probability that event B occurs minus the probability that both events A and B occur. the Addition Rule can also be expressed as P(A ∪ B) = P(A) + P(B) . P(A) = 4/10. note its color. so there are still 10 marbles in the urn. Therefore. 4 of which are black. 4 of which are black. P(B|A) = 4/10.P(A ∩ B) Note: Invoking the fact that P( A ∩ B ) = P( A )P( B | A ). we select one marble.P(A) * P( B | A ) . That is. and let B = the event that the second marble is black. Therefore.

25% of the class passed both tests and 42% of the class passed the first test. based on the rule of addition: P(F ∪ N) = P(F) + P(N) .P(S ∩ A) P(S ∪ A) = 13/52 + 4/52 . or both? Solution: Let F = the event that the student checks out fiction. Then. and (c) both fiction and non-fiction is 0.P(F ∩ N) P(F ∪ N) = 0.40 + 0. What percent of those who passed the first test also passed the second test? Analysis: This problem describes a conditional probability since . Therefore. and let A = the event that the card is an ace.40.Example 1 A student goes to the library.1/52 = 16/52 = 4/13 Conditional Probability Problem: A math teacher gave her class two tests. . so P(A) = 4/52. based on the rule of addition: P(S ∪ A) = P(S) + P(A) . non-fiction. We know the following:     There are 52 cards in the deck. There are 13 spades. so P(S ∩ A) = 1/52. The probability that she checks out (a) a work of fiction is 0. What is the probability that you will win the game? Solution: Let S = the event that the card is a spade. (b) a work of non-fiction is 0. There is 1 ace that is also a spade.30.20. so P(S) = 13/52. There are 4 aces. You win $10 if the card is a spade or an ace.20 = 0.50 Example 2 A card is drawn randomly from a deck of ordinary playing cards. and let N = the event that the student checks out non-fiction.30 . What is the probability that the student checks out a work of fiction.0.

Cancel P(A)s on right-hand side of equation. In the last lesson. are dependent. Divide both sides of equation by P(A).2 Solution: P(Second| = Second) = 5 = 0. Commute the equation. Multiplication Rule 2: When two events. the notation for conditional probability was used in the statement of Multiplication Rule 2. the probability of both occurring is: The formula for the Conditional Probability of an event can be derived from Multiplication Rule 2 as follows: Start with Multiplication Rule 2.4 0 % 2 . What percent of those who passed the first test also passed the second test? P(First and 0. We have derived the formula for conditional asks us to find the probability that the second test was passed given that the first test was passed. Problem: A math teacher gave her class two tests. 25% of the class passed both tests and 42% of the class passed the first test. A and B.6 = 60 First) P(First) 0. Now we can use this formula to solve the problem at the top of the page.

Let's look at some other problems in which we are asked to find a conditional probability. What is the probability of selecting a white marble on the second draw. read as the probability of B given A.2.1 = 13 Spanish) 7 Technology) 3 % P(Technology) 0.68 Summary: The conditional probability of an event B in relationship to an event A is the probability that event B occurs given that event A has already occurred.3 P(White| = White) = 4 = 0. and the probability of selecting a black marble on the first draw is 0.34. Since there are 5 school days in a week.087. The formula for conditional probability is: The Venn Diagram below illustrates P(A). What is the probability that a student is absent given that today is Friday? Solution: P(Friday and 0.68. P(B).47. What is the probability that a student takes Spanish given that the student is taking Technology? Solution: P(Technology and 0.7 = 72 Black) P(Black) 0. Example 1: A jar contains black and white marbles.03. and . The probability that a student takes Technology is 0.08 P(Spanish| = = = 0.2 Example At Kennedy Middle School. given that the first marble drawn was black? Solution: P(Black and 0. The probability of selecting a black marble and then a white marble is 0. the probability that it is Friday is 0.0 P(Absent| = = = 0. the probability that a student 3: takes Technology and Spanish is 0.4 2 % 7 Example The probability that it is Friday and that a student is absent 2: is 0. The notation for conditional probability is P(B|A).1 = 15 Absent) 3 Friday) 5 % P(Friday) 0. Two marbles are chosen without replacement.

Statistical tests are used in arriving at these decisions. Most often. it is useful to make an educated guess or assumption about the population involved. we test the mean (  of a population to ) see if an experiment has caused an increase or decrease in  . Statistical Hypotheses : They are defined as assertion or conjecture about the parameter or parameters of a population. What two sections would have to be divided to find P(B|A)? Answer General Description There are two types of statistical inferences: estimation of population parameters and hypothesis testing. decisions are required to be made concerning populations on the basis of sample information. Statistical hypotheses are based on the concept of proof by contradiction. For example.e. We do this by proof of contradiction by formulating a null hypothesis. such as the type of distribution. we . nature or probability distribution of the population. Always the null hypothesis is tested. say.P(A and B). i. They may also concern the type. Null Hypothesis : It is a hypothesis which states that there is no difference between the procedures and is denoted by H0. There are five ingredients to any statistical test : (a) Null Hypothesis (b) Alternate Hypothesis (c) Test Statistic (d) Rejection/Critical Region (e) Conclusion In attempting to reach a decision. for example the mean or the variance of a normal population.. Hypothesis testing is one of the most important tools of application of statistics to real life problems. For the above example the corresponding H0 would be that there has been no increase or decrease in the mean.

