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Far-western University

Faculty of Management

Course Title: Business Statistics and Mathematics Full Marks: 100


Course No.: STAT 1001 Pass Marks: 45
Nature of the Course: Theory/Practical Time per Period: 1 hour
Year: First Total Periods: 120
Level: BBS

1. Course Description
This course deals with the application of statistical tools in business decision making and covers
data collection, tabulation and presentation, techniques of summarizing and describing numerical
data, basic concepts of probability, correlation & regression, time series & forecasting.
Moreover, it provides knowledge of system of linear equations, matrices, determinant and their
applications in the business and economics.
2. Course Objectives
The general objectives of the course are as follows:
 To familiarize the students with descriptive statistical tools.
 To familiarize the students with the concept of probability, establishment of relationship
between variables and forecasting.
 To provide students with a sound understanding of matrix algebra for business decisions.
 To provide the basic knowledge of differentiation and integration.
 To provide the sound knowledge of excel program to handle various problems of
statistics
3. Specific Objectives and Contents

Unit objectives Contents


 Describe the applications of statistics Unit 1: Introduction (5 hrs.)
in business 1.1 An Overview of Statistics
 Explain the various terminologies of 1.2 Statistics for Managers
statistics 1.3 Basic Vocabulary of Statistics
 Distinguish between quantitative and 1.4 Types of Variables
categorical variables
1.5 Scales of Measurement
 Explain with measurement scales
1.6 Microsoft Excel Worksheets
 Demonstrate with excel and excel
graphical and statistical functions
After completing this unit, students will Unit 2: Data Collection, Presenting Data in Tables 2.7
be able to: and Charts (14 hrs.)
 Explain the difference between 2.1 Tables and Charts for Categorical Data
primary and secondary data 2.1.1 The Summary Table
 Develop tables and charts for 2.1.2 The Bar Chart
categorical data 2.1.3 The Pie Chart
 Develop tables and charts for 2.1.4 The Pareto Diagram
numerical data 2.2 Organizing Numerical Data
 Construct a frequency distribution and 2.2.1 The Ordered Array
a histogram 2.2.2 The Stem-and-Leaf Display
 Construct relative and cumulative 2.3 Tables and Charts for Numerical
frequency distributions
Data
 Construct a stem-and-leaf display to
represent data 2.3.1 The Frequency Distribution
2.3.2 The Relative Frequency Distribution and
 Visually represent data by using graphs the Percentage Distribution
and charts 2.3.3 The Cumulative Distribution
 Construct a scatter diagram 2.3.4 The Histogram
2.3.5 The Polygon
2.3.6 The Cumulative Frequency Curve (Ogive)
2.4 Cross Tabulations
2.4.1 The Contingency Table
2.4.2 The Side-by-Side Bar Chart
2.5 Scatter Plots and Time-Series Plots
2.5.1 The Scatter Plot
2.5.2 The Time-Series Plot
2.6 Microsoft Excel Graphs
After completing this unit, students will Unit 3: Numerical Descriptive Measures (17 hrs.) 3
be able to: 3.1 Measures of Central Tendency
 Describe the applications and uses of 3.1.1 The Mean
central tendency, variation, and shape 3.1.2 The Median
in numerical data 3.1.3 The Mode
 Identify descriptive summary measures 3.1.4 Partition values( Quartiles, Deciles and
for a population Percentiles)
3.1.5 The Geometric Mean
 Construct and interpret a box-and-
3.2 Variation and Shape (Measurement of Dispersion
whisker plot and shape of the
and Shape)
distribution
3.2.1 The Range
3.2.2 The Inter quartile Range
3.2.3 The Variance and the Standard Deviation
3.2.4 The Coefficient of Variation
3.2.5 Shape
3.2.6 Visual Explorations: Exploring
Descriptive Statistics
3.2.7 Microsoft Excel Descriptive Statistics
Results
3.3 Numerical Descriptive Measures for a Population
3.3.1 The Population Mean
3.3.2 The Population Variance and Standard
Deviation
3.4 Exploratory Data Analysis
3.4.1 The Five-Number Summary
3.4.2 The Box-and-Whisker Plot
After completing this unit, students will Unit 4: Basic Probability (12 hrs.) 4
be able to: 4.1 Sets & Set Operations
 Understand basic probability concepts 4.2 Introduction to Permutation & Combination
 Understand conditional probability 4.3 Basic Probability Concepts
 use Bayes’ theorem to revise 4.3.1 Events and Sample Spaces
probabilities 4.3.2 Contingency Tables
 Determine the number of 4.3.3 Simple (Marginal) Probability
combinations and the number of 4.3.4 Joint Probability
possible permutations of n objects r at 4.4 Conditional Probability
a time.
4.4.1 Computing Conditional Probabilities
 Use concept of probability in business
decision environment 4.4.2 Decision Trees
4.4.3 Statistical Independence
4.4.4 Multiplication Rules
4.4.5 Marginal Probability Using the General
Multiplication Rule
4.5 Bayes’ Theorem
After completing this unit, students will Unit 5: Correlation and Linear Regression 5.1
be able to: (11 hrs.)
 Identify independent and dependent 5.1 Simple correlation coefficient Method of
variables measurement of simple correlation coefficient
 Understand types of relationships 5.2 Scatter Diagram method and Karl Parsons
 Use regression analysis to predict the coefficient of correlation method
value of a dependent variable based on 5.3 Determining the Simple Linear Regression
an independent variable Equation
 The meaning of the regression 5.3.1 Using Least-Squares Method
coefficients b0 and b1 5.3.2 Using of Excel
 Compute correlation coefficient 5.4 Coefficient of Determination
 Use excel to identify correlation 5.5 Correlation and Causation
coefficient and regression equation 5.6 Determining the Multiple Linear Regression
Equation using Excel
After completing this unit, students will Unit 6: Models for Time Series and Forecasting 6.1
be able to: (8 hrs.)
 Describe the trend, cyclical, seasonal, 6.1 Time Series
and irregular components of the time 6.1.1 Components of a Time Series
series model 6.1.2 Fitting a Linear Trend Equation
 Fit a linear or a polynomial trend
6.1.3 Fitting a Quadratic Trend Equation
equation to a time series
6.2 Smoothing Techniques
 Smooth a time series with the centered
moving average and exponential 6.2.1 The Moving Average
smoothing techniques 6.2.2 Exponential Smoothing
 Determine seasonal indexes and use 6.3 Seasonal Indexes
them to compensate for the seasonal 6.3.1 The Ratio to Moving Average Method
effects in a time series 6.3.2 Deseasonalizing the Time Series
 Use the trend extrapolation and the 6.4 Forecasting
exponential smoothing forecast
methods to estimate a future value 6.4.1 Forecasts Using the Trend Equation
 Use the mean absolute deviation 6.4.2 Forecasting with Exponential Smoothing
(MAD) and mean squared error (MSE) 6.4.3 Seasonal Indexes in Forecasting
criteria to compare how well fitted 6.5 Evaluating the forecast accuracy: MAD and MSE
equations or curves fit a time series

