PAPER

QUANTITATIVE TECHNIQUES 3
SYLLABUS CHART

Advanced Financial Management – Paper 15

Management Decision & Control Paper 11 Financial Management Paper 9

Cost & Management Accounting – Paper 6

Quantitative Techniques – Paper 3

OVERALL AIM
To equip the learner with skills to apply mathematical and statistical
principles and concepts in problem solving and decision making
LEARNING OUTCOMES
On completion of this course, the learner should be able to:
Learning outcomes K C A An S E
1. Describe data collection methods and sampling
techniques
2. Present data in tables, charts and graphs
3. Apply descriptive statistics in decision making
4. Apply the principle of optimisation to strategy
and deployment of resources
5. Apply mathematical, linear, quadratic and
simultaneous equations in production, cost and
revenue functions
6. Apply time series in estimating and forecasting
7. Demonstrate an understanding of probability,
confidence intervals and hypothesis testing
8. Demonstrate an understanding of linear
programming
9. Apply selected mathematical models to business
situations

27 EXAMINATION SYLLABUS 2023

LEVEL OF ASSESSMENT
The examination will test the learner’s ability to comprehend and apply
mathematical and statistical principles in problem solving and decision
making
EXAMINATION STRUCTURE
There will be a three-hour examination made of six questions of 20 marks
each, of which the candidate will be required to attempt any five

DETAILED SYLLABUS

A. INTRODUCTION
1. Importance of quantitative techniques
2. Role of statistics and mathematical models
3. Functions and limitations of statistics
4. Descriptive and inference statistics
B. DATA COLLECTION AND PRESENTATION
1. Introduction:
(a) Primary and secondary data; sample and population; discrete and
continuous data; variable and attribute; qualitative and quantitative
data
(b) Data collection methods, including interviews, questionnaires, direct
observation, census and sample surveys; merits and demerits of
each method of data collection
(c) Sampling techniques, including simple random and stratified,
systematic and multistage as well as cluster and quota sampling;
advantages and disadvantages of each technique
(d) Data presentation using the following methods, including their
interpretation and limitations:
(i) Row and column tables, two-way tables, frequency tables and
percentage distribution tables
(ii) Simple and compound bar charts, pie charts, Lorenz and
Z-charts
(iii) Line graphs, histograms, frequency polygons and curves
including the Ogive

28 CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA

C. DESCRIPTIVE STATISTICS
1. Measures of central tendency, including interpretation of calculated
values:
(a) Arithmetic mean, weighted mean and quadratic mean for discrete
and continuous variables in grouped (frequency) and ungrouped
distributions
(b) Median and mode, including calculation and graphical presentation
thereof
(c) Combined mean and combined standard deviation from two
distributions
2. Measures of dispersion, including their characteristics, merits, demerits
and interpretation of calculated values:
(a) Dispersion and variation
(b) Measures of dispersion:
(i) Range
(ii) Quartile deviation (interquartile range), decile and percentile
range, including their graphical determination
(iii) Semi-quartile deviation (semi-interquartile range)
(iv) Decile and percentile range, including their graphical
determination
(v) Mean deviation
(vi) Quartile coefficient of dispersion, standard deviation and
variance, including their determination using direct and working
mean methods; properties of standard deviation and coefficient
of variation
(c) Dispersion versus skewness; determination of skewness by Karl
Pearson and Bowley’s methods
3. Index numbers, including interpretation of calculated values of indices:
(a) Importance and limitations of indices
(b) Simple and weighted (price and quantity) indices
(c) Price and quantity relatives
(d) Factors to consider in construction of indices
(e) Laspeyre’s and Paasche’s price and quantity indices
(f) Time series relatives, including fixed base and chain relatives

29 EXAMINATION SYLLABUS 2023

 (g) Published indices, including cost of living index, consumer index,
stock index and retail index
4. Correlation and regression:
(a) Meaning and importance
(b) Types of correlation
(c) Scatter diagrams
(d) Calculation of coefficient of correlation using product moment (Karl
Pearson’s), rank correlation (Spearman’s formula) and Kendall’s
methods; interpretation of correlation co-efficient; merits and
demerits of each method
(e) y on x and x on y regression equations, including interpretation of
calculated values
D. PROBABILITY AND INFERENCE STATISTICS
1. Probability theory:
(a) Basic concepts of probability such as event, outcome, sample,
sample space and equiprobable
(b) Probability limits, total probability and complimentary probability
(c) Independent, dependent, and mutually exclusive events
(d) Rules of probability
(e) Conditional probability
(f) Probability frequency distributions and expected values
Note: Application of the knowledge of set theory in probability is
assumed
2. Permutations and combinations:
(a) The factorial notation
(b) Forms of arrangements, selections and combinations
(c) Application of permutations and combinations in probability
3. Probability distribution:
(a) Properties of discrete probability distributions
(b) Normal distribution, including computation of probabilities using
normal distribution tables