The population standard deviation  is estimated by the sample standard deviation. the probability of the value of the random variable falling . the distribution of the means of those samples will approximate normality. A z statistic is usually used for large sample sizes (n > 30). even when the data in the parent population are not distributed normally. Alternative Hypothesis : It is a hypothesis which states that there is a difference between the procedures and is denoted by HA. In case of performing multiple comparisons by one way Anova. Table 1. The critical value of F is read off from tables on the F-distribution knowing the Type-I error  and the degrees of freedom between & within the groups. Various types of H0 and HA Case 1 2 3 Null Hypothesis H 0  =            Alternate Hypothesis H A               Test Statistic : It is the random variable X whose value is tested to arrive at a decision. is determined by the probability ( ) of the sample point falling in the critical region when H0 is true. The size of this region.  is also known as the level of significance. s. The t curves are bell shaped and distributed around t=0.It is defined as the ratio of the mean square due to the variability between groups to the mean square due to the variability within groups. The Central Limit Theorem states that for large sample sizes (n > 30) drawn randomly from a population. in which case the tdistribution can be used. Rejection Region : It is the part of the sample space (critical region) where the null hypothesis H0 is rejected. but often large samples are not easy to obtain.want to either accept or reject the null hypothesis because we have information only for the null hypothesis. the F-statistic is normally used. The exact shape on a given t-curve depends on the degrees of freedom.

that the individual has the disease. The context is that there is a "null hypothesis" which corresponds to a presumed default "state of nature". it does not indicate disease." depending upon which hypothesis has incorrectly been identified as the true state of nature[citation needed]. then a correct decision has been made. classified as "type I error" and "type II error. an α error. Type I error can be viewed as the error of excessive credulity[citation needed]. The goal is to determine accurately if the null hypothesis can be discarded in favor of the alternative.. but if the result of the test corresponds with the actual state of nature. or telling a patient he is sick when in fact he is not. An example of this would be if a test shows that a woman is pregnant when in reality she is not. else H0 is accepted. thus indicating a test of poor specificity. . The result of the test may be negative (that is. Corresponding to the null hypothesis is an "alternative hypothesis" which corresponds to the opposite situation. also known as an "error of the first kind". A test of some sort is conducted and data are obtained. it may indicate disease. that the accused is guilty. Plainly speaking. or a "false positive": the error of rejecting a null hypothesis when it is actually true. On the other hand. guilt).in the critical region. Statistical error: Type I and Type II Statisticians speak of two significant sorts of statistical error. If the result of the test does not correspond with the actual state of nature. Conclusion : If the test statistic falls in the rejection/critical region. e. that is. that an individual is free of disease. it may be positive (that is. then an error has occurred.g. H0 is rejected. Type I error Type I error. There are two kinds of error. it occurs when we are observing a difference when in truth there is none. that an accused is innocent. guilt).It implies only that the observed difference between the sample statistic and the mean of the sampling distribution did not occur by chance alone. Also it should be noted that the term "Statistical significance" refers only to the rejection of a null hypothesis at some level  .

An example of this would be if a test shows that a woman is not pregnant. or a "false negative": the error of failing to reject a null hypothesis when in fact we should have rejected it. a β error. Type II error can be viewed as the error of excessive skepticism[citation needed].In other words. when in reality. also known as an "error of the second kind". a Type II error means that a negative inference is actually false. she is. Type II error Type II error. this is the error of failing to observe a difference when in truth there is one. . In other words. a Type I error means that a positive inference is actually false. thus indicating a test of poor sensitivity. In other words.

Human Resource Management .

HRM techniques.[1] The terms "human resource management" and "human resources" (HR) have largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. are expressive of the goals and . As such. assuming that virtually all wish to contribute to the enterprise productively.[4] although these normally refer to the relationship between management and workers and the behavior of workers in companies.[1] In simple words. The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce. and failures of process. The field takes a positive view of workers. insufficient training. utilizing. developing their capacities. Sometimes even employee and industrial relations are confusingly listed as synonyms. maintaining and compensating their services in tune with the job and organizational requirement. such as trucks and filing cabinets. and as such should not be thought of as basic business resources.Human resource management (HRM) is the strategic and coherent approach to the management of an organization's most valued assets the people working there who individually and collectively contribute to the achievement of the objectives of the business. HRM means employing people. when properly practiced. Human Resource Management(HRM) is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. and to provide the resources needed for them to successfully accomplish their assignments. Features Its features include: • • • • Organizational management Personnel administration Manpower management Industrial management[2][3] But these traditional expressions are becoming less common for the theoretical discipline. and that the main obstacles to their endeavors are lack of knowledge.

operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organisations. Salary and wage administration is often an integral function of the organization's human resources department.. Torrington and Hall (1987) define personnel management as being: “a series of activities which: first enable working people and their employing organisations to agree about the objectives and nature of their working relationship and. Therefore. providing its members with payroll and benefits. Policy Statement The University System of Georgia recognizes the importance of employees to the mission of the System and its member’s institutions. the larger the organization.[5] Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce. ensures that the agreement is fulfilled" (p. So if we move to actual definitions. the USG authorizes institutions to develop and administer wage and salary administration programs to ensure fair and equitable .those decisions and actions which concern the management of employees at all levels in the business and which are related to the implementation of strategies directed towards creating and sustaining competitive advantage" Salary and wage administration is the process of compensating an organization's employees in accordance with accepted policy and procedures... While Miller (1987) suggests that HRM relates to: ". but in general. 49).. both with respect to others in the same organization and to the marketplace as a whole. and administrating their work-life needs. An important component of a successful organization's salary and wage administration policy is monitoring and evaluating all employees' compensation to ensure that they're being paid appropriately.. the more likely is is that it will be handled by a separate department.. secondly.

testing the characteristics and aptitudes that are likely to differentiate superior performers. adaptive competence .pay among their employees. Predictive competency Predictive competency derived largely from the work of David McClelland.e.i. and other salary adjustments when necessary and warranted. (and founder of the McBer consultancy). and a former student. 4. proven competence . a Harvard psychologist involved in psychometric testing.defining the concepts The concept of competence has different meanings.i.e. aggregates of capabilities. Richard Boyatzis. a real and demonstrated ability to successfully carry out some activity which is totally identified. popularised the term competency .i. Four influential (but confusing) definitions during the last decade can be summarised as: 1.i. where synergy is created that has sustainable value and broad applicability for an organisation. It is not always immediately clear which of the many forms of competence is being used or discussed. His 1973 article Testing for Competence Rather Than for Intelligence stimulated interest. 2.e. organisational core competencies . 'metacompetence' or the ability to read a new situation and adapt/apply appropriate competences. predictive competency . competence . Such a program shall provide guidance on an employee’s salary at the time of hire. performance based increases. Such a program will also recognize that all salaries are subject to budgetary authorization and funding limitations. 3.e. Reason for Policy To provide institutions with the authority to develop and administer a wage and salary administration program and to ensure fair and equitable pay.

