# MBA - Semester I (Module 1), July 2012-14 Batch Subject Outline

Subject Name Subject Code Subject Credits Business Statistics MGT 503 3 This course covers the concepts with the basic techniques of business statistics and to provide a comprehensive overview of its scope and limitations and techniques concerning exploratory data analysis, frequency distributions, central tendency and variation, probability, sampling, inference, correlation and regression. Students will be exposed to these topics and how each applies to and can be used in the business environment. Students will master problem solving using both manual computations and statistical software. Moreover, this course is designed to introduce management students to develop the analytical and interpretation skills. An addition to this course has been designed with to give students hands-on-experience in computer package SPSS for analyzing the data. Students will be able to evaluate relevant data and apply the outcome to make decisions with reference to the specific empirical question or problem.

Summary/Overview

Aims

Core Learning Outcomes Learning Outcomes: Sl. On completion of this subject you No. should be able to: 1. Distinguish between qualitative and quantitative data. 2. Represent data using tables, charts 1 and graphs, and analyze and interpret them.

Assessment Criteria: To achieve the learning outcome you must demonstrate the ability to: 1. Organize raw data into tables, charts, and graphs 2. Analyze and interpret data represented in tabular and/or graphical form.

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regression. exponential. Estimate linear and/or exponential trend trend patterns in time series. analysis is applicable. correlation 4. Calculate probabilities using discrete and and continuous random variables continuous probability distributions. Compute the different measures of coefficients and simple linear regression association. simple random experiments. Distinguish between cross-sectional 1. for time series data. Calculate the covariance. errors of estimates. Calculate probability of an event in classical probability. Construct point estimators and 2. Use Bayes’ theorem to update applications. 3. 1. smoothing methods. Understand the concepts of 1. Distinguish between the population 1. 1. Graphically analyze the relationship 3. Calculate the probabilities. Calculate confidence intervals for confidence intervals for a single population means. 2. proportions. Understand the concepts of variance/standard deviation. 3. Understand the differences and (b) Construct regression equations using inter-connections between correlation coefficients. sample parameters and sample statistics. Construct scatterplot diagrams. and probability distributions. Understand the concepts of discrete 3. Understand Bayes’ theorem and its 2. Understand the applications of the variance of discrete and continuous binomial. and population mean. coefficients. random variables. uniform and normal distributions. series data. Identify different components of a time components of a time series. conditional probabilities. 2. and sample 2. proportion. Identify linear and exponential 3. moving single exponential smoothing for averages and single exponential forecasting time series.
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. Poisson. 3. 2. 4. correlation and regression. single population variances. (a) Identify specific scenarios for between two variables using applicability of correlation and scatterplot diagrams. mean and 4. Understand forecasting methods 4. Identify situations where time series and time series data. moving averages and using trend analysis. Use trend analysis. 4. and standard sampling distributions. Compute descriptive measures of location and dispersion for ungrouped and grouped data. and single population 3. Distinguish between univariate and 1.2
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1. 2. Understand the differences between bivariate situations. Understand the different 2. 1. 1. Compute the different measures of location and scale. Calculate sample means. 4. univariate and bivariate analysis. proportions. and vice versa. 3. Use suitable formulae to determine 1.

6. and the corresponding sample size in different estimation constructions for two populations. Assessment Strategy No Assessment Method* Description of Assessment Method Weight % Learning Outcomes Assessed 1 2 3 4 5 6 X X X X X X
Assignments During Term Assessment Final Examination Total
A combination of Case Study. F-tests. values. The pedagogy will be a mix of lectures. including: formulation of null and (b) Identify and compute alternative hypotheses. and variances. Understand the general concepts left-hand-side): and procedure of hypothesis testing. 7. χ2-tests. critical region. critical population. (a) Formulate hypotheses. different contexts (as specified on the 5. p-values. Emphasis is on participatory learning. contexts. proportions. Students are responsible for discussion of the required readings and for Approach to Learning completion of group and individual exercises assigned by the instructor. In addition to the reading materials. in hypothesis testing. and students are required to actively participate in class discussions throughout the course. level of (e) Draw statistical inferences about the significance. and ANOVA. Understand the application of ztests. hypothesis. appropriate test statistics. experience sharing and assignments. 8. type I and type II errors (d) Calculate p-values. identification of the test statistic. Apply the hypothesis testing procedure in sample size for statistical inference. 4. Distinguish between application of tests for means. t-tests. group/individual assignment 25 depending on the discretion of the instructor Mid-term examination worth 20 50 marks Term-end examination worth 50 100 marks 100 marks
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. additional readings and cases may be distributed in the class from time to time.variance. Distinguish between small sample and large sample tests for means. (c)Identify the critical region and critical sampling distribution under the null values. Understand the determination of 4.

