MANAGERIAL STATISTICS

Course Objectives

1. To develop ability of students to understand data types & fitting them into certain
statistical models.

2. To enable students to do analysis of data using statistical tools & techniques.

3. To prepare students to interpret the calculated values of different statistical parameters.

4. To equip students for data-based decision-making process using statistical tools to

minimize business risks.

Pre Requisites

1. Basic understanding of mathematics (Algebra and Geometry).

2. Basic understanding of probability concept.
3. Basic concepts of estimation and inferences.

Course Description

The process of decision-making and problem solving in business functional areas largely
involves understanding of data, its composition and the manner in which it can be converted
into a statistical model used for prediction & control.

The course in business statistics aims at making students realize the importance and relevance
of data available in various fields of business to make appropriate decisions. The course expose
the students with concepts of probability distributions and their applications in business,
hypothesis testing including chi-square test & ANOVA and regression/correlation analysis.
The focus is on use of statistical tools & techniques to make appropriate managerial decisions
which when implemented, will give desired intended results for the business.

Content:

UNIT-I

1. Probability Distributions (6 Hours)

(a) Introduction (0.5 Hours)

(b) Probability Distribution Functions (0.5 Hours)

(c) Expected values and variance of a random variable (0.5 Hour)

(d) Discrete Probability Distributions (1 Hour)

(i) Binomial Distribution

(ii) Poisson Distribution

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 (e) Continuous Probability Distribution (1 Hour)

(i) Normal Distribution (1 Hour)

(ii) Approximation of Binomial & Poisson Distributions to normal

distribution. (0.5 Hour)

UNIT-II

2. Sampling & Sampling Distribution, Estimation and Confidence Interval

(6 Hours)

(a) Introduction (0.25 Hours)

(i) Reasons of Sample Survey (0.25 Hours)

(ii) Types of bias during sample survey (0.25 Hours)

(iii) Population parameters and sample statistics (0.25 Hours)

(iv) Principles of sampling (0.25 Hours)

(b) Sampling Methods (0.25 Hours)

(c) Sampling Distributions (0.5 Hours)

(i) Standard Error of Statistic

(ii) Difference between population, Sample and Sampling distributions

(d) Sampling distribution of sample mean (0.25 Hours)

(e) Sampling distribution of sample proportions (0.25 Hours)

(f) Point Estimation (0.25 Hours)

(g) Confidence Interval Estimation (0.25 Hours)

(h) Interval Estimation of Population Mean (Sigma Unknown) (1 Hour)

(i) Interval Estimation for Population Proportion (1 Hours)

(j) Estimating Sample Size (1 Hour)

ASSIGNMENT-I
UNIT-III

3. Hypothesis Testing (6 Hours)

(a) Introduction (0.25 Hours)

(b) Hypothesis & Hypothesis Testing (0.25 Hours)

(c) Rational for Hypothesis Testing (0.25 Hours)

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 (d) General Procedure for Hypothesis Testing (0.25 Hours)

(e) Directions of the Hypothesis Test (0.5 Hours)

(f) Errors in Hypothesis Testing (0.5 Hours)

(g) Hypothesis testing for Population parameters with large samples (1 Hour)

(h) Hypothesis testing for single population proportion (1 Hour)

(i) Hypothesis testing for population mean with small samples (0.5 Hours)

(j) Hypothesis testing based on F-Distribution (1.5 Hours)

Class Test (20 Marks): (It covers from Topic/Unit no 1 to 3 of the syllabus)

UNIT-IV

4. Chi-Square Testing & Analysis of Variance (6 Hours)

(a) Introduction (0.5 Hours)

(b) Chi-Square distribution (0.5 Hours)

(c) Chi-Square test statistic (0.5 Hours)

(d) Application of Chi-Square test (2 Hours)

(e) Analysis of variance approach (0.5 Hours)

(f) Testing Equality of Population means (2 Hours)

(i) One way classification

(ii) Two way classification

ASSIGNMENT-II

QUIZ
UNIT-V

5. Correlation & Regression Analysis (6 Hours)

(a) Introduction (0.25 Hours)

(b) Significance of measuring correlation (0.25 Hours)

(c) Types of correlations (0.25 Hours)

(d) Methods of correlation analysis (0.25 Hours)

(e) Spearman’s rank correlation coefficient (1 Hours)

(f) Hypothesis testing about population correlation coefficient – small sample

(1 Hour)

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 (g) Introduction to regression analysis (0.25 Hours)

(h) Types of regression models (0.25 Hours)

(i) Estimation: the method of least squares (0.25 Hours)

(j) Assumptions for a simple linear regression model (0.25 Hours)

(k) Parameters of simple linear regression model (0.5 Hours)

(l) Least square normal equations method to determine regression coefficients

(1 Hour)
(m) Standard error of estimate and prediction intervals. (0.5 Hours)

Total (30 Hours)

Text Book

1. Business Statistics by ND Vohra, McGraw Hill Education

Reference Books

1. Business Statistics by J.K Sharma, Vikas Publishing House Pvt. Ltd. Latest edition,
ISBN:- 978-93259-8081-5

2. Statistics for Business & Economics Anderson and Williams Cengage Learning 11th
edition, 2011, ISBN:- 978-81-315-1705-5

3. Business Statistics with CD-ROM Naval Bajpai - 3rd impression – 2013 Pearson
ISBN:- 978-81-317-2602-0

4. Statistical Techniques in Business and Economics Lind, Marchal & Wathen – 13th
edition, ISBN:- 978-0-07-066707-5

5. Business Statistics a self-study Textbook, S. Chand Publication Dr. P.C Tulsian 2nd
edition – 2016, ISBN:- 978-81-219-2948-6

6. Statistics for Business decision making and analysis Stine & Foster – Pearson
Publishing 1st edition – 2011, ISBN:- 978-81-317-3347-9

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