Chandigarh Group of Colleges,Jhanjeri

Master of Business Administration

MBA-I Semester

MBA 103-18 Dr. Rajinder Kaur Bhogal

QUANTITATIVE Associate Professor

TECHNIQUES EMAIL:-rajinder.bilkhu@gmail.com

Topic:-Correlation and Regression

CAMPUS: JHANJERI, MOHALI

 Objective

• To be aware about the quantitative techniques in

managerial decision-making
• To acquaint with operations research techniques in
managerial decision-making.
• To apply quantitative techniques to solve business
problems

Chandigarh Group of colleges,Jhanjeri

 MBA Batch 2018 onwards
MBA 103-18
QUANTITAIVE TECHNIQUES

Unit I
CO1 :Illustrate the statistical tools. Understanding (Level 2)

•Introduction to Statistics: Meaning, Definition in singular and plural sense, Features

of statistics, Importance, Functions, Scope and Limitations of Statistics.
•Measures of Central Tendency: Mathematical averages including arithmetic mean,
geometric mean and harmonic mean, properties and applications. Positional
Averages: Mode and median (and other partition values including quartiles, deciles
and percentile. Graphic presentation of measures of central tendency.
•Measures of Variation: Absolute and relative measures. Range, quartile deviation,
mean deviation, standard deviation and their coefficients. Properties of Standard
Deviation and Variance. Moments Concept, calculation and Significance. Skewness:
Meaning, Measurement using Karl Pearson and Bowley Measures. Concept of
Kurtosis.
 Unit II

CO2:Apply the correlation and regression analysis for data computation.

Applying (Level 3)
• Simple Correlation Analysis: Meaning of Correlation: Simple ,multiple and partial,
linear and non linear correlation, correlation and causation ,scatter diagram, Pearson’s
correlation coefficient, calculation and properties of coefficient, Rank Correlation.
• Simple Regression Analysis: Meaning of Regression, Principle of least square and
regression analysis, Calculation of regression coefficient, properties of regression
coefficient, Relationship between correlation and regression coefficient.
CO3:Analyze theory of probability and distribution functions.
Analyzing (level 4)

• Theory of Probability: Meaning of Probability, Approaches to the calculation of

probability. Calculation of event probabilities, Addition and Multiplication Laws of
Probability (Proof not required),Conditional Probability and Bayes’ Theorem (Proof not
required).
 Syllabus
Unit III
• CO3: Analyze theory of probability and distribution functions. Analyzing (level 4)

• Probability Distribution: Binomial Distribution, Poisson distribution and Normal

Distribution with their properties ad applications.

CO4:Apply the Linear Programming Problem System for effective managerial

decisions.Applying (Level 3)

• Linear Programming; Formulation of linear programming problems. Solution by

Graphic method and by using Simplex method algorithm including Big-M method.
Business applications of LP. Degeneracy. Duality. Post-optimality analysis. Game
Theory: Two-person zero-sum games. Games of pure strategies and Games of mixed
strategies. Rule of dominance. Graphic solution to games. Business applications.
 Unit IV
• CO5:Make use of transportation and assignment techniques for optimum
decision. Applying (Level 3)

• Transportation: Transportation problem: Initial feasible solution using

North-west Corner Rule; Least Cost Method; and Vogel’s Approximation
Method. Testing optimality using MODI method.

• CO6:Analyze the project planning and scheduling by PERT and

CPM.Analyzing (level 4)

• Assignment Problems: Assignment problem: Solution using Hungarian

Assignment Method. Project Scheduling: PERT/CPM: Project networks.
Scheduling of projects with known activity times – Critical path and
scheduling of activities.
 Previous topic
• Mode
• -Definition
• Formula
• Problems
• Less than
• More than
• Missing Frequency
 Learning Objectives :-After completing this module the
students will be able to :-

• Correlation
• -Definition
• Types of Correlation
• -Positive and Negative Correlation
• -linear or non Linear Correlation
• Simple, Multiple And Partial Correlation
• Regression
• -Definition
 Degree of Correlation

• Perfect: If the value is near ± 1, then it said to be a perfect

correlation: as one variable increases, the other variable
tends to also increase (if positive) or decrease (if negative).
• High degree: If the coefficient value lies between ± 0.50
and ± 1, then it is said to be a strong correlation.
• Moderate degree: If the value lies between ± 0.30 and ±
0.49, then it is said to be a medium correlation.
• Low degree: When the value lies below + .29, then it is
said to be a small correlation.
• No correlation: When the value is zero.
 Conclusion
• Correlation is a statistical measure that determines the
association or co-relationship between two
variables. Regression describes how to numerically
relate an independent variable to the dependent
variable. Usage. To represent a linear relationship
between two variables.
 References/Text books
• Quantitative Techniques, by CR Kothari, Vikas
publication .
• Fundamentals of Statistics by SC Gupta Publisher Sultan
Chand .
• Quantitative Techniques in management by N.D. Vohra
Publisher: Tata McGraw hill.
• Business statistics T.R JAIN S.C AGGARWAL Global
Publication .
 Websites
• https://
www.tutorialspoint.com/statistics/correlation_co_efficie
nt.htm
 Topic to be covered in the next lecture

• Probability theory

-Definition
 Office Hour Timing

• Timing of office hour :-11:00 to 11:40 am

• If you are facing any problem or doubts than you feel to
contact me in between 11 to 11:40am.
• Day:-Thursday
Thank You