Most corporate systems. and they are rare or difficult to imitate. organisational core competencies are characteristics of the organisation as a whole. they are critical in producing end products. A core competency is "an area of specialised expertise that is the result of harmonising complex streams of technology and work activity. has a Group 'Competency Framework' which describes in detail by corporate function "the things that people need to be good at if they are to be effective in the jobs and meet the needs of the organisation.' One major company. Duty holders needed proven competence. Journal of Applied Psychology. for example. "As a job becomes more complex the less excellence is a function of task mastery and more a function of other. two business academics. Many large companies apply the concepts in one form or another but usually only for their high-potential personnel." The example used was Honda's expertise in engines. Prahalad and Hamel. Proven competence Both the above definitions were widely used in hazardous industries in the period following the Cullen Report. In most cases. however. they are pervasive in all strategies. they provide access to a variety of markets. do not use the sophisticated tests envisaged by McClelland. introduced the concept in a 1990 Harvard Business Review article. The concept became highly fashionable in the mid-1990s." .in his 1982 book The Competent Manager. not of individuals. and therefore turned to the third definition. Core competencies provide a set of unifying principles for the organisation. less tangible qualities" [Hunter. but they concerned probability rather than proof of competence. but rely on assessment (or self-assessment) against 'competency statements. 1990]. they borrowed from the VQ structure to define competence as: "the ability of people to perform work to a set standard in employment. Schmidt & Judiesch." Organisational core competencies In the second definition.

not inputs. If employees are willing to be open and share their concerns. Employers may notice symptoms of low morale. low productivity. According to an article on the Entrepreneur website. Make sure that training materials and job descriptions are upto-date and accurate. not what they put into it. This means that competence focuses on the outputs from activities. It is not what they know or have learned about. Every Occasion & Everyone. positive changes. ask them for their ideas to improve the work environment. morale will suffer. decreased quality and more absenteeism.In this definition. but what they implement when they do the job. Motivate Your Employees SnapDeal. consider asking them to complete an anonymous job satisfaction questionnaire. Buy Now! Sponsored Links Give Employees Clear Expectations If workers do not understand the expectations of their Gift Vouchers for Every Interest. . If the workforce greets your inquiries with suspicion. working conditions. try talking about it with individual workers. morale in the workplace is the final result of factors present in the work environment including salary. employers must be willing to make lasting. to check that it exceeds the minimum acceptable level of performance. Managers are often concerned with employee morale and finding ways to improve it. It means that what the workers produce is considered and compared with a standard. Try to give employees plenty of advance notice regarding changes in policy or work volume that will affect them. Listen to Employee Concerns If you detect employee morale is slipping. such as apathy. competence is judged by what people produce in the course of their work. To combat low employee morale. status and job satisfaction.

Give every employee the opportunity to participate in setting work-related goals. Be Persistent in Efforts Turning around low employee morale does not happen overnight. Speak to them by name and ask them how things are going. The outcome is not the sole determining factor in making the decision of how to behave.[1] In essence. a short lived. half-hearted effort to improve the work environment will likely make things worse. Provide Feedback Take the time to let employees know how they are doing. However. but if you persist. Show genuine concern if employees share problems or struggles. Find out if they need additional training or resources to be successful. Some employees may view your attempts to improve morale with cynicism. Show Concern Spend a few moments each day speaking individually to employees. This is done before making the ultimate choice. If they are under performing. you can prove you are sincere.[1] . find out if they need more training or have personal problems that are affect their work. the motivation of the behavior selection is determined by the desirability of the outcome. Be sure to recognize exceptional performance and show your appreciation. and encourage them in their efforts. In fact.Set Mutually Acceptable Goals Morale should start to rise if employees are working toward goals they helped set. Expectancy theory Expectancy Theory proposes that a person will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be. at the core of the theory is the cognitive process of how an individual processes the different motivational elements.

however his book Work and Motivation (1964) is regarded as a breakthrough in the study of leadership and decision making within organizations. He wanted to better understand why people chose to behave in a certain way. The individual makes choices based on estimates of how well the expected results of a given behavior are going to match up with or eventually lead to the desired results. Searle Professor of Organization and Management at the Yale University School of Management. 2005. Vroom has written nine books. Victor H. the instrumentality of this performance to achieving a certain result. (S.Expectancy theory is about the mental processes regarding choice. Motivation is a product of the individual’s expectancy that a certain effort will lead to the intended performance. and the desirability of this result for the individual. p. Condrey.[3] . 482) Theory Developer In 1964. a process controlled by the individual. Vroom is a John G. It explains the processes that an individual undergoes to make choices. expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Vroom’s theory is relevant to the study of management and has become even more important as managers try to gain a better understanding of what motivates their employees to behave in certain ways. Vroom developed the Expectancy theory through his study of the motivations behind decision making. "This theory emphasizes the needs for organizations to relate rewards directly to performance and to ensure that the rewards provided are those rewards deserved and wanted by the recipients. known as valence. Vroom (1964) defines motivation as a process governing choices among alternative forms of voluntary activities." [2] Victor H. or choosing. Currently.E. In the study of organizational behavior.

Managerial Economics .

for example through the use of operations research and programming.Introduction (sometimes referred to as business economics) is a branch of economics that applies microeconomic analysis to decision methods of businesses or other management units.microeconomic techniques are used to analyze various pricing decisions including transfer pricing. and choosing the optimum pricing method. If there is a unifying theme that runs through most of managerial economics it is the attempt to optimize business decisions given the firm's objectives and given constraints imposed by scarcity. price elasticity estimations. At universities. Price discrimination is the practice of one retailer. Production analysis . or manufacturer charging different prices for the same items to different customer. Almost any business decision can be analyzed with managerial economics techniques. economies of scale and to estimate the firm's cost function. It is approached as an integration subject. This is a widespread practice that does not necessarily imply negative discrimination. Capital budgeting . the subject is taught primarily to advanced undergraduates and graduate business schools. It draws heavily from quantitative techniques such as regression analysis and correlation. That is. optimum factor allocation.Investment theory is used to examine a firm's capital purchasing decisions.various models are used to quantify risk and asymmetric information and to employ them in decision rules to manage risk. where a black consumer might very . it integrates many concepts from a wide variety of prerequisite courses. wholesaler. it bridges economic theory and economics in practice.microeconomic techniques are used to analyze production efficiency. Pricing analysis . but it is most commonly applied to: • • • • Risk analysis . joint product pricing. In many countries it is possible to read for a degree in Business Economics which often covers managerial economics. costs. Early forms of price discrimination certainly existed in Jim Crow law states. As such. Lagrangian calculus (linear). game theory. price discrimination. business forecasting and industrial economics. financial economics.

