Punjab College of Technical Education Ludhiana
COURSE MODULE
BUSINESS STATISTICS
Name of Teacher: Asha Sharma (asha_s81@hotmail.com)
Subject Code: BB-304
No. Of lecture: 57
Class Tests: 2
Hourly test: 2
Assignment: 3
Activity: 2
Course Objective:
Business Statistics is helpful in framing suitable policies in a large number of diversified fields covering natural, physical and social sciences. It will enable the students to know what is statistics, how and when to apply statistical techniques to decision making situations and how to interpret the results.
Class Room Policies:
1. Student will be allowed to enter the class till the attendance is going on, after that no one can enter the class.
2. No student will be given a chance to reappear for MSE.
3. All the tests will be considered for internals.
4. Each assignment will have weightage & assignments are to be submitted by the scheduled time, failing which no assignment will be accepted.
Internal Marks Distribution:
Mid Semester Examination: 15
Presentation: 6
1st Hourly Tests: 5
2nd Hourly Tests: 5
Class test: 5
Assignment: 4
Course Break-Up
Lecture No. Contents Assignments
1. Introduction to Business Statistics
• Relevance
• Applications
2. Functions of statistics
• Definiteness
• Condensation
• Comparison
• Prediction
• Formulation Of suitable policies
Limitations
• True only on average
• It can be misused
• One method of studying the problem
• Does not deal with individual measurements
3. Data
• Relevance
• Collection of Data
4. Classification of data
5. Collection of chocolate preference (Activity-1)
6. Formation of discrete
Continuous frequency distribution
7. Tabulation of data
• meaning
• Relevance
• Format of table
8. Case study -1(Portfolio management)
9. Graphic presentation: Meaning
Types of diagrams
• Sub-divided bar
• Multiple bars
• Percentage bar
• Pie Chart
10. Graphic presentation (contd.).
• Graphs of frequency distribution
• Frequency Polygon
• Frequency curve
• Ogives
11. Practical Tutorial- 1
Discussion on the problem of students.
12. Measures of central value / Measures of Location
Relevance
Objectives of averaging
Requisites of a good average Assignment-1
13. Arithmetic mean
# Calculation in Individual
14. Calculation of mean in descrete and continuous series
15. Geometric mean
16. Harmonic mean
17. Median
• meaning
• Relevance
• Calculation of mean in individual series and descrete series
18. Median
• Continuous series
• Merits and demerit
1st hourly Test
19. Mode
• Meaning
• Calculation of mode
Individual series
20. Mode
• Discrete series
• Continuous series
• merits and demerits
Assignment-2
21.
Quartiles
Meaning and calculation
22. Deciles
Percentile
23. Practical Tutorial 2
24. Avtivity-1 Students are required to calculate the mean of 20 highest paid executives in India & show the trends of increase in the remuneration of the executives.
25. Measures of dispersion
• Meaning.
• Range
• Quartile deviation
26. Mean deviation
• Meaning and calculation
• Merits and demerits
27. Standard deviation
• Meaning
• Calculation in individual series
28.
Standard deviation
• Calculation in descrete series
• Coefficient of variation
29. Standard deviation
Calculation in continuous series
30. Correlation analysis
• Meaning
• Types of correlation
31. Karl Pearson’s coefficient of correlation
calculation
32. Probable error
Rank correlation
33. Activity-2 Calculate the relationship between the marks obtained in 10th & +2 of 15 students.
34. Practical Tutorial 3
35. Regression
Meaning
Relevance
2nd Hourly test
36. Regression
• Calculation
• Regression Equations
• Merits & Demerits
37. Index Number
• Meaning
• Relevance
• Problems in construction of index numbers
38. Index Number
• Methods of constructing Index Numbers
• Unweighted- Simple Aggregative Assignment-3
39. • Weighted- Weighted sAggregative
• Weighted Average Of Relative
40. Index Numbers
• Test of Adequacy of Index Numbers
• Chain Index Number
41. Index numbers (cont)
Base Shifting
42. Class Test-2
43. Analysis of Time Series
• Meaning.
• Components of Time series
44. Analysis of Time Series
• Measurement of Trends
a) Graphic Method
b) Method of Semi Averages
45. Analysis of Time Series
c) Method of Moving Averages
46. Analysis of Time Series
Method of Least Square
47. Tutorial-4
Mid Sementer Examination
48. Probability
• Meaning
• Relevance
49. Calculation of probability: Experiments & events, Mutually Exclusive events, independent & dependent events.
50. Theorems Of Probability
• Addition P(A or B)= P(A)+ P(B)
• Multiplication P(A&B)=P(A)*P(B)
51. Theorems Of Probability (cont..)
Bayes’ Theorem
52. Case Study-2 (Tiger air express)
53. Probability distribution
• Meaning
• Relevance
• Binomial Distribution
54. Poisson distribution
• Meaning
• Calculation
55. Class Test-2
56. Normal distribution
• Meaning
• Calculation
57. Tutorial-5
REFERNCES
1. Levin & Rubin: Statistics for Management, Prentice Hall India.
2. Srivastava & Rego : Statistics for Management, Tata McGraw Hill
3. S.P.Gupta : Statistical Methods, Sultan Chand & Sons
4. Andersons, Sweeny and Williams : Cengage Learning, Statistics for Business and Economics
Activity-1
Students will go to 25 children and ask them about their chocolates’ preferences among the various brands available in the market. They will collect the data about the name and age of the children along with their preferences. Then, they will convert this raw data into a Bivariate Table consisting of 2 variables.
