Quantitative Techniques for Decision-Making

A. The objectives of the course may be specified as follows:

To build analytical skills.

To interpret and analyse data relevant for resolution of decisions.
To orient students think about managerial problems in a quantitative framework.
To make them aware of the basic statistical tools that can be applied for decision
making.
Special attention will be given on the application areas relevant to the various
functional areas of Management.

B. Session plan:
Session
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17
18.
19.
20.
21.
22
23
24

Topic
Random experiments, sample space, events, Probability
axioms; Classical definition and computation,
Laws of addition and multiplication
Conditional probability, Probabilities under conditions of statistical
independence and dependence.
Meaning and concept of random variable; probability distribution and
distribution function; probability mass function and density function
Mean and variance of a random variable; simple rules of expectation and
variance
Binomial distribution
Poisson distribution

Normal distribution
Bayes Theorem
Structuring the decision problem: Actions, states of nature, payoffs,
EMV and EOL
EVPI
Decision trees
Sampling
Sampling distributions; central limit theorem
Statistical estimation
Hypothesis testing: One Sample Tests
Hypothesis testing: Two- Sample Tests
Hypothesis testing : Two-sample Tests
Analysis of variance
Chi-square Tests
Non-parametric statistics
Non-parametric statistics
Simple Regression and Correlation

Simple Regression and Correlation

Multiple Regression and modeling techniques.

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C. Pedagogical Methods
Lectures and Cases
D. AOL
Decision making; Quest for excellence
E. Implementation of AOL
By placing a diverse set of decision making problems before the students, their
decision-making abilities can be evaluated based on their expertise learned from
the paper for visualization, translation and utilization of appropriate statistical
tools for a best possible decision. Their QE will be measured through numerous
evaluations which include several discriminatory tests and project work.
F.

Evaluation system
Weightage
B. K. Mangaraj
Test-I
Mid-term
End term

10%
15%
20%

S. K. De
Test-II
Mid-term
End term

10%
15%
20%

B. K. Mangaraj & S. K. De
Project/ class participation

10%

G. Grading pattern
Part-I(SKD)
A+
A
82-91
91

B+
75-82

B
67-75

C+
59-67

C
51-59

D+
43-51

D
35-43

F
0-35

B+

C+

D+

Part-II(BKM)
A+

 91

82-91

75-82

67-75

59-67

51-59

43-51

35-43

0-35

H. References
[1] Levin, Rubin ,Rastogi and Siddique, Statistics for Management, Peason.
[2] G. C. Beri, Statistics For Management , Tata- McGraw Hill , New- Delhi .
[3] R. A.Johnson , D. W. Wichern , Business Statistics Decision- Making With Data,
John Wiley & Sons .
[4] A,D, Aczel , J, Sounderpandian , Complete Business Statistics , Tata McGraw Hill,
New- Delhi ..
[5] Readings, articles, handouts, and notes will be distributed as supplementary material.