After completing this unit, students will Unit 7: Index Numbers (8 hrs)
be able to: 7.1 Types of index number
 Use index numbers to compare 7.2 Notation and terminology
business or economic 7.3 Method of constructing index number
measurements from one period
to the next 7.4 Un-weighted method
a. Simple average of price relative
b. Simple aggregative method
7.5 Weighted Method
a. Laspeyre's Index number
b. Paasches's Index number
c. Fisher’s index number
7.6 Cost of living index
7.6.1 Method of constructing cost of living
index numbers:
a. Aggregative expenditure method
b. Family Budget method
After completing this unit, students will Unit 8: Linear Programming (10 hrs.)
be able to: 8.1 Introduction
 Identify independent and dependent 8.2 system of linear inequalities
variables 8.3 Construction of LP models
 Understand types of relationships
8.4 Graphical LP Solution
 Use regression analysis to predict the
8.5 Solution using LINDO program
value of a dependent variable based on
an independent variable 8.6 Special cases
 The meaning of the regression 8.5.1 Unbounded Solution
coefficients b0 and b1 8.5.2 Infeasible Solution
 Compute correlation coefficient 8.5.3 Alternative optima
 Use excel to identify correlation
coefficient and regression equation
After completing this unit, students will Unit 9: Systems of Linear Equations and Matrices 9.8
be able to: (13 hrs.)
 Understand the concept of matrix 9.1 Basic Matrix Operations, Matrix Products
 Apply matrix operations in business 9.2 Systems of Two Linear Equations in Two
problem solving Variables
 Represent system of linear equations 9.3 Larger Systems of Linear Equations
in matrix form 9.4 Applications of Systems of Linear Equations
 Compute the value of determinant 9.5 Determinant
 Identify inverse of a matrix 9.6 Matrix Inverses
 Solve Systems of Linear Equations by 9.7 Applications of Matrices in Business and
using Crammer’s rule Economics
After completing this unit, students will Unit 10: Differentiation and Integration (22 hrs.)
be able to: 10.1 Functions
10.1.1 Introduction
 Gain familiarity with various functions 10.1.2 Polynomial Functions (Linear and Quadratic
Functions)
 Understand the meaning of derivative 10.1.3 Exponential and Logarithmic Functions
10.2 Limit and continuity
 Identify derivative of various functions 10.3 Derivatives
10.3.1 Introduction
 Understand the concept of integration 10.3.2 Rules of Differentiation
10.3.3 Derivative as rate of change
10.3.4 Higher order derivative
 Use different rules and techniques of
10.4Application of derivative on business
integration
10.5 Integration
10.5.1 Introduction
10.5.2 Techniques of integration
10.5.3 Definite Integral
10.6 Application of Integration

Text Book
Levine, D. M., Stephan, D. F., Krehbiel, T. C. & Berenson, M. L. (2008). STATISTICS FOR
MANAGERS USING Microsoft Excel. United States of America: Prentice-Hall
Reference Books
Weiers, R. M. (2008). Introduction to Business Statistics. United States of America:
Thomson South-Western
Larson, R. & Farber, B. (2012). ELEMENTARY STATISTICS picturing the world. United
States of America: Prentice-Hall
Levin, R. I., Rubin, D. S., Stinson. J.P. & Gardner, E. S. (Jr): Quantitative Approaches to
Management, McGraw-Hill.