Applied Business Statistics
BUS 5103
Fall 2006
Instructor: Dr. Abdulhamid Sukar
Office
BUS 401
Office Hours M-R 10:00-11
TR 12:-1:00
Telephone
581 2845
E-mail
abduls@cameron.edu
Textbook: Bowman, Bruce and Richard T.O’Connel, Business Statistics in Practice
Fourth Edition, Irwin Publishers, 2007.
MINITAB Statistical Software, Student Version. John Wiley and Sons, INC.;
1995
Course Description: This course includes a discussion of probability rules, descriptive
statistics, and inferential statistics concepts. Draws upon real world cases to demonstrate
the application of probability and descriptive statistics for making statistical inference in
business and economics.
Course Objective: This course will enable students to:
1. Understand the concepts of statistical summary measures, probability, random
Variables and their distribution, estimation and hypothesis testing, correlation and
regression analysis.
2. Understand the use of computers in statistical calculations
3.
Collect analyzes and interprets business and economic data relevant for
managerial decision making.
4.
Apply standard statistical inference procedures, and draw conclusions from such
analysis.
5. Report statistical results clearly and concisely.
Grading distribution
Project
Exam I
Exam II
Final Exam
25%
25%
25%
25%
Week
Course Outline
Topic
1. An Introduction to Business
Statistics
2. Descriptive Statistics
I
3. Probability
4. Discrete Random Variables
5. Continuous Random Variables
6. Sampling distribution
II
7. Confidence Interval
8. Hypothesis Testing
9. Statistical Inference Based on Two
Samples
III
11. Simple Linear Regression
12. Multiple Regression
IV
Final Exam
Reading Assignment
All Sections
All Sections
Sections 2.1-2.8
Problems: 2.15, 2.19, 2.33, 2.36,
2.4,2.5
All ssections
Problems: 3.2,3.4,
3.7,3.9,3.11,3.13,3.18,3.20,3.21,3
.24,3.25,3.25,3.27,
3.30,
Section All sections
Problems:4.1,4.2,4.3,4.8,4.9,4.10
,4.12,4.13,4.15,4.24,
4.25,4.33
Section 5.1 through 5.4
Problems:
5.20,5.23a,c,e,5.24a,c,e,i,5.25a,c,
d,f, 5.26a,c,d,e,g ,5.28b,c
5.29,5.36,5.40
Section 6.1 through 6.2
Problems: 6.2,6.5
6.7a,c,d,6.8,6,9a,c,d,6.10,6.11,6.1
2,6.14,6.16,6.19,6.21,6.22,6.23,6.
27,6.28,6.31
Section 7.1 through 7.4
Problems: 7.3,7.4a,b,c
7.5a,b,c,7.6,7.7a,b,7.8a,b,7.9,7.13
,7.16a,b,7.17a,b.7.19a,b,7.20,7.28
,7.29,7.36a,b,c7.37a,b,7.39,7.42,7
.45,7.50.
Section 8.1 through 8.5
Problems:
8.4,8.8,8.16,8.18,8.22,8.24,8.25,8
.26,8.28,8.30,8.34,8.36,8.40,8.46,
8.48,8.54,8.58,8.60,8.68,8.70,8.7
2,8.74
Section 9.1 through 9.4,
Problems:9.1a,c,e,9.2a,c,e,g,9.5,
9.6,9.8,9.10,9.16,9.209.22,9.249.
30,9.319.34,9.38,9.40,9.42,9.44,
Section 11.1-11.8
11.19,11.20,11.22,11.23,11.26,11
.2811.34,11.40,11.44,11.4711.48
11.54,11.61,11.6611.68
Section 12.1-12.7,12.10-12.11
12.1-12.6, 12.12, 12.13, 12.16,
12.17,12.18,12.20,12.22,1.27,12.
43,12.45
Project Assignment
You are just hired by the Department of Education as a junior research officer. Your job
is to help finish a report comparing states that require competency test for graduation
from high school versus those that don’t. Given the data set pertaining to various
characteristics of these states. Write and submit report no more than 10 pages in length
for the questions listed below. Attach all tables and charts in an appendix. The data set is
provides separately in an excel file. You can access the data file from the course web
page in blackboard.
Definition:
SAT
Average combined verbal/math scores of Scholastic Assessment
Test during 1994-95 school years.
EXPEND
current expenditure for public elementary and secondary education
for the 1995-96 school years, in billions of dollars.
TAKERS
Percentage of 1995-95 school year graduates who took the SAT
ENROLL
Total enrollment in public elementary and secondary school in the
United States; fall 1995 figure in thousands of students.
TEACHEERS
Total number of public elementary and secondary teachers in the
United States; fall 1995 figures in thousands of full time equivalent
RATIO
Student-to-teacher ratio in the United States, fall 1995. Calculated
as ENROLL/TEACHERS
SALARY
Estimated average annual salary of teachers in thousands of
dollars.
D
Dummy variable: 1= require competency test; 0 = do not require
competency test.
a. Obtain descriptive statistics comparing the following variables in competency test
required versus not required states. (1) SAT (2) SALARY (3) RATIO (4)
EXPEND (5) TAKERS (6) ENROLL, (7) TEACHERS. Analyze your findings.
b. Form a separate contingency table for type state (competency test required
versus not required) and whether SAT score exceeds 1000.
c. Determine if there is significant difference in the average SAT scores based on
type of state (competency test required versus not required).
d. Determine if there is significant difference in average teachers salary based on
type of state.
e. Determine if there is significant difference in student-teacher ratio based on type
of states.
f. Determine if there is significant difference in EXPEND/ENROLL ratio by type of
state.
g. Determine if there is significant difference in SALARY/EXPEND ratio by type of
state.
Note: When describing the results in parts (d) through (h), clearly specify all hypothesis,
selected level of significance.
1. Develop a regression model that would enable a prediction of SAT score.
i. What factors appear to influence SAT scores of high school
students?
ii. Does it appear that the level of financial resources committed to
schools in the U.S. influence educational success? If not what does