T. A.

PAI MANAGEMENT INSTITUTE, MANIPAL

MANAGERIAL STATISTICS
Programme: PGDM
Batch: 2021-2023
Term: 1
Course Name: Managerial Statistics - ANT 5001
Credits: 3 (30 Hours)
Course Instructors: Prof. Amol Dhaigude (Core) and Prof. Vasanth Kamath (Core)

PART 1
INTRODUCTION
Quantitative data comes in all forms- small/large, sufficient/incomplete and useful/useless. Data governs
most of the decisions that are taken at the table. Managerial statistics enable decision making in the
contexts of uncertainty and has its utility in all areas of business be it marketing, finance, operations,
health administration, quality assurance, human resource management and service improvement to
name a few. The world today produces data by microseconds, and it is imperative now to demonstrate
the impact numbers have on all dimensions of decision making. If one needs to process data, then
statistical knowledge to manage and interpret data is crucial.
Statistical facts can help determine the significance of any given business processes. Statistics are
something all business managers should consider if they expect maximum profitability for their
enterprises. This course introduces various aspects of Managerial Statistics to the participants.
Participants will be able to understand the concepts of probability, randomness, and addressing
randomness in the form of probability distributions. This course also deals with essential tools and
techniques of statistical inference like sampling, hypothesis testing, ANOVA, and regression analysis using
spreadsheet software.

COURSE OBJECTIVES (CO)

1. To understand probability models that can be used to study business and economic problems
2. To evaluate (through exploration), relate and interpret (through analyses) the attributes of
population and samples
3. To examine and justify the applications of various statistical hypothesis testing tools while
exploring business situations
4. To examine the relationship between multiple variables for making suitable predictions

1
COURSE LEARNING OUTCOMES (CLO)
By virtue of the learning gained in this course, the student should be able to:
CLO 1 Identify the appropriate probability distributions and interpret the statistical computations
applicable to the business context (PLG 1)
CLO 2 Apply relevant statistical inference techniques to business data and draw fitting conclusions.
(PLG2)
CLO 3 Create statistical models for management problems/ business situations using data in the
contexts of business enterprises to facilitate business decision making (PLG 3)

COURSE CONTENT
• Probability: Basic concepts; marginal, union, joint and conditional probabilities, Bayes’ rule.
Discrete Distributions: binomial, Poisson.
• Continuous Distributions: normal, uniform, exponential, t and F.
• Sampling distributions: random and non-random sampling techniques, sampling distribution of
sample mean and proportion.
• Statistical inference: hypothesis testing for a single, two means and proportions.
• ANOVA: One way
• Linear Regression Analysis: Estimation and interpretation

PRESCRIBED TEXTBOOK
Anderson Sweeney & Williams (2011), Statistics for Business and Economics (13 th Edition) Cengage
Learning.

OTHER READINGS AND REFERENCES

a. Aczel, Amir & Sounderpandian J., Complete Business Statistics (5 thEdition), Tata McGraw Hill.
b. Albright Christian, Winston Wayne and Zappe Christopher J., Data analysis and decision making
(2ndEdition), Thomson International Student.
c. Levin Richard, Rubin David, Statistics for Management (7thEdition), Prentice-Hall India.
d. Stine, R., E., and Foster, D. (2011) Statistics for Business: Decision Making and Analysis, 1 st edition,
Pearson Education, New Delhi.
e. Ken Black. Business Statistics: For Contemporary Decision Making. Wiley India Edition
f. Colgate-Palmolive Makes a Total Effort (KB)
g. Equality (case-let on female police officer promotion)
h. Healthcare application
i. Fuji Film Introduces APS (KB)
j. Case-let on Product Life cycle
k. Case-let on pollution control
l. Case-let on Gender Equality
m. Case-let on health (Mental)

2
POLICY ON PLAGIARISM:

Plagiarism of any kind and to any extent would attract penalties. The assessment would be ‘zero’ for that
particular component, with no further opportunity to improve. Repetition of the offence would result in
failure in the subject.

ASSESSMENT SCHEME AND WEIGHTAGE:

{a} END-TERM

Evaluation Weightage (%) Duration (in minutes) Open/close Book CLO Tested
End-Term 40 120 Close CLO 3

{b} OTHER ASSESSMENTS

Evaluation Unit of
Sl. No. Weight Time CLO
Item* Evaluation
1 Assignment Group 10% After session 05 --
2 Quiz 1 Individual 10% After session 10 --
3 Quiz 2 Individual 10% After session 15 CLO 1
4 Quiz 3 Individual 10% After session 24 CLO 2
5 Project Group 20% After session 27 --

