DEPARTMENT OF BUSINESS STUDIES

BUSINESS STATISTICS

Module Code: EPAE 706

Semester: Second

Duration: 18 weeks

Credit Hours: 3

Course Description:

As we enter the 21st century, the issue facing managers is not a shortage of information but how
to use the available information to make better decisions. It is from this perspective of informed
decision making that we study statistics.

Statistical thinking can be defined as thought processes that focus on ways to understand, manage,
and reduce variation. Statistical thinking includes the recognition that data are inherently variable
and that the identification measurement, control, and reduction of variation provide opportunities
for quality improvement.

Statistical methods are applied in all functional areas of business: accounting, finance,
management, and marketing. Accounting uses statistical methods to select samples for auditing
purposes and to understand the cost drivers in cost accounting. Finance uses statistical methods to
choose between alternative portfolio investments and to track trends in financial measures over
time. Management uses statistical methods to improve the quality of the products manufactured or
the services delivered by an organization. Marketing uses statistical methods to estimate the
proportion of customers who prefer one product to another and why they do and draw conclusions
about what advertising strategy might be more useful in increasing the sales of a product.

Course Objectives:

This course will focus on data collection, data presentation, summarizing and describing data,
basic probability, and statistical inference. Students will use computer algebra systems and
spreadsheets as tools for performing statistical calculations, creating tables, and generating
graphical representations of information.

Learning outcomes:

On successful completion of this module, you will be able to:

 distil, scope and critically

 analyze problems. analyze and interpret situations and problems
 recognize relevant information in the process of solving problems
 make predictions about possible consequences
 use the technical tools and language of the field
 analyze and interpret different types of economic and financial data to extract useful
 information for optimal decision-making
 Identify appropriate computer software packages to solve problems
 interpret and use the language and terminology of business statistics
 Recognize the uncertainty of business decision-making
 analyze problems and identify appropriate risk management techniques
 imagine the implications of decisions and actions
 analyze and evaluate different business situations and provide optimal solutions for clients
 Approach problems with intellectual openness and curiosity
 Apply statistical and excel skills to real life situations
 Interpret the work of others and evaluate and respond to it
 recognize that there is often more than one solution to a problem

COURSE OUTLINE:

WEEK 1:

Introduction to Course

Descriptive Statistics: Tabular and Graphical Methods

WEEK 2 :

Descriptive Statistics: Numerical Measures

Measures of Location and Measures of Variability z-scores, empirical rule,

Chebychev’s theorem
WEEK 3:

Introduction to Probability & Random Variables Discrete Probability Distributions

Binomial Distribution
Expected Value and Variance
WEEK 4:

Continuous Probability Distributions

Uniform Distribution, Normal Distribution

WEEK 5:

Continuous Probability Distributions (contd.)

Uniform Distribution
Normal Distribution
WEEK 6:

Sampling Distributions
Point Estimation
Central Limit Theorem
WEEK 7:

Interval Estimation
Confidence Intervals for Population Means, t – Distribution
Confidence Intervals for Population Proportions
Sample Size Determination

WEEK 8: Mid Term Examination

WEEK 9:

Hypothesis Testing
Null and Alternative Hypotheses, One-Tail and Two-Tail tests
Significance Levels, p-values
WEEK 10:

Inferences about Means/Proportions with Two Populations

WEEK 11:

Inferences about Two Population Variances

Analysis of Variance
WEEK 12:

Simple Linear Regression and Correlation

Correlation Coefficient

Regression Notation
Least Squares method
Computer Solution
WEEK 13:

Simple Linear Regression and Correlation (Cont’d)

Testing for Significance, Estimation and Prediction
Chapter 14
WEEK 14:

Multiple Regression
Interpretation of computer output

Testing for Significance Multi-Collinearity, Estimation and Prediction

WEEK 15:

Multiple Regression (contd.)

WEEK 16 & 17: REVIEW

WEEK 18: FINAL EXAM

Grading Criteria

Percentage Status Grade

00-39% Fail F

40% - 59% Pass U (Ungraded)

60-69% Pass D

70-79% Pass C
80 – 89% Pass B

90 – 100% Pass A

RIU Policy:

1. All work submitted must be accompanied by an assessment submission form. The lower part of
this form is to be signed by the lecturer and kept by the student as proof of submission.

2. All work submitted after the submission deadline will be limited to a maximum of 50% and will
not be accepted after the end of the study period unless special circumstances apply.

Student assessment:

Provide, in table format as shown below, a schedule of formal assessment tasks and major

examinations for the unit.

Assessment Event Weighting

Mid-Term Examination 25%

Group Assignment 10%

Individual Assignment: 10 %

Final Examination 30%

Class Participation 15%

Attendance 10%

TOTAL 100

Required Textbook:

Bowerman, O’Connell( 2008) Business Statistics in Practice, 2nd Ed : McGraw-Hill Irwin

David M. Levine, Timothy C. Krehbiel( 2010) Business Statistics- A First Course, 4th ed.
Pearson Education