103-Quantitative Techniques For

Management

BBA 1st Semester

Lecture 1
Course Faculty – Mr. Prabhupad Bharadwaj
Assistant Professor, Operations, Logistics & Supply Chain
Management
Available at: Room no. F-03, PGDM Complex ASBM
Contact Me : 0674-2744863(O), 9439797989(M); Email: prabhupad.bharadwaj@asbm.ac.in

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 Course Outcomes
Course Name Code Description

Understand the need of statistics and data

CO 1
analysis

Illustrate the idea of business problems

CO 2
using statistical measures
Quantitative Techniques
For Management
Develop skills to apply statistical
CO 3
techniques to management problems

Understand the methods of time series

CO 4
analysis

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 Course Syllabus
• Unit-I Introduction: Statistics as a subject; functions, importance and
limitations of statistics; Planning and execution of a statistical
investigation; Census and sample investigation; Descriptive and inferential
statistics. Classification of data, Organisation of data using data array,
Tabulation, Graphical Presentation, Types of Diagram, Exploratory Data
Analysis.

• Unit- II Measures of Central Tendency: Definition and utility;

Characteristics of a good average; Arithmetic Mean; Median; Other
positional measures - quartiles, deciles, percentiles; Mode; Relation
between Mean, Median and Mode; Geometric and Harmonic Mean;
Choice of a suitable measure of central tendency

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 Course Syllabus
• Unit- III Measures of Dispersion: Meaning and objectives of
Dispersion; different measures of Dispersion - Range, Quartile deviation,
Mean deviation, Mean Absolute Deviation, Standard Deviation;
Comparison of the different measures of dispersion. Measures of relative
dispersion- Coefficient of Variation, combined mean and standard
deviation; moments, Skewness and Kurtosis; Moments; Coefficients based
on moments; Sheppard's correction; skewness; Measures of Skewness;
Kurtosis and its measures.
• Unit-IV Correlation and Regression: Correlation Analysis- Meaning
of correlation; Karl Pearson's coefficient of linear correlation; Properties of
the correlation coefficient; Advantages and limitations of the coefficient of
correlation; Rank correlation; Spearman's Rank correlation coefficient.
Regression Analysis - Two lines of regression; some important results
relating to regression lines; Correlation coefficient and the two Regression
Coefficients; Coefficient of Determination; concept of Multiple Regression.
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 Course Syllabus
• Unit-V Time Series Analysis: Component, Trend analysis, Cyclical
Variation, Seasonal Variation, Irregular Variation.
• Index number: Construction; Uses; Price Quantity and value indices,
Consistency test of Index Number.

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 Evaluation Policy
• Class Test/Quizzes/Presentations = 10 marks
• Mid Semester Examination = 20 marks
• End Semester Examination = 70 marks
Total = 100 marks

Note: A candidate has to secure minimum 40%

marks to pass the subject

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 References

• Sharma, J. K. Business statistics. Pearson

Education India, 2007.
• Black, Ken. Applied business statistics: Making
better business decisions. Wiley, 2011.
• Levin, Richard I. Statistics for management.
Pearson Education India, 2011.
• Levine, D. M., Stephan, D. F., Krehbiel, T. C., and
Berenson, M. L., Statistics for Managers – Using
Microsoft Excel. 7th Edn. Prentice-Hall Inc.
Publication
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 Requisites for the class
• Always read the previous lecture before
coming to class
• Always stick to the assignment dates
• One separate notebook for QT

Be punctual to the class and maintain discipline

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 Session Goals
After completing this session you should be able
to:
• Explain the need of statistics in real life and business
scenario
• Differentiate between population and sample
• Explain various sampling techniques
• Explain types of statistical methods

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 1.Introduction
• What is Quantitative Techniques(QT) ?
• Application of mathematics and statistics in business in a
systematic way
• This course is about applications of statistics in management
and research

• What is Statistic ?
• What is the age of your class ? (is it correct?)
• How many mangoes did you eat last summer ?
• Are you a Statistician ?

