Indian Institute of Foreign Trade, Kakinada

Program Name and Batch: BBA (FT) 2022-25

Course Name: Introductory Statistics

Course Coordinators: Dr. Saurav Dash and Dr. Miklesh Prasad Yadav

Email: [email protected]

Term: I Credits: 4

Course Introduction:
This preliminary course will create a solid foundation in the area of Statistics and
Probability Theory predominantly used in business and management. Due to very much
uncertain situation in business and in our daily life, the probabilistic way of thinking
changes the direction of decision making. This base course will offer an intuitive and in-
depth understanding of some fundamental concepts of Data Collection; Frequency
Distribution; Measures of Central Tendency and Dispersion; Probability Theory; Random
Variables and Probability Distribution; Statistical Inference and Correlation and
Regression Analysis; Students shall know how to solve the various business problems
using various statistical concepts. Students shall be able to use a wide variety of practices
used for various types of industries. Students will be able to understand the stochastic
concepts and terminology involved in various areas. It will describe the fundamental
principles arising from the uncertain situations associated to business applications.
Statistics provides the fundamental theoretical understanding necessary to make efficient
business-related decisions.
In this course students will develop their understanding of data and learn collecting and
efficiently summarizing various types of data. The overriding goal of the course is to make
students better decision-makers in businesses or in institutional contexts where uncertainty
is involved.
Course Objectives
 To increase data awareness and interpret business-related problems
 Learn to summarize a dataset
 The students will be able to report descriptive statistics.
 To familiarize the students with basic statistical methods.
 Apply basic statistical concept to understand the business and economic situation.
 Student will be able to build basic predictive models.
 The students will be able to understand the utilities of Regression, Probability Theory,
Random Variables, and Statistical Inference in business.

Programme Learning Goals covered through this Course

 Learning Goal 2: Innovative Thinking with Critical Analysis *
 Learning Goal 3: Managing Complex, Uncertain Business Situations
Be able to effectively manage and resolve the problem/issue in new and unfamiliar
circumstances.

Pedagogy: Classroom lectures, class discussions and assignments. Active class participation will
be encouraged during the course. The course is designed around interactive class lectures,
assigned readings from text book(s) and various articles and assignments. The students
are expected to be well-versed with the assigned readings before they come to each class.
The class lectures serve as complements to textbook readings and in many cases may
overlap the materials covered in textbook(s). In some cases, lecture notes and subsequent
discussions may cover some issues not explicitly found in prescribed textbook(s) or
reading materials. However, students must be well-prepared with all assigned course
materials.

Linkages with Other Courses:

 Classes from this course will be vital to get the intuitive idea on various business and
management aspect where uncertainty is involved.
 Since the course will be taught in the second semester, this foundation course will help all other
subsequent courses where quantitative analysis or practices are required.
 This course will help to develop the understanding of data and its summarization.
 Evaluation Components:
 Quiz (Best three out of four): 30 Marks
 Mid-term Exam: 30 marks
 End Term Exam: 40 marks.*
(End Term should be 40% and no single component can be more than 30%. The evaluation component/s
which provide a direct measure of one or more programme learning goals may be marked with * and at least
one such component should be indicated)

Text Book:
(SCG) Fundamentals of Statistics (2022), “7th Revised & Enlarged Edition” S.C.Gupta
References:
 (HPS) “Introduction to Probability Theory:, Paul G. Hoel Sidney C. Port, Charles Joel Stone
(1972). Houghton Mifflin.
 (GGD) “Fundamentals of Statistics- Volume One”, 8th edition, reprinted, Gun, Gupta, Dasgupta
(2012), The World Press Private Limited.
 (FW) “An Introduction to Probability: Theory and its Applications”, W Feller (2008):
3rd ed John Wiley & Sons.
 (ND) “BASIC STATISTICS: 2Nd Edition, Nagar and Das (1997), Oxford University Press.

