Institute of Banking & Finance (IBF)

Bahauddin Zakariya University, Multan

Course Title: Business Statistics
Course Outline: MBA (Islamic Banking) 1st Semester Weekend Program
Course Instructor: Afifa Armish
Course Description:
Through the duration of this course, students will be able to utilize statistical concepts in
Business, Commerence and Economics for empirical analysis of theory and validity of
theoretical concepts.

Weekly Lecture Plan:

Weeks. Topics along with Content

st
1 Introduction to Statistics:
Definition of Statistics and Business Statistics, Importance and Uses of Statistics
in Business, Why study Statistics, Types of Statistics (Descriptive and Inferential
Statistics), Applications of Statistics in Business, Information, Observation,
Population vs Sample, Parameter vs Statistic, Variable and its Types, Data and
its Types, Levels of Measurement.
2nd Presentation of Statistical Data:
Introduction, Methods of Data Presentation (Classification and its Types;
Tabulation and Requirements of Good Table; Graphs and its Types; Diagrams or
Charts), Difference b/w Raw Data and Array Data, Difference b/w Grouped and
Ungrouped Data, Formation of Frequency Table from Raw Data, Graphic
Presentation of a Frequency Distribution (Histogram, Frequency Polygon,
Frequency Curve, Cumulative Frequency Polygon or Ogive, and Historigram),
Graphic Presentation of Qualitative Data (Bar Chart, Pie Chart), Common Shapes
of Frequency Curves. Business Application with Statistical Software (Microsoft
Excel or Minitab).
3rd Measures of Central Tendency or Averages:
Averages and its Types, Computation of Averages (Arithmetic Mean, Geometric
Mean, Harmonic Mean, Median, Mode and quartiles) from Grouped and
Ungrouped Data, Properties of Arithmetic Mean, Weighted Mean, Empirical
Relation and Relative Positions of Mean, Median and Mode. Business
Application with Statistical Software (Microsoft Excel or Minitab).
4th Measures of Dispersion:
Why Study Dispersion, Types of Measures of Dispersion(Absolute and
Relative), Range, Semi-Interquartile Range, Mean Deviation, Variance and
Standard Deviation, Properties of Variance, Interpretation of Standard Deviation,
Coefficients of Variation, Box Plot, Skewness, Kurtosis. Business Application
with Statistical Software (Microsoft Excel or Minitab).
 5th & Introduction to Probability Theory:
6th Definition of Probability, Importance of Probability for Business, Approaches to
Assigning the Probabilities, Basic Probability Concepts (Experiment, Outcome,
Random Experiment, Sample Space, Events, Mutually Exclusive Events, Equally
Likely Events, Exhaustive Events, Independent Events, Conditional Probability),
Principles of Counting (Permutation and Combination), Addition and
Multiplication Rules for Computing the Probabilities, Contingency Tables.
Business Application and Exercise.
7th Introduction to Probability Distributions:
Random Variable, Probability Distribution and its Types, Discrete Probability
Distribution (Binomial, Poisson), and Continuous Probability Distribution
(Normal). Business Application with Statistical Software (Microsoft Excel;
Minitab or SPSS).
8th Regression and Correlation Analysis:
Difference b/w Regression Analysis and Correlation Analysis, Scatter Diagram
and its Interpretation, Principle of Least Square, Rank Correlation. Business
Application and Software Exercise.
Mid-Term Exam
9th & Sampling and Sampling Distribution:
10th Basic Concept of Sampling (Sampling, Purpose, Advantages and Limitation of
Sampling), Difference b/w Census and Sample Survey, Types of Sampling,
Kinds of Probability Sampling (Simple Random Sampling, Stratified Random
Sampling, Cluster Sampling and Systematic Sampling), Kinds of Non-
Probability Sampling (Purposive Sampling, Quota Sampling). Business
Application.
11th Statistical Inference:
&12th Estimation: Basic Concepts (Estimates, Estimators and Estimation), Point and
Interval Estimation, Properties of Good Point Estimator.
Testing of Hypothesis: Introduction to Hypothesis Testing, Null and
Alternative Hypothesis, Level of Significance, Test Statistic, Critical Region, and
Types of Errors, General Procedure for Testing of Hypothesis.
13th Testing of Hypothesis about Population Mean for Small and Large Samples.
Business Application.
14th, Time Series Analysis:
15th, & Introduction, Components of Time Series (Secular Trend, Cyclical Variation,
16th Seasonal Variation and Irregular Variation). Business Application.
Index Numbers:
Introduction to Index Number, Price Index Number, Quantity Index Number,
Methods of Constructing Index Number, Limitation and Uses of Index Number,
Consumer Price Index and its Importance. Business Application.
Final-Term Exam

Recommended Books:
1. Douglas A Lind, William G Marchal, and Samuel A Wathen, “Statistical Techniques
in Business and Economics”, 13th Edition, Richard D. Irwin Inc.
 2. Sher Muhammad Chaudhary, “Introduction to Statistical Theory” (Part I & II). Ilmi
Kitab Khana. Lahore.
3. Richard I. Livin and David S. Rubin. Statistics for Management. 7th edition.
4. Manifield, E., Statistics for Business & Economics: Methods and Applications.
5. Walpole, R. E., Myers, R., Myers, S.L., & Ye, K. (2008). Probability & Statistics for
Engineers & Scientists. 9th Ed: Pearson Education.
General Course Policies and Grading:
1. Attend the class regularly.
2. Breakdown of grade/marks:
 Quiz + Assignment + Presentation + Class Participation 20%
 Mid-Term Exam 30 %
 Final-Term Exam 50 %
3. Assignment after due date will not be accepted.