Business Statistics
QM-230
Basic Information
BBA(H),BBIS,BSEF
Fall 2014
Program
Semester
Credit Hours
Pre requisites (if any)
Resource Person
3
Business Mathematics, QM-110
Contact information
Course Description:
Important decisions are rarely made by intuition alone. We need to use the data to develop our insights
and to support our analysis. Quantitative analysis includes the tools and techniques with which we seek to
replicate reality mathematically and statistically. Statistical Techniques are applied in all the functions of
business like Operations, Marketing, HR, Finance etc.
The aim of this course is to learn when a technique is appropriate and what it can achieve. The emphasis
throughout the course is on concepts and reasoning rather than technical details. You should acquire
some basic data analysis skills but most importantly, become a more informed and critical producer and
user of business Statistical analyses.
Learning Objectives:
Ser.
Course Learning Objectives
#
1
To understand the basic concepts and
principles used in Business Statistics.
2
3
4
Organizing qualitative and
quantitative data into a frequency
table, displaying the data through
charts and graphs, describing and
exploring data through different
numerical measures.
To know and understand probability
and its different rules.
To clearly identify and understand
statistical concepts like probability
and sampling distribution helpful for
understanding more advanced
concepts like estimation and
hypothesis testing.
Link with Program Learning Objectives
To inculcate business knowledge and analytical skills
in graduates to think decisively in order to develop
innovative solutions to problems in a business
environment.
To provide a progressive and structured framework to
graduates that enables them in developing and
applying knowledge set of critical and ethical
evaluation.
To craft graduates’ expertise in order to increase their
resourcefulness.
To develop critical thinking skills for the purpose of
evaluating information, solving problems, and
making sound decisions.
________________________________________________________________________School of Business
& Economics
QM-120
University of Management and Technology
Textbooks & Supplies:
1. Business Statistics: A Decision-Making Approach (8th Edition)
By: David F. Groebner, Patrick W. Shannon, Phillip C. Fry, Kent D. Smith
Supplementary Material:
2. Statistical Techniques in Business and Economics (13th Edition)
By: Douglas A. Lind, William G. Marchal, and David Wathen
3. Essentials of Modern Business Statistics with Microsoft Excel (3rd Edition)
By: Anderson and Sweeny
Web links:
moodle.umt.edu.pk
Email Addresses
Participants should establish their email accounts on the UMT email system, and use this address for all
types of academic communications during this course.
Moodle
Participants should regularly visit the course website on MOODLE Course Management system, and
fully benefit from its capabilities
Classroom Behavior:
Positive and constructive class participation will be monitored for each class. Particular emphasis will be
given during the presentation sessions. The manner in which the question is asked or answered will also
be noted. Your behaviour, as business executive will contribute to the class participation marks.
Participant Responsibilities:
The learning process is based on independent work with texts, textbook, and cases supported by lectures
and assignments/cases - see schedule. Participants are supposed to have read the text chapters under
discussion in advance. Questions answered to these text chapters, will contribute to the class participation
marks.
Use of Unfair Means
Participants are expected to do their own work in their assignments, quizzes and exams. They are always
encouraged to discuss with each other but the assignments, quizzes and exams should be their own work
reflecting their own effort and intellect. The School of Business & Economics is VERY STRICT against
any action of plagiarism, copying and cheating. So don’t put yourself in any embarrassing position that
may mar your career. In summary, any or all of these actions may be taken against you in case of
cheating.

Zero Point for the assignment/quiz/exam

Case would be sent to UMC Committee
________________________________________________________________________School of Business
& Economics
QM-120
University of Management and Technology
Use of Mobile Phones and Other Electronic Devices

Use of mobile phones and similar devices is prohibited during the class

Your phone should not be heard or visible during the class

All mobile phones should be turned-off (or at least in the “silent” mode) and secured in pockets or
bags during the class time, and may not be used for ANY purpose, including
calculations, time-keeping, etc. In case you are anticipating an emergency call, you need to
discuss this matter with the resource person BEFORE the start of the class
Entering and Leaving the Classroom
You are requested to seek permission from the resource person while entering or leaving the classroom
during the session
Tests and Grading:
According to new grading policy participants are supposed to obtain 50% marks in 70% evaluation and
50% marks in their final exam. Passing marks are 50% of total assessment.
Quizzes/Class Participation:
Quizzes will be taken according to calendar of activities. The quizzes are aimed at evaluating the
participants’ understanding and clarity of different concepts. Some corrective action will be taken if
necessary, to fill the gap between desired and actual. Surprise quizzes may also be taken.
Required Material
Participants are required to bring the following in every class they come to attend:
1.
Textbook
2.
Calculator
3.
Ring file (for notes)
4.
Lead pencil (and accessories)
(optional)
NOTE: Failure to bring any of the first three things or being absent or late in a class, may result in a loss
of marks in your class participation, and may adversely affect your final grade.
Assessment Mode and Weightage
1. Quizzes
20%
2. Assignments
15%
3. Project/Presentation
10%
4. Class Participation
5%
5. Mid Term
20%
6. End Term
30%
________________________________________________________________________School of Business
& Economics
QM-120
University of Management and Technology
Calendar of Activities
Readings
& Page
Numbers
Sess.
Topics to be Covered
1-3
The What, Where, Why, and How of
Data Collection:
 What is Statistics and Business
Statistics?
 Population & Sample
 Parameter & Statistic
 Data & its types
 Data Collection Methods
 Variable Identification
 Qualitative and Quantitative
4-5
The What, Where, Why, and How of
Data Collection:
 Data Measurement Levels
 Descriptive Statistics
 Inferential Statistics
 Survey & Design of Sampling
 Identification of Sampling
procedures
CH: 1
Page:
1-15
David F.
Groebner
CH:1
Page:
16-23
David F.
Groebner
Expected
Quizzes
Assignments
and Problems
Business,
economics &
finance
applications
discussions
Assignment # 1
Business,
economics &
finance
applications
discussions
Learning objective
To learn the importance of
data in real life, how to
transform data into
information, the role of
business statistics in terms of
practical applications of
statistics in business and
corporate world.
To understand similarities and
differences between different
sampling methods, to understand
how to categorize data by type
and level of measurements.
Quiz # 1
Describing the Data:


