BUSINESS STATISTICS AND

MATHEMATICS

BUSINESS STATISTICS AND MATHEMATICS

(Programme Master in Financial Control)
Faculty: Prof. C. P. Gupta

THE COURSE
For understanding the dynamics and complexities of Finance, one has to build
necessary quantitative skills. Today, none can imagine being a financial-wizard
without having strong background in quantitative techniques. From every corner,
financial data is being bombarded, and one should be strong in analyzing and
modeling them to come out with sound financial decisions. Therefore, it is strongly
recommended that every finance manager should be trained in quantitative
techniques. And, this course is precisely aimed at achieving this objective make
todays students of Finance, the future financial-wizards capable to managing financial
data using quantitative techniques for sound financial decision making. It primarily
concentrates on developing the following capabilities among the students:

1) The mathematical ability of handling data, optimizing certain objectives and

solve system of linear equations.
2) Honing the skills of using statistical tools for capturing basic characteristics of
the data.
3) The capabilities to handle uncertainty through Probability Theory and other
related topics.
4) Building necessary capabilities so that the students can make necessary
inferences about the population on the basis of sample information.
5) Learning how to make sound financial decision in an uncertainty
environment.
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6) The ability to establish relations among the financial variables, and make
forecast for the future.

To be more specific, the Course is committed to develop students quantitative ability

to process, analyze and infer necessary conclusion so that they would be able to take
sound financial decisions.

PEDAGOGY
The Course is about 50 hours of class-room interaction. The thrust of the
pedagogy adopted would essentially be in two directions first, make the foundation
strong in the theoretical concepts; and second, encourage the students to apply them
in solving various financial problems. On the whole, the driving force behind the
pedagogy will be learn and apply. Students will be exposed to and be encouraged to
use software like MS-EXCEL, and SPSS for necessary processing of data using
Mathematical and Statistical Techniques learnt in the Course. A number of real life
problems and cases will be discussed to equip the students with application-skills.
Students have to devote lot of time in self-study and practice the techniques learned
during the Course. They should remember the more one practices, the more s/he
becomes perfect in applying what all are being learnt.

BUSINESS STATISTICS AND MATHEMATICS: Session-Plan

Session
Number(s)

Topic(s)

Differential and Integral Calculus Their Application in Business and

Finance

Matrices and Linear Algebra - Their Application in Business and Finance

and Implementing them using MS-EXCEL

3-4

Introduction to Statistics and Basic & Descriptive Statistics, Moments and

their Applications in Financial Statistics

5-6

Probability Theory And Bayes Theorem Its application in Business and

Financial Problems

7-10

Random Variable, Probability Distribution, Expectation and Variance of

Probability Distribution, Theoretical Distribution Discrete and
Continuous.

11-12

Sampling and Sampling Distribution, Standard Error, and Statistical

Inference Estimation

13-16

Statistical Inference Hypothesis-Testing: Parametric and Non-Parametric

Tests

17-18

Analysis of Variance One Way and Two-Way

19-20

Correlation and Regression Their Application in Business and Finance

21-23

Index Numbers Commodity Price and Share Price Indices

24
25-26

Time Series Analysis and Forecasting

Decision Theory and Decision Tree

Evaluation Criteria

Quizzes and Concept Test

15%

Final Examination

70%

Assignments and Presentations

15%

References:
1. Statistics for Business and Economics: David R. Anderson, Dennis J.
Sweeney, and Thomas A. Williams, Thomson South-Western College
Publishing. (Latest Edition)
2. Statistics for Business: Decision Making and Analysis; Robert E. Stine
and Dean Foster, Pearson Education, India.
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3. Frank S. Budnick, Applied Mathematics for Business Economics and

Social Sciences, McGraw Hill. (Latest Edition)
4. Business Statistics: First Course; David M. Levine, Mark L. Berenson,
Timothy C. Krehbiel and P. K. Viswanathan, Pearson Education, India.
5. Business Mathematics & Statistics; J K Thukral, Mayur Paperback,
Paperback.
6. Business Mathematics : Theory & Applications; Sharma J K , Ane
Paperback.