Institute of Management Studies

Sunandan Divatia School of Science, Mumbai

B.Sc. Applied Statistics & Analytics

Syllabus
Semester VI
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Program: B.Sc. (Applied Statistics & Analytics) Semester : VI
Course: Introduction to Data Science Course Code:

Teaching Scheme Evaluation Scheme

Term End
Lecture Practical Tutorial Internal Continuous
Examinations (TEE)
(Hours (Hours (Hours Credit Assessment (ICA)
(Marks- 50
per week) per week) per week) (Marks - 50)
in Question Paper)
3h - - 3 Marks Scaled to 50 Marks Scaled to 50
Pre-requisite:
Curious about playing with data
Familiar with the basic math and statistic concepts
Know the fundamentals of programming and data base
Objectives:
Introduction to the theoretical foundations, algorithms, and methods of deriving valuable insights
from data. Data mining techniques and algorithms; machine learning techniques such as
supervised learning.
Outcomes:
After completion of the course, students would be able to:
Basic understanding of the key concepts, algorithms and models relevant to data science,
understand the data patterns to be mined, data mining algorithms, and machine learning
techniques.
Detailed Syllabus: ( per session plan )
Unit Description Duration
1 Introduction to Data and Data Mining: Data Information, Knowledge, Role of 10
data mining in taking Strategic and tactical decision, users involved in taking
decisions, Types of attributes, Data Patterns learned through Data mining.
Naïve Bayes Classifier
Association Rule Mining: A Pattern-Growth Approach for Mining Frequent
Itemsets (FP Tree), Mining Frequent Itemsets Using the Vertical Data Format
k-Nearest Neighbor Classifier, Support Vector Machines
2 Artificial Neural Networks for Classification and Prediction: Biological Neuron, 20
Artificial Neural Networks, MP NEURON, Types of learning, Activation
functions, Neural network architectures, Single layer Perceptron Learning, Self-
Organizing Map, Introduction to Fuzzy logic, Properties and operations of fuzzy
sets and fuzzy relations, Lambda cuts for fuzzy sets and relations, Fuzzification
methods(Intuition, Inference and Rank Ordering), Defuzzification methods
(Max Membership, Centroid, Weighted Average method, Mean-Max
Membership, Center of Sums, Center of Largest Area, First of Maxima)
3 Decision Tree: CART (Classification and Regression Trees) using Gini Index, 15
ID3 (Iterative Dichotomiser) using Entropy and Information gain,
Dimensionality Reduction, Singular value decomposition.
Ensemble Learning: Random Forest, Bagging, K-fold cross validation
Total 45
Text Books:
1. Jiawei Han, Jian Pei, Micheline Kamber (2012): Data Mining: Concepts and Techniques, Third
Edition, Elsevier
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
2. Timothy J. Ross (2017), Fuzzy Logic with Engineering Applications, 4th edition Wiley India.
Reference Books:
1. Nong Ye (2014), Data Mining: Theories, Algorithms, and Examples, CRC Press
2. N Burlingame and L Nielsen (2012): A simple introduction to Data Science, New Street
Communications
3. Jacek M. Zurada (1992)
Any other information:
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Quality Management Code:

Teaching Scheme Evaluation Scheme

Lecture Practical Internal Continuous Term End
(Hours (Hours Assessment (ICA) Examinations (TEE)
Tutorial Credit
per per (Marks - 50 (Theory) (Marks- 50 (Theory)
week) week) & 50 (Practical)) in Question Paper)
Marks Scaled to
Marks Scaled to
3h 2h - 4 50 (Theory) &
50 (Theory)
50 (Practical)
Pre-requisite:

Objectives:

This course aims at providing a thorough understanding of the six sigma process which seeks to
improve the quality of the output of a process by identifying and removing the causes of defects
and minimizing variability in manufacturing and business processes.

Outcomes:

Students should be able to use a set of quality management methods, mainly empirical, statistical
methods to improve the process management of a project.

