Name of University:

Name of College/Faculty:
Name of Department: Accounting and Finance Program
Course Information
Course code
Course Title Statistics for Finance
Degree Program BA Degree in Accounting and Finance
Module
Coordinator
Lecturer Kedir M. (MSc in Biostatistics)
ETCTS Credits 5
Contact Hours 3
(per week)
Course Objectives The objective of this course is thus to discuss the theoretical aspects of
statistics and then focus on its practical applications in business decision
making, which modern managers and decision makers are expected to be
armed with on the face of considerable uncertainty. Besides, it is also to
create know-how to students on various application areas and benefit of
statistical in business.
This course aims:
 To familiarize students about the use & application of various
statistical tools in the field of financial decision making
 To enable students make valid inference from data
 To enable students to construct and test different types of hypothesis
 To enable students to find correlation between variables
 How to apply the statistical tests in the preparation of problem
solving research report.
 To enable students appreciate the application of statistics in every
areas of activities in business and industry such as production,
financial analysis and forecasting, distribution, market research,
manpower planning. investment evaluation, project analysis and
evaluation, risk analysis and prediction, auditing and assurance,
Course The use of statistical knowledge in the field of business aid dated many
Description years back. In recent years, an understanding of statistical methods,
techniques, and the skills to make use of them had widely been recognized
more than before. It is essential for anyone making valid business decisions
on the basis of data to possess a clear understanding of statistics.
Among other, the vast and fast changing technological, financial and
economic setting has necessitated an organized use and extensive
application of statistical tools to business decision making. Statistics has
proved useful in many ways. Such as in establishing relationship, making
predications, and providing solution to the many problems of business
operations and managerial decision. Statistics is widely applied in
production and quality control, marketing research, manpower planning,
financial decisions, investment analysis and validation, risk analysis and
prediction, auditing and assurance, etc.
WEEKS Course Contents Reading
1. Statistics Refresher
 1.1. Introduction
1.1.1. Definition
1.1.2. Areas (types) of statistics: Descriptive,
Inferential
1.1.3. Importance (uses) of statistics
1.2. Descriptive Statistics (Independent
Review)
1.2.1. Statistical data (meaning, types,
sources, processing and methods of
obtaining data)
1.2.2. Summarizing data using (tabular
presentation: frequency, relative
frequency, cumulative frequency,
cumulative relative frequency
distributions; and graphical
presentation: histogram, bar graphs,
pie charts, the frequency polygon, the
Ogive.)
1.2.3. Measures of location or central
tendency: for both raw and grouped
data (the mean, the median, the mode).
1.2.4. Measures of dispersion or variation: for
both raw and grouped data (the range,
percentiles, Quartile, the variance,
standard deviation, the coefficient of
variation, coefficient of correlation
skew ness).
2. Probability And Probability Distribution
2.1. Basic definitions of probability
2.2. Fundamental concepts: experiment and
event, event and their relationships, conditional
and joint probability
2.3. Definitions and classification of
probability distribution
2.4. Discrete random variables, expected value
and variance of discrete random variable
2.4.1. The binomial, Poisson, and hyper
geometric probity distributions and
their applications.
2.5. Continuous Probability distribution:
Uniform, Normal, and exponential probability
distributions and their applications.
3. Sampling & Sampling Distributions
3.1. Sampling Theory
3.1.1. Basic Definitions
3.1.2. The need for samples
3.1.3. Designing and conducting a sampling
study
 3.1.4. Bias and errors in sampling, non-
sampling errors
3.1.5. Types of samples- random and non-
random samples
3.2. Sampling Distributions
3.2.1. Definitions
3.2.2. Sampling distributions of the mean and
proportion
3.2.3. Sampling distribution of the difference
between two means and two
proportions
4. Statistical Estimations
4.1. Basic concepts
4.2. Point estimators of the mean and proportion
4.3. Interval estimators of the mean and
proportion
4.4. Interval estimation of the difference between
two independent means (concept and formula)
4.5. Student's t-distribution
4.6. Determining the sample size
5. Hypothesis Testing
5.1. Basic concepts
5.2. Steps in Hypothesis testing
5.3. Type I and type II errors (concepts)
5.4. One tailed \IS two tailed hypothesis tests
5.5. Hypothesis testing of: Population mean,
proportion for single mean and proportion
5.6. The difference between two means and two
proportions
6. Chi-Square Distributions
6.1. Areas of application
6.2. Tests for independence between two variables
6.3. Tests for the equality of several proportions
6.4. Goodness- of fit tests (Binomial, normal,
Poisson)
7. Analysis Of Variance
7.1. Areas of application
7.2. Comparison of the mean of more than two
populations
7.3. Variance test
8. Regression And Correlation
8.1. Linear correlation
8.2. The coefficient of correlation
8.3. Rank correlation coefficient
8.4. Simple linear regression
8.5. curve fitting, the method of least square, r2
Teaching & The teaching and learning methodology include lecturing via face to face or
Learning virtually, discussions, problem solving, and analysis. Take-home
Methods/strategy assignment will be given at the end of each chapter for submission within a
week. Solution to the assignments will be given once assignments are
collected. Cases with local relevance will also be given for each chapter for
group of students as well as individually to present in a class room. The full
and active participation of students is highly encouraged
Assessment/ The evaluation scheme will be as follows:
Evaluation Test 1 Test 2 Test 3 Quiz1 Assignment 1 Final Total
10% 10% 10% 10% 10% 50% 100%
Work load in hours Hours Required
Tot
Self- ECT
al
Lecture La Assessme Tutori Studi Assignm Advisi S
Hrs
s b nts als es ent ng
96  - 33 18 96  - -  243 8

Roles of the He/she will come to the class regularly on time and deliver the lecture in
Instructor a well-organized manner. Besides, at the end of each class he/she gives
reading assignment for the next class. He/she will make sure that proper
assessments are given. He/she is also responsible to give feedback for
each assessment.
Roles of the The success of this course depends on the students’ individual and
students collective contribution to the class discussions. Students are expected to
participate voluntarily, or will be called upon, to contribute to set exercises
and problems. Students are also expected to read the assigned readings
and prepare the cases before each class so that they could contribute
effectively to class discussions. Students must attempt assignments by
their own. Proficiency in this course comes from individual knowledge and
understanding. Copying the works of others is considered as serious
offence and leads to disciplinary actions.
Text and reference Text Book:
books  Paul Newbod, William L. Carlson, and Betty Thorne (2013).
Statistics for business and economics. 8th edition.
Reference Books
 Douglas A. Lind, William G. Marchal, and Samuel A. Wathen
(2012). Statistical Techniques in Business & Economics. 15 th
edition.
 Mark L. Berenson, David M. Levine, and Timothy C. Krehbiel
(2012). Basic Business Statistics: Concepts and Applications,
9th edition.
 Sanjiv Jaggia and Alison Kelly (2020). Essentials Of Business
Statistics: Communicating With Numbers, Second Edition
 James T. McClave, P. George Benson, and Terry Sincich (2018)
Statistics for Business and Economics, 13th edition.
 Lino Douglas A. and Robert D. mason. Basic statistics for Business
and Economics. 12th edition.
 David R. Anderson. Dennis J. Sweeney, Thomas A. Williams, Jeffrey
D. Camm and James J. Cochran (2018) Statistics for Business and
Economics, 13th revised edition.
 Douglas A. Lind, William G. Marchal, Samuel A. Wathen (2013)
Basic Statistics for Business & Economics , 9th edition.
 David F. Groebner, Patrick W. Shannon, Phillip C. Fry, and Kent
D. Smith (2011). Business statistics a decision making
approach 8th edition.