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KENYA METHODIST UNIVERSITY
BUSINESS STATISTICS:STAT 113
COURSE OUTLINE
Venue: RM 2
Credit hours: 45
Lecturer: Mr. Egondi Patrick
Course background
In the current scenario the manager are having large amount of information and data pool available to them.
But to make adequate decisions relying upon these data sets is creating hurdles in the overall development as
business manager. With regard to this the business statistics course outline will help them in making quality
decisions and thereby minimizing the risk factor.
Specific objective:
• Use statistical technique in business decision making
• Develop skills in structuring and analyzing business problem statistically
• Formulate answers to common business decision problems through statistical analysis
• Develop competence in interpreting and evaluating economic and financial problems posed both in
quantitative and qualitative.
Chapter
1
Title of work
Introduction of Statistics : Growth of Statistics,
Definition, Scope, Uses, Misuses andLimitation of
Statistics, Collection of Primary & Secondary Data,
Approximation and
Accuracy, Statistical Errors Statistics and Decision
Making Process
Nature, Source and Method of Data Collection
Summarizing Data
Graphical Presentation of Data
Classification and Tabulation of Data : Meaning
Weeks
Activity
1
1
Assessment
(end of Unit)
2
3
4
5.
6
and Characteristics, Frequency
Distribution, Simple and Manifold Tabulation.
Measuring of Central Tendency : Arithmetic Mean
(Simple and Weighted), Median
(including quartiles, decides and percentiles), Mode,
Geometric and Harmonic Mean –
Simple and Weighted, Uses and Limitations of
Measures of Central Tendency.
Measures of Dispersion : Absolute and Relative
Measures of Dispersion; Quartile
Deviation, Mean Deviation, Standard Deviation and
their Coefficients; Uses and
Interpretation of Measures of Dispersion.
5. Skewness : Measures of Skewness, Kurtosis
Index Numbers : Meaning and Uses of Index
Numbers, Simple and Weighted Price
Index Numbers, Methods of Construction of Index
Numbers, Average of Relatives and
Aggregative Methods, Problems in Construction of
Index Numbers, Selection of
Variables, Base, Weight, Average and Formula;
Fishers Ideal Index Number, Base
Shifting, Splicing and Deflating.
1
Assignment 1
1
1
1
1
1
Assignment 2
1
1
7.
8
9
Correlation : Meaning and Significance, Scatter
Diagram, Correlation Graph, Karl
Pearson’s Coefficient of Linear Correlation between
two Variables in Grouped and
Ungrouped Data by Direct and Shortcut Methods,
Coefficient of Correlation by
Spearman’s, Rank Differences Method and
Concurrent Deviation Method.
Linear Regression.
Presentation of Data, Diagrammes/Graphs of
Frequency Distribution and Histograms
Ratio Scale Graph.
1
1
1
10
Probability concept
Set theory
Permutations and Combinations
Some Elementary Probability Concepts
Probability Rules, Events and Bayes' Theorem
Probability Distribution of A Discrete Random
Variable.
Binomial Distribution
Poisson Distribution
Normal Distribution.
Total
1
Assignment 3
1
15wks
Course Assessment:
Assessment is based on assignment at the end of each session
Details of the Grading are as follows:
•
Continuous Assessment Test
•
End of Trimester Examinations
30%
70%
Core Reading Materials for the Course:
•
Ken, B.: Business Statistics: Contemporary Decision Making, Wiley Higher Education, 2007.
•
Devore J. L.: Probability and Statistics for Engineering and the Sciences; Brooks/ Cole,2008
Recommended Reference Materials:
•
Mendenhall, W., Scheaffer, R. L. and Wackerly, D. D.: Mathematical Statistics with Applications; Dexbury
Press, 2007.
•
Sheldon, M. R.: Introduction to Probability and Statistics for Engineers and Scientists; Elsevier Academic Press,
2009.