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 What is Statistics?
• Science of gathering, analyzing, interpreting,
and presenting data
• Statistics is the method of conducting a study
about a particular topic by collecting,
organizing, interpreting and finally presenting
the data.

• Can refer book for other similar definitions

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 Statistics As a Subject
• Functions:
– Represent facts in definite form
– Add precision to the facts
– Comparisons between groups
– Testing of Hypothesis
– Measure uncertainty

• Importance (Assignment due- 9/8/2018 )

– Real Life
– Accounting & Finance
– Economics
– Marketing
– Production
– Management(HR & Operations)

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• Limitations of Statistics
– Statistics does not study Qualitative Phenomena
– Statistics does not study Individuals
– Where will you take your ill granny?

900 people Survived 800 people Survived

out of 1000 out of 1000
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Population, Census and Sample
• The population is the set of all the individuals
or elements of interest in a particular study.
• The census is the collection of data from
every member of population
• A sample is a subset of the population.

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 Classification of Sampling
Techniques
Sampling Techniques

Nonprobability Probability
Sampling Techniques Sampling Techniques

Convenience Judgmental Quota Snowball

Sampling Sampling Sampling Sampling

Simple Random Systematic Stratified Cluster

Sampling Sampling Sampling Sampling
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 Sampling Techniques

• Simple Random Sampling

– Selected by using chance or

random numbers
– Each individual subject
(human or otherwise) has
an equal chance of being
selected
– Examples:
• Drawing names from a hat
• Random Numbers
• How did you take admission
in ASBM

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 Sampling Techniques
• Systematic Sampling
– Select a random starting point and then
select every kth subject in the population
– Simple to use so it is used often

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 Sampling Techniques
 Stratified Sampling
 Divide the population into at least two different
groups with common characteristic(s), then draw
SOME subjects from each group (group is called
strata or stratum)
 Results in a more representative sample

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Sampling Techniques

 Cluster Sampling
 Divide the population
into groups (called
clusters), randomly
select some of the
groups, and then
collect data from ALL
members of the
selected groups
 Examples:
 Exit Polls
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 Sampling Techniques

 Convenience Sampling
 As the name implies, the sample is selected because they
are conveniently available.
 Examples:
 Using family members or students in a classroom
 Mall shoppers
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 Judgment Sampling
• Also called purposive sampling
• An experienced individual selects the sample based on his
or her judgment about some appropriate characteristics
required of the sample member
• The researcher selects the sample based on judgment. This
is usually an extension of convenience sampling.
• For instance, if a researcher wants to find out what it takes
for women managers to make it to the top, the only people
who can give first hand information are the women, who
have risen to the positions of presidents, vice presidents
and important top-level executives in work organizations.

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 2. Types of Statistical Methods
1. Descriptive Statistics
2. Inferential Statistics
• What do you mean by description?
• What do you mean by inference?

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• Descriptive Statistics — using data
gathered on a group to describe or
reach conclusions about that same
group only

• Inferential Statistics — using

sample data to reach conclusions
about the population from which
the sample was taken

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 Descriptive Statistics

 Collect data
 ex. Survey
 Present data
 ex. Tables and graphs
 Characterize data
 ex. Sample mean =
X i

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 Descriptive statistics..
• Encompasses the following:
– Graphical or pictorial display
– Condensation of large masses of data into a form
such as tables
– Preparation of summary measures to give a
concise description of complex information (e.g.
an average figure)
– Exhibition of patterns that may be found in sets of
information

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 Inferential Statistics
 Estimation
 ex. Estimate the population
mean weight using the
sample mean weight
 Hypothesis testing
 ex. Test the claim that the
population mean weight is
75 kg

Drawing conclusions and/or making decisions concerning a

population based on sample results.
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 Inferential Statistics..
• Especially relates to:
– Determining whether characteristics of a situation
are unusual or if they have happened by chance
– Estimating values of numerical quantities and
determining the reliability of those estimates
– Using past occurrences to attempt to predict the
future

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