MBA 502 Applied Quantitative Methods for Business
Course Syllabus
MBA 502: Applied Quantitative Methods for Business
Syllabus Overview
This syllabus contains all relevant information about the course: its objectives and outcomes,
the grading criteria, the texts and other materials of instruction, and weekly topics, outcomes,
assignments, and due dates.
Consider this your roadmap for the course. Please read through the syllabus carefully and ask
questions if you would like anything clarified. Please print a copy of this syllabus for reference.
Course Description
3 Credits
Prerequisite: None
This is an applied regression analysis course in the theory and application of regression
analysis of economic and other social science data. It is designed to build on the basics of
introductory statistics so that students can apply advanced regression analysis techniques and
demonstrate the ability to do hypothesis testing. Students develop the necessary skills to build a
parsimonious model that conforms to the assumptions of classical linear regression (CLR). The
course is intended to provide more of a “hands on” than theoretical approach to quantitative
analysis. Students transform data to test hypotheses using different forms of regression
analysis. This analysis is evaluated for attributes of a good model (parsimony, identifiability,
goodness of fit, theoretical consistency, and predictive power). During a students’ evaluation of
model specification, they learn how to identify and address violations of (CLR). At the
completion of this course, students will have the ability to perform and evaluate quantitative
analysis.
Course Outcomes
At the completion of this course, students should be able to:
•
•
•
•
•
•
Analyze and differentiate the basic principles of regression analysis.
Interpret the assumptions of Classical Linear Regression.
Use regression analysis to analyze business and financial data.
Assess and measure the skills to perform classical hypothesis testing.
Evaluate and construct a T-Statistic in regression analysis.
Critic the differences between Type I & Type II errors in regression analysis.
Faculty Information
Faculty information will be sent to you via email from your course instructor prior to the start of
the term.
© 2010 New England College of Business and Finance
Page 1 of 8
MBA 502 Applied Quantitative Methods for Business
Materials and Resources
Required Textbook and Resources:
Essential Statistics in Business & Economics, 2nd Edition
by David P. Doane and Lori E. Seward (McGraw-Hill, 2010)
An NECB customized textbook is available for purchase at the NECB Bookstore as either a
hard copy or eBook. The customized textbook includes only the chapters covered in the course.
Please note you will also be required to purchase a Connect access code for this course.
Library Services:
Detailed information about online and on-ground library services can be found in the Getting
Started section of the course, or at http://www.finance.edu/services_library.asp.
Help Desk and Technical Questions:
If you experience problems accessing your course, downloading content items, or posting
discussion threads, your first troubleshooting resource is the Technical Services Help Desk.
There are 3 ways to contact them:
Using the Student Support Request Form at http://www.necb.edu/support_epic.asp
By email at support@necb.edu
By phone at 1-800-997-1673
Additional Epic support and resources, including the Student Support Request Form
(generates a ticket # to track your resolution) and Student Reference Guides, are available on
our website: http://www.necb.edu/support_epic.asp.
Be sure to notify your professor of any technical difficulties you are experiencing since it may be
impacting other students as well.
Student Orientation Tutorial:
It is essential that you know how to navigate the online teaching and learning environment. If
you have not yet taken the Epic orientation tutorial, it is essential that you do so before getting
started with the course. It will be of great help to you.
© 2010 New England College of Business and Finance
Page 2 of 8
MBA 502 Applied Quantitative Methods for Business
Week by Week Schedule
Week 1
Outcomes
Descriptive Statistics
Justify the correct use of different uses of central tendency.
Evaluate the different measures of dispersion.
Rank data dispersion by a standardized method.
Evaluate if events are independent.
Analyze data by the rules of probability.
Readings
Chapters 4 and 5 (Essential Statistics in Business Economics)
Discussion 1
A statistical consultant was retained by a linen supplier to analyze a survey of
hospital purchasing managers. After looking at the data, she realized that the
survey had missed several key geographic areas and included some that were
outside the target region. Some survey questions were ambiguous. Some
respondents failed to answer all the questions or gave silly replies (one
manager said he worked 40 hours a day). Of the 1,000 surveys mailed, only
80 were returned. Given this information, answer the following questions:
• What alternatives are available to the researcher?
• Might an imperfect analysis be better than none?
• If you were the consultant, how might you respond to the supplier?