second-degree price discrimination often exists. Third degree price discrimination is based on understanding the market. his profit increases. and occurs with great frequency. In companies where a client orders in bulk and is able to purchase a high number of the same items at once. In general. and are often offered discounts at movie theaters. In retail stores.likely pay more for the same quantity and items than a white consumer would. senior citizens are considered a group. A person who might pay more for an item is thought to have a low elasticity of demand. Obviously. You can see this type of price discrimination in the sale of both new and used cars. in restaurants. Second-degree price discrimination refers to companies charging lower prices for higher quantities. but in all cases attempts to derive the most sales from each segmented “group” of consumers. This type of price discrimination often includes a bargaining aspect. A reduced price may be offered if you buy two t-shirts instead of just one. First. For example. Much depends on the understanding of the market in segments. the client may get a discounted rate. second and third degree price discrimination exist and apply to different pricing methods used by companies. and even in retail stores where seniors may have a “senior day” each week that allows them to take a discount on merchandise. First-degree price discrimination occurs when identical goods are sold at different prices to each individual consumer. where the consumer attempts to negotiate a lower price. and the salesperson must attempt to gauge the maximum price at which the car can be sold. People will pay different prices for cars with identical features. This type takes many different forms. is separated into degrees. as it is now understood. “Students” are another segmented . called elasticity of demand. This form helps to get rid of merchandise and generate more revenue for a company. but when he or she can. and also the consumer’s ability to pay a higher or lower price. this type of price discrimination is very rare today Price discrimination. for transportation. Another person who will not pay as much has a high elasticity of demand. This rate would not apply to a client who only orders a few items at a time. the seller is not always going to be able to identify who is willing to pay more for certain items.

A second proposal would allow several small contractors to enter the business without any exclusive franchise agreement or competitive restrictions. Service costs are expected to be the same whether or not an exclusive franchise is granted.). Market segmentation may also evaluate the socio-economic aspects of an area when considering elasticity of demand. retail grocery stores might offer higher prices because people have no alternative place to shop. engine cleaning. TCU guarantees the winner of any bid a minimum per car.. polishing. and the premium over book value recouped in the sale to estimate the amount they would be willing to pay for various amounts of detailing. the free encyclopedia Jump to: navigation. The car lot would then allocate business to the lowest bidder. waxing. where only one chain store exists in a certain location. TCU has conducted a study of its past sales records and the amount of detailing spent on each car. presumably based on how busy they were at the time. a rapidly expanding new entrant to this area. whether or not the service is used Total revenue From Wikipedia. To instigate that may be offered lower prices. Price/Output Determination Price/Output Determination. individuals would bid for the right to provide service on groups of cars as they were delivered to the lot. Inc. is considering two proposals for the provision of its cosmetic detailing of cars (washing. Under this plan. Tallahasse Cars Unlimited. Both seniors and students have a higher elasticity of demand and can generally afford to pay less than the average worker. The car lot has also estimated the total cost of service per car. search . a large janitorial agency with some experience in the detailing of cars has offered to purchase the business detailing equipment in return for an exclusive francise. First. Alternately. etc. It’s not uncommon to see retail grocery stores offer differing prices in an area where the retailer knows he can get more money for a product.

i. We therefore have TR(Q) = 20Q − Q2 / 2000 Marginal revenue From Wikipedia. is therefore represented by P(Q) = 20 − Q / 2000. The inverse demand curve. sometimes equal to price.000 − 2000P where P is the price of a seat. search In microeconomics. or letting TR be the total revenue function. It is the additional income from selling one more unit of a good. the free encyclopedia Jump to: navigation.e. marginal revenue (MR) is the extra revenue that an additional unit of product will bring.Total revenue is the total money received from the sale of any given quantity of output. TR(Q) = P(Q) × Q where Q is the quantity of output sold. The total revenue is calculated as the selling price of the firm's product times the quantity sold. . total revenue = price × quantity. Numerical Example A promoter has properly estimated the demand curve for seats at an event to be Q = 40.[1] It can also be described as the change in total revenue divided by the change in the number of units sold. which determines price as a function of quantity. and P(Q) is the inverse demand function (the demand function solved out for price in terms of quantity demanded).

We therefore have TR(Q) = 20Q − Q2 / 2000.Definition More formally. by the product rule: For a firm facing perfectly competitive markets. the price received will decline with quantity sold ( ). When demand is elastic. and when demand is inelastic. This can also be represented as a derivative when the units of output are arbitrarily small. so marginal revenue is less than price. When the price elasticity of demand is equal to 1. The inverse demand curve. marginal revenue is negative. marginal revenue is equal to the change in total revenue over the change in quantity when the change in quantity is equal to one unit. price does not change with quantity sold ( ). Thus. marginal revenue is equal to zero. (Total revenue) = (Price that can be charged consistent with selling a given quantity) times (Quantity) or . For a monopoly. for which marginal revenue is equal to marginal cost (MC) will be lower for a monopoly than for a competitive firm. so marginal revenue is equal to price. is therefore represented by P(Q) = 20 − Q / 2000. while the profit-maximizing price will be higher. This means that the profitmaximizing quantity. First numerical example A promoter has properly estimated the demand curve for seats at an event to be Q = 40. which determines price as a function of quantity.000 − 2000P where P is the price of a seat. marginal revenue is positive. .

