BHARATI VIDYAPEETH

(Deemed to be University)

SCHOOL OF ONLINE EDUCATION

Name of Student: Pradyumn Mishra

Date of submission: 14-07-2021

Registered Email ID: misra.pradyumn@gmail.com

MASTER OF BUSINESS ADMINISTRATION

BATCH -: JANUARY 2021
SEMESTER - I

Subject: Statistical Techniques

Registration No: BVP20214273

(Starting with BVP)
 Subject Code: 105
Subject: Statistical Techniques
Total Marks: 15
Instruction to candidates:
a) All Question Carry Equal Marks
b) Attempt any THREE questions from the following.

Q1. What is Business statistics? Discuss in brief its importance in relevant field with appropriate
examples.
Q2.What is the measures of central tendency?
What measure of central tendency you would suggest for the following situations? Give justification.
a) To study annual household income of families in India.
b) To determine the size of the garments to be sold out in a garment shop.
Q3. Calculate the coefficient of correlation and coefficient of determination(R-Square) from the
following data and interpret the results.
Advt. Expenditure (Rs. Lakhs) 10 12 15 23 27 30
Sales Volume (in Rs. Crores) 40 42 46 48 50 56

Q4. From the prices of shares A and B given below. State which share is more stable in value?
Comment on results.
Share A 55 54 52 53 56 58 52 50 51 49
Share B 108 107 105 105 106 107 104 103 104 101
Q5. Explain the underlying logic of correlation, regression analysis and association.

*****

Ans1:
BUSINESS STATISTICS
Business statistics takes the data analysis tools from elementary statistics and applies them to business. For
example, estimating the probability of a defect coming off a factory line, or seeing where sales are headed in the
future. Many of the tools used in business statistics are built on ones you’ve probably already come across in
basic math: mean, mode and median, bar graphs and the bell curve, and basic probability. Hypothesis
testing (where you test out an idea) and regression analysis (fitting data to an equation) builds on this
foundation.
Basically, the course is going to be practically identical to an elementary statistics course. There will be slight
differences. The questions will have a business feel, as opposed to questions about medicine, social sciences or
other non-business subjects. Data samples will likely be business-oriented. Some subjects usually found in a
basic stats course (like multiple regression) might be downplayed or omitted entirely in favor of more analysis
of business data.
St Louis University lists the following topics as being included in their Business Statistics course. The list is
fairly typical of the topics usually covered. I’ve bolded the items unique to business statistics.

1. Introduction to descriptive statistics for displaying and summarizing business data.

2. The use of probabilities and random variables in business decision models.
3. Probability distribution.
4. Statistical inference as a decision-making tool.
5. Sampling of business data.
6. Simple linear regression and correlation.
7. Time series analysis.
8. Use of index numbers in economic data.
9.
Statistics is an important field of study because of its application in almost all walks of life. It is an important
branch of mathematics. It is the analysis, interpretation, preservation, and presentation of data. The role of
statistics in business management is pivotal. It comes in handy, especially for rating organzation, financial
markets, financial organizations, etc. The uses of statistics in business and management are limitless; with
the proper skill to implement statistical methods, the managers can increase the production capacity of any
plant or find out the optimum production capacity, efficient management of work and employee performance,
limit the wastage of resource, etc.

Uses Of Statistics In Business Organization

Even the most basic of statistics that a student learns in school like the mean, mode, and median can go a
long way in the world of business. Finding the mean or the average of a group of numbers is quite significant
in business. There are several ways in which statistics plays a role in business.

• Management Of Performance – As mentioned earlier, the importance of statistics in management is

significant; with the help of statistics, a manager can analyse the performance or the productivity of
employees like the units produced or the task completed. The manager can use the data in sync with
statistical techniques to improve the productivity of the workforce and multiply the production.

• Alternative Scenarios – The task or the function of a manager does not end after increasing the
productivity of the employees. A manager has to participate with the other managers from different
department for decision making. The decision can be on the choice of particular software, systems for
customer automatic ordering systems, etc.

• Data Collection – The data that is collected for the purpose of processing with the statistical tools must
be done in an ethical manner, otherwise, the result of the analysis will be false and non-beneficial. With
 the help of these data, comparisons can be drawn if the actual sales were less or more than the projected
sales or the future capital requirement for the fulfilment of a huge order.

• Research And Development – The scope of statistics in business also extends to market research and
product development. This is one of the most important functions of statistics, as a sample group is
observed and their response to a product is tested and data collected. This data is essential in the
determination of the launch of new products and the development of it.

Role Of Statistics In Business Decision Making

A manager should have the ability to look at data and make predictions regarding the future of the business
or a specific department. It is done with the help of statistics and statistical concepts. Those days are gone
when business decisions were made out of hunch or experience of the past similar circumstance. Today,
every decision needs to be backed by concrete empirical data. Following are the points that relate statistics
and decision making.

• The Big Picture – Statistics helps a business in getting the big picture with the help of the analysis of the
sample population. It can significantly reduce the cost of market research with relatively accurate
information about the market. Statistics do not require a lot of time and it is very cost effective.

• Support Of Judgement – It helps to create assertion in the decision. A decision that is backed by
empirical data is more reliable and the manager can easily convince their superiors about the decision.

• Relationship – With the analysis of data, the relationship between variables can be established. Like the
effect on sale due to seasonal change, the effect on sale in comparison with the discount offered. A more
detailed analysis of statistical data can reveal several things like the behaviour and the preference of the
consumer.
 • Ensures Quality – Examples of statistics in business are Six Sigma and Lean Manufacturing; these
statistical tools are extremely useful in business. Statistics makes it possible for the business to produce
goods with limited variations and wastage; it also helps increase the productivity of the workers. Thus,
saving money and ensuring the best quality with optimum utilisation of resource.

Today, there is hardly any business that functions without the use of statistics and statistical tools. Every
business small or big uses statistics for its daily function. The use of tools like Microsoft Excel to store,
organise, and present data is a typical example of the use of statistics in business. And this is only going to
grow with new tools coming into the market. In the future, most business activity will be under the scanner
of statistics. Therefore, it is high time that business and to be managers accustom themselves to statistics and
its tools.

Ans 3:
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