Post-Graduate Diploma in Management-Full Time

(PGDM-FT)

Area: Operations Management

Course Title Business Statistics (BS)

Course Faculty:
Name: Dr. Gunjan Malhotra
Contact: Room No. 53 (Faculty wing 9)
Email: gmalhotra@imt.edu
Mob. +91 93138 03668 , Office: +120 3002245
Student Meeting Hour: Friday 2p.m.-4p.m. or with prior appointments
Name: Dr. Ajay Kumar Chauhan
Contact:
Email:
Mob. , Office:
Student Meeting Hour:

Contact:
Email:
Mob. , Office:
Student Meeting Hour:

Course Description:
This course is designed to achieve solutions for the real-world decision-making problems. In this
course, we discuss real-world applications as a motivation for learning business statistics. We
will focus on decision making and business applications and provide students with an
understanding of the role of Data analysis and statistical inferences in business decision-making.
However if a particular concept feels especially difficult or confusing, you might want to review
the relevant section in the text book as well.

Learning Objectives:
The broad objectives of this course leading to achievement of sub-goal 1.1 are:
a. Decide on the appropriate statistical tool to solve the business problems.
b. Use appropriate statistical techniques in business decision making.
c. To understand, analyse and interpret statistical inference techniques (including statistical
estimation and hypothesis testing, regression analysis, etc.) in business situations using
SPSS software. (1.1)
d. Use MS Excel and SPSS version 20 (Statistical Packages for Social Sciences) to perform
statistical analysis on raw data identified.

Pedagogy:
The pedagogy includes a variety of teaching and learning techniques to impart knowledge and
skills to students. To develop conceptual and analytical skills, a mix of lectures, experience
sharing, case discussion, illustrative numerical problems, assignments and project shall be
employed. In addition to the reading materials, additional readings and cases will be distributed
in the class from time to time. Since students' performance shall be accessed through a
continuous system of quizzes, assignments, presentations and end-term examination, students are
expected to demonstrate active class participation.

Course Requirements:
i.
ii.
iii.

Students are expected to do the required readings before each session in order to enhance
their understanding and add value to class discussion.
For group project the class will be divided into a number of groups by the APO. Group
Project guidelines shall be circulated separately.
The course involves use of MS Excel and SPSS software. Students are expected to bring
their laptops and/or calculator as and when required.
2

Evaluation
Students will be evaluated based on multiple methods. The method to be employed along with
their weightage is listed below:
Specific Assessment Method

Weightage

Group Assessment Methods

Group
Project
Submission, 20%
Presentation
Individual Assessment Methods
Homework Assignment
20%
Quiz *
10%
End-term Exam

Intended
subject
learning outcome (1.1)
to be assessed

Tool
for
assessment*

AACSB

50%

*This course is mapped to AACSB AOL-Sub Goal 1.1 Demonstrate technical and analytical capabilities.

Recommended Text Book / Reference Book / Journals / Website

Text Book

Basic Statistics for Business and Economics by Lind, Marchal and Wathen 7th edition
- McGraw-Hill Education (India) Private Limited.
Reference Books

Statistics for Business and Economics: By Anderson, Sweeney, and Williams; Cengage
Learning, 11e

Business Statistics a First Course: By David M Levine, Timothy C Krehbiel, Mark L

Berenson, and P K Viswanathan,5e

Business Statistics for Contemporary Decision Making: By Ken Black, Wiley India,4e

Applied Statistics in Business Economics: By David P Doane and Lori E Seward, Tata
McGraw-Hill Publication

Statistics for Business Decision Making and Analysis: ByRobert E Stine and Dean Foster,
Pearson Publication

Business Statistics with CD-ROM by Naval Bajpai, Pearson Publication.

Statistics for Management by Levin, Rubin, Rastogi and Sidiqqui 7th edition, Pearson
Publication
3

Journals:
Journal of Business and Economics Statistics

Journal of Statistics Education

Decision Science

International Journal of Forecasting

In addition to above mentioned journals, please keep track of other journals, websites, published
articles and papers on Statistics applications in Business.
Websites: Useful websites to be visited for the course:
www.statistics.com

www.amstat.org

www.Numetrics.com

Course Outline: Session/Module/Reading Material

Sessions 1 & 2: Introduction to Statistics: Understanding of Business Statistics, measures of
Central tendency, Application of Dispersion, Skewness, Kurtosis
Topics to be covered: Mean, median, mode, variance, standard deviation, Chebyshevs theorem and
empirical rule, skewness and kurtosis of the distribution
Sessions 1 & 2 (150 minutes)
45 minutes
Concept and objective
of business statistics
Importance of statistical
decisions on business,
Discussion with industry
examples

30 minutes
Concepts of Mean, median, mode,
variance, standard deviation. Practice
Exercises

20 minutes
Concepts of Chebyshevs
theorem and empirical
rule. Practice Exercises

55 minutes
Distributions:
Skewness and
Kurtosis
MS Excel and
SPSS
interpretation of
the concept
Concluding the
class discussion
(5/10 minutes)

Readings:
Textbook chapter 1 & 3: Page 2-12; Page 58-83

Sessions 3-4: Probability with Bayes Theorem: Probability, sample space, events, addition
rule mutually exclusive and not mutually exclusive, multiple rule dependent and independent,
conditional probability, Bayes theorem
Sessions 3 & 4 (150 minutes)
30 minutes
Probability, sample
space, events, addition
rule mutually exclusive
and not mutually
exclusive. Practice
Exercise