11th Edition. New Delhi. Anderson. Sweeney and Williams.Bayes’ Theorem (numerical only)
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.Graphical Displays of Categorical Data. simple linear regression. Trend fitting (linear and exponential growth) Probability Introduction-Event. method of least squares. Variance. histograms. bar charts. one-way and two-way tables. Mean Absolute Deviation. Standard Deviation. Mode. Percentiles.Methods of Detecting Outliers: standardized variables (z-score) Correlation & Regression Graphical Bivariate Relationships/Scatter Plot. Mutually Exclusive Events -The Additive Rule. Median. Karl Pearson’s coefficient of correlation.Summation Notation-Numerical Measures of Central Tendency(Location): Mean. Coefficients of Variation/QD. Thomson Learning. ogives . Time Series Components of Time Series. 2011 *The following codes for assessment methods apply:literature review PC practical computer-based PF performance case study PL placement dissertation or project PO portfolio exam PR presentation group report RE individual report during term test OR oral OT other
LR CB CS DI EX GR DTA
Outline Teaching Schedule No. pie charts . Single Exponential Smoothing.Textbook: “Statistics for Business and Economics”. -Conditional Probability. coefficient of determination. Quartile Deviation. Sample Space and Probability-Concepts in Probability-Unions and Intersections. Forecasting based on Moving Averages. 1 Topic to be covered Introduction and Basic Concepts Definition-Use of Statistics-Types of Statistical Applications in Business-Fundamental Elements of Statistics-Types of Data-The Role of Statistics in Managerial Decision Making Methods for Describing Sets of Data Describing Qualitative and Quantitative Grouped and ungrouped Data-Graphical Methods for Describing Quantitative Data. and VariabilityRange. Independent Events and Multiplicative Rule . covariance.

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.Type I and Type II Errors – Test statistic and its sampling distribution – critical regions and level of significance. Exponential and Uniform Distributions – problems Sampling and Sampling Distribution Part I: Introduction-Point and Interval Estimation: Estimator and Estimates. Aczel and Soundarapandyan. Testing for the variance of a Single Population (Chisquared test). Goodness of Fit and ANOVA Tests of Hypothesis for a Single Population Mean (z-test and t-test). Wiley. 6th Edition. Chi-square Tests for Goodness of Fit – Multinomial proportions. Population Proportion (z-test). Determining the Sample Size . 5th Edition. Small Sample Estimation Introduction to Hypothesis Testing Concept of Hypothesis . Testing the Equality of two Population Variances (F-test).” Black. Sampling Distribution of the sample mean and sample proportions. Data Analysis: Hypothesis Tests.Large Sample Estimation . Comparing Two Populations Proportions: Independent Sampling (z-test).6
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Random Variables and Probability Distributions Definition – Types of Random Variables. Comparing Two Population Means. Confidence Intervals. McGraw Hill 2) “Business Statistics for Contemporary Decision Making. 3) “Statistics for Management”. Levin and Rubin. Independent Sampling and Paired Difference (z-test and t-test). Tests of Independence of attributes.Discrete Probability Distributions: Binomial and Poisson Distributions – Continuous Probability Distributions: Normal. 7th Edition. Poisson. Analysis of Variance – F-test of equality of several population means (one-way only)
Recommended Resources 1) “Complete Business Statistics”.Basic Concepts – Null and Alternative Hypotheses . Normal. Prentice Hall.Central Limit Theorem .The Elements of a Test of Hypothesis . p-values.