Programe M.

Sc Accounting & Finance

Course: Quantitative Techniques in Business
Course Code QTM 309

Semester 1st

Summary of Course

This course provides an introduction to the mathematical and statistical tools required in
a business degree. There is an emphasis on problem solving by both manual and
computerised methods. The first half of the course focuses on algebra and graphs,
financial mathematics and optimisation methods including linear programming and
calculus. The second half of the course focuses on developing quantitative data analysis
skills through probability, descriptive statistics, inferential statistics and linear regression
(simple and multiple regression using cross sectional data).

Course Contents

Week 1: Introduction to Statistics: Introduction; Statistics and Statistical Methods;

Characteristics of Statistics; Functions of Statistics; Limitations of Statistics; Statistics in
Business and Management; Distrust of Statistics.

Week 2: Collection, Classification, and Presentation of Data: Introduction; Data

Collection; Data Classification and Data Gathering; Drafting Questionnaire; Sample
Slection; Data Presentation.

Week3: Measure of Central Tendency: Introduction; Measures of Central Tendency.

Measures of Dispersion: Introduction;, Measures of dispersion; Objectives of measuring

dispersion; Characteristics of a measure of dispersion; Range, Quartile deviation,
Average deviation, Standard deviation, Relation between standard deviation and other
measures, Relative measures of dispersion, Lorenz Curve.

Week4: Simple Correlation and Regression: Introduction; Correlation Analysis;

Functional relationship between Two Variables; Scatter Diagram; Linear
Correlation;Inferences Concerning Correlation Coefficient; Linear Regression
Equation;Estimating Regression Equation;Coefficient of Determination;Multiple
Regression and Correlation Analysis

Week 5: Time Series Analysis: Introduction; Meaning of Time Series; Applications of

Time Series; Variations in Time Series; Measurement of trend or secular trend;
Measurement of seasonal variations. 
Week 5:Mathematical Functions: Definition and types of functions;Types of
function:Constant functions;Linear functions; Quadratic functions; Cubic
functions;Rational functions;Composite functions; Application of functions

Week 6: Index Numbers: Introduction; Meaning of index number; Types of index

number; Uses of Index Numbers; Methods of constructing Index Numbers; Test For
Adequacy of Index Number Formulae; Consumer Price Index Number- Assumptions of
cost of living index number;  Methods of constructing Consumer Price Index,
Limitations of Index Numbers.

Week 7: Sampling Techniques: Introduction to Sampling Techniques; Need for

Sampling; Basic Concepts; Efficiency of Sampling Methods; Alternative Sampling
Methods

Week 8: Statistical Quality Control: Introduction; Sources of Variations; Statistical

Process Control Methods; Control Charts; Acceptance Sampling; Advantages of
Statistical Quality Control

Week 9;Probability and Decision Making

Definitions and Basic Rules of Probability — Marginal, Joint and Conditional

Probability:Definition and calculation. Applications of Probability in Business
Situations — Bayes’ Rule — Combinatorics:

Definition and use in calculating probability — Expected Value: Use as decision rules in
assessment of the value of perfect and imperfect information

Other Decision Rules: Maximin Rule, Maximax Rule, Minimax Rule, Hurwicz Criterion

Week 10: Decision Trees

Definition, Structure, Drawing, Interpretation of Decision Tree — Use of Decision Tree
in calculating probabilities
Week 11: Testing Of Hypothesis

 Rationale of Hypothesis testing

 Type of Errors
 Testing Hypothesis about One Mean
 Testing Hypothesis about Two Means
 Testing Hypothesis about Proportions
 Goodness of Fit

Week 11: Statistical Inference

Need and Significance of Statistical Inference in Business —Point and Interval
Estimation — Testing of hypothesis: Related Terminology, One Sample and Two
Sample tests of Population Means for small and large population(s) — Tests based on
Chi-Square Distribution — Statistical Process Control by means of Control Charts
Week 12:Forecasting- Time Series Analysis
Definition and Application — Moving Average — Exponential Smoothing —
Decomposition of Time Series — Use of Regression in Time Series Analysis — Use of
Moving Averages in Time Series Analysis
Week 13: Operational Research.

 Network Analysis
 Linear Programming: Definition — Limitations and Constraints —
Optimization —
Graphical Linear Programming Solution
Week 14: Simplex Method
 Formulating the Simplex Model — Comparing Simplex and Graphical
Solutions

Recommended Text:
1. Lucey, T. (2004), “Quantitative Techniques”, 6thed, Thomson Asia Pte Ltd.Banglore
2. Srivastava, S.C. and Srivastiva, S.S. (2005), “Quantitative Techniques”, Anmol
Publications,
3. Tulsian, P.C. and Pandly, V., (2006), “Quantitative Techniques: Theory and
Problems”, Pearson Education
Further Readings:
1. Srivastava, U.K., Shenoy, G.V. and Sharma, S.C. (2005), “Quantitative Techniques
for Managerial Decisions”, New Age International Publications,
2. Rao, A. B., (2004), “Quantitative Techniques in Business”, Jaico Publishing House
3. Applied Mathematics for business, economics and other social sciences by Frank S
Budnick