Far-western University

Faculty of Management Course Title: Business Statistics and Mathematics Course No.: STAT 1001 Nature of the Course: Theory/Practical Year: First Level: BBS Full Marks: 100 Pass Marks: 45 Time per Period: 1 hour Total Periods: 120

1. Course Description This course deals with the application of statistical tools in business decision making and covers data collection, tabulation and presentation, techniques of summarizing and describing numerical data, basic concepts of probability, correlation & regression, time series & forecasting. Moreover, it provides knowledge of system of linear equations, matrices, determinant and their applications in the business and economics. 2. Course Objectives The general objectives of the course are as follows: To familiarize the students with descriptive statistical tools. To familiarize the students with the concept of probability, establishment of relationship between variables and forecasting. To provide students with a sound understanding of matrix algebra for business decisions. To provide the basic knowledge of differentiation and integration. To provide the sound knowledge of excel program to handle various problems of statistics 3. Specific Objectives and Contents Unit objectives

Contents (5 hrs.)

Describe the applications of statistics Unit 1: Introduction in business 1.1 An Overview of Statistics Explain the various terminologies of 1.2 Statistics for Managers statistics 1.3 Basic Vocabulary of Statistics Distinguish between quantitative and 1.4 Types of Variables categorical variables 1.5 Scales of Measurement Explain with measurement scales 1.6 Microsoft Excel Worksheets Demonstrate with excel and excel graphical and statistical functions

After completing this unit, students will be able to: Explain the difference between primary and secondary data

Unit 2: Data Collection, Presenting Data in Tables and Charts (14 hrs.) 2.1 Tables and Charts for Categorical Data 2.1.1 The Summary Table

2.7

Develop tables and charts for categorical data Develop tables and charts for numerical data Construct a frequency distribution and a histogram Construct relative and cumulative frequency distributions Construct a stem-and-leaf display to represent data Visually represent data by using graphs and charts Construct a scatter diagram

2.1.2 The Bar Chart 2.1.3 The Pie Chart 2.1.4 The Pareto Diagram 2.2 Organizing Numerical Data 2.2.1 The Ordered Array 2.2.2 The Stem-and-Leaf Display 2.3 Tables and Charts for Numerical Data 2.3.1 The Frequency Distribution 2.3.2 The Relative Frequency Distribution and the Percentage Distribution 2.3.3 The Cumulative Distribution 2.3.4 The Histogram 2.3.5 The Polygon 2.3.6 The Cumulative Frequency Curve (Ogive) 2.4 Cross Tabulations 2.4.1 The Contingency Table 2.4.2 The Side-by-Side Bar Chart 2.5 Scatter Plots and Time-Series Plots 2.5.1 The Scatter Plot 2.5.2 The Time-Series Plot 2.6 Microsoft Excel Graphs Unit 3: Numerical Descriptive Measures (17 hrs.) 3.1 Measures of Central Tendency 3.1.1 The Mean 3.1.2 The Median 3.1.3 The Mode 3.1.4 Partition values( Quartiles, Deciles and Percentiles) 3.1.5 The Geometric Mean 3.2 Variation and Shape (Measurement of Dispersion and Shape) 3.2.1 The Range 3.2.2 The Inter quartile Range 3.2.3 The Variance and the Standard Deviation 3.2.4 The Coefficient of Variation 3.2.5 Shape 3.2.6 Visual Explorations: Exploring Descriptive Statistics 3.2.7 Microsoft Excel Descriptive Statistics Results 3.3 Numerical Descriptive Measures for a Population 3.3.1 The Population Mean 3.3.2 The Population Variance and Standard Deviation

After completing this unit, students will be able to: Describe the applications and uses of central tendency, variation, and shape in numerical data Identify descriptive summary measures for a population Construct and interpret a box-andwhisker plot and shape of the distribution

After completing this unit, students will be able to: Understand basic probability concepts Understand conditional probability use Bayes theorem to revise probabilities Determine the number of combinations and the number of possible permutations of n objects r at a time. Use concept of probability in business decision environment

3.4 Exploratory Data Analysis 3.4.1 The Five-Number Summary 3.4.2 The Box-and-Whisker Plot Unit 4: Basic Probability (12 hrs.) 4.1 Sets & Set Operations 4.2 Introduction to Permutation & Combination 4.3 Basic Probability Concepts 4.3.1 Events and Sample Spaces 4.3.2 Contingency Tables 4.3.3 Simple (Marginal) Probability 4.3.4 Joint Probability 4.4 Conditional Probability 4.4.1 Computing Conditional Probabilities 4.4.2 Decision Trees 4.4.3 Statistical Independence 4.4.4 Multiplication Rules 4.4.5 Marginal Probability Using the General Multiplication Rule 4.5 Bayes Theorem 5.1