30 CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA

 (c) Binomial distribution, including the use of the binomial formula;
computation of the mean, variance and standard deviation of a
binomial distribution; use of binomial distribution tables; normal
approximation to the binomial
(d) Poisson distribution
4. Estimation and hypothesis testing:
(a) Confidence limits and intervals
(b) Determination of sample size
(c) Interval estimation of the population proportion using normal
distribution
(d) Estimation of the mean from a small sample using Student’s t
distribution
(e) Use of contingency tables for chi-square distributions
(f) Estimation of the population proportion from a large sample
5. Hypothesis and significance tests:
(a) Null (Ho) and the alternative (Ha) hypotheses, type I and type II
errors, acceptance and rejection regions and level of significance
(b) Methods of testing, including the normal or Z score, Student’s
t-distribution and Chi-square
(c) Statistic and level of significance at a particular percentage
(d) Hypothesis testing of the:
(i) Mean and difference of means using small samples and
proportions
(ii) Population mean, difference of means and population
proportion
(e) Test of goodness-of-fit and independence; computation of expected
values for Chi-square test
E. MATHEMATICAL MODELING
1. Linear algebra:
(a) Linear, quadratic and simultaneous equations
(b) Formulating and solving equations using elimination, substitution
and matrix methods
(c) Cost and marginal cost, revenue and marginal revenue and profit

31 EXAMINATION SYLLABUS 2023

 (d) Analysis of production, cost, expenditure, sales and profits as
functions of time and price
(e) Algebraic and graphical approaches to cost and breakeven analysis
2. Control charts:
(a) Advantages and disadvantages of control charts
(b) Control charts for sample mean, range and proportion
(c) Distinction between common cause and assignable cause
(d) Interpretation of control charts
3. Linear programming:
(a) Problem model, objective function, constraints, feasible region and
optimal solution
(b) Assumptions
(c) Advantages and limitations
(d) Application to product mix, cost and profit
(e) Graphical and simplex methods, including their assumptions,
advantages and limitations
(f) Primal and dual linear programming problems
4. Decision theory:
(a) State of nature, event, decision alternatives and payoff
(b) Types of decision making
(c) Decision making under uncertainty
(d) Payoff tables and decision trees
(e) Bayes decision rule
(f) Expected payoff of decision alternatives
(g) Expected loss and opportunity loss
(h) Maximin, maximax and minimax regret strategies
5. Queuing theory:
(a) Meaning and statement of the theory
(b) Queuing system, discipline and behaviour
(c) Classification and queuing model
6. Game theory and decision making:
(a) Game theory, strategy and payoff, optimum and strictly determined
game

32 CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA

 (b) Two-person and zero-sum games
(c) Pure mixed, optimal, saddle point and dominance strategies
(d) Maximin and minimax principles
(e) Environments of decision making (
(f) The decision making environments, including certainty, uncertainty,
risk and conflict
(g) Decision rules/ principles
7. Network analysis:
(a) Network terminology, including network, dummy activity, critical
path, float, cost slope, activity and event
(b) Network diagrams and Gantt charts
(c) Critical path and program evaluation and review technique (PERT)
models
(d) Earliest and latest start times of programme activities
(e) Project crashing, resource analysis and scheduling
F. TIME SERIES AND FORECASTING
1. Time series:
(a) Forecasting and time series; examples of time series and their
importance
(b) Components of time series
(c) Seasonal adjustments and deflating time series
(d) Determination of trend:
(i) Methods, including moving average, exponential smoothing and
least squares; merits and limitations of moving averages and
least squares methods
(ii) Graphical representation of data and estimation of output using
a trend line
2. Forecasting:
(a) Steps involved
(b) Methods used, including quantitative and qualitative methods,
regression analysis, deseasonalisation and exponential smoothing
(c) The Z chart

33 EXAMINATION SYLLABUS 2023

REFERENCES
1. ICPAU, Quantitative Techniques, Kampala
2. Andre F and Ben M, 2014. Business Mathematics and
Statistics, 7th ed, London: South Western and Cengage
Learning.
3. Doane, D., 2012. Applied Statistics in Business and
Economics, 4th ed, New York: McGraw-Hill.
4. Vohra, N. D and Hiteshi A., 2021. Quantitative Techniques
& Methods, 6th ed, Delhi India: McGraw Hill,

34 CERTIFIED PUBLIC ACCOUNTANTS OF UGANDA