Probability and Statistics

Subject Code: MCA 4020 BKID B1779

Edition: Fall 2012
 Sikkim Manipal University
Directorate of Distance Education
Department of Information Technology
Dean
Directorate of Distance Education, Sikkim Manipal University (SMU DDE)
Board of Studies
Chairman Mrs. Vidya Selvaraj
Head IT Asst. Prof., Dept. of IT
SMU-DDE, Manipal 576 104 SMU-DDE, Bangalore
Additional Registrar Dr. A. Kumaran
SMU DDE Research Manager, Multilingual
Manipal 576 104 Research, Microsoft (India)
Addl. Registrar (S.E.) Mr. Ashwin Krishna
Office of the Student Evaluation Director, Keystone Business
Manipal 576 104 Bangalore
Director Prof. A. Srinivas
SMU-DDE, Bangalore Director Research and Consultancy
Dr. N.V.S. Subba Reddy and Professor of Computer Science
Vice- Chancellor, Mody Institute of PES Institute of Technology,
Technology and Science, Lakshmangarh, Bangalore
Rajasthan
Dr. Ramprasad Vardhachar Dr. Rajasekar
Director, Computer Studies Image Quality Leader
Dayanand Sagar Institutions, Bangalore Wipro - GE (India), Bangalore
Mr. Chitta Prasad Dr. Ashok Kumar T. K.
Senior Consultant, Technology Excellence General Manager
Group for Insurance and Healthcare IBM (India), Bangalore
TCS, Bangalore

Edition: Fall 2012

Printed: January 2013

This book is a distance education module comprising a collection of learning

material for our students. All rights reserved. No part of this work may be
reproduced in any form by any means without permission in writing from Sikkim
Manipal University, Gangtok, Sikkim. Printed and published on behalf of Sikkim
Manipal University, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal
Universal Learning Pvt. Ltd., Manipal 576 104. Printed at Manipal Technologies
Limited, Manipal.
Authors Profile
Dr. Sadhana Tiwari is Ph.D, M.Sc. in Mathematics. She works as Assistant
Professor, Department of Information Technology, Sikkim Manipal University
Distance Education. She has more than 6 years of teaching experience. Her areas
of specialization includes Generalized Function, Pseudo Differential Operator,
Special Functions. She has published several research papers in reputed journals
(National and International) and is a member of various Mathematical Societies.
(Units: 1, 2, 3, 4, 5, 6, 8, 9, 10, 12 and 13)

Dr. Manoj Tiwari is Ph.D, M.Sc. in Statistics. He works as Senior Assistant

Professor in Department of Statistics, Panjab University, Chandighar. He has more
than 12 years of teaching experience. His areas of specialization includes
Econometric, Reliability Theory. He published several research papers in reputed
journals (National and International) and is a member of various Statistical Societie
(Units: 7 and11)

Reviewer
Dr. A. Elumalai is Professor and Head in Department of Mathematics, Valliammai
Engineering College, Chennai. He completed his Ph.D from the Anna University
Chennai. He has more than 20 years of teaching experience. His areas of
specialization includes Graph Theory, Univalent Functions. He has published
several research papers in National and International Journals and is a member of
various Mathematical Societies.

In House Content Review

Content Editing:
Dr. L. Senthil Kumar
SMU-DDE
 Contents
Unit 1
Probability 1
Unit 2
Random Variable 22
Unit 3
Mathematical Expectation 49

Unit 4
Moment Generating Function 73

Unit 5
Measures of Central Tendency 92
Unit 6
Measures of Dispersion 166

Unit 7
Standard Distribution 203

Unit 8
Correlation and Regression 225
Unit 9
Index Number 261
Unit 10
Time Series 292
Unit 11
Sampling Theory 337

Unit 12
Hypothesis Testing 360

Unit 13
Tests of Significance Based On t, F and
Z Distributions 378
 MCA 4020
Probability and Statistics

SUBJECT INTRODUCTION
This SLM is designed to cover the fundamentals of Probability and
Statistics. It involves the basic concepts of Statistics and evaluation of data.
The subject Probability and Statistics is a Four credit course. It is a very
popular and powerful subject with application in almost all branches.
This SLM has been split into 13 units to cover the elementary concept of
Statistics and the overview of which are given below:
Unit 1: Probability
This unit gives an introduction about random variables, events, sample
space. It also gives the basic definition of probability, conditional probability
and multiplication theorem of probability. Also the concept of Bayes
Theorem is introduced in the unit.
Unit 2: Random Variable
In this unit, Distribution function and probability density function for single
and two dimensional random variable is discussed. For two dimensional
random variable we will also study about marginal density function and Joint
density function.
Unit 3: Mathematical Expectation
This unit deals with the expected value of random variable, expected value
of function of random variable and their properties. Various measures of
central tendency, Dispersion, skewness and Kurtosis for continuous
probability distribution are also discussed. This unit also gives the concept
of variance and covariance.
Unit 4: Moment Generating Function
This unit deals with definition and properties of moment generating function.
Unit 5: Measures of Central Tendency
This unit explains the meaning of different types of averages like
Mathematical Average Arithmetic Mean, Geometric Mean, Harmonic
Mean, Positional Average- Median, Mode, Quartiles, Deciles, Percentile.
Unit 6: Measures of Dispersion
In this unit we will study about the requisites of Ideal Measure of Dispersion.
Also the concept of different types of Measures of Dispersion like Absolute
Measure of Variation Range (R), Quartile Deviations (Q.D), Mean
Deviations (M.D), Standard Deviations (S.D), Relative Measure of Variation
Coefficient of Range, Coefficient of Quartile Deviations, Coefficient of
Mean Deviations, Coefficient of Variations is discussed.
Unit 7: Standard Distribution
Discreet and continuous probability distribution like Binomial, Poisson and
Normal Distribution with its properties is discussed in this unit.
Unit 8: Correlation and Regression
In this unit the concept of Correlation is studied. Also different types of
correlation, Methods of measurement of correlation, Partial Correlation and
Multiple Correlation is introduced in this unit. Regarding Regression, this
unit deals with Regression Analysis, Regression Lines, Regression
coefficient, Angle between two regression lines, Multiple Regression.
Unit 9: Index Number
This unit also explains the concept of Index number. Different methods of
computing an Index number like Simple Aggregate method, Simple Relative
method, Weighted relative method, Weighted aggregate Index numbers is
discussed in the unit.
Unit 10: Time Series
This unit deals with the meaning and different component of time series.
Also the various measurement of Trends is discussed in this unit.
Unit 11: Sampling Theory
This unit deals with different types of samples, advantages of sampling,
types of sampling and central limit theorem.
Unit 12: Hypothesis Testing
This unit explains about testing of hypothesis which includes the types of
hypothesis Null hypothesis and alternative hypothesis. The concept of one
tailed and two tailed test is also introduced in the unit. Test of hypothesis for
large samples is also discussed.
Unit 13: Tests of Significance Based on t, F and Z distribution
t- test Distribution, Properties of t- distribution, Applications of t- distribution,
F test Distribution and Z- test Distribution is discussed in the unit
Objectives of studying the subject:
After studying this subject, you will become familiar with basic tools of
Statistics. You should be able to explain the techniques of data
interpretation. Apply different techniques to deals with prediction of data
analysis.