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Introduction to Lean and Six Sigma: DMAIC, Lean and Six Sigma DMAIC 15+6
structures, Lean Six Sigma, Define phase of DMAIC, SIPOC, Project
Charter, Stakeholder Analysis
2 Measure Phase: KPI, Lean Measures, Statistic for process "Position" and 15+15
"Spread", Data Collection, Plans & Sampling, Minimum sample size,
Sampling Frequency, Measurement System Analysis, Shapes & Normal
Distributions, Process Stability & Short/Long Term Variation, Process
Capability Introduction& Route Map.
Analyse Phase: The Process Door Route Map, The Data Door, Hypothesis
Testing Overview, Correlation & Regression Overview, DOE - Overview

3 Improve: Negative Brainstorming and Assumption Busting, Error Proofing & 15+9
Benchmarking, Chain Letters and Billboards, SCAMPER, Assessment
Criteria, Paired Comparison, Prioritization Matrix, Pugh Matrix, Solution
Screening & Pilot Studies, One Piece Flow, 5S etc.
Control: SPC Overview: I-MR Charts, X-Bar , R -Charts, U & P Charts,
Control Plans, Standardize Process, Project Reports and Action Logs
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Total 45+30

Text Books:
1. Michael L. George, John Maxey, David T. Rowlands, Malcolm Upton (2004): The Lean
Six Sigma Pocket Toolbook: A Quick Reference Guide to Nearly 100 Tools for Improving
Quality and Speed

Reference Books:
1. Quentin Brook (2006): Six Sigma and Minitab: A Complete Toolbox Guide for All Six
Sigma Practitioners, QSB Consulting Ltd, 2nd Ed.
2. Peter S. Pande, Robert P. Neuman, Ronald R. Cavanagh(2007): The Six Sigma Way, Tata
McGraw Hill
Any other information :
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Statistical Modelling in Marketing Analytics Code:

Teaching Scheme Evaluation Scheme

Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
4 - - 4 50 50
Pre-requisite:
Curious about playing with data
Familiar with the basic math and statistic concepts
Know the fundamentals of programming and data base
Objectives:
The objective of this course is to train the students with various statistical techniques, models and metrics
that help in providing actionable insights leading to better marketing decisions.
Outcomes:
After completion of the course, students would be able to:
Analyze and critically interpret data, build statistical models of real situations in marketing.

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Preparing data for Marketing Analytics: 5

Graphical examination of data, treatment of Missing data, Outlier detection
2 Dimension Reduction techniques: 15
Factor Analysis Principal Components Analysis, Summarizing Sample
variation by Principal Components, Factor Rotation, Factor Scores
Multidimensional Scaling (MDS)
3 Segmentation and Clustering- 25
Cluster Analysis Similarity measures, Hierarchical clustering using single
and complete linkages. Non-hierarchical clustering using k-means and k-
mediods.
RFM Segmentation
Discriminant Analysis Discriminant function, Discriminating between two
multivariate populations.
Logistic regression Interpreting parameters in Logistic Regression, Inference
for Logistic Regression
4 Marketing Research Tools 15
Conjoint Analysis
Market Basket and Association Analysis: Apriori algorithm
Total 60

Text Books:
1. Paul E. Green, Donald S. Tull (2014): Research for Marketing Decisions, Prentice-Hall of India Pvt.
Ltd.
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
2. Wayne Winston, Marketing Analytics (2013) : Data-Driven Techniques with Microsoft Excel
3. Johnson and Wichern (2012): Applied Multivariate Statistical Analysis, Sixth Ed., PHI

Reference Books:
1. Stephan Sorger (2013): Marketing Analytics: Strategic Models and Metrics, Createspace
Independent Publishing Platform
2. Kishore K. Das & Dibyojyoti Bhattacharjee (2014): Statistics for Business and Marketing Research,
PHI Learning Pvt. Ltd.
Any other information
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Statistical Modelling in Financial Risk Code:

Teaching Scheme Evaluation Scheme
Lecture Practical Term End
Tutorial Internal Continuous
(Hours (Hours Examinations (TEE)
(Hours Credit Assessment (ICA)
per per (Marks 50
per week) Marks 50
week) week) in Question Paper)
4 4 Marks Scaled to Marks Scaled to
- -
50 50
Pre-requisite:
Application skills related to various statistical tools and techniques
Basic understanding of various types of Financial risks that business faces