Discussion 2
Some individuals have an inherent distrust of quantitative analysis because
they think that statistics can be manipulated to provide a desired
interpretation. As we will see, much of this course on regression analysis
pertains to knowing about an error term in the regression equation. What
would those individuals think if they knew that econometrics is based on an
error term? In this discussion I would like for you to discuss your experience
with quantitative analysis. Are you one of those who have a distrust of
quantitative analysis? For example, the economists in the Obama
administration suggested that the stimulus package that they recommended in
early 2008 would keep unemployment under eight percent. Even though they
did not show us their analysis, we all know that it was flawed because
unemployment reached ten percent in 2010. Were their econometric models
improperly specified? Were their assumptions about the economy wrong? Is
Keynesian macroeconomic theory wrong? Was there bias in their theory
about how the stimulus would work?
Assignment
Complete the assigned exercises in Connect – due Sunday (midnight, EST).
Week 2
Probability Theory
Outcomes
Readings
Define a discrete random variable and a probability distribution.
Analyze common discrete probability models and their parameters.
Distinguish between discrete and continuous random variables.
Evaluate when a normal distribution can approximate a binomial
distribution.
Chapters 6 and 7 (Essential Statistics in Business Economics)
© 2010 New England College of Business and Finance
Page 3 of 8
MBA 502 Applied Quantitative Methods for Business
Discussion 1
On a police sergeant’s examination, the historical mean score was 80 with a
standard deviation of 20. Four officers who were alleged to be cronies of the
police chief scored 195, 171, 191, and 189, respectively, on the test. This led
to allegations of irregularity in the exam.
• Convert these four officers’ scores to standardized z-values.
• Do you think there was sufficient reason to question these four exam
scores? What assumptions are you making?
Discussion 2
In our second discussion this week, I would like for you to introduce a
published piece of research and evaluate its research and methods section.
This discussion participation is intended to assist students in developing the
ability to appraise quantitative research methodologies. Researchers
frequently work in teams and the feedback that students receive in the
discussion will assist in the process of receiving feedback on their
presentation of their own research methods for the final paper.
In the discussion this week, I would like for you to present a brief (a couple of
sentences) overview of the paper’s hypothesis and major findings. Students
then are to provide a more inclusive critic of the research methods of the
paper. Because this is peer-reviewed research, the intent in not necessarily to
find flaws in the research design, but instead to identify and argue how well
the research methods address the hypothesis tested. Any journal article that
employs quantitative research can be discussed. It is okay to review familiar
research, or if needed, a journal article can be obtained through the college’s
eLibrary (link provided in the Getting Started section of the course).
Assignment
Complete the assigned exercises in Connect – due Sunday (midnight, EST).
Week 3
Hypothesis Testing
Outcomes
Characterize the Central Limit Theorem for a mean or proportion.
Evaluate how the standard error is affected by sample size.
Appraise similarities and differences between z and t statistic.
Assess differences between Type I error and Type II error.
Evaluate a hypothesis test for a mean with known or unknown σ.
Readings
Chapters 8 and 9 (Essential Statistics in Business Economics)
Discussion 1
Read the passage provided, and then consider the following scenario. A
physician is trying to decide whether to prescribe medication for cholesterol
reduction in a 45-year-old female patient. The null hypothesis is that the
patient’s cholesterol is less than the threshold of treatable
hypercholesterolemia. However, a sample of readings over a 2-year time
period shows considerable variation, usually below but sometimes above the
threshold.
Define Type I and Type II error.
List the costs of each type of error (in general terms). Who bears the
cost of each?
How might the patient’s point of view differ from the HMO’s or doctor’s?
In what sense is this a business problem? A societal problem? An
individual problem?
© 2010 New England College of Business and Finance
Page 4 of 8
MBA 502 Applied Quantitative Methods for Business
Discussion 2
Suppose a revolutionary hypothesis has been proposed by a famous
Professor Brainstorm, and if the truth be known, it really did not conform to
facts (population parameters). In the formal language of hypothesis testing,
it is the null hypothesis that is true, after all. (The professor interpreted his
results at the 5 percent level). His research was published and he won
accolades for his scientific breakthrough. What does this story say about
hypothesis testing and research? What is the likelihood of this happening?
There are a number of safeguards in place so this should not happen in the
scientific world. What are some of these?
Assignment
Complete the assigned exercises in Connect – due Sunday (midnight, EST).
Week 4
Bi-variate Regression
Outcomes
Evaluate the OLS method and use the formula for the slope and intercept of a
regression line.