45 minutes
Multiple rule dependent and independent,
conditional probability. Practice Exercise

75 minutes
Bayes theorem and practice
Exercise.
Interpretation through MS Excel
Concluding the class discussion
(5/10 minutes)

Readings:
Textbook chapter 5

Sessions 5 & 6: Probability Distribution: Discrete probability distribution: Binomial and

Poisson
Sessions 5 & 6 (150 minutes)
20 minutes
Review of Concepts,
understanding of
probability distribution,
Types of probability
distributions,

55 minutes
Concept of Binomial Distribution and
its business applications
Solving
illustrative
quantitative
problems

20 minutes
Review of Binomial
distribution, concept of
Poisson distribution and
how these distributions
are different, relevance
of these distribution in
business practices

55 minutes
Solving illustrative
quantitative
problems
Interpretation
through MS Excel
Concluding the
class discussion
(5/10 minutes)

Readings:
Textbook chapter 6: page 163-174; Page 180-184

Sessions 7 & 8: Continuous Probability Distribution: Normal and Exponential Distribution

Sessions 7 & 8 (150 minutes)
20 minutes
Review of Concepts,
Continuous probability
distribution, Normal
distribution

55 minutes
Concept of Normal distribution and
its business applications and
relevance
Solving
illustrative
quantitative
problems

20 minutes
Review of Normal
distribution,
Solving
illustrative
quantitative problems

55 minutes
Concept of
Exponential
distribution
Solving illustrative
quantitative
problems
Interpretation
through MS Excel
Concluding the
class discussion
(5/10 minutes)

Readings:
Textbook chapter 7: Page 201-204

Sessions 9 & 10: Sampling Technique, Distribution and Estimation

Sessions 9 & 10 (150 minutes)
25 minutes
Role
of
Sampling
techniques
in
business
decision making

35 minutes

20 minutes

55 minutes

Concepts of Sampling
distributions
and
its
relevance in analytical
decision making

Solving
illustrative
quantitative problems

Estimation
Solving
illustrative
quantitative problems

15 minutes
Sampling
techniques,
distribution
estimation
Practice

and
in

Concluding
the
class discussion
(5/10 minutes)

Readings:
Textbook chapter 8 and 9

Sessions 11 & 12: Statistical Inference: Hypothesis testing for single population (t-test and
z-test)
Sessions 11 & 12 (150 minutes)
25 minutes
Understanding of the
concept of hypothesis
testing, importance of
hypothesis testing in
business

50 minutes
Null and alternative
process of solving
concept of t-test and its
practice
Solving
illustrative
problems

hypothesis,
hypothesis,
relevance in

55 minutes
concept of z-test and its
relevance in practice
Solving
illustrative
quantitative problems

quantitative

20 minutes
Business
practices,
SPSS exercise
Concluding the
class discussion
(5/10 minutes)

Readings:
Textbook chapter 10

Sessions 13: Statistical Inference: Hypothesis testing for two populations (t-test)
Sessions 13 (75 minutes)
25 minutes
Review of concepts,
Hypothesis testing for two
populations

30 minutes
Solving illustrative quantitative problems

20 minutes
Industry Practices
SPSS Exercise
Concluding the class discussion
(5/10 minutes)

Readings:
6

Textbook chapter 11

Sessions 14 & 15: ANOVA: one-way Analysis of Variance with Tukeys Test
Sessions 14 & 15 (150 minutes)
30 minutes
Concept of Analysis of
Variance

45 minutes
One-way ANOVA
Solving illustrative quantitative problems

75 minutes
SPSS Exercise
Concluding the class discussion
(5/10 minutes)

Readings:
Textbook chapter 12

Sessions 16 & 17: Regression Analysis: Correlation and covariance, Causality and
inference, Building and evaluating simple linear regression models
Topics to be covered: R, R2, Adjusted R2, F-test, standardized , unstandardized , t-test, p-value
Sessions 16 & 17 (150 minutes)
30 minutes
Concept of Regression
analysis, its relevance
and importance in
business decision making

45 minutes
Concepts of R, R2, Adjusted R2, F-test,
standardized , unstandardized , t-test, pvalue
Solving illustrative quantitative problems

75 minutes
Interpretation of the concepts
using SPSS software
Practice Exercise on SPSS
Concluding the class discussion
(5/10 minutes)

Readings:
Textbook chapter 13

Sessions 18 & 19: Regression Analysis: Multiple regression models, Assumptions of the
regression models, Forecasting with regression models.
Sessions 18 & 19 (150 minutes)
20 minutes
Concepts of Multiple
Linear Regression

55 minutes
Interpretation of the concepts using SPSS
software
Practice Exercise on SPSS

75 minutes
Practice Exercise on SPSS
Concluding the class discussion
(5/10 minutes)

Readings:
7

Textbook chapter 14
Diagnostic testing of Multicollinearity (VIF),
Autocorrelation (DW) and Heteroscedasticity (white test)

Sessions 20: Regression Analysis:

Sessions 20 (75 minutes)

25 minutes
Review of concepts,
Multicollinearity-causes,
impact
and
remedial
measures

30 minutes
Autocorrelation (DW) - causes, impact and
remedial measures
Heteroscedasticity (white test) - causes,
impact and remedial measures

20 minutes
SPSS Exercise
Concluding the class discussion
(5/10 minutes)