STA3001 Course Outline
4 Sep 2006
1. Course title and description
Course title:
STA3001
Foundation of Financial and Managerial Statistics
September 2006
Instructor: Professor Wai-Yin POON (LSB G17)
Teaching Assistant: Miss June Kit Hung LEUNG (LSB 130)
Time and Venue (Lecture): M4, H3-4, LSB LT2
Time and Venue (Tutorial): To be arranged
Description:
The world is becoming more and more quantitative oriented and data focused. The use of numerical
measurements and statistical results to support complex decisions has grown to dominate commercial and other
agencies. Students are expected to become more appreciative to the effective use of data as a crucial element
for sound judgement and sensible decision-making. The course presents an overview of statistical techniques
that lay the foundation for effective applications of statistics in the context of business administration. It covers
financial management techniques including investment appraisal, portfolio management, and models for
assessing stock prices; as well as management techniques including decision analysis under uncertainty, project
management, construction and usage of indices, and official statistics in Hong Kong. Selected topics in relation
to the applications of multivariate techniques in marketing management will be discussed.
2. Learning outcomes
Upon completion of the courses, students should be able to
(1) analyse basic financial information;
(2) design marketing research and assess marketing research reports in a critical manner;
(3) effectively communicate with business administration professionals and demonstrate in a business project
that effective use of statistic is a crucial element for problem-solving and sensible decision-making;
(4) appreciate the importance and coherence of various courses in the curriculum of the Statistics programmes.
3. Course Content
Topic
Contents/ concepts
Chapter 1: An introduction
Introduce the role of a financial manager and the concepts on which good
financial decisions are based with a view to enhancing students’
appreciation on the importance and coherence of the topics to be presented
in Chapters 2 to 5.
Introduce the basic methods that are commonly used to assess investment
possibilities in terms of the cash flow alternations. Applications of the
methods in real-life financial management cases, such as mortgage loan
plan, car purchase hire purchase agreement as well as tax loan plan, are
discussed.
Introduce the basic methods that are used to measure risk and return.
Bring in the idea of diversification.
Introduce the basic methods for the construction of index. Applications of
the methods in real-life cases are discussed, including the construction of
the HK’s Consumer Price Index and the Hang Seng Index.
Continue to develop the idea of diversification that has been brought in
earlier in Chapter 3. Discuss how rational risk-averse investors would
manage their affairs given the opportunities to reduce the risk of their
overall investment.
Chapter 2: Investment appraisal:
Basic methods
Chapter 3: Introduction to risk and
return
Chapter 4: Index numbers and their
uses
Chapter 5: Portfolio theory and
capital asset pricing model
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STA3001 Course Outline
4 Sep 2006
Chapter 6: Marketing management:
An overview of marketing research
Provide an overview of the marketing research design process with a view
to enhancing students’ appreciation on the importance and coherence of
the topics to be presented in Chapters 7 and 8 as well as in other courses in
the curriculum of the Statistics programmes. Discuss potential errors that
can affect research designs.
Information is collected to help decision-making, and varying levels of
accuracy of information can be generated. The goal of research design is
not to generate the most accurate information possible, but to generate the
most valuable information in relation to the cost of generating the
information. This chapter introduces some basic methods to determine the
value of information.
Business and other projects are all subject to manpower, time and
financial constraints. This chapter introduces basic techniques that can
be used in planning, scheduling, and controlling projects that consist of
numerous activities.
Chapter 7: Value of information
Chapter 8: CPM/PERT
4. Learning activities
In this course, students are expected to spend some 150 hours (50 in class hours and 100 out class hours) with
the following distribution on learning activities:
Lecture
Interactive
Tutorial
Laboratory
Discussion
of cases
Field-work
/ practicum
Project
Web-based
teaching
In/out class
In/out class
In/out class
In/out class
In/out class
In/out class
In/out class
24
13
3
2*1
14*2
8*3
1*4
14*5
1*6
14*7
1*8
3*9
Other
Reading
&
reviewing
lecture
material
In/out
class
52
O
O
M
M
M
O
M
M
M
M
M
NA
M
NA
NA
O
M: Mandatory activity in the course
O: Optional activity
NA: Not applicable
Detailed description of the learning activities:
*1 Computer programmes to implement statistical methods.
*2 Students should allocate time to have hands-on practice of the computer programmes.
*3 Cases based on real-life examples are discussed in class to illustrate the concepts introduced.
*4 The practices that are expected for students will be discussed or conducted in class.
*5 Students are expected to practise what they have learned in class by solving problems in assignments.
*6 The projects that are expected to be completed by students will be discussed in class.
*7 Students are expected to complete projects that involve searching, collecting and analyzing information as
well as using computer programmes.
*8 Teaching and learning materials are published on web, and other web-based materials will also be used in
class.
*9 Students are expected to surf the internet with a view to enhancing their learning.
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STA3001 Course Outline
4 Sep 2006
5. Assessment Scheme
Type
Description
Weight
Assignment
Project
Mid-term Examination
Some 6 sets of assignments
Some 2 individual projects
Open notes (one A4 size notes sheet, allowed to write on both
sides) examination.
Open notes (one A4 size notes sheet, allowed to write on both
sides) examination.
10%
10%
30%
Final Examination
50%
6. Feedback for evaluation
Students’ comments and feedback are valuable for improving the course, and students are welcome to provide
comments and feedback via various channels. Mid-term course evaluation and course evaluation will be
conducted for the course. For comments that require immediate action, please send to Professor WY Poon
directly via e-mail (wypoon@cuhk.edu.hk) or to the teaching assistant Miss June Kit Hung Leung
(s061335@mailserv.cuhk.edu.hk). Moreover, staff-student consultative committee meetings will be held every
year to collect students’ feedback on various courses and on the curriculum design, and students can ask the
student representatives to help convey their comments and feedback to the committee.
Students may seek
assistance from the student associations if they do not have the contact information of the student
representatives.
7. Course schedule
Week
1
Date
4 Sep
7 Sep
Topic
 Chapter 1: An introduction
 Chapter 2: Investment appraisal:
Basic methods
2
11 Sep
14 Sep
18 Sep
21 Sep