Since economic profit includes these extra . Thus assume that the firm's cost function is C = 420 +60Q +Q² 2. which is borne directly. an implicit cost is any cost that results from using an asset instead of renting.5Q) x Q = 120Q .10 = 110. Equating MR and MC gives 120 .[1] In other words.5(20) = 120 . is the opportunity cost equal to what a firm must give up in order to use factors which it neither purchases nor hires. To find the profit maximizing price simply plug Q into the price equation: P = 120 -. It is the opposite of an explicit cost. Solving for Q gives Q = 20. implied cost..Q. To derive MC you take the first derivative of the total cost function. where total costs are the sum of implicit and explicit costs) and accounting profit (total revenues minus only explicit costs). Implicit cost In economics.[3] The first derivative of the cost function is MC = 60 +2Q. Multiplying the inverse demand function by Q to derive the total revenue function gives: TR = (120 0. the x-intercept of the MR function is one-half the value of the inverse demand function and the slope of the MR function is twice that of the inverse demand function.Q = 60 +2Q. This relationship holds true for all linear demand equations. The importance of being able to quickly calculate MR is that the profit maximizing condition for firms regardless of market structure is to produce where marginal revenue equals marginal cost (MC).0. an implicit cost.5Q = 120 = . or lending it. The term also applies to forgone income from choosing not to work.5Q. also called an imputed cost. Note that the MR function has the same y-intercept as the inverse demand function. or notional cost. and then equate MR to MC and solve for Q. The marginal revenue function is the first derivative of the total revenue function or MR = 120 .Marginal revenue is the slope of total revenue: MR(Q) = 20 − Q / 1000. [2]Total revenue equals price times quantity. Second numerical example Assume the inverse demand function has the form P = 120 .5Q². Implicit costs also represent the divergence between economic profit (total revenues minus total costs. selling.

the firm ought to ignore the figure of £50. then the proportion between the fixed and variable factors is altered. pension contributions and other "perks" must be taken into account when considering the cost of labour. rent and materials.[2] Lipsey (1975) uses the example of a firm sitting on an expensive plot worth £10. The law of variable proportions is that law which predicts the consequences of varying the proportions in which the fixed and variable factors of production are used. When the number of one factor is increased while all other factors remain constant.000 a month in rent which it bought for a mere £50 a hundred years before. law of variable proportions comes into operation.opportunity costs.[1] Explicit cost An explicit cost is a direct payment made to others in the course of running a business.[2] Explicit costs are taken into account along with implicit ones when considering economic profit. If the firm cannot obtain a profit after deducting £10. Supposing there are two factors of production i. it will always be less than or equal to accounting profit.[1] LAW OF VARIABLE PROPORTIONS In short-period when the output of a production is sought to be increased by way of additional application of the variable factor to a given quantity of fixed factors. and remember instead to look at the land's current value. however: for example. Suppose you have a land . which are those where no actual payment is made. Accounting profit only takes explicit costs into account. it ought to move premises (or close down completely) and take the rent instead.e. Land is fixed factor and labour is a variable factor.000 a month for this implicit cost.[1] as opposed to implicit costs. such as wage. land and labour.[1] In calculating this figure.[2] It is possible still to underestimate these costs.

of the quantity demanded of a good or service to a change in its price. But it is a general principle that can be applied to any production operation. On account of change in the proportion of factors there will also be a change in total output at different rates. the total production at first increases more than proportionately. You grow tomatoes on it with the help of a labourer. or elasticity. Price elasticity of demand (PED or Ed) is a measure used in economics to show the responsiveness. The law of variable proportions stats that as the proportion of factors is changed. in other words. now there will be 1 hactare of land per laborer. this tendency is called Law of Variable Proportions. . In Economics. Accordingly the proportion between labour and land will be 1:2. and thought of it as associated particularly with agriculture. If the number of labourers is increased to 2 then the new proportion between labour and land will be 2:2. The classical economists called it the Law of Diminishing Returns. such as income). It can also be called the Law of Diminishing Marginal product or Diminishing Marginal Returns or simply as Diminishing Returns. if there were 2 hectares of land per labourer previously. They derived it by applying more and more labour to a fixed acreage of land. then equalproportionately and finally less than proportionately.measuring 2 hectares. It was devised by Alfred Marshall. More precisely. It is now usually called the Law of Variable Proportions. it gives the percentage change in quantity demanded in response to a one percent change in price (holding constant all the other determinants of demand.

Only goods which do not conform to the law of demand. changes in price have a relatively small effect on the quantity of the good demanded. point-price elasticity of demand can be defined as follows:[16] let be the demand of goods as a function of parameters price and wealth. The demand for a good is said to be elastic (or relatively elastic) when its PED is greater than one (in absolute value): that is. analysis of historical sales data and conjoint analysis. Various research methods are used to determine price elasticity. including test markets. This is the approach taken in the definition of point-price elasticity. Point-price elasticity One way to avoid the accuracy problem described above is to minimise the difference between the starting and ending prices and quantities. In general. The elasticity of demand for good with respect to price pk is . and let be the demand for good . Revenue is maximised when price is set so that the PED is exactly one.[15] In terms of partial-differential calculus.Price elasticities are almost always negative. which uses differential calculus to calculate the elasticity for an infinitesimal change in price and quantity at any given point on the demand curve: [14] In other words. although analysts tend to ignore the sign even though this can lead to ambiguity. the demand for a good is said to be inelastic (or relatively inelastic) when the PED is less than one (in absolute value): that is. it is equal to the absolute value of the first derivative of quantity with respect to price (dQd/dP) multiplied by the point's price (P) divided by its quantity (Qd). such as Veblen and Giffen goods. changes in price have a relatively large effect on the quantity of a good demanded. have a positive PED. The PED of a good can also be used to predict the incidence (or "burden") of a tax on that good.

[1] . the arc of the curve—between the two points. Arc elasticity A second solution to the asymmetry problem of having a PED dependent on which of the two given points on a demand curve is chosen as the "original" point and which as the "new" one is to compute the percentage change in P and Q relative to the average of the two prices and the average of the two quantities.However. this measure is known as the arc elasticity. Loosely speaking. dQd / dP. rather than just the change relative to one point or the other.[17][19] The marginal efficiency of capital (MEC) is that rate of discount which would equate the price of a fixed capital asset with its present discounted value of expected income. The term “marginal efficiency of capital” was introduced by John Maynard Keynes in his General Theory. this gives an "average" elasticity for the section of the actual demand curve—i. because this formula implicitly assumes the section of the demand curve between those points is linear. can be determined. Qd = f(P). is known so its derivative with respect to price. because the average price and average quantity are the coordinates of the midpoint of the straight line between the two given points. and defined as “the rate of discount which would make the present value of the series of annuities given by the returns expected from the capital asset during its life just equal its supply price”. The arc elasticity is defined mathematically as:[13][17][18] This method for computing the price elasticity is also known as the "midpoints formula". in this case with respect to the price of the good. As a result.. the worse this approximation of its elasticity will be.[12][18] However. the point-price elasticity can be computed only if the formula for the demand function.e. the greater the curvature of the actual demand curve is over that range.

