NUST Business School

Program: BBA

Course: Business Statistics

Instructor: Iftikhar Hussain Adil

Email: iftikharhussainadil@yahoo.com

Course Description:

When a fresh business graduate enters in the today’s business world, full of competitors, he/she has to
answer such kind of statistical questions.

i. A market analyst wants to know the effectiveness of a new diet.

ii. A pharmaceutical Co. wants to know if a new drug is superior to already existing drugs, or
possible side effects.
iii. What is the effect of package design on sales?
iv. To test if a new bonus plan increases sales performance?

This course is designed to develop specific skill of statistics in order to address business problems and
applications. During this course, the students will develop a solid foundation and apply their knowledge
to problem solving techniques in disciplines most common to the business environment.

COURSE OBJECTIVES

On the successful completion of this course students should be able to:

 Develop descriptive statistical analysis and perform basic statistical tests

 Interpret and relate the results of the descriptive analysis and statistical test to management
sciences theories

 Provide the statistical foundations required for business and management research

 Provide accurate and informative analysis of a sample of data

METHOD OF LEARNING AND TEACHING STRATGIES

This course is intended mainly for those students who have to address, in future, real world statistical
problems in the fields of business & management. So; variety of techniques will be used to enhance
students learning for this course. These include face-to-face lectures, discussion, labs, individual and
group assignments.
Course Description:
Introduction & Descriptive Statistics- I
 Definition of Statistics
 Concept of Sample and Population
 Construction of Frequency Distribution
o Class intervals, Class marks, Relative frequency distribution
 Methods of Displaying Data
o Stem and Leaf Display, Histogram, Frequency Polygon & Ogives

Descriptive Statistics- II
Measures of Central Tendency & Dispersion
 Measures of Central Tendency
o Mean, Median & Mode for grouped & ungrouped data
 Measures of Dispersion
o Range, Mean Deviation, Standard Deviation, Deciles & Percentiles

Probability
 Basic Definitions: Events, Sample Space & Probability
 Rules of Probability
 The Rule of Complements
 Addition Law & Mutually Exclusive Events
 Conditional Probability
 Independence of Events
 Product Rules for independent events

The Normal distribution

 Properties of the Normal Distribution
 Z-Sores (Standard Normal Distribution)
 Finding Probabilities using tables
 The inverse use of tables

Hypothesis Testing
 The Concept of Hypothesis Testing
 Type I & Type II Errors
 Computing the p-Value
 One-tailed & Two-tailed Tests

Student’s t- Distribution
 Properties
 Comparing two independent sample means
 Comparing two paired sample means

The F- Distribution & a test for comparing two population variances

 ANOVA
 Assumptions, Tests & Inferences
Linear Regression Analysis
 Regression versus Correlation
 Regression versus Causation
 Classical Linear Regression Model & Assumptions
 Method of Ordinary Least Squares

Multiple Regression Analysis

 Notations and Assumptions
 Interpretation of Multiple Regression Equation
 The multiple coefficient of determination- R2
 Example- Production function

Index Numbers
 Introduction to CPI, SPI & WPI

TEXT BOOK:

Doane, D. P., & Seward, L. E. (2007). Applied Statistics in Business & Economics. New York: Tata McGraw-
Hill Companies.

Paul Newbold, William L. Carlson & Betty Thorne. Statistics for Business & Economics, 6 th Edition
(Pearson-Prentice Hall)

REFERENCE BOOKS:

1. Amir D. Aczel & Jayavel Sounderpandian, “COMPLETE BUSINESS STATISTICS”, 6 th Edition (TATA
McGRAW-HILL EDITION), 2005
2. Douglas, A, L, Mason, Robert, D. M & Marchal, William, G “Basic Statistics for Business and
Economics”. McGraw-Hill International Edition.
3. Anderson, D., Sweeney, D & William, T. “Statistics for Business and Economics”.

ASSESSMENT COMPONENTS:

1. Final Examination 40%

2. Mid-Term Examination 25%

3. Assignments 10%

4. Quizzes 15%
5. Final Project 10%

Total 100%