Qunatitative Techniques for Business Decisions –I

PGDM (2019-21)
(BM-1204)

Credits 0 Hours 30
: 3 :

Course Objective: The basic objective is to make students understand the basic concepts of
probability distribution and their applications in business and management. The purpose of this
course is to expose students to a variety of statistical techniques for dealing with the challenges
presented by these data. The focus is on the application of statistical techniques such as sampling
methods, probability, hypothesis testing etc. and the interpretation of results using these
techniques. It stresses on conceptual understanding and facilitates them to use, apply and analyze
data and draw inferences. All the relevant topics will be covered using EXCEL, SPSS.

Learning Outcome: The students will be able to develop skills in structuring and analyzing
business problems statistically and creating an in depth insight into the applications of
quantitative management techniques using excel. This will help students in effective decision
making process.

Contents:

Unit 1 : Discrete and Continuous Probability distribution

Types of probability distribution, discrete probability distribution, binomial distribution, mean
and variance of binomial distribution, poisson distribution, mean and variance of poisson
distribution.
Continuous Probability distribution: Normal distribution, standard normal distribution,
Approximation of Binomial and Poisson distribution to Normal Distribution.

Unit 2 :Sampling and Sampling distribution

Introduction, Purpose of sampling, Principles of sampling, Methods of sampling, Random
sampling method - Simple random sampling, Methods of obtaining a simple random sample,
Stratified sampling, Systematic sampling, Multi-stage sampling. Non-random sampling -
Judgement sampling, Quota sampling, Conveyance sampling. Size of sample, Merits of
sampling method. Sampling and non-sampling errors, Sampling Distribution, Central Limit
Theorem.

Unit 3 : Statistical Inference: Estimation for single and two populations :Introduction,
Properties of good estimators, Types of estimates - Confidence limits for population mean,
Confidence limits for population proportion, Confidence limits for difference of two means,
Confidence limits for difference of two proportions. Determination of proper sample size.
Hypothesis Testing : Procedure of hypothesis testing: Type 1 and Type II Error, One tailed and
two tailed Tests ; Test of hypothesis concerning large samples - Testing hypothesis about the
difference between two means- z test, Testing hypothesis about a Population Proportion, Testing
hypothesis about the difference between two Proportion, Hypothesis testing about two
population variances-F Test , Small Sample Theory – t test, Properties of ‘ t ‘ distribution,
Testing hypothesis about the difference between two means, Difference between two related
populations. Overview of Anova.

Unit 4 – Non-parametric Test: Chi – square test on Goodness of fit and Contingency
Tables: Introduction, Chi- Square distribution, Important properties of Chi-square distribution,
Chi- Square Test of Independence, Chi- Square Test of Homogeneity, Chi-Square Goodness of
fit test, Conditions for the application of Chi-square, Use of the Chi-square Table.

Unit 5  : Correlation, Regression and Time series

Correlation – meaning and uses, types of correlation, Karl pearson coefficient of correlation,
rank correlation coefficient, when ranks are not given, equal rank
Regression analysis – meaning and uses, methods of studying regression- methods of least
square, method of deviation from mean, standard error and estimate.
Time series analysis – Introduction, component of time series, identification of trend, Moving
Average method.
.

Text Book:
1. Business Statistics in Practice: Using Data, Modelling and Analytics by Bruce
Bowerman.
2. Complete Business Statistics by Amir D aczel

Suggested Reading/References:

1. Sharma J.K., Business Statistics, Pearson Education India

2. N.D. Vohra: Business Statistics, Mc Graw Hill
3. Bajpai, N. Business Statistics, Pearson Education India
4. Render ;Barry, Ralph M Stair Jr and Michael E Hanna, Quantitative Analysis for
Management, 8th Ed., Prentice Hall ,New Delhi
5. Anderson; David R, Dennis J. Sweeney and Thomas A. Williams, Quantitative Methods
for Business, Prentice-Hall, West Publishing Company
6. Srivastava, U. K.; G. V. Shenoy and S. C. Sharma Quantitative Techniques for
Managerial Decisions, Prentice-Hall, New Age International P(Ltd) Publishers
7. Gupta S.C., Fundamental of Statistics, Himalaya Publishing House
8. Sancheti, D.C. and V. K. Kapoor: Business Mathematics, Sultan Chand & Sons
9. Richard I Levin, David S. Rubin: Statistics for Management, Pearson Prentice Hall
Education Inc Ltd
10. Anderson Sweeney Williams :Quantitative methods for Business
Note: Latest edition of the readings may be used.