Business Mathematics

Total Marks: 100 (60 Theory + 40 Internal) Internal Marks Breakup

Attendance & Class Participation Test Assignment 10 20 10

Statistics

Statistics
Statistics is the science of dealing with numbers. It is used for Collection, Summarization, Presentation and Analysis of DATA

Application of Statistics
Marketing : Market research, choosing appropriate marketing strategy, etc
Finance: Forecasting, ascertaining risks, etc Operations: Inventory management, manufacturing and distribution of manufactured item, etc Human Resources: Staff evaluation, ratings, compensation structure, etc

Limitations of Statistics
Only quantifiable data is captured Sampling is used so result may not be accurate Statistics reveal the average behaviour Statistics in not 100% accurate

Subdivisions within Statistics

Descriptive Statistics : Summarising the given data, bringing out their important features Inferential Statistics : Use of quantitative techniques that enable us to make approximate generalisations

Population and Sample

A population is a collection of all elements under statistical investigation about which we are trying to draw some conclusion
Small representative portion of population is called as Sample

Types of Data
Data can be classified in various ways as follows
1. Primary and Secondary 2. Qualitative and Quantitative 3. Discrete and Continuous

Primary and Secondary

Primary data is collected for some specific purpose or study Secondary data is the data derived through some media like reports, newspapers, hand books, magazines, etc.

Qualitative and Quantitative

Qualitative data is expressed by a non numerical property
Ex: satisfaction of a customer , opinion about a product

Quantitative data is numerically expressed

Ex: weight, height, income, etc

Discrete and Continuous

Variable is said to be discrete if it assumes only some specific values in a given range.
Ex: number of customers visiting an outlet

Variable is said to be continuous when some sort of measurement is involved

Ex: height, weight,

Presentation of Data
The first step in statistical analysis is to present data in an easy way to be understood. The two basic ways for data presentation are Tabular form
List, Frequency distribution.

Graphical form
Bar chart, pie chart, histogram, etc

List Tables
A table consisting of two columns, the first giving an identification of the observational unit and the second giving the value of variable for that unit.
Example : number of patients in each hospital department are
Department
Surgery ENT Ophthalmology

Number of patients
50 15 10

Frequency Distribution Tables

Ex: Assume we have a group of 20 individuals whose blood groups were as follows :
A, AB, AB, O, B, A, A, B, B, AB, O, AB, AB, A, B, B, B, A, O, A.

We want to present these data by table. Type of data??

Frequency Distribution Tables

Blood Group A B AB O Total

Frequency 6 6 5 3 20

Frequency Distribution Table

Ex: The Following data are Blood Pressure measurements (mmHg) of 30 patients with hypertension. Present these data in frequency table 150, 155, 160, 154, 162, 170, 165, 155, 190, 186, 180, 178, 195, 200, 180,156, 173, 188, 173, 189, 190, 177, 186, 177, 174, 155, 164, 163, 172, 160 Type of data??

Frequency Distribution Table

Blood Pressure 150 160 160 170 170 180 180- 190 190 200 200 210 Total Frequency 6 6 8 6 3 1 30

Graphical Representation

Simple Easy to understand Save a lot of words Self explanatory

Bar Charts
It is used for presenting discrete data It represent the measured value by separated rectangles of constant width and its lengths proportional to the frequency Type: Simple Multiple Sub Divided

Simple Bar Charts

Ex: The following data gives the distribution of 200 MBA students at a management institute according to their educational qualifications
Qualification B.E. B.Com Number of Students 55 70

80
60 40 20

BMS/BMM
Others

40
35

Subdivided Bar Chart

A subdivided bar chart is a chart wherein each bar is divided into further components.
Qualification Number of Students 55 70 40 35 Metro Large Medium
80 70 60 50 40 30 20 10 0

B.E. B.Com BMS/BMM Others

25 40 20 10

10 15 10 15

20 15 10 10

Medium Large Metro

B.E.

B.Com

BMS/BMM

Others

Multiple Bar Chart

Multiple bar chart: Each observation has more than one value represented, by a group of bars. Percentage of males and females in different countries, percentage of deaths from heart diseases in old and young age, etc
Name Lakshmi Mittal Mukesh Ambani Anil Ambani Azim Premji Nov 20 7 5.5 11 Dec 32 15 18.2 17.1

40 30 20 10 0 Lakshmi Mukesh Anil Azim Mittal Ambani Ambani Premji

Pie Chart
Consist of a circle whose area represents the total frequency (100%) which is divided into segments. Each segment represents a proportional composition of the total frequency.

Pie Chart
Angle at the centre is calculated by formula
x 0 angle 360 100
Qualification Number of Students 55 70 40 35 % Angle
Others 17% B.E. 28%

B.E. B.Com BMS/BMM Others

28 35 20 17

99 126 72 63

BMS/BMM 20%

B.Com 35%

Histogram
It is very similar to the bar chart with the difference that the rectangles or bars are adherent (without gaps). It is used for presenting class frequency table (continuous data). Each bar represents a class and its height represents the frequency (number of cases), its width represent the class interval.

Histogram

Class 2000 3000 3000 4000 4000 5000 5000 6000

Frequency 2 5 6 4

6 5 4 3 2 1

6000 7000

0
2000 3000 3000 4000 4000 5000 5000 6000 6000 7000

Frequency Polygon
The polygon formed by joining the midpoints of the rectangles of histogram is known as the frequency polygon
7 6 5 4 3 2 1 0 2000 3000 3000 4000 4000 5000 5000 6000 6000 7000

Line Graph
It is a visual presentation of a set of data values joined by straight lines. Ex: Following is the data of business per employee in some banks
Bank Andhra Bank Indian Bank Canara Bank Dena Bank Bank of India Business Per Employee Business Per Employee 2005 - 06 2001 02 426.75 295 441.57 364 381 195.96 156 214.88 221 218.74

Line Graph
500 450 400 350 300 250 200 150 100 50 0 Andhra Bank Indian Bank Canara Bank Dena Bank Bank of India Business Per Employee 2005 - 06 Business Per Employee 2001 02

Summary
Basics of Statistics Types of data
Tabular Form

List Tables Frequency Distribution Tables Bar Chart

Representation of Data

Pie Chart Graphical Form Histogram & Frequency Polygon Line Graph

End of Session 1