After completing this unit, students will Unit 5: Correlation and Linear Regression be able to: (11 hrs.) Identify independent and dependent 5.1 Simple correlation coefficient Method of variables measurement of simple correlation coefficient Understand types of relationships 5.2 Scatter Diagram method and Karl Parsons coefficient of correlation method Use regression analysis to predict the value of a dependent variable based on 5.3 Determining the Simple Linear Regression an independent variable Equation The meaning of the regression 5.3.1 Using Least-Squares Method coefficients b0 and b1 5.3.2 Using of Excel Compute correlation coefficient 5.4 Coefficient of Determination Use excel to identify correlation 5.5 Correlation and Causation coefficient and regression equation 5.6 Determining the Multiple Linear Regression Equation using Excel After completing this unit, students will Unit 6: Models for Time Series and Forecasting be able to: (8 hrs.) Describe the trend, cyclical, seasonal, 6.1 Time Series and irregular components of the time 6.1.1 Components of a Time Series series model 6.1.2 Fitting a Linear Trend Equation Fit a linear or a polynomial trend 6.1.3 Fitting a Quadratic Trend Equation equation to a time series 6.2 Smoothing Techniques Smooth a time series with the centered 6.2.1 The Moving Average moving average and exponential 6.2.2 Exponential Smoothing smoothing techniques

6.1

Determine seasonal indexes and use them to compensate for the seasonal effects in a time series Use the trend extrapolation and the exponential smoothing forecast methods to estimate a future value Use the mean absolute deviation (MAD) and mean squared error (MSE) criteria to compare how well fitted equations or curves fit a time series

6.3 Seasonal Indexes 6.3.1 The Ratio to Moving Average Method 6.3.2 Deseasonalizing the Time Series 6.4 Forecasting 6.4.1 Forecasts Using the Trend Equation 6.4.2 Forecasting with Exponential Smoothing 6.4.3 Seasonal Indexes in Forecasting 6.5 Evaluating the forecast accuracy: MAD and MSE

After completing this unit, students will be able to: Use index numbers to compare business or economic measurements from one period to the next

Unit 7: Index Numbers (8 hrs) 7.1 Types of index number 7.2 Notation and terminology 7.3 Method of constructing index number 7.4 Un-weighted method a. Simple average of price relative b. Simple aggregative method 7.5 Weighted Method a. Laspeyre's Index number b. Paasches's Index number c. Fishers index number 7.6 Cost of living index 7.6.1 Method of constructing cost of living index numbers: a. Aggregative expenditure method b. Family Budget method (10 hrs.)

After completing this unit, students will Unit 8: Linear Programming be able to: 8.1 Introduction Identify independent and dependent 8.2 system of linear inequalities variables 8.3 Construction of LP models Understand types of relationships 8.4 Graphical LP Solution Use regression analysis to predict the 8.5 Solution using LINDO program value of a dependent variable based on 8.6 Special cases an independent variable 8.5.1 Unbounded Solution The meaning of the regression 8.5.2 Infeasible Solution coefficients b0 and b1 8.5.3 Alternative optima Compute correlation coefficient Use excel to identify correlation coefficient and regression equation After completing this unit, students will be able to:

Unit 9: Systems of Linear Equations and Matrices (13 hrs.)

9.8

Understand the concept of matrix Apply matrix operations in business problem solving Represent system of linear equations in matrix form Compute the value of determinant Identify inverse of a matrix Solve Systems of Linear Equations by using Crammers rule

9.1 Basic Matrix Operations, Matrix Products 9.2 Systems of Two Linear Equations in Two Variables 9.3 Larger Systems of Linear Equations 9.4 Applications of Systems of Linear Equations 9.5 Determinant 9.6 Matrix Inverses 9.7 Applications of Matrices in Business and Economics Unit 10: Differentiation and Integration (22 hrs.) 10.1 Functions 10.1.1 Introduction 10.1.2 Polynomial Functions (Linear and Quadratic Functions) 10.1.3 Exponential and Logarithmic Functions 10.2 Limit and continuity 10.3 Derivatives 10.3.1 Introduction 10.3.2 Rules of Differentiation 10.3.3 Derivative as rate of change 10.3.4 Higher order derivative 10.4Application of derivative on business 10.5 Integration 10.5.1 Introduction 10.5.2 Techniques of integration 10.5.3 Definite Integral 10.6 Application of Integration

After completing this unit, students will be able to:

Gain familiarity with various functions Understand the meaning of derivative Identify derivative of various functions Understand the concept of integration

Use different rules and techniques of integration

Text Book Levine, D. M., Stephan, D. F., Krehbiel, T. C. & Berenson, M. L. (2008). STATISTICS FOR MANAGERS USING Microsoft Excel. United States of America: Prentice-Hall Reference Books Weiers, R. M. (2008). Introduction to Business Statistics. United States of America: Thomson South-Western Larson, R. & Farber, B. (2012). ELEMENTARY STATISTICS picturing the world. United States of America: Prentice-Hall Levin, R. I., Rubin, D. S., Stinson. J.P. & Gardner, E. S. (Jr): Quantitative Approaches to Management, McGraw-Hill.