4
25 Sep
28 Sep

5
5 Oct

3
Chapter 2: Investment appraisal:
Basic methods
 Chapter 2: Investment appraisal:
Basic methods
Chapter 2: Investment appraisal:
Basic methods
Chapter 2: Investment appraisal:
Basic methods
 Chapter 3: Introduction to risk and
return
Requirements
a. Students download, print and read lecture
notes for Chapters 1 and 2.
b. Students review Chapter 1 and Chapter 2
materials.
a. Students review Chapter 1 and Chapter 2
materials that have been covered in class.
a. Students review Chapter 2 materials that
have been covered in class.
b. Students download and read assignment
and project materials in relation to Chapter
2.
a. Students review Chapter 2 materials that
have been covered in class.
b. Students allocate time to have hands-on
practice of the computer programmes
introduced in class.
c. Students start to practice what they have
learned in class by solving problems in
assignments.
d. Students start to work on projects that
involve searching, collecting and analyzing
information as well as using computer
programmes.
a. Students conduct a comprehensive review
of Chapter 2.
b. Students complete and submit assignment.
c. Students continue to work on projects that
will be required to submit in the weeks to
come.
d. Students download, print and read lecture
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STA3001 Course Outline
4 Sep 2006
6
9 Oct
12 Oct

Chapter 3: Introduction to risk and
return
Chapter 4: Index numbers and their
uses
Mid-Term Examination (19 Oct
2006)
Chapter 5: Portfolio theory and
capital asset pricing model
Chapter 5: Portfolio theory and
capital asset pricing model
a.
b.
Chapter 6: Marketing management:
An overview of marketing research
 Chapter 7: Value of information