Management Process and Organization Behavior

Organizational Behaviour studies encompasses the study of organizations from multiple viewpoints, methods, and levels of analysis. For instance, one textbook[1] divides these multiple viewpoints into three perspectives: modern, symbolic, and postmodern. Another traditional distinction, present especially in American academia, is between the study of "micro" organizational behavior—which refers to individual and group dynamics in an organizational setting—and "macro" strategic management and organizational theory which studies whole organizations and industries, how they adapt, and the strategies, structures and contingencies that guide them. To this distinction, some scholars have added an interest in "meso" -- primarily interested in power, culture, and the networks of individuals and units in organizations—and "field" level analysis which study how whole populations of organizations interact. In Europe these distinctions do exist as well, but are more rarely reflected in departmental divisions. Whenever people interact in organizations, many factors come into play. Modern organizational studies attempt to understand and model these factors. Like all modernist social sciences, organizational studies seek to control, predict, and explain. There is some controversy over the ethics of controlling workers' behavior, as well as the manner in which workers are treated (see Taylor's scientific management approach compared to the human relations movement of the 1940s). As such, organizational behaviour or OB (and its cousin, Industrial psychology) have at times been accused of being the scientific tool of the powerful. [citation needed] Those accusations notwithstanding, OB can play a major role in organizational development, enhancing organizational performance, as well as individual and group performance/satisfaction/commitment. One of the main goals of organizational theorists is, according to Simms (1994) "to revitalize organizational theory and develop a better conceptualization of organizational life."[2] An organizational theorist should carefully consider levels assumptions being made in theory,[3] and is concerned to help managers and administrators Methods Of Shaping Behavior In Detail 1 . Explain managerial roles and managerial skills?

Management roles and skills. Managerial Roles According to Mintzberg (1973), managerial roles are as follows: 1. Informational roles 2. Decisional roles 3. Interpersonal roles 1. Informational roles: This involves the role of assimilating and disseminating information as and when required. Following are the main sub-roles, which managers often perform: a. Monitor-collecting information from organizations, both from inside and outside of the organization. b. Disseminator-communicating information to organizational members c. Spokesperson-representing the organization to outsiders 2. Decisional roles: It involves decision making. Again, this role can be subdivided in to the following: a. Entrepreneur-initiating new ideas to improve organizational performance b. Disturbance handlers-taking corrective action to cope with adverse situation c. Resource allocators-allocating human, physical, and monetary An instrument for measuring a person's preferences, using four basic scales with opposite poles. The four scales are: (1) extraversion/introversion, (2) sensate/intuitive, (3) thinking/feeling, and (4) judging/perceiving. "The various combinations of these preferences result in 16 personality types," says Consulting Psychologists Press, Inc., which owns the rights to the instrument. Types are typically

is frequently insightful. detached. Each profile consists of a list of "characteristics frequently associated with your type. According to CPP. for example. the MBTI® is "the most widely used personality inventory in history. A number of factors operate to shape and sometimes distort perception These factors can reside: i) In the perceiver ." according to CPP. and any behavior can be used to verify it Perception is our sensory experience of the world around us and involves both the recognition of environmental stimuli and action in response to these stimuli. Through the perceptual process.000 people a year take the MBTI. we gain information about properties and elements of the environment that are critical to our survival. Thus. and identify leadership and interpersonal communication preferences for your clients. no matter what your preferences. The INTJ. increase productivity. Intuition with Thinking and Judging)--to represent one's tendencies on the four scales. and creative rational. CPP claims that it "helps you improve work and personal relationships.) Furthermore. your behavior will still sometimes indicate contrasting behavior. conceptual. INTJ (Introversion. and objectively critical likely to have a clear vision of future possibilities apt to enjoy complex challenges likely to value knowledge and competence apt to apply high standards to themselves and others independent. trusting their own judgments and perceptions more than those of others seen by others as reserved and hard to know The people at CPP aren't too concerned if the list doesn't seem to match your type.000. They advise such persons to see the one who administered the test and ask for help in finding a more suitable list by changing a letter or two in your four-letter type. A profile for each of the sixteen types has been developed.denoted by four letters--for example." According to the Center for Applications of Psychological Type. approximately 2. no behavior can ever be used to falsify the type."* Many schools use the MBTI® in career counseling. (See the report CPP publishes on its Web site.

regardless of the intention of the subordinates. an individual's pattern of . that interpretation is heavily influenced by personal characteristics of the individual perceiver.a position that requires negotiating contracts with suppliers.Concept: Another factor that can affect social perception is the perceivers self-concept. we form more positive impressions of other. For example. we tend to evaluate others unfavourably. d) Self . For example. f) Cognitive structure: Cognitive structure. most of whom are male. a boss who is insecure perceives a sub ordinate's efforts to do an outstanding job as a threat to his or her own position. Mr. Because our individual interests differ considerably. In addition. a negative self-concept can lead a perceiver to pick out negative traits in another person. in an organizational context. An individual with a positive self-concept tends to notice positive attributes in another person. When an individual looks at a target and attempts to interpret what he or she stands for. In contrast. we remember information that is consistent with our mood state better than information that is inconsistent with our mood state. c) Motives: Unsatisfied needs or motives stimulate individuals and may exert a strong influence on their perceptions. Personal insecurity can be translated into the perception that others are out to "get my job". Characteristics of the Perceiver: Several characteristics of the perceiver can affect perception.ii) In the Object or target being perceived or iii) In the context of the situation in which the perception is made. This attitude with doubtless affect his perceptions of the female candidates he interviews. e) Interest: The focus of our attention appears to be influenced by our interests. We think differently when we are happy than we do when we are depressed. what one person notices in a situation can differ from what other perceive. X is interviewing candidates for a very important position in his organization . Mr. When in a negative mood. 1. The major characteristics of the perceiver influencing perception are: a) Attitudes: The perciver's attitudes affect perception. When in a positive mood. b) Moods: Moods can have a strong influence on the way we perceive someone. Greater understanding of self allows us to have more accurate perceptions of others. X may feel that women are not capable of holding their own in tough negotiations. the supervisor who has just been reprimanded by his boss for coming late is more likely to notice his colleagues coming late tomorrow than he did last week. For example.