•
Murray R. S., Schiller, J., Srinivasan, R. A.: Schaum's Outline of Probability and Statistics; McGraw-Hill
Companies, 2000.
•
Gupta, S. P. : Statistical Methods, Sultan chand and Sons, New Delhi
•
Hooda, R. P.: Statistics for Business and Economics, Macmillan, New Delhi.
•
Hein, L. W. Quantitative Approach to Managerial Decisions, Prentice Hall, NJ.
•
Levin, Richard I. and David S. Rubin: Statistics for Management, PrenticeHall, New Delhi.
•
Lawrance B. Moore: Statistics for Business & Economics, Harper Collins,
•
Watsman Terry J. and Keith Parramor: Quantitative Methods in Finance International, Thompson
Business Press, London.
AS
MOMBASA CAMPUS
SCHOOL OF BUSINESS AND ECONOMICS
COURSE CODE: STAT 113
BUSINESS STATISTICS I
INSTRUCTOR: PATRICK EGONDI
PHONE:
PHONE: 0715651505
DUE DATE: FRIDAY, OCTOBER 17, 2014
E-MAIL: [email protected]
SIGNMENT
1.
The following are the bonus paid to workers in a given company.
173
179
160
175
181
164
183
189
179
172
177
163
173
178
170
175
181
181
183
166
168
180
174
177
179
164
170
175
182
182
173
168
184
162
173
180
177
186
165
186
182
188
163
176
170
174
185
166
180
181
176
167
188
181
169
165
173
177
171
178
179
183
176
188
164
174
171
179
173
178
173
187
169
183
176
179
165
169
174
187
a) Prepare a frequency distribution table using exclusive method taking the first class to be
equal to 160-under 165. (4 marks)
b) Draw a histogram and frequency polygon on the same axis. (7 marks)
c) State FOUR basic principles for forming a grouped frequency distribution.(4 marks)
2. a) State the advantages and disadvantages of presenting statistical data by diagrams and
graphs. (4 marks)
b) i) For the data below, plot a Lorenz curve. (9 marks)
Wage group (£)
Upto -80
80-120
120-160
160-200
200-240
240-280
Number of People
205
200
35
30
20
10
Total Wages
10,250
22,000
4,900
5,700
4,400
2,500
ii) What is the purpose of a Lorenze curve? (2 marks)
3. The advertising expenditure and sales revenue for ten business firms is shown (in Kshs
Millions)
Firm
A
B
C
D
E
F
G
H
I
J
Advertising Exp.(x) 57
54
49
42
38
32
30
24
20
18
Sales revenue(y)
113 111 107 103 100 96
94
84
74
76
Required:
a) Find the regression equation of sales revenue on advertising expenditure.(7 marks)
b) If the advertising expenditure is Kshs. 26 million, estimate the sales revenue of the business.
(2 marks)
c) Compute the coefficient of correlation between sales revenue and advertising expenditure of
the firms. (6 marks)
4. a) Explain FOUR criteria for a good index. (4 marks)
b) Given below is a table of four commodities with the corresponding prices and quantities over
two years (1982 and 1984)
Product
Quantity (kg) Price (shs)
Quantity (kg) Price (shs)
Bread
5
5
7
6.5
Eggs
6
7.75
10
8.8
Soap
4
9.63
6
10.75
Sugar
9
12.5
9
12.75
Calculate:
i. Laspeyre’s price index (3 marks)
ii. Paasche price index (3 marks)
iii. Fisher’s price index (3 marks)
iv. Simple average of the price index. (3 marks)
5.a) There are 100 students in a first year college. 36 are male and are studying Business
math’s, 9 are male and are not studying business math’s, 42 are female and are studying
business math’s, 13 are female and are not studying businessmaths. Using the data above, find
the probability that a student drawn at random:
i. Is studying business maths given he is male. (3 marks)
ii. Is studying business maths given she is female. (3 marks)
b.