Uniglobe College

Lesson Plan : Business Statistics

Course Title : Business Statistics MBA Course Code : STT 501(3credit full course) Trimester Instructor : : First (Fall 2010) Name: Professor Azaya Bikram Sthapit PhD Email:azaya.sthapit@gmail.com

Course Rationale: Application of statistics has become increasingly important particularly in the field of business and industry in the face of increasing complexity in decision making as well as academic research problems. Statistical techniques are also essential for solving many management related problems involving uncertainty. Thus, the business executives and those who are responsible with managerial decision making should have a sound knowledge of statistical techniques to resolve complex problem. Course Objective: The basic objective of this course is to impart to the students knowledge about foundation course of statistics. This course is intended to equip the students with data mining, tools and techniques of statistical analysis that are applicable in managerial decision problems. Course Description: The student examines the application of statistical analysis, hypothesis testing, and regression analysis in business decision making. The course should focus on the utilization of statistical methods as applied to business problems and operations. Learning Outcomes: At the completion of this course students will have the following abilities: 1. Students can describe basic statistics concepts and apply proper sampling methods. 2. Students can compute basic descriptive statistics. 3. Student can describe descriptive and continuous probability distributions such Poisson, Binomial distributions and a normal distribution and apply the concepts of the normal distribution to that of sampling distributions. 4. Students can construct confidence intervals for both numerical and categorical data, and can apply to a real-world business scenario. 5. Students can use numerical or categorical data to assess the validity of statements made in a business setting. 6. Students can perform simple correlation and regression analysis. 7. Students can determine expected wealth in an uncertain business climate. Texet Books and Other Materials Statistics for Management (Ninth Edition), Levin, R. I. and Rubin, D. S.,New Delhi: Prentice Hall

Business Statistics (Forth Edition),Levin, D. M. Krehbiel, T. C., Berenson, M. L., and Viswanathan, P. K., New Delhi: Prentice Hall Survey Data (Live Data)

Tentative Class Schedule

Session 1 Topics Definition of Statistics and its application in the field of Business, Economics and Management Types of data (Categorical and Numerical), Source of data (Primary and Secondary),Measurement Scale of data (Nominal, Ordinal, Interval and Ratio) Classification of data(Cross-section, Time series and Pooled), Census and Sampling, Parameter and Statistics, Data Collection Technique (Experimental Research, Questionnaire and Survey Research) Organization of data: Stem and Leaf Display, Frequency Distribution (Ungrouped and Grouped ) Activities 1. Lecture, 2. Read Chapter -1 Business Statistics- Berenson No Assignment

1. Class Lecture, 2.Read Chapter -2 Business Statistics(B Stat)- Berenson 3.Read Chapter-2 Statistics For Mgmt(Stat for Mgmt)- Levin No Assignment 1.Lecture, Class Work 2.Read Chapter -2 Business Statistics- Berenson 3.Read Chapter-2 Statistics For Mgmt- Levin No Assignment 1.Lecture, Class Work and Assignments(Questions No.2-9,2-11,2-15 pg.1719 No.2-19,2-20 pg. 28-29, No.2-34,2-35 pg.4243 from stat for Mgmt) 2.Read Chapter -2 Business Statistics- Berenson 3.Read Chapter-2 Statistics For Mgmt- Levin 1.Lecture, Discussion, Class Work 2.Read Chapter-3 Statistics For Mgmt- Levin 1. Lecture, 2. Read Chapter-3 Statistics For Mgmt- Levin 3. class work Assignments(Questions pg. 79 82, No. 3 -7, No. 3 9, 3 12, 3 13, 3 15, pg. 2-85 N0. 3 16, 3 17, 3 21, 3 23, 3 -29, 3 31, 3 -33, 3 34, 3 38, 3 41, 3 -44, 3 -44.from stat for Mgmt.

Inclusive and Exclusive class interval, Rule of changing raw data into frequency distribution Presentation of data (Histogram, Frequency polygon and Ogive) Presentation of data (Histogram, Frequency polygon and Ogive) Analysis of data by various measures of central tendency (mean, median, midrange, midhinge and mode). Analysis of data by various measures of central tendency (mean, median, midrange, midhinge and mode) Geometric mean comparing, mean, median &mode

Dispersion: Why it is important, Analysis of data by various measures of dispersion (Range, Inter-quartile range Analysis of data by various measures of dispersion Variance, Standard Deviation and Coefficient of variation)

1. 2. 3. 4.

