Business Statistics for MBA Students

Important Examples
1. Introduction to Statistics (to be taught in a maximum of 1 lecture)

Topics:

 Types of Data
 Types of Variables
 Measures of Central Tendency (Mean, Median, Mode)
 Chebyshev’s Inequality
 Logarithmic Transformation
 Descriptive Statistics
 Graphs (Histogram, Stem and Leave, Box Plot, Scatter Plot, etc.)

Source:

 Power point Slides Lecture 1

 Handout of Arithmetic Vs Geometric Mean

2. Probability (to be taught in a maximum of 1 lecture)

Topics:

 Permutations and Combinations

 Joint Probability
 Conditional Probability

Source:

 Newbold Book: Examples 3.7, 3.12, 3.15, 3.17, 3.18, 3.22, 3.24
 Newbold Book: End of Chapter Examples 4.18, 4.19, 4.21, 4.26
 Springer Book: Example 5.7, 5.8
 Springer Book: Table 5.5, 5.6
 Handout: Example 4
 Lecture 5 PPT: Example 1

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 3. Bayes Theorem (to be taught in a maximum of 1 lecture)

Source:

 Newbold Book: Examples 3.23, 3.24, 3.25

 Handout: Examples 2, 3, 4
 Lecture 5 PPT: Examples 1, 3, 4

4. Binomial Distribution (to be taught in a maximum of 1 lecture)

Source:

 Newbold Book: Examples 4.7, 4.8, 4.9

 Springer Book: Examples 6.5.4, 6.9, 6.10, 6.11

5. Poisson Distribution (to be taught in a maximum of 1 lecture)

Topics:

 Brief introduction to Hypergeometric Distribution

 Assumptions
 Approximation to Binomial Distribution

Source:

 Newbold Book: Examples 4.10 4.11, 4.13

 Springer Book: Examples 6.16, 6.17

6. Normal Distribution (to be taught in a maximum of 1 lecture)

Topics:

 Standard Normal Distribution

 Z-Table
 T-Distribution (Degrees of Freedom)
 Central Limit Theorem (page 354 to 357 – Springer Book)
 Exponential Distribution

Source:

 Newbold Book: Examples 5.3 5.4, 5.5

 Springer Book: Section 7.5, Section 9.3
 Springer Book: Example 8.5
 CLT example 1 and 2 (to be provided by Sir)

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 7. Sampling Distribution (to be taught in a maximum of 1 lecture)

Topics:

 Errors and Biases

 Random Sample (with and without replacement)
 Mean and Variance of a sample mean

Source:

 Newbold Book: Examples 6.2, 6.3

 Springer Book: Example 8.1, 8.3 Section: 8.6
 Springer Book: (Confidence Interval Mini-Tab Example)

8. Hypothesis Testing (Newbold Book - Page 346 to 361)

(to be taught in a maximum of 2.5 lectures)
Topics:

 Concept of Hypothesis Testing

 Type I error and significance level
 Type II error and power of the test
 Test of the mean of a Normal Distribution (Variance known)
 P-value and its interpretation
 Two sided alternative Hypothesis

Source:

 Newbold Book: Examples: 9.2, 9.3

 Newbold Book: Table 9.1
 Hypothesis Testing example 1 (to be provided by Sir)
 Hypothesis Testing example 2 (to be provided by Sir)

9. Covariance (to be taught in a maximum of 0.5 lectures)

Topics:

 Covariance and correlation coefficient (page 84 to 88 - Newbold)

 Pearson and Spearman Coefficient

Source:

 Newbold Book: Example for covariance 2.19 and 2.20

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 10. General Linear Models (GLMs) with Lecture Distribution
(to be taught in a maximum of 4 Lectures)
Topics:

 Regression and Least squares method (page 417 to 420 – Newbold)

 GLMs:
 UYD_Lecture 1:
o Types of variables: factor and covariate
o Measure of variation: sums of squares
 UYD_Lecture 3:
o Identifying Response variable and Explanatory variable
o Fitting factor and covariate into response or explanatory variables
o Expressing total sum of squares as explained and unexplained (residual) sum of squares
o The concept of developing GLM questions
o GLM factor or categorical Example (page 24)
o Estimating and Interpreting R-square and SS
o GLM covariate Example (page 31)
 UYD_Lecture 4:
o The two basic model types (page 20)
o Estimating and Interpreting degrees of freedom and its significance (page 24 to 27)
o Estimating and Interpreting Mean Sum of Squares (page 28 to 31)
o Estimating and Interpreting F-Ratio (page 32 to 35)
o P-value and its variation due to F-Ratio (page 38 to 47)
o Introduction to complex and complicated models (page 48 to 51)
 UYD_Lecture 5:
o Sketching graphs from R output – 4 levels (page 15)
o Testing hypotheses based on Coefficients (page 19 to 23)
o Estimating and Interpreting standard error, Std. Error (page 33 and 34)
o Standard Error and confidence interval tips (page 35 to 50)
o Estimating and Interpreting T-statistic or t value (page 51 and 52)
o T value and its association with probability value (page 53 and 54)
 UYD_Lecture 6:
o Increasing the statistical Power (page 25 to 35)
o R-Sq is not basis for model selection (page 42 to 48)

Source:

 Newbold Book: Example for regression 11.1

 UYD Lecture 1 to 6 (to be provided by Sir)
 Guide to students: ‘Guide_R_Output’ (to be provided by Sir)
 Example: ‘L3 Data Analysis 1 2014’ (Slide 15, Slide 19) (to be provided by Sir)