Session Plan:

Session Topic and Sub topics Reading

(with brief description of what intends to be achieved) Reference / Cases
Module I: Introduction, Data Collection, and
Frequency Distribution (5 sessions – 5 hrs.)
1 Introduction SCG (Chapter 1)
 Definition of Statistics
 Importance, Scope and Limitation of statistics

2-3 Data Collection and classification SCG (Chapter 2)

 Collection of Data, Presentation of Data Concepts of
statistical population and sample – Sources of data,
nature of data- qualitative, quantitative, continuous,
discrete, cross-sectional and time series, techniques of
data collection
 Measurement scales - nominal, ordinal, interval and
ratio - Primary and secondary data- Classification and
tabulation of data.
4-5 Frequency Distribution SCG (Chapter 3&4)
 Frequency Distribution- Diagrammatic and graphical
representation of data - Histograms, Frequency
Polygons and Ogives.
Module II: Measures of Central tendency and
Dispersion (5 sessions – 5 hrs.)
 6-8 Measures of Central tendency SCG (Chapter 5)
 Measures of Central Tendency-Mean – Arithmetic
Mean, Geometric Mean and Harmonic Mean.
 Median, Mode and other Positional measures. Cases of
uneven class boundary. Merits and Demerits of Mean,
Median, Mode. Boxplot Technique for Outlier
Detection. Sheppard’s correction.

9-10 Measures of Dispersion SCG (Chapter 6&7)

 Measures of Dispersion- Range, Quartile Deviation,
Mean Deviation, Standard Deviation and Coefficient
of Variation. Skewness, Kurtosis.

Module III: Probability Theory (5 sessions – 5 hrs.)

11-12 Probability Theory SCG (Chapter 12)
 Basic Concepts of Probability, Random experiments,
trial, sample space, events. Approaches to probability.

13-15 Other theories on Probability HPS (Chapter 1, 2)

 Addition laws, Multiplication Laws, Conditional
Probability, Independence of Events, Bayes theorem
and its applications.

Module IV: Random Variables and Probability

Distributions (10 sessions – 10 hrs.)
16-17 Random Variables SCG (Chapter 13)
 Definition, Probability Space
 Distribution Function- Properties
 Discrete Random Variable- Probability Mass Function
 Continuous Random Variable – Probability Density
Function
18-20 Discrete Probability Distribution HPS (Chapter 4)
 Bernoulli Distribution, SCG (Chapter 14)
 Binomial Distribution,
 Poisson Distribution,
 Negative Binomial Distribution,
 Hypergeometric distribution
21-24 Continuous Probability Distribution HPS (Chapter 5)
 Rectangular Distribution
 Normal Distribution
 Exponential Distribution
25 Theorem and Inequalities Class Notes
 Markov Inequality
 Chebyshev's inequality
 Central Limit Theorem
Module V: Statistical Inference I – Estimation (4 sessions
– 4 hrs.)
 26-27 Point Estimation SCG (Chapter
 Concept of Sample statistic and Population Parameter 15&16)
 Characteristics of Estimators
 Unbiased Estimator
28-29 Interval Estimation SCG (Chapter 16)
 Confidence Intervals and confidence limits
Module VI: Statistical Inference II – Testing of Hypothesis
(6 sessions – 6 hrs.)
30-31 Hypothesis Testing SCG (Chapter 16)
 Statistical Hypothesis (Simple and-Composite)
 Null Hypothesis, Alternative Hypothesis.
 Critical region
 Type I and Type II error
 Level of Significance, Power of the Test
32-35 Large and Small sample Tests SCG (Chapter 17)
 Testing of Hypothesis – Z- test, Student’s t- test, Chi-
square test, F-test for various parameters.
Module VII: Correlation and Regression Analysis (5
sessions – 5 hrs.)
36-37 Correlation SCG (Chapter 8)
 The Scatter Plot
 Karl Pearson’s Coefficient of Correlation and
Spearman’s Rank Correlation
 Correlation Coefficients and its properties

38-40 Regression SCG (Chapter 9)

 Least square method,
 Two Lines of Regression
 Regression Coefficients and its properties
 Testing for regression coefficient

Any Other Detailed Instructions / Information/ Additional Readings/ Journals (optional)