The strength of the situational cues also affects social perception. g) Expectations: Finally. iv) Accuracy in perceiving others is not a single skill. and appearance. body movements. Cognitive complexity allows a person to perceive multiple characteristics of another person rather than attending to just a few traits. sound. has an influence on the perceiver's impression of the target. The perceiver deciphers eye contact. Physical appearance pals a big role in our perception of others.thinking. that are presumed to allow that individual to learn best. facial expressions.e individual's behaviours can be accounted for by the situation. iii) People who accept themselves are more likely to be able to see favourable aspects of other people. Some people have a tendency to perceive physical traits. Extremely attractive or unattractive individuals are more likely to be noticed in a group than ordinary looking individuals. expectations can distort your perceptions in that you will see what you expect to see. They involve educating methods. 2) Characteristics of the Target : Characteristics in the target that is being observed can affect what is perceived. Verbal Communication from targets also affects our perception of them. Nonverbal communication conveys a great deal of information about the target. Some situations provide strong cues as to appropriate behaviour. particular to an individual. we assume that + i. size and other attributes of a target shape the way we see it. more readily. The research findings of the study conducted by Sheldon S Zalking and Timothy W Costello on some specific characteristics of the perceiver reveal i) Knowing oneself makes it easier to see others accurately. Learning styles are various approaches or ways of learning[1]. ii) One's own characteristics affect the characteristics one is likely to see in other. and posture all in a attempt to form an impression of the target. taking in. Motions. These four characteristics greatly influence how a person perceives other int he environmental situation. and that it may not reflect the individual's disposition. also affects perception. In this situation. such as height. 3) Characteristics of the Situation: The situation in which the interaction between the perceiver and the target takes place. and processing stimuli . Most people prefer an identifiable method of interacting with. weight.

there is no evidence that identifying a student's learning style produces better outcomes.[2] Well-designed studies "flatly contradict the popular meshing hypothesis". which is called the 'meshing hypothesis.[3][4] The alleged basis and efficacy for these proposals has been extensively criticized. and acquired "enormous popularity". and there is significant evidence that the widespread "meshing hypothesis" (that a student will learn best if taught in a method deemed appropriate for the student's learning style) is invalid.[2] .[2] Proponents say that teachers should assess the learning styles of their students and adapt their classroom methods to best fit each student's learning style. Although children and adults express personal preferences. Based on this concept.or information. the idea of individualized "learning styles" originated in the 1970s.

Financial and Management Accounting .

Management Accounting is "the process of identification. Management accounting also comprises the preparation of financial reports for non-management groups such as shareholders. managing and reporting risks to the achievement of the objectives of the organization. often using management information systems. computed by reference to the needs of managers. management accounting information is: • • • • designed and intended for use by managers within the organization. . instead of historical. instead of publicly reported. instead of being intended for use by shareholders. instead of by reference to general financial accounting standards According to the Chartered Institute of Management Accountants (CIMA). regulatory agencies and tax authorities" (CIMA Official Terminology). accumulation. interpretation and communication of information used by management to plan. to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions. and public regulators. preparation. measuring. usually confidential and used by management.Introduction is concerned with the provisions and use of accounting information to managers within organizations. analysis. measurement. evaluate and control within an entity and to assure appropriate use of and accountability for its resources. forward-looking. In contrast to financial accountancy information. creditors. Performance Management—Developing the practice of business decision-making and managing the performance of the organization. The American Institute of Certified Public Accountants(AICPA) states that management accounting as practice extends to the following three areas: • • • Strategic Management—Advancing the role of the management accountant as a strategic partner in the organization. creditors. Risk Management—Contributing to frameworks and practices for identifying.

. as businesses grew in size. FINANCIAL ACCOUNTING STANDARDS BOARD The FASB was set up with the purpose of developing accounting principles in 1973. relevant and useful. marketing. states "A management accountant applies his or her professional knowledge and skill in the preparation and presentation of financial and other decision oriented information in such a way as to assist management in the formulation of policies and in the planning and control of the operation of the undertaking. pricing. etc.The Institute of Certified Management Accountants(ICMA). Principles have developed over a long period of time. When Statements of Financial Accounting Standards are released by the FASB. Today it is the most influential accounting organization. such as information management. conventions or concepts. and are continuously subject to revision as information needs change. assumptions. interpretations are released which have the same authority as the standards. When it is difficult to understand accounting principles. Accounting principles focus on the users of accounting information. Management accounting knowledge and experience can therefore be obtained from varied fields and functions within an organization. It is the responsibility of accounting professionals. and outsiders increased their demand for financial information. they quickly become gerenally accepted accounting principles (GAAP) pertaining to standards. treasury. logistics. teachers and accounting organizations to keep accounting principles up-to-date. efficiency auditing. than in the historical recording and compliance (scorekeeping) aspects of the profession. The FASB is involved in solving reporting problems and developing solutions. valuation. They are much more interested in forward looking and taking decisions that will affect the future of the organization. CONCEPTS & PRINCIPLES THE DEVELOPMENT OF CONCEPTS AND PRINCIPLES The development of accounting concepts and principles is closely related to the economic growth of the United States." Management Accountants therefore are seen as the "value-creators" amongst the accountants.