Perform simple regression by using Excel.
Test hypotheses about the slope and intercept by using t tests.
Readings
Chapter 12 (Essential Statistics in Business Economics)
Discussion 1
At the heart of quantitative research is regression analysis. A regression model simply
measures the association of two variables’ variation: the dependent variable’s
observed value from its mean in relation to the independent variable’s observed value
from its predicted value. I refer to this as “variation of numbers in a column of a
spreadsheet.” The regression calculation does not distinguish the meaning of these
numbers. It is a researcher who performs the task of giving meaning to the output of a
regression analysis. In this discussion, analyze the role of a researcher in performing
regression analysis and how he or she gives meaning to the regression output.
Discussion 2
Qualitative or ethnographic research uses open-ended questions that attempt to
nuance the distinctions that quantitative research attempts do to numerically. Both
forms of research make important contributions to academic research. In this
discussion, appraise the differences between these two research methods. Can both
be used to test hypotheses to develop theoretical understanding of business
outcomes? Is one more appropriate than the other? Can both be trusted to generate
reliable results? These are a few questions to start this discussion, but explore all
relevant concerns that you might have regarding these research methodologies.
Assignment
Complete the assigned exercises in Connect – due Sunday (midnight, EST).
Week 5
Multiple Regression
Outcomes
Readings
Discussion
Perform simple regression by using Excel.
Interpret the R2 for a regression equation.
Evaluate individual predictors for significance.
Analyze the residuals and check for violations of regression assumptions.
Chapter 13 (Essential Statistics in Business Economics)
Researchers frequently work in teams to help minimize the risk of bias. In the
discussion this week, you will work in assigned to a research team of approximately
four members to build an econometric model for your paper. This econometric model
will test the realtor’s theory that location is the most important factor in determining the
© 2010 New England College of Business and Finance
Page 5 of 8
MBA 502 Applied Quantitative Methods for Business
value of a home. Simply stated this theory is “location, location, location.” To test this
hypothesis, include variables that estimate the value of the home by the home’s
characteristics (e.g., number of rooms or bathrooms) and the neighborhood’s
characteristics (e.g., noise, traffic, crime). There is no one correctly specified model
that you will be evaluated on, but you should use this discussion to justify which
variables are include in your model and evaluate the overall fit of the econometric
model to the simple theory put forth by the real estate industry.
Assignments
Complete the assigned exercises in Connect – due Sunday (midnight, EST).
Final Paper – due Sunday (midnight, EST).
For the final paper, you are to build an econometric model to test a hypothesis
regarding different characteristics that can determine the value of a house. Please
review the detailed instructions and rubric provided in the course.
Grading and Evaluation
Your grades will reflect the way in which you present and support your topics and positions in
the various learning activities used in this course. The grades will be based on the quality and
quantity of your comments and responses in the various activities.
The various graded activities have the point totals shown in the matrix below.
Course Element
% of Grade
Discussions
40%
Connect Assignments
40%
Final Paper
20%
Total
100%
The final course grading criteria is described in the table below.
Letter Grade
Grade %
Description
A
94 – 100%
A-
90 – 93%
Very Good to Excellent. Comprehensive
knowledge and understanding of the
subject matter.
B+
87 – 89%
B
83 – 86%
B-
80 – 82%
C+
77 – 79%
C
73 – 76%
C-
70 – 72%
D
60 – 69%
Marginal. Minimum knowledge and
understanding of subject matter.
F
Below 60%
Failing. Unacceptable level of knowledge
and understanding of subject matter.
Good. Moderately broad knowledge and
understanding of the subject matter.
Satisfactory. Reasonable knowledge and
understanding of the subject matter.
© 2010 New England College of Business and Finance
Page 6 of 8
MBA 502 Applied Quantitative Methods for Business
Make-Up Exams or Assignments
To be determined by the instructor on a one-to-one basis.
Reasonable Accommodations Policy – Individuals with Disabilities
NECB does not discriminate against individuals on the basis of physical or mental disability and
is fully committed to providing reasonable accommodations, including appropriate auxiliary aids
and services, to qualified individuals with a disability, unless providing such accommodations
would result in an undue burden or fundamentally alter the nature of the relevant program,
benefit, or service provided by NECB. To request an auxiliary aid or service please contact the
VP for Academic Affairs at NECB, 10 High Street, Boston, MA 02110
Individuals requesting an auxiliary aid or service will need to complete an Application for
Auxiliary Aid. To enable NECB to timely provide an auxiliary aid or service, NECB requests that
individuals complete and submit the Application for Auxiliary Aid six weeks before the first day of
classes, or as soon as practicable. Disagreements regarding an appropriate auxiliary aid and
alleged violations of this policy may be raised pursuant to NECB’s grievance procedures.
