Annexure ”CD – 01”

Course Title: Advanced Statistical Methods in Economics L T P/ SW/F No. of TOTAL

Credit Units: 6 S W PSDA CREDIT
Course Level: PG UNITS
Course Code: to be decided later
Prerequisites: NIL 4 1 0 2 2 6

Course Objectives:
The course aims at making students understand the statistical foundations of data analysis including the statistical theory and
its applications in Economics. The idea is to impart training on how to make an argument with data. Here, the emphasis is on
application (including analysis and interpretation) rather than theoretical derivations.

Course Contents/Syllabus:
Module I Elementary Distribution Theory Weightage
25%
Nature and scope of statistics.

Frequency and Cumulative frequency distributions: frequency table, histogram, visual

techniques such as box plots, transformation
Measures of Central Tendency, Dispersion, Skewness and Kurtosis.

Case studies relevant to the topics will be discussed

PSDA 1 Statistical analysis of various indicators of growth of Indian Economy

Module II Probability Theory

Elements of Probability Theory: Sample Space Events, Meaning of probability – Classical definition of probability. Marginal 15%
Probability and Total Probability; Theorems of probability: Addition Rule, Multiplication Rule, Conditional Probability and
Statistical independence, Limitations of classical definition, Bayes’ Theorem
Case studies relevant to the topics will be discussed
Module III Univariate Probability Distributions
Random variable, pmf, pdf, Expectation and variance of random variable, 15%
Probability distribution (for random sampling with or without replacement)
Binomial, Poisson, Normal distribution, Importance of Normal Distribution in Statistics
Self Work
Testing for normality using MS Excel

Module IV Sampling and Estimation of Parameters

Methods of Sampling: Sampling distribution of a statistic; Distribution of the sample mean; Sampling error and standard error of a 15%
statistic with special reference to the mean;
Point and interval estimation of parameters; Properties of an estimator: Unbiasedness, Relative efficiency and Consistency
Self Work
Collection of data using appropriate sampling technique

Module V Bivariate Distributions

Bivariate distributions: Contingency tables, joint and conditional distributions, odds-ratio, test of 15%
independence, Analysis of variance; Analysis of Covariance

Self Work

Comparing mean using ANOVA and its statistical inference

Module VI Index Number

 Index Number.: Concept , characteristics , types, utility , problems 15%
 Methods for construction of Index Numbers: Weighted vs Unweighted, Fixed vs Chain Index
 Tests of Index Number: Time Reversal, Factor Reversal and Circular tests
 Base shifting, Splicing and Deflating of Index Numbers
 Application of Index Number: Consumer Price Index Number, Real Income and Worth of Rupee

PSDA2 : Constructing and Compilation of various indices

After completion of the course the Students would learn to:

 Understand the basic concepts and methods of Statistics for application in data analysis.

 Explain and apply the elementary distribution theory for decision making.

 Calculate joint density functions from Joint cumulative distribution functions or vice verse.
  Evaluate different kinds of probabilities & its use in decision making.
 Estimate expected value and probability distribution.
 Identify sampling methods that provide means of learning about population and understand the trade-off between the cost of taking large sample and
additional accuracy.
 Develop the concept of sampling distribution for under laying thinking of statistical inference.

 Demonstrate the ability to construct price and quantity indices.

Pedagogy for Course Delivery:

The class will be taught using lecture and problem solving method. Basic concepts will be explained in detail so that the students can develop deep conceptual
understanding. In addition to assigning the problems, considerable time will be spent in explaining the application and interpretation by solving real world
problem through case studies. Augmented learning methods shall be used. Besides, hands on training will be provided using Excel.

List of Professional Skill Development Activities (PSDA):

1. Statistical Analysis of various indicators of growth of Indian Economy
2. Constructing and Compilation of various indices

Assessment/ Examination Scheme:

Theory L/T (%) Lab/Practical/Studio (%) End Term Examination

100% N.A 70%

Theory Assessment (L&T):

Continuous Assessment/Internal Assessment End Term Examination

Components (Drop
down)
Mid-Term Exam PSDA Project Home Assignment Attendance

Weightage (%) 10% 10% 5% 5% 70%

Text Reading:
 Allen Webster, Applied Statistics for Business and Economics, (3rd edition), McGraw Hill, International Edition 1998
  J.K. Sharma, Business Statistics, (2nd edition), Pearson Education
 Andreson. Sweeny. Williams, Statistics for Business and Economics, Cengage Learning
 S. P. Gupta, Statistical Methods, Sultan Chand and Sons Educational Publishers, New Delhi
 S.C. Gupta and V.K. Kapoor, Fundamentals of Mathematical Statistics, Sultan Chand and Sons Educational Publishers, New Delhi
 Marsh, Catherine (2009) Exploring Data: An Introduction to Data Analysis for Social Scientists, Polity Press, UK, Second Edition
References:
 P.H. Karmel and M. Polasek, Applied Statistics for Economists (4th edition), Pitman, Australia.
 M.R. Spiegel (2nd edition), Theory and Problems of Statistics, Schaum Series.
 Clark, Megan J. and John A. Randal (2010)A First Course in Applied Statistics, 2nd edition, Pearson Education.
 Larsen, R.J. and M.J. Marx (2011) An Introduction to Mathematical Statistics and Its Applications, Pearson Education, 5 edition.