Pokhara University

Faculty of Management Studies

Course Code. STT 110 (3 Credits) Full marks: 100

Course title: Business Statistics Pass marks: 45
Nature of the course: Theory & Practice Time per period: 1 hour
Year, Semester: Year 2, Semester III Total periods: 48
Level: Bachelor Program: BBA/BBA (Finance)/BBA-TT

1. Course Description:
The course provides students with a clear understanding of the basic statistical concepts,
techniques, and tools on describing data, numerical measures, probability, probability
distribution, confidence interval estimation and hypothesis testing to enable them in using
these various techniques for analyzing and interpreting business decision problems.
2. General Objectives
The course is designed with the following general objectives:
 To acquaint the students with the statistics used in business
 To familiarize students with tables, charts and diagrams used in the business
 To enable students to understand the concept of descriptive statistics
 To facilitate students about the concept of probability and probability distributions
 To acquaint the students with the use of estimation and hypothesis testing

3. Contents in Detail

Specific objectives Contents

 Explain how statistics is used in Unit 1: Introduction (3 hrs.)
business & management 1.1 Statistics and basic terminologies associated with
 Able to define the descriptive statistics
and inferential statistics. 1.2 Types of statistics- descriptive statistics and
 Describe the sources of data inferential statistics
used in business 1.3 Sources of Data: Primary and secondary sources of
 Explain the types of data and data
variables used in business. 1.4 Data and levels of measurements- nominal level data,
 Able to define the various ordinal level data, interval level data, and ratio level
levels of measurement of data. data.
 Organize the numerical data Unit 2: Summarization of Data (6 hrs.)
 Explain the principles of data
presentation 2.1 Organization of data: Stem and Leaf Display,
 Develop tables and charts for Frequency Distribution (Ungrouped and Grouped ),
Numerical data Inclusive and Exclusive class interval, Rule of changing
 Develop tables and charts for raw data into frequency distribution
Categorical data
 Prepare tables, charts and 2.2 Graphical Presentation of Data: Histogram, Frequency
 diagrams using computer polygon and Ogive and their applications.
 Demonstrate the basics of
Microsoft excel
 Describe the properties of Unit: 3 Numerical Descriptive Measures (10 hrs.)
central tendency, variation, and 3.1 Analysis of data by various measures of central tendency:
shape in numerical data mean, median, midrange, mid-hinge, mode and partition
 Calculate descriptive summary values.
measures for a population
 Construct and interpret a box- 3.2 Analysis of data by various measures of dispersion:
and whisker plot Range, Inter-quartile range, Standard Deviation and
 Demonstrate calculations using Coefficient of variation, index for qualitative variation, Five
excel Number Summary and Box and Whisker plot, Application of
Numerical Descriptive Measures

 Explain basic probability Unit 4: Basic Probability (7 hrs.)

concepts and conditional 4.1. Basic probability concepts
probability 4.1.1 Events and sample spaces
 Use Bayes’ theorem to revise 4.1.2 Contingency tables
probabilities 4.1.3 Marginal probability
 Use Microsoft excel 4.1.4 Joint probability
4.1.5 General addition rule
4.2. Conditional probability
4.2.1 Computing conditional probabilities
4.2.2 Statistical independence
4.2.3 Multiplication Rules
4.2.4 Marginal probability
4.3. Multiplication rule
4.4. Bayes’ Theorem
 Describe the properties of a Unit 5: Probability Distribution (10 hrs.)
probability distribution 5.1. Probability distribution for a discrete random variable
 Compute the expected value 5.1.1 Expected value of a discrete random variable
and variance of a probability 5.1.2 Variance and standard deviation of a discrete random
distribution variable
 Compute probabilities from 5.1.3 Portfolio expected returns and portfolio risk
Binomial, and Poisson 5.2. Binomial distribution
distribution 5.3. Poisson distribution
 Use the Binomial and Poisson 5.4. Continuous probability distributions
distributions to solve the 5.5. The normal distribution
business problems 5.5.1. Standard normal distribution
 Compute probabilities from the 5.5.2 Area under the normal curve
normal distribution 5.5.3 Calculating and Evaluating normality
 Construct and interpret Unit 6: Estimation and Hypothesis testing (12 hrs.)
confidence interval estimates 6.1 Confidence interval estimation for the mean (σ known)
for the mean and proportion 6.2 Confidence interval estimation for the mean (σ Unknown)
 Identify the basic principles of 6.2.1 Student’s t distribution
hypothesis testing 6.2.2 Properties of the t Distribution
  Use hypothesis testing to test a 6.2.3 Concept of the degree of freedom
mean or proportion 6.2.4 Confidence interval statements
 Know the assumptions of each 6.3 Confidence Interval estimation for proportion
hypothesis testing procedure. 6.4 Hypothesis testing methodology
6.4.1 Null and alternative hypothesis
 Inform how to use hypothesis 6.4.2 Critical value of the test statistic
testing for comparing the 6.4.3 Regions of rejection and non-rejection
difference between: 6.4.4 Risks in decision making using hypothesis testing
 means of two independent 6.5 One sample Z test of hypothesis for the mean
populations 6.5.1 Critical value approach to hypothesis testing
 means of two related 6.5.2 p-value approach to hypothesis testing
populations 6.6 One sample t- test of hypothesis for the mean
 Two proportions 6.7 One sample Z test of hypothesis for the proportion
 Use excel for hypothesis testing 6.8 Two sample tests
6.8.1 Z-test for the difference between two means and
proportions
6.8.2 Pooled variance t test for the difference between two
means
6.8.3 Comparing the means of two related populations: Paired t
tests

4. Methods of Instruction

The course will be taught by lecture method, problem solving and group discussion. Students
will require to utilize computer for computational works.

5. Evaluation system and Students’ Responsibilities

Evaluation System
In addition to the formal exam(s) conducted by the Office of the Controller of Examination of
Pokhara University, the internal evaluation of a student may consist of class attendance, class
participation, quizzes, assignments, presentations, written exams, etc. The tabular presentation of
the evaluation system is as follows.
External Evaluation Marks Internal Evaluation Marks

Semester-End 50 Class attendance and participation 5

Examination Practical problems using Excel 10
Quizzes and assignments 10
Internal Examinations 25
Total External 50 Total Internal 50
Full Marks 50+50=100

Students’ Responsibilities:
Each student must secure at least 45% marks in the internal evaluation with 80% attendance in
the class to appear in the Semester End Examination. Failing to obtain such score will be given
NOT QUALIFIED (NQ) and the student will not be eligible to appear in the End-Term
examinations. Students are advised to attend all the classes and complete all the assignments
within the specified time period. If a student does not attend the classes, it is his/her sole
responsibility to cover the topic(s) taught during the period. If a student fails to attend a formal
exam, quiz, test, etc. there won’t be any provision for a re-exam.

6. Prescribed Books and References

Text Books
 Levine, D. M., Krehbiel, T. C., Berenson, M. L., & Viswanathan, P. K. Business Statistics: A
First Course. New Delhi: Pearson Education.
 Levin, R. I. and Rubin, D. S., Statistics for Management. New Delhi: Prentice Hall

Reference Books
 Siegel, A. F. Practical Business Statistics. New York: Andrew F, Irwin.
 Anderson, D. R., Sweeney, D.J. and Williams, T. A. Statistics for Business and Economics.
New Delhi: Thomson.