Course Policies and Procedures
Learner Success Guidelines
These policies and guidelines will help you complete this course more successfully:
 Participate in the class introduction activity on the first day of class.
 Submit ALL assignments and take the Mid Term and the Final Exam by the posted due
dates and times.
 Check your emails daily.
 Put your first and last name and your course number (i.e., Joan Brown, ENG101), on each
of the emails you send to your Professor and/or other NECB staff.
 Participate fully in all threaded discussions.
 Contact the help desk by email (preferable) at support@finance.edu for resolutions to your
technology problems.
 Contact your Professor (by telephone or by email) if you have questions about an
assignment or need additional help completing your work successfully.
 Academic dishonesty is grounds for dismissal from the program.
Additional Expectations
Students will be expected to meet all the deadlines of the class as indicated throughout the
course and in the syllabus. This is primarily so we don't get behind in the course. In addition,
discussions cannot overlap from one unit to the next. This is to ensure that all discussions and
submissions take place within the week they are scheduled in order to be of value to the entire
class as well as to help you not get behind. If there are extenuating circumstances, you will
need to communicate that to the professor and make arrangement accordingly, if appropriate.
© 2010 New England College of Business and Finance
Page 7 of 8
MBA 502 Applied Quantitative Methods for Business
Student Attendance
It is recommended that students post class introductions the first day of class. In line with the
College’s Add/Drop Policy, it is required that students post attendance (log into the class and
introduce themselves) within the first three days of the term. Students who do not post
attendance by Wednesday of the first week will be dropped from the course. Students who
withdraw from the course after the third day (Wednesday) will be subject to partial to full tuition
charges as outlined in the College’s Withdrawal Policy. NECB’s add/drop and withdrawal
policies can be reviewed on NECB’s website in the Academic Catalog or Student Handbook.
Asynchronous and Synchronous Work
All required work for the course may be done asynchronously; i.e., students can login to the
course, read/download materials, post to the Discussions, and submit assignments throughout
the course week. Please carefully follow syllabus and the weekly checklists to help manage
your time throughout the course week; once we enter week 2 or 3, students typically become
much more comfortable with the pace and flow of the course.
Feedback
You can expect frequent and consistent feedback from your instructor.
Academic Honesty & Student Integrity
Academic honesty and student integrity are of fundamental importance at NECB and we want
students to understand this clearly at the start of the term. As stated in the NECB Rights and
Responsibilities handbook, “Every member of the NECB Community is expected to maintain the
highest standards of academic honesty. A student shall not receive credit for work that is not
the product of the student’s own effort. A student's name on any written exercise constitutes a
statement that the work is the result of the student's own thought and study, stated in the
students own words, and produced without the assistance of others, except in quotes, footnotes
or references with appropriate acknowledgement of the source." In particular, students must be
aware that material (including ideas, phrases, sentences, etc.) taken from the Internet and other
sources MUST be appropriately cited if quoted, and footnoted in any written work turned in for
this, or any, NECB class. Also, students will not be allowed to collaborate on work except by
the specific permission of the instructor. Failure to cite resources properly may result in a
referral being made to the Office of Student Development and Judicial Education. The outcome
of this action may involve academic and disciplinary sanctions, which could include (but are not
limited to) such penalties as receiving no credit for the assignment in question, receiving no
credit for the related course or suspension or dismissal from NECB.
Further information regarding academic integrity may be found in the NECB Academic Catalog
and the NECB Student Handbook. You should read these publications, which all can be
accessed from the NECB Web site, www.necb.edu. A student who is in doubt about standards
of academic honesty (regarding plagiarism, multiple submissions of written work,
unacknowledged or unauthorized collaborative effort, false citation or false data) should consult
either the course instructor or other academic staff of NECB.
Articles and full-text documents accessed through various online library databases may be
copyrighted. The distribution of published materials without prior permission of the publisher is
strictly prohibited.
Caveat
The above schedule, content, and procedures in this course are subject to change in the subject
field, changes in the knowledge base or other unforeseen circumstances.
© 2010 New England College of Business and Finance
Page 8 of 8