6-7


7-9
10–11
Frequency Distributions a
Group Data Frequency
Distributions
Steps for constructing frequency
distributions
Relative and Joint Frequency
Distribution
Graphical Presentation of Data :
 Histogram
 Relative Frequency Histograms and
Ogives
 Bar Chart, Pie Charts
 Stem and Leaf Diagrams
 Line Charts and Scatter Diagrams
Describing Data using Numerical
Measures:
 Measures of Centre and
Location:
 Parameters and Statistics
 Population and Sample Mean
 Median and Mode
 Weighted Mean, Percentiles,
Quartiles
 Box and Whisker Plots
CH:2
Page:
31-49
Business,
economics &
finance
applications
discussions
To learn some of the most
frequently used tools and
techniques for describing the
data.
David F.
Groebner
CH:2
Page:
54 - 72
David F.
Groebner
CH:3
Page:
91- 107
David F.
Groebner
Business,
economics &
finance
applications
discussions
Assignment # 2
Quiz # 2
Business,
economics &
finance
applications
discussions
Quiz # 3
To construct and interpret a
frequency histogram, various
types of bar charts, interpreting
trends trough line and scatter
graphs of data.
To interpret mean, median,
mode, and weighted mean for a
set of data and understand what
these values represent, to
construct box and whisker plot
and interpret it.
________________________________________________________________________School of Business
& Economics
QM-120
University of Management and Technology
12-14
Describing Data using Numerical
Measures:
 Measures of Variation:
 Range and Interquartile Range
 Quartile Deviation
 Population Variance & Standard
Deviation
 Sample Variance & Standard
Deviation
 Coefficient of Variation
 The Empirical Rule
 Tchebysheff’s Theorem
 Standardized Data Values
Page:
115 - 132
David F.
Groebner
Business,
economics &
finance
applications
discussions
Assignment # 3
To compute the range,
interquartile range, variance,
variance, and standard deviation
and know what these values
mean, to compute a z score and
the coefficient of variation and
understand how they are applied
in decision making situations.
Review Session
15-16
Mid Term
17-20
Using Probability and Probability
Distributions:
 The Basics of Probability
 Important Probability Terms
 Methods of Assigning Probability
 The Rules of Probability
 Addition Rules
 Measuring Probability
 Conditional Probability
 Multiplication Rules
21-23
CH:3
Discrete Probability Distributions:
 Random Variables
 Displaying Discrete Probability
Distributions Graphically
 Mean and Standard Deviation
Discrete Probability Distributions
 Binomial Probability Distribution
 Characteristics of Binomial
Probability Distribution
 Mean and Standard Deviation of
Binomial Probability Distribution
 Other Discrete Probability
Distributions
CH:4
Page:
157-187
David F.
Groebner
Business,
economics &
finance
applications
discussions
Assignment # 4
Quiz # 4
CH:5
Page:
203 - 238
David F.
Groebner
Business,
economics &
finance
applications
discussions
To understand three approaches
to assigning probabilities, to be
able to understand the conditions
where addition and
multiplication rules are applied,
to understand and interpret the
conditional probability.
To be able to calculate and
interpret the expected value of
discrete random variable, and to
apply the binomial and other
discrete probability distributions
to business decision-making
situations.
Quiz # 5
24-27
Introduction to Continuous
Probability Distributions:
 The Normal Probability
Distribution
 The Standard Normal Probability
Distribution
 Approximate Area under the
Normal Curve
 Uniform Probability Distribution
 The Exponential Probability
Distribution
CH:6
Page:
251 - 272
David F.
Groebner
Business,
economics &
finance
applications
discussions
Assignment # 5
Quiz # 6
To understand and deal with
application situations where
random variable is continuous
instead of discrete, to determine
the probabilities using the
standard normal distribution, and
to calculate the probabilities
associated with uniform and
exponential random variable.
________________________________________________________________________School of Business
& Economics
QM-120
University of Management and Technology
28-30
Introduction to Sampling
Distributions:
 Sampling Error: What it is and
Why it Happens
 Calculating Sampling Error
 The Role of Sample Size in
Sampling Error
 Sampling Distribution of the
Mean
 The Central Limit Theorem
 Sampling Distribution of a
Proportion
 Working with Proportions
 Sampling Distribution of P
CH:7
Page:
285 - 315
David F.
Groebner
Business,
economics &
finance
applications
discussions
To introduce to the important
concepts of sampling error
and sampling distributions and
discuss how this knowledge
can be used to answer the
questions faced quite regularly
by the marketing executives
and the quality engineers in
different situations.
________________________________________________________________________School of Business
& Economics
QM-120
University of Management and Technology