7
16 Oct
19 Oct


8
23 Oct
26 Oct

9
2 Nov

10
6 Nov
9 Nov
13 Nov
16 Nov
20 Nov
23 Nov
11
12
13
27 Nov
30 Nov

notes for Chapter 3.
See Note 1.
Students prepare for
Examination.
the
Mid-Term
the
Mid-Term
a.
b.
See Note 1.
Students prepare
Examination.
a.
b.
a.
See Note 1.
Students conduct a self- reflection of their
learning with reference to the mid-term
results with a view to revise their learning
plan for the second half of the course.
See Note 1.
a.
See Note 1.
Chapter 7: Value of information
a.
See Note 1.
Chapter 8: CPM/PERT
a.
b.
Chapter 8: CPM/PERT
a.
b.
See Note 1.
Students start to conduct a comprehensive
review of the course and to prepare for the
final examination.
See Note 1.
Students prepare for the final examination.
for
Note 1: Requirements in relation to other chapters are similar to those for Chapter 2. Students should plan their
own schedule with reference to the length of the chapter (Please refer to item 10.(1) below). The exact schedule
for assignment and project submission will be announced in class and in the course web-site.
8. Teachers’ or TA’s contact details
Professor/ Lecturer/ Instructor
Name:
Office Location:
Telephone:
Email:
Teaching Venue:
Website (if any):
Teaching Assistant/ Tutor
Name:
Office Location:
Telephone:
Email:
Teaching Venue:
Website (if any):
Professor Poon Wai-Yin
LSB G17
26097925
wypoon@cuhk.edu.hk
LSB LT2
wypoon@cuhk.edu.hk
Miss Jung Kit Hung Leung
LSB 130
26097939
s061335@mailserv.cuhk.edu.hk
To be arranged
9. A facility for posting course announcements
You may use any of the following channels to access course information and course materials:
(a) The course website: http://www.sta.cuhk.edu.hk/wypoon/Courses/STA3001/
Password that is required to access the course material will be announced in class.
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STA3001 Course Outline
4 Sep 2006
The website is managed by the Department of Statistics. Should you have enquiry on the system, please
contact Mr. Julian Wong by e-mail (julianwong@cuhk.edu.hk). Should you have comments on the course
content, please contact Professor WY Poon directly (wypoon@cuhk.edu.hk) or contact the teaching assistant
Miss June Kit Hung Leung (s061335@mailserv.cuhk.edu.hk).
(b) WebCT
The website is managed by the University. Should you have enquiry on the system, please contact Mr.
Michael Leung (michaellueng@cuhk.edu.hk) or Mr. Julian Wong (julianwong@cuhk.edu.hk) by e-mail.
Should you have comments on the course content, please contact Professor WY Poon directly
(wypoon@cuhk.edu.hk) or contact the teaching assistant Miss June Kit Hung Leung.
(s061335@mailserv.cuhk.edu.hk).
10. Learning resources
(1) Lecture notes
For students’ easy reference, lecture notes have been prepared in the format of power point files. In order to
assist students’ to prepare their learning plan, the number of pages of the power point file for each chapter is
listed in the following table:
Chapter
1
2
3
4
5
6
7
8
Topic
An introduction
Investment appraisal: Basic methods
Introduction to risk and return
Index numbers and their uses
Portfolio theory and capital asset pricing
model
Marketing management: An overview of
marketing research
Value of information
CPM/PERT
Number of Pages
6
67
25
32
50
18
30
40
(2) Supplementary information
Supplementary information that is relevant to specific topics is in various formats (power point file, word
file, pdf file, etc.). Hyperlinks have been created in the power point files of the lecture notes for students’
easy access to the supplementary information.
(3) Computer programmes
Computer programmes are mainly in Excel format. Hyperlinks have been created in the power point files
of the lecture notes for students’ easy access to the Excel files.
(4) Online information
Online information that is relevant to specific topics is provided in the lecture notes. Hyperlinks have been
created in the power point files of the lecture notes for students’ easy access to the online information.
(5) Specific references
References for specific topics are provided in the lecture notes.
(6) Major references books
Chapter 1 to Chapter 5:
Brealey, R.A. & Myers, S.C. (1991). Principles of Corporate Finance. McGraw Hill.
Samuels, J.M., Wilkes, F.M. & Brayshaw, R.E. (1990). Management of Company Finance. Chapman & Hall.
Luenberger, D.G. (1998). Investment Science. Oxford.
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STA3001 Course Outline
4 Sep 2006
Chapter 6 and Chapter 7:
Kotler, P. (1994). Marketing Management: Analysis, Planning, Implementation, and Control, Prectice-Hall.
Johnson, G. & Scholes K. (1993). Exploring Corporate Strategy: Text and Cases. Prentice-Hall.
Tull, D.S. & Hawkins, D.I. (1990). Marketing Research: Measurement & Methods. (5 th Edition), Maxwell
Macmillan.
Kinner, T.C. & Taylor, J.R. (1991). Marketing Research: An Applied Approach. McGraw-Hill.
Malhotra, N.K. (2004). Marketing Research: An Applied Orientation. Prentice Hall.
Chapter 8:
Moore, L.J., Lee, A.M. & Taylor, B.W. (1993). Management Science. Alyn & Bacon.
11. Academic honesty and plagiarism
Honesty for Academic Works: A Guide for Students and Teachers
Attention is drawn to University policy and regulations on honesty in academic work, and to the
disciplinary guidelines and procedures applicable to breaches of such policy and regulations. Details may
be found at http://www.cuhk.edu.hk/policy/academichonesty/ .
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