Far-western University

Faculty of Management

Course Title: Business Statistics and Mathematics Full Marks: 100

Course No.: STAT 1001 Pass Marks: 45
Nature of the Course: Theory/Practical Time per Period: 1 hour
Year: First Total Periods: 120
Level: BBS

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

 Describe the applications of statistics Unit 1: Introduction
in business
 Explain the various terminologies of
statistics
 Distinguish between quantitative and
categorical variables
 Explain with measurement scales
 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
(5 hrs.)
1.1 An Overview of Statistics
1.2 Statistics for Managers
1.3 Basic Vocabulary of Statistics
1.4 Types of Variables
1.5 Scales of Measurement
1.6 Microsoft Excel Worksheets
Unit 2: Data Collection, Presenting Data in Tables 2.7
and Charts (14 hrs.)
2.1 Tables and Charts for Categorical Data
2.1.1 The Summary Table
 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
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-and-
whisker plot and shape of the
distribution
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
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:
 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
After completing this unit, students will Unit 5: Correlation and Linear Regression
be able to:
 Identify independent and dependent
variables
 Understand types of relationships
 Use regression analysis to predict the
value of a dependent variable based on
an independent variable
 The meaning of the regression
coefficients b0 and b1
 Compute correlation coefficient
 Use excel to identify correlation
coefficient and regression equation
After completing this unit, students will Unit 6: Models for Time Series and Forecasting
be able to:
 Describe the trend, cyclical, seasonal,
and irregular components of the time
series model
 Fit a linear or a polynomial trend
equation to a time series
 Smooth a time series with the centered
moving average and exponential
smoothing techniques
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
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
(11 hrs.)
5.1 Simple correlation coefficient Method of
measurement of simple correlation coefficient
5.2 Scatter Diagram method and Karl Parsons
coefficient of correlation method
5.3 Determining the Simple Linear Regression
Equation
5.3.1 Using Least-Squares Method
5.3.2 Using of Excel
5.4 Coefficient of Determination
5.5 Correlation and Causation
5.6 Determining the Multiple Linear Regression
Equation using Excel
6.1
(8 hrs.)
6.1 Time Series
6.1.1 Components of a Time Series
6.1.2 Fitting a Linear Trend Equation
6.1.3 Fitting a Quadratic Trend Equation
6.2 Smoothing Techniques
6.2.1 The Moving Average
6.2.2 Exponential Smoothing
 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
After completing this unit, students will
be able to:
 Use index numbers to compare
business or economic
measurements from one period
to the next
After completing this unit, students will Unit 8: Linear Programming
be able to:
 Identify independent and dependent
variables
 Understand types of relationships
 Use regression analysis to predict the
value of a dependent variable based on
an independent variable
 The meaning of the regression
coefficients b0 and b1
 Compute correlation coefficient
 Use excel to identify correlation
coefficient and regression equation
After completing this unit, students will
be able to:
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
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. Fisher’s 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.)
8.1 Introduction
8.2 system of linear inequalities
8.3 Construction of LP models
8.4 Graphical LP Solution
8.5 Solution using LINDO program
8.6 Special cases
8.5.1 Unbounded Solution
8.5.2 Infeasible Solution
8.5.3 Alternative optima
Unit 9: Systems of Linear Equations and Matrices 9.8
(13 hrs.)
 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 Crammer’s rule
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
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

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.