Strathmore University

PROBABILITY AND STATISTICS I

BBS ACTUARIAL SCIENCE, FINANCIAL ENGINEERING $ FINANCIAL
ECONOMICS
course Outline and Delivery Plan

Course Aim
To provide knowledge and experience in the practical application of modern
statistical methods in the exploration and analysis of statistical data for decision
making.
Course Objectives (Indicative learning outcomes)
 Explain the meaning and use of statistical terms used in statistics
 Interpret the data presented in table and charts
 Apply probability distributions to model different types of business
processes
 Analyse and interpret business data
Contact Hours: 45

Prerequisite:
Course Plan

Topic Approximate
Weeks

1 and 2
Topic 1: ELEMENTS OF STATISTICAL ANALYSIS
The learning outcomes
The learners should be able to
 Explain meaning of statistical terms
 Differentiate between different methods of data
representations
 Interpret statistical charts and graphs
Learning Activities
 Use of illustrations
 Questions done by students
 Discussions in pairs/groups

3 and 4
Topic 2 : MEASURES OF CENTRAL TENDENCY

The learning outcome (s):

The learners should be able to
 Differentiate between various measures of central
tendency
 Evaluate the statistical measures
 Apply the measures of central tendency to solve
business problems
The learning activities:
 Discussions
 Use of illustrations and model questions
 Discussions in small groups

Topic 3: MEASURES OF DISPERSION, SKEWNESS AND 5 and 6

KURTOSIS

The learning outcome(s)

 Differentiate between the various measures of dispersion
 Evaluate the variance, standard deviation and coefficient
of variations.
 Solve for the skewness and kurtosis of data.
  Apply the measures of dispersion to solve business
problems

Learning activities:
 Use of illustrations.
 Questions done by the students
 Discussions in groups
7
Topic 4: BASIC PROBABILITY THEORY
 Basic terminologies: events, experiment
 Axioms of probability
 Addition and multiplication theorems

Learning outcomes
Differentiate between different types of events
Apply probability theorems in solving problems
Learning activities
 Discussions in groups and presentations
 Class questions

8 and 9

Topic 5: RANDOM VARIABLES.

 Discrete random variables
 Continuous random variables

Learning outcome(s)
 Differentiate between discrete and continuous random
variables
 Evaluate the mean and the variance of random variables
Learning activities
 Class questions
 Discussions

10 and 11
Topic 6: MOMENTS AND MOMENT GENERATING FUNCTIONS.
 Bernoulli distribution
 Binomial distribution
 Poisson distribution
 Geometric distribution
 Negative binomial distribution
 Learning outcomes
 Define moments and a moment generating function
 Determine the moments of discrete probability distributions
 Apply probability distributions to model different types of
business processes

Learning activities
 Model Illustrations.
 Class discussions

Topic 7. THE NORMAL DISTRIBUTION 12

 Discrete random variables
 Continuous random variables

Learning outcome(s)
 Outline properties of normal distribution
 Explain the central limit theorem
 Evaluate probability values using the central limit
theorem
 Solve for confidence limits
Learning activities
 Class questions
 Discussions

Revision 13

Course Delivery Methodology

1. Lectures will be used to introduce material on the formal aspects of the module.
2. Discussions to be used in sharing experiences by various participants

Academic Assessment

Type Weighting (%)

Examination 70
CATS 30

Total 100 %
 Recommended texts.

1. Crawshaw, J.,and Chambers,J.,(2001). Advanced level statistics. Stanley Thornes

Publishers Ltd. Delta Place
2. Mario, F. Triola(2004) Elementary statistics, 9th ed Addison-Wesley
3. George C. Canvas and Don M. Miller (1999) Introduction to Modern Business
Statistics. Druxbury Press.
4. Allen L. Webster (1995). Applied Statistics for Business and Economics 2nd edition.
IRWIN ,

Other texts
Statistics Books in class: HA29 and HD30.215

IMPORTANT INFORMATION

(A) Classes.

1. Punctuality is fundamental.
2. Active participation in class discussions is encouraged

(B) Assignments and/or Course Work.

You are encouraged to present your original work for evaluation and award of
marks. Plagiarism is a serious offence. However, discussions in course work is
encouraged.
(C) Appointments.

Please make these by email whenever possible. Please refer to consultation times
below for details.

Communication Channels
 or e-mail
 Module leader or class representative

Lecturer Information

Lecturer

Lecturer Name: CHRISTOPHER OUMA ONYANGO (MR.)

Email: conyango@srathmore.edu
Location: PHASE II LIBRARY BASEMENT STAFFROOM