Objectives:
To build a foundation and provide application oriented perspective of Financial Risk. Equip the
students with necessary skills to perform statistical modelling for financial risk management

Outcomes:
After completion of the course, students would be able to:
Understand and evaluate complex dimensions of the financial risks
Develop basic financial risk models using statistical techniques

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Review of Financial Risk Management and Related Mathematical Tools 2

2 European option and American options. Interest rates, continuous 6

compounding, present value analysis, Bond pricing, risk free interest rates,
Returns, gross returns, log returns. Portfolio theory mean variance portfolio
theory. One risky asset and one risk free asset. Two risky assets. Sharpe s
ratio, tangency portfolio, optional mix of portfolio.

3 Market portfolio, beta, security market line, and capital asset pricing model 10
(CAPM) and their assumption. Value at Risk (VAR) Nonparametric and
parametric estimation of VAR, VAR for a derivative and for a portfolio of
assets delta normal method Simulation of VAR models.

4 Financial derivatives, options, pricing via arbitrage, law of one price. Risk 10
neutral valuation, arbitrage theorem. Convexity of cost of call option,
Binomial model single and multi-period binomial model. Modelling returns:
lognormal model, random walk model, modelling through geometric
Brownian motion process. Ito lemma (without proof). Arbitrage theorem. The
Black Scholes formula and assumptions. Properties of the Black Scholes
option cost.
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai

5 Black Scholes Merton differential equations and assumptions, the delta 9

hedging arbitrage strategy Volatility and estimating the volatility parameter.
Implied volatility. Pricing American options. Pricing of a European option
using Monte Carlo and pricing an American option using finite difference
methods. Call options on dividend paying securities.

6 Implementations of Risk Analysis in Various Areas of Financial Industry 7

Real options: pricing long-term investment projects
Technical analysis in risk management
Performance measures and their applications

7 Insurance and Reinsurance Risks 8

Modelling risk in insurance and methodologies of premium calculations
Risks transfers via reinsurance
Elements of traditional life insurance
Risk modelling and pricing in innovative life insurance

8 Solvency Problem for an Insurance Company 8

Ruin probability as a measure of solvency of an insurance company
Solvency of an insurance company and investment portfolios
Solvency problem in a generalized Cramér-Lundberg model

Total 60

Text Books:
1. Alexander Melinkov (2011): Risk Analysis in Finance and Insurance, 2nd ed, Chapman &
Hall/ CRC Financial Mathematics series.
2. Alexander J., Rudiger & Paul (2010): Quantitative Risk Management, 1st ed, New Age
Publishers.
3. Sheldon M. Ross (2003) An elementary introduction to Mathematical finance, Cambridge
University Press.
4. Ruppert D. (2004) Statistics and Finance an Introduction Springer International Edition.
5. John C. Hull (2008) Options, Futures and other derivatives, Pearson Education India.
Reference Books:
1. Michael Miller (2012): Mathematics and Statistics for Financial Risk Management, 1st ed,
Wiley Finance.
2. Tiziano Bellini (2016): Stress Testing and Risk Integration in Banks, 1st ed, Academic
Press
3. Rüschendorf & Ludger (2013): Mathematical Risk Analysis, 1st ed, Springer
4. Joel Bessis (2015): Risk Management in Banking, 4th Ed., Wiley.
Any other information:

Total Marks of Internal Continuous Assessment (ICA): 50 Marks

Distribution of ICA Marks:

 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Description of ICA Marks
Test 1 25
Test 2 25

Total Marks : 50
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Data Science using R Code:

Teaching Scheme Evaluation Scheme

Lecture Practical Term End
Internal Continuous
(Hours (Hours Examinations (TEE)
Tutorial Credit Assessment (ICA)
per per (Marks NA
(Marks 100)
week) week) In Question Paper)
- 1.5 Marks Scaled to Marks Scaled to
3 -
100 NA
Pre-requisite:
Curious about playing with data
Familiar with the basic math and statistic concepts
Know the fundamentals of programming and data base
Objectives:
The goal is to gain a better understanding of the techniques in data science, to get acquainted with the
basics of statistics and the R software, and to be able to write R programs to solve machine learning/data
mining/statistical problems.
Outcomes:
After completion of the course, students would be able to:
Learn tools and techniques for Statistical analysis and Data transformation
Understand Data Mining techniques and their implementation
Analyze Data using Machine Learning algorithms in R
Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Data Preparation & Manipulation in R: 5