8.

Five Number Summary and Box and Whisker plot

10

Basic Terminology in Probability, Various approaches to Probability (Objective and Subjective) Probability Rules. Marginal, Joint and Conditional Probability Probability under conditions of statistical independence.

11

12

Probabilities under conditions of statistical dependence conditional, Joint Marginal,

Lecture, Read chapter 3. Class work Assignments (questions: pg. 111 No. 3 -54, 3 -56, 3 57, from stat. for mgmt. 1. Lecture, 2. Read chapter -3 3. Class Work 4. Mani project. (Live Survey Data) 5. Group presentation. 6. Assignments: (Question, pg. 122 No. 3 64, 3 66, 3 67, 3 71, 3 72, 3 77, 3 81, 3 82, 3 101 from Stat. For Mgmt. 1. Lecture, 2. Read chapter 3 Business stat pg.106 -108 3. Class Work, 4. Mani project work (Live Data) 5. Assignments: 3 51, 3 53, 3 55, 3 54 from business Stat. Berenson 1. Lecture, 2. Read chapter -4 3. Class work. 4. Assignment (Question pg. 169 No. 4 12, 4 13, 4 14, 4 19, 4 22, 4 23, Stat. For Mgmt. Hand out problems. 1. Lecture 2. Class Work 3. Read chapter 4 4. Assignments (Questions pg. 183 No. 4 28. 4 29, 4 30, 4 31, 4 32, 4 38, 4 39, 4 40, 4- 41, 4 42, From Stat. For Mgmt. Hand out problems. 1. Lecture 2. Read chapter - 4 3. Class Work and 4. Assignments: pg. No. 4 36, 4 37, 4 38, 4 39, 4 40, 4 41, 4 42, Stat. For Mgmt. 1. 2. 3. 4. Lecture Read chapter -, 4 Class work Assignment pg. 198 N0. 4-44, 4-45, 445, 4-46, 4-47, 4-48, 4-49, 4-50, 4-51, from stat. for mgmt. Hand out problem.

13

Byes theorem

14

Random variables Expected value variance,

1. 2. 3. 4.

Lecture, Read chapter 5 Class work Assignments pg. 230, No. 5 10, 5 11, 5 12, 5 13, 5 14, 5 15, 5 16, from stat. for mgmt. Hand out problems.

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Binomial Distribution Mean and variance of Binomial Distribution,

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Poisson Distribution Mean and variance of Poisson distribution Poisson Distribution as an approximation of Binomial Distribution. Normal Distribution

1. Lecture, 2. Read chapter 5 3. Class Work 4. Assignments pg. 248, No. 5 22, 5- 23, 5 24, 5 25, 5 26, from stat. for mgmt. Hand out problems. 1. Lecture, 2. Read chapter 5 3. Class Work Assignments pg. 256, No. 5 31, 5- 32, 5 33, 5 34, 5 35, 5 36, from stat. for mgmt. Hand out problems 1. Lecture, 2. Read chapter 5 3. Class Work Assignments pg. 270, No. 5 41, 5- 42, 5 43, 5 44, 5 45 5 - 46, 5 47, 6 49, 5 50, 5 51, from stat. for mgmt. Hand out problems 1. Lecture, 2. Read chapter 5 Stat. For Mgmt. 3. Class Work Hand out problems 1. Lecture, 2. Read chapter 6 Stat. For Mgmt. 1. Lecture, 2. Read chapter 6 3. Class Work Assignments pg. 328, No. 6 43, 6- 44, 6 46, 6 47, 6 48, 6 49, from Stat. For Mgmt. Mini Project Live survey data. 1. Lecture, 2. Read chapter 7 3. Class Work Assignments pg. 352, No. 7 7, 7- 8, 7 9, from Stat. For Mgmt. Mini Project Live survey data. 1. Lecture, 2. Read chapter 7 3. Class Work Assignments pg. 365, No. 7 27, 7- 28, 7 29, 30, 7 31, 7 34, 7 36, 7 37, 7 39, 7 40, 7- 43, from Stat. For Mgmt. Mini Project Live survey data. 1. Lecture, 2. Read chapter 7 3. Class Work Assignments pg. 377, No. 7 48, 7- 49, 7 50, 7 54, 7 55, 7 56, 7 58, from Stat. For Mgmt.