Accounting procedures should change to reflect the special needs of a business in liquidation. Other organizations affecting accounting principles have less importance. and as a result many businesses maintain two sets of records. each business must also be treated as a separate entity. Only assets. but many other organizations exist that affect accounting practices. this information should be disclosed in the financial statements of a company. e. liabilities.g. and owner's equity specifically related to a given business should be reported in the financial statements of that business. if goods sold on credit to A are recorded properly in . Errors revealed by (the preparation of) trial balance If trial balance does not agree.INFLUENTIAL ACCOUNTING ORGANIZATIONS The FASB is the most influential accounting organization. It should be noted. the disagreement may be due to : (1) Omission to post an amount into ledger: If an item is not posted from journal or subsidiary book to ledger.. This liability depends upon the legal form of the business. they should be listed as assets. When expenses are prepaid. In the event an individual owns more than one unrelated business. The Securities and Exchange Commission is the most influential government agency that regulates financial statement reporting. The IRS is involved in regulations related to income tax. and tend to specialize in a certain area of accounting. however. two sides of trial balance shall not agree.should be recorded at historical cost even if the market value is above or below the original cost. In the event a business is near the end of its life. that in some circumstances the investors or owners of a business are legally liable for debts or damages. BUSINESS ENTITY CONCEPT The business entity concept states that each business entity should conduct its own separate accounting. IRS regulations often conflict with accounting principles. GOING CONCERN CONCEPT The going concern concept is based on the belief that a business will operate indefinitely. Assets purchased for long-term use.

500 instead of 2. 3. 450. 200 have been allowed as discount and while posting into discount account the amount has been credited to discount account. 690 have been sold to 'X' but 'X's account has been debited with Rs.errors (listed below) remain undetected even after the preparation . it would cause a disagreement in the trial balance. 960. goods worth Rs. the debit side of the trial balance shall exceed the credit side by Rs.g. Trial Balance Limitations . (5) Posting on the wrong side: When an item is by mistake posted on the wrong side of the ledger account it would cause disagreement in the trial balance... the debit side of trial balance shall fall short.Shortcomings of trial balance An agreed trial balance does not prove by itself that : 1. e. It will increase the debit side of trial balance by Rs. Certain types of .g. (4) Wrong totaling of subsidiary books: If the total of any subsidiary book is wrongly cast.of trial balance. It will result in a difference of Rs. it would immediately cause disagreement of trial balance e. if purchase book totaled Rs.g. if Rs. then also the trial balance shall not agree. (2) Omission to post an amount in trial balance: It is natural if balance 'of an account is not recorded in trial balance the two sides of trial balance shall not agree which is an indication of error in accounts.sales book but not debited to A's account' in ledger.050. All the transactions have been recorded and nothing has been omitted. 400 in two sides of trial balance. (3) Wrong totaling or balancing of ledger account: If any account in the ledger is wrongly totaled or balanced. (6) Posting of wrong amount: If wrong amount is posted in one of the two accounts while posting. 270. All transactions have been correctly analyzed and recorded in proper accounts. 2. e. . 2. For example wages paid for installation of fixed asset might have wrongly been debited to wages account.

000. When one error is committed which affects the total of mal balance but in the mean time another error of opposite effect is committed which neutralizes the effect of earlier error.g. goods sold for cash worth Rs. 500 on the credit side of some other account or by over posting of Rs. e. e.Thus it is quite well known and said that "agreement of trial balance is not the conclusive proof of the accuracy of the books maintained. 500 in debit side of some other account. Such errors are : (1) Errors of omission If a transaction is not recorded in books of original entry then both debit and credit effects of the transaction will be omitted and trial balance shall not be effected. 1.g.g. (3) Compensating errors Such errors neutralize the effect of the errors committed earlier. even then our accounts may not be free from errors.000 but Cash Nc debited with Rs.g." Errors not revealed by (the preparation of) trial balance Normally four types of errors are not revealed by mal balance. wrong recording in the books of original entry or posting to wrong account with correct amount and correct side e. 100 and sales credited with identical amount. (4) Errors of Principle Whenever any income or expenditure is not properly allocated between capital and revenue. e. 500 on the debit side of a certain account may be compensated by under posting of Rs. (2) Errors of commission These errors are the result of carelessness of accounting staff and in some of the cases such errors do not effect the totals of mal balance. goods sold to John worth Rs. The entry is not recorded in the books at all. 1. So two sides of trial balance will although agree. it means neither John's account is debited nor sales account has been credited. forgetting to post Rs. the mistake so made is called a mistake of . As both sides have been effected by equal amount so the mal balance shall agree.

managerial accountants make use of procedures and processes that are not regulated by a standard-setting bodies. then the error of principle is committed. e.principle. weekly or monthly. liquidity. concentrates on the production of financial reports. However. such as a fiscal year or period. The CMA is an examination given by the Institute of Management Accountant. solvency and stability. if furniture purchased is debited to purchases account. wages paid for installation of machinery debited to wages account. multinational companies prefer to employ managerial accountants who have passed the Certified Management Accountant certification. Reports of this nature can be accessed by internal and external users such as the shareholders. Managerial accounting is used primarily by those within a company or organization. Regulation and standardization While financial accountants follow [[Generally Accepted Accounting Principles set by professional bodies in each country. including the basic reporting requirements of profitability. Reports can be generated for any period of time such as daily. Management Accounting is the branch of Accounting that deals primarily with confidential financial reports for the exclusive use of top management within an organization. building sold is credited to sales account.g. These reports are prepared utilizing scientific and statistical methods to arrive at certain monetary values which are then used for decision making. a . the banks and the creditors. Financial reports are historically factual and have predictive value to those who wish to make financial decisions or investments in a company. Reports are considered to be "future looking" and have forecasting value to those within the company. Such reports may include: • • • • Sales Forecasting reports Budget analysis and comparative analysis Feasibility studies Merger and consolidation reports Financial Accounting. Financial accounting is used primarily by those outside of a company or organization. the trial balance shall remain unaffected by such errors. Financial reports are usually created for a set period of time. on the other hand.

while Financial Accounting provides reports based on historical information. (BAC) . This certification is different and distinct from the CPA or Chartered Accountant certificate. There is no time span for producing managerial accounting statements but financial accounting statements are generally required to be produced for the period of 12 previous months. by law. management may be concerned about how reports will affect employees behavior whereas management concerns are about the adequacy of disclosure in financial statements. In management accounting systems.professional organization of Accounting professionals. Time Period Managerial Accounting provides top management with reports that are future-oriented. Other differences • • • There is no legal requirement for an organization to use management accounting but publicly-traded firms (limited companies or whose shares are bought and sold on an open market) must. In management accounting systems there is no requirement for an independent external review but financial accounting annual statements must be audited by an independent CPA firm. prepare financial account statements.

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.