Copyright © 2014 Pearson Education. All rights reserved.

9-1
 Statistics
For Business & Economics
II
Prof.dr.ir. Wouter VERBEKE
Drs. Jeroen BERREVOETS

Copyright © 2014 Pearson Education. All rights reserved. 9-2

 Introduction

Statistics II

Copyright © 2014 Pearson Education. All rights reserved. 9-3

Introduction

• Associate Professor of Data Analytics

– Solvay Business School, VUB
• Data Analytics Laboratory
– How can organizations make better decisions by collecting and learning from data?
– Prescriptive analytics for business applications (cfr. Business Cases)
– www.data-lab.be
• Previous:
– Dexia Bank, Risk Analytics Department – Business Information & Processes
Management team
– University of Edinburgh Business School, Lecturer in Management Science
– Ph.D. in Applied Economic Sciences, KU Leuven, 2012
– Civil Engineer, KU Leuven, 2007
• Wouter.Verbeke@vub.be

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Before we start, let’s agree

• My role:
– I’m here to explain and help you to learn
– I’m here to check whether you did learn

• Attendending classes is not mandatory yet highly recommended

– Classes are recorded – if everything goes technically well: not guaranteed
– Lectures and exercise sessions = contact hours
• The only contact hours we have, in principle
• Do ask questions, do comment, do discuss, do disagree
– If you attend, please be silent
• Unless you want to ask questions, comment, …
• 3 x 55 minutes of concentration now will save you many hours of studying
during the exam period
• Show respect to me and to your fellow students
– Laptop is allowed to take notes
– Please turn down your phones

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Outline

1. Course outline
2. Course organization

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1. Course outline
General learning objectives

• Understand, recognize, explain and apply

• The need,
• The power,
• The limitations and assumptions,
• The choice for,
• And workings
• Of inferential statistics, statistical tests and instruments
• Both from a theoretical as well as a practical perspective

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Course outline

• Inferential statistics is about drawing conclusions (inferring

insights) that hold for the full population based on data that
is obtained for a sample of the population
– Vs. descriptive statistics

• Because a sample is a random subset of the population, we

need to make use of probability calculus so as to generalize
upon the sample, i.e., to infer valid conclusions from the
sample

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Course outline

• We will discuss on various types of statistical tests:

– For the mean
– For proportions
– For comparing means
– For distributions and independence

• We will discuss upon the most important parametric and

non-parametric tests

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Course contents

Chapter 09: Sampling distributions and confidence intervals for proportions

Chapter 10: Testing hypotheses about proportions
Chapter 11: Confidence intervals and hypothesis tests for means
Chapter 12: More about tests and intervals
Chapter 13: Comparing two means
Chapter 14: Inference for counts: Chi-square tests
Chapter 04: Correlation and linear regression
Chapter 15: Inference for regression
Chapter 16: Understanding residuals
Chapter 22: Nonparametric tests
Chapter 24: Introduction to data mining

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Business cases

• Credit Risk Management

(https://www.sas.com/en_us/insights/risk-management/credit-risk-management.html)

• Customer Relationship Management

(https://www.salesforce.com/eu/learning-centre/crm/what-is-crm/)

• Fraud Risk Management

(https://home.kpmg/xx/en/home/services/advisory/risk-consulting/forensic/fraud-risk-
management.html)

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2. Course organization
Schedule classes
Week Date Topics
22 11/02 Introduction & Recap. Chapter 1-8 (exc. 04)
23 18/02 Chapter 9
24 25/02 Chapter 10
25 03/03 Chapter 11
26 10/03 Chapter 12
27 17/03 Chapter 13
28 24/03 No class
29 31/03 Chapter 14
30 07/04 Spring break
31 14/04 Spring break
32 21/04 Chapter 04
33 28/04 Chapter 15
34 05/05 Chapter 16
35 12/05 Chapter 22
36 19/05 Chapter 24
Schedule exercise sessions

• Cfr. exercise sessions

• Statistics café

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Course syllabus

• Syllabus:
– Official course description
– https://caliweb.vub.be/?page=course-
offer&id=010370&anchor=1&target=pr&year=1920&language=en
&output=html

• Requirement:
Students who want to enroll for this course, must have passed for
‘Statistics for Business and Economics I' and must have obtained at least
30 ECTS-credits on bachelor level.

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Evaluation

• The final grade is composed based on the following categories:

– Written Exam determines 75% of the final mark.

• Theory and exercises
• Each counting for half of the points
• Closed-book exam for the theoretical part
• Open-book exam for the exercises.

– Practical Exam determines 25% of the final mark.

• Exercises, multiple choice, …
• Regarding the use of R, open source statistical software
• E.g., interpretation of output resulting from statistical procedures

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Evaluation

• Absence for at least one of the parts of the exams results in absence
for the overall examination.
You need to take all parts of the exam!
• The mark obtained for the practical exam in the first examination
period is also valid for the second examination period when the
student asks for it.
Only the mark on the practical exam can be transferred to the second
exam session!
• No partial exemptions or partial transfers of marks to the next
academic year are given.

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Course material

• Handbook (Required) :
– Business Statistics, Global edition, Sharpe, N. R., De Veaux,
R., and Velleman, P., 3rd Edition, Pearson Education,
9781292058696, 2015
– Same book as used for the course Statistics for Business
and Economics I

• Extra course material will be provided via Canvas

– Slides classes and exercise sessions
– Additional examples and exercises
– Additional literature
– Selection of webpages, tutorials (e.g., Khan Academy), etc.
• Be critical towards online material!
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Contact

• Questions?
1. Lectures
2. Exercise sessions
3. Consultation sessions (register via Canvas)
4. Google
5. Jeroen.Berrevoets@vub.be : no online helpdesk

• During exam period: consultation sessions

– Register via Canvas
– Questions to be sent on beforehand via e-mail

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Questions?