17

18

19 20

Normal approximation of binomial and Poisson distribution Choosing the correct probability Distribution. Types of sampling, Sampling Distribution of Mean, Sampling Distribution of Proportion Standard Error, Central limit Theorem,

21

Estimation Point Estimation, Interval Estimation (Single Mean, Single Proportion) Interval estimate from large population. -mean ( known) -proportion

22

23

Interval estimate from small sample (mean) using t- distribution Determining the sample Size (mean, proportion)

1. Lecture,

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Testing of hypothesis Terms related to hypothesis, steps in hypothesis testing.

2. Read chapter 8 3. Class Work No Assignments

25

Z test for single mean (critical value and p-value approach) When is known

4. Lecture, 5. Read chapter 8 6. Class Work Assignments pg. 422. No. 8-26, 8-27, 8-28, 8-30, 8-31, 8-32, 8-33. From Stat. for Mgmt. Handout problem 1. Lecture, 2. Read chapter 8 3. Class Work Assignments pg.426 No. 8-34 , 8-35, 8-36, 8-37, From Stat. for Mgmt. 7. Lecture, 8. Read chapter 8 9. Class Work Assignments pg. 432, No. 8 38, 8- 39, 8 40, 8 42, 8 43, from Stat. For Mgmt. Hand out problem. Mini Project Live survey data. 1. Lecture, 2. Read chapter 8 and 9 3. Class Work Assignments pg. 436, No. 8 44, 8- 45, 8 47, 8 48, 8 50, 8 51, 9 2, 9 4, 9 5, 9 6, 9-7, from Stat. For Mgmt. Hand out problem Mini Project Live survey data. 1. Lecture, 2. Read chapter 9 3. Class Work Assignments pg.466, No. 9 10, 9- 11, 9 13, 9 15, 9 16, 9 17, 9 18, from Stat. For Mgmt. Hand out problem. 1. Lecture, 2. Read chapter 9 3. Class Work Assignments pg.482. No.9-20, 9-21, 9-22, 9-25, from Stat. For Mgmt. 1. Lecture, 2. Read chapter 11 3. Class Work Assignments pg.531.No. 11-7, 11-9, 11-10, 1113, 11-14, 11-17, 11-18, 11-29, 11-21, from stat. mgmt.

26

Measuring the Power of hypothesis test

27

Z test for single proportion (critical value and p-value approach)

28

Z test for two means (critical value and p-value approach), When is known t- test for single mean when unknown t test for two means and paired t-test (critical value approach)

29

30

Z test for two proportions large sample

31

Chi-square test as test of independence Chi-square test as test goodness of fit.

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Analysis of Variance (One way)

1. Lecture, 2. Read chapter 11 3. Class Work Assignments pg.604 No. 11-26, 11-27, 11-28, 11-30, 11-32, 11-33, 11-36, 11-38, From stat. mgmt. 1. Lecture, 2. Read chapter 11 3. Class Work Assignments pg.614. No. 11-42, 11-43, 11-46, 11-52, 11-53, 11-56, From Stat. For Mgmt. Hand out , Mini project. Live survey data 1. Lecture, 2. Read chapter 12 3. Class Work Assignments pg.670. No. 12-16, 12-17, 12-18, 12-19, 12-22, From Stat. For Mgmt. Mini project Live survey data 1. Lecture, 2. Read chapter 12 3. Class Work Assignments pg.686 No 12-26, 12-27, 12-30 From Stat. For Mgmt. Mini project Live survey data,

33

Inference about a population variance and two population variances

34

Simple Linear Regression Model, Residual Analysis, Coefficient of Determination and Standard Error of Estimate Correlation and correlation coefficient of determination and its interpretation

35

Note: 1.Use of SPSS to solve practical problems as per needs will be taught in tutorial class separately.
2. Number of sessions will be subject to variation by 2 to 4 in above mentioned tentative 35 sessions.