3
 PART 2: SESSION PLAN
Additional
Session. Topic Pedagogy Reading Reading &
References*
1 to 5 Probability: Concepts & Enumeration Lecture
Chapter 4.1-
Introduction to course. Announcement of
4.3
1-2 project work 1 and 2, Methods of assigning
Classroom
probability & its structure
exercise
Marginal, joint & conditional probabilities,
3 Chapter 4.4 f, g
independent events
Chapter 4.5
Probability Trees, Bayes’ Theorem with
4-5 Classroom h
applications
exercise
Assignment 1 (WT - 10%)
Random variable & associated probability
6 to 16 Lecture
distribution
6 to 10 Discrete Distributions
Chapter 5.1-
Characteristic of a discrete random variable; 5.3
6-7
mean, variance & standard deviation Classroom
exercise
Bivariate distribution, Binomial distribution,
Chapter 5.4-
8 and its mean & standard deviation; computing i
5.5
of binomial probabilities, its applications
Poisson Distribution; mean & standard
Chapter 5.6
deviation; computing Poisson probabilities, its
9-10 Classroom
applications; Hypergeometric probability
exercise
distribution
Quiz 1 (WT - 10%)
11 to 16 Continuous Distributions Lecture

Characteristic of a continuous variable; it’s

Chapter 6.1
probability density function (pdf), expectation
11 Classroom
and moments; Uniform distribution and
exercise
computation of its probability
Chapter 6.2 -
Normal distribution, standard normal
6.3
12-14 distribution & their characteristics; solving
Classroom
normal curve problems
exercise

4
 Additional
Session. Topic Pedagogy Reading Reading &
References*
Additional
Session. Topic Pedagogy Reading Reading &
References*
Exponential distribution & its characteristics;
15 Chapter 6.4 j
solving exponential probabilities
Quiz 2 (WT - 10%)
Sampling Techniques & Sampling Distributions
- Sampling-Its meaning and reasons; census, Chapter 7.2 -
frame, random v/s non-random sampling, 7.8
16
random sampling; sampling distribution of Classroom
sample mean and proportion exercise
sampling techniques:
17 to 22 Hypothesis testing & Estimation Theory Lecture
Chapter 8.1 -
Interval estimates for population mean (Normal
8.4
17-18 with variance known and unknown), k
Classroom
proportion.
exercise
Chapter 8.1 -
8.4
19 Confidence interval estimation
Classroom
exercise
Chapter 9.1 -
Introduction to Hypothesis testing, Type 1 &
9.2
20 Type 2 errors
Classroom
exercise
Chapter 9.3 -
Hypothesis testing for single population
9.8
21-22 proportion and mean (Variance known and l
Classroom
unknown), Determining the sample size
exercise
23 to 27 Hypothesis Testing - II Lecture
Chapter 10.1–
Inference about the difference between two
10.4
23 population means (Variance known and
Classroom
unknown; Matched sample)
exercise
Chapter 11.1–
11.2
24 Inference about the population variance
Classroom
exercise
Quiz 3 (WT - 10%)
25 Test for Independence (Chi-square test - one Chapter 12.1–
5
 Additional
Session. Topic Pedagogy Reading Reading &
References*
12.3
sample, F test - two samples, Z test for large
Classroom
sample)
exercise
Additional
Session. Topic Pedagogy Reading Reading &
References*
Chapter 13.1–
26-27 ANOVA: One way, Two way m
13.3
Project work – Submission (WT - 20%)
28-30 Correlation & Regression Lecture
Chapter 14.1-
Karl Pearson's coefficient, Spearman's 14.5
28
coefficient Classroom
exercise
Chapter 14.6
Simple linear regression (Interpreting results) -14.9
29-30
and Review and summarization Classroom
exercise
End Term (40%)

6
 PLG MAPPING FOR THE COURSE
Addressed CLO
PLG# Program Level Learning Goal by Course? No.
(Yes / No)
Application of Fundamentals
PLG1 Traits: Demonstrate application of functional / conceptual Yes CLO 1
knowledge to business situations
Problem Identification and Solution
PLG2 Traits:Demonstrate ability to identify a problem, critically assess Yes CLO 2
various alternatives and suggest appropriate solution

Integrative Thinking
Traits: Demonstrate ability to identify inter-linkages among
PLG3 Yes CLO 3
functional areas within an enterprise and assess the impact of
external environment on its performance
Effective Communication
No
PLG4 Traits: Demonstrate proficiency in Oral and Written NA
Communication
Ethical Responsibility No
PLG5 Traits: Demonstrate awareness and assess impact of ethical NA
behaviour on business
Leadership
PLG6 Traits: Demonstrate capability to take leadership role in a No NA
business situation

Name of Faculty: Prof. Amol Dhaigude Endorsed by: Prof. Jighyasu Gaur

Signature &Date: ______________________ Signature & Date: ________________________

Name of Faculty: Prof. Vasanth Kamath

*****
Signature &Date: ______________________