HCS 110-FINANCIAL MATHEMATICS AND STATISTICS COURSE OUTLINE Aims of the module: The objective of this course is to introduce basic statistical concepts and methods that are important in business. The major areas covered are the collection, organization, analysis, interpretation and presentation of information for business decision-making purposes. The topics include descriptive statistics techniques, probability, discrete and continuous distributions, sampling, hypothesis testing and index numbers. 1.
DESCRIPTIVE STATISTICS
- get familiar with some of the statistical terminology; - represent data graphically and using different methods. -construct a frequency distribution table (rule of thumb, & Sturges’ (1926) rule). - understand basic frequency distribution; -measure the central tendency and location of a given set of grouped or ungrouped data; - evaluate the dispersion and skewness of a given set of ungrouped or grouped data 2.
PROBABILITY
-understand the basic concepts of probability; -compute the probability of an event; -understand and apply the addition and multiplication rules in solving business application problems; -permutations and combinations -understand and apply the theorem of total probability. 3. PROBABILITY DISTRIBUTIONS -understand basic concepts of probability distributions, such as random variables and mathematical expectations; -show how the Normal probability density function may be used to represent certain types of continuous phenomena; -demonstrate how certain types of discrete data can be represented by particular kinds of mathematical models, for instance, the Binomial and Poisson probability distributions. 4. SAMPLING DISTRIBUTIONS AND ESTIMATION -define and construct sampling distributions of means and proportions; -explain the central limit theorem and its importance in statistical inference;
-calculate confidence intervals for means and proportions.
5. HYPOTHESIS TESTING - understand the meaning of a statistical hypothesis and significance test; - understand the reasoning relating to the procedure in carrying out a significance test; - differentiate small sample test from large sample test; - understand the tests concerning means and proportions; 6. INDEX NUMBERS -Introduction and definition of terms -differentiate the types of index. -calculate price index and quantity index. -calculate Paasche index, Laspeyres index and Fishers’ Price/Quantity Index. Recommended books:
Applied Business Statistics: Methods and Excel-based Applications by Trevor Wegner Business Statistics in Practice, 2nd Canadian Edition (2011), by Bruce L. Bowerman, Richard T. O’Connell, Julie Aitken Schermer, and James R. Adcock. Statistics for Economics by TR Jain, VK Ohri Statistics: Concepts and Applications by Harry Frank, Steven C. Althoen