Introduction to data manipulation of data frames using dplyr package: filter
rows, arrange rows, selecting columns, creating new variable, Grouped
summaries of the data.
Introduction to data manipulation of strings using stringr package

2 Dimension Reduction techniques: 5

Principal component analysis, Factor Analysis, Singular Value decomposition
3 Segmentation and Clustering- 20
Cluster Analysis Similarity measures, Hierarchical clustering using single
and complete linkages. Non-hierarchical clustering using k-means and k-
medoids.
RFM Segmentation
Discriminant Analysis Discriminant function, Discriminating between two
multivariate populations.
Logistic regression Interpreting parameters in Logistic Regression, Inference
for Logistic Regression
Naïve nearest neighbor classifier, Decision tree for
classification, k fold cross validation.
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai

4 Machine learning techniques 15

Market Basket and Association Analysis: Apriori algorithm
Artificial neural network, Support Vector machine, fuzzy set and fuzzy
relation operations.
Total 45

Text Books:
4. G Groulemand, H Wickham
5. Brett Lantz (2015): Machine learning with R, Packt Publishing.
6. Y Zhao (2013): R and Data mining: Examples and Case studies, Elsevier.
Reference Books:
3. Bater Makhabel (2015): Learning Data mining with R, Kindle Edition
4. R B Koushik, S K Ravidran (2016): R Data Science Essential, Kindle Edition
5. Karthik Ramasubramanian, Abhishek Singh (2017): Machine Learning Using R, Apress
Any other information
Exam will be conducted on R studio.
Report writing or document submission is to be done with the help of R Markdown.
Total Marks of Internal Continuous Assessment: 100

Distribution of ICA Marks:

Description of ICA Marks

First test 30
Second test 30
Assignment 40
Total Marks : 100
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Business Ethics Code:

Teaching Scheme Evaluation Scheme

Lecture Practical Term End
Tutorial Internal Continuous
(Hours (Hours Examinations (TEE)
(Hours per Credit Assessment (ICA)
per per (Marks- ___NA____
week) (Marks - 50)
week) week) in Question Paper)
2h - - 2 Marks Scaled to 50 Marks Scaled to NA
Pre-requisite:
Objectives:

To acquaint students with basic fundamentals of business ethics, apprising them of how this
concept has evolved in local and international markets, understanding of how businesses should
behave ethically and the benefits that Business Organizations can achieve by implementing the
same at workplace.
Outcomes:

Students would be having a better understanding of how businesses devise their strategy to
positively engage all their stakeholders including environment, employees, and community at
large.
Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Business Ethics: Basics of business ethics, Growth of Ethics in organizations, 15

Ethical issues faced by organizations today.
Stakeholders Perspective in Business: Stakeholders Model, Stakeholder

Values in Business: el
to analyze Values and Purpose Statements, Instrumental and Terminal Values
in Business, Core Values of
organizations
2 Code of Ethics: Code of professional ethics, Code of Conduct. 15
Ethical Dilemmas: Ethical Issues Intensity Model, Ethical Dilemmas in areas
of Finance, Marketing, HRM, and Operations.
Contemporary Issues: Corporate Social Responsibility and Corporate
Governance: Social Responsibility of Business, Ecology and Business, Carbon
Credit, Evolution of Social Audit, Benefits of Social Audit, Social Audit v/s
Commercial Audit
Total 30

Text Books:
1. Manuel G. Velasquez (2012): Business Ethics: Concepts and Cases, 7th Ed., Pearson
 Institute of Management Studies
Sunandan Divatia School of Science, Mumbai
Reference Books:
2. C.S.V. Murthy (2010): Business Ethics: Text and Cases. 2010 Ed, Himalaya Publishing House
3. Sherlekar S.A. (2014): Ethics in Management, Himalaya Publishing House
Internet References:

http://www.nfcgindia.org/
http://www.corporate-ethics.org/

Any other information :