1. Chocolate
2. Age
For Example:
X(Chocolate)/Y(Age) 3-5 5-7 7-9 9-11 11-13 13-15
Dairy Milk
sMilky Bar
Munch
Perk
Nestle
5 Star
Bar One
Activity-2
Calculate the relationship between the marks obtained in 10th & +2 of 15 students.
Assignment-1
Draw the Histogram, Frequency Polygon and Frequency Curve:
1.
Variable Frequency Variable Frequency
100-110 11 140-150 33
110-120 28 150-160 20
120-130 36 160-170 8
130-140 49
2.
Salary (p.m.) No. of employees
Less than 3000 100
3000-4000 20
4000-5000 30
5000-6000 60
6000-7000 75
7000 & More 115
Assignment-2
1. Calculate Median & Mode of the data given below. Using them find arithmetic mean.
Marks Less Than 10 20 30 40 50 60
No. of students 8 23 45 65 75 80
2. Find the class intervals if arithmetic mean of the following distribution is 33 & assumed mean 35.
Step Deviation -3 -2 -1 0 1 2
Frequency 5 10 25 30 20 10
Assignment-3
1. Calculate Karl Pearson’s Coefficient Of Correlation from the following data:
X 100 200 300 400 500 600 700
Y 30 50 60 80 100 110 130
2. Find Rank Correlation
X 50 55 65 50 55 60 50 65 70 75
Y 110 110 115 125 140 115 130 120 115 160
Presentation Topics
Every group will take up any Organization according to their convenience and will collect the data relating to its sales and Production (month wise for 4 years) and will show the same for every year in graphs and will have to find the average sales and production during the year and the combined mean for all the 4 years.
The students will be divided into the group of 3. Each group will have to present within 20 minutes.
Presentation Assessment Break Up
Presentation Report 3
Communication skills 4
Formals 1
Query handling 2
Formulae Of Statistics In Course
Arithmetic mean
Direct Method
In Individual Series A.M.= ΣX/N
In Discrete & Continuous series A.M.= ΣFX/ΣF
Short Cut Method/ Indirect Method A.M.= A+ΣFdx/ΣF
Step-deviation Method A.M.=A+ΣFdx'/ΣF*i
Geometric Mean G.M.=√ab
Harmonic Mean
In Individual Series N/Σ(1/X)
In Discrete & Continuous series N/Σ(f*1/X)
Median
In Individual & Discrete Series M=N+1/2, (Nth term+N+1/2)/2
Continuous series N1=N/2, M=L+ N1-CF/F*i
Mode
In Individual Series Maximum repeated term
In Discrete & Continuous series Groupung Table & Analysis Table, M= L+D1/(D1+D2)*i
Quartiles
In Individual & Discrete Series Q1=N+1/4, Q2=2(N+1)/4, Q3=3(N+1)/4
Continuous series N1=N/4, Q1=L+(N1-C.F.)/F*i,N1=3N/4,Q3=L+(N1-C.F.)/F*i
Decile N1=N/10, D1=L+(N1-C.F.)/F*i,N1=9N/10,D9=L+(N1-C.F.)/F*i
Percentile N1=10(N/100), P10=L+(N1-C.F.)/F*i,N1=90N/100,P90=L+(N1-C.F.)/F*i
Measures of dispersion
Range Highest Value-Lowest Value
Quartile Deviation Q3-Q1/2
Coeffcient of quartile deviation Q3-Q1/Q3+Q1
Mean Deviation
In Individual Series Σ[X-A.M.]/N
In Discrete & Continuous series ΣF[X-A.M.]/N
Coefficient Of Mean Deviation M.D./A.M.or M or Z
Standard Deviation
In Individual Series √Σd²/N-(Σd/N)2
In Discrete & Continuous series √Σfd²/N-(Σfd/N)2
Coefficient Of Standard Deviation S.D./A.M.
Variance S.D.²
Coefficient of variation S.D./A.M.*100
Coefficient Of Correlation
Karl Pearson r=NΣXY-(ΣX.ΣY)/√(NΣX²-{ΣX}²).√(NΣY²-{ΣY}²)
Spearman 1-6ΣD²/N³-N When ranks are not repeated
1-6[ΣD²+1/12{m³-m}]/N³-N, When ranks are repeated
Concurrent deviation √(2C-n/n)
Standard Error 1-r²/√N
Probable Error 0.6745 (1-r²/√N)
