1. Punjab College of Technical Education Ludhiana
COURSE MODULE
BUSINESS STATISTICS
Name of Teacher: Asha Sharma (asha_s81@hotmail.com)
Nidhi Juneja (nidhi_juneja30@yahoo.co.in)
Subject Code: BB-304
No. Of lecture: 57
Class Tests: 2
Hourly test: 2
Assignment: 3
Activity: 2
Course Objective:
Business Statistics is helpful in framing suitable policies in a large number of diversified fields
covering natural, physical and social sciences. It will enable the students to know what is
statistics, how and when to apply statistical techniques to decision making situations and how to
interpret the results.
Class Room Policies:
1. Student will be allowed to enter the class till the attendance is going on, after that no one
can enter the class.
2. No student will be given a chance to reappear for MSE.
3. All the tests will be considered for internals.
4. Each assignment will have weightage & assignments are to be submitted by the
scheduled time, failing which no assignment will be accepted.
Internal Marks Distribution:
Mid Semester Examination: 15
Presentation: 6
1st Hourly Tests: 5
2nd Hourly Tests: 5
Class test: 5
Assignment: 4
3. Lecture No. Contents Assignments
1. Introduction to Business Statistics
• Relevance
• Applications
2. Functions of statistics
• Definiteness
• Condensation
• Comparison
• Prediction
• Formulation Of suitable policies
Limitations
• True only on average
• It can be misused
• One method of studying the problem
• Does not deal with individual measurements
3. Data
• Relevance
• Collection of Data
4. Classification of data
5. Collection of chocolate preference (Activity-1)
6. Formation of discrete
Continuous frequency distribution
7. Tabulation of data
• meaning
• Relevance
• Format of table
8. Case study -1(Portfolio management)
9. Graphic presentation: Meaning
Types of diagrams
• Sub-divided bar
• Multiple bars
• Percentage bar
• Pie Chart
10. Graphic presentation (contd.).
• Graphs of frequency distribution
• Frequency Polygon
• Frequency curve
• Ogives
11. Practical Tutorial- 1
Discussion on the problem of students.
12. Measures of central value / Measures of Location Assignment-1
Relevance
Objectives of averaging
Requisites of a good average
13. Arithmetic mean
# Calculation in Individual
14. Calculation of mean in descrete and continuous series
15. Geometric mean
16. Harmonic mean
17. Median
4. REFERNCES
1. Levin & Rubin: Statistics for Management, Prentice Hall India.
2. Srivastava & Rego : Statistics for Management, Tata McGraw Hill
3. S.P.Gupta : Statistical Methods, Sultan Chand & Sons
4. Andersons, Sweeny and Williams : Cengage Learning, Statistics for Business and
Economics
Activity-1
Students will go to 25 children and ask them about their chocolates’ preferences among the
various brands available in the market. They will collect the data about the name and age of the
children along with their preferences. Then, they will convert this raw data into a Bivariate Table
consisting of 2 variables.
1. Chocolate
2. Age
For Example:
X(Chocolate)/Y(Age 3-5 5-7 7-9 9-11 11-13 13-15
)
Dairy Milk
sMilky Bar
Munch
Perk
5. Nestle
5 Star
Bar One
Activity-2
Calculate the relationship between the marks obtained in 10th & +2 of 15 students.
Assignment-1
Draw the Histogram, Frequency Polygon and Frequency Curve:
1.
Variable Frequency Variable Frequency
100-110 11 140-150 33
110-120 28 150-160 20
120-130 36 160-170 8
130-140 49
2.
Salary (p.m.) No. of employees
Less than 3000 100
3000-4000 20
4000-5000 30
5000-6000 60
6000-7000 75
7000 & More 115
Assignment-2
1. Calculate Median & Mode of the data given below. Using them find arithmetic mean.
Marks 10 20 30 40 50 60
Less Than
No. of 8 23 45 65 75 80
students
2. Find the class intervals if arithmetic mean of the following distribution is 33 & assumed mean
35.
Step -3 -2 -1 0 1 2
Deviation
6. Frequency 5 10 25 30 20 10
Assignment-3
1. Calculate Karl Pearson’s Coefficient Of Correlation from the following data:
X 100 200 300 400 500 600 700
Y 30 50 60 80 100 110 130
2. Find Rank Correlation
X 50 55 65 50 55 60 50 65 70 75
Y 110 110 115 125 140 115 130 120 115 160
Presentation Topics
Every group will take up any Organization according to their convenience and will collect the
data relating to its sales and Production (month wise for 4 years) and will show the same for
every year in graphs and will have to find the average sales and production during the year and
the combined mean for all the 4 years.
The students will be divided into the group of 3. Each group will have to present within 20
minutes.
Presentation Assessment Break Up
Presentation Report 3
Communication skills 4
Formals 1
Query handling 2
Formulae Of Statistics In Course
Arithmetic mean
Direct Method
In Individual Series A.M.= ΣX/N
In Discrete & Continuous series A.M.= ΣFX/ΣF
7. Short Cut Method/ Indirect Method A.M.= A+ΣFdx/ΣF
Step-deviation Method A.M.=A+ΣFdx'/ΣF*i
Geometric Mean G.M.=√ab
Harmonic Mean
In Individual Series N/Σ(1/X)
In Discrete & Continuous series N/Σ(f*1/X)
Median
In Individual & Discrete Series M=N+1/2, (Nth term+N+1/2)/2
Continuous series N1=N/2, M=L+ N1-CF/F*i
Mode
In Individual Series Maximum repeated term
In Discrete & Continuous series Groupung Table & Analysis Table, M=
L+D1/(D1+D2)*i
Quartiles
In Individual & Discrete Series Q1=N+1/4, Q2=2(N+1)/4, Q3=3(N+1)/4
Continuous series N1=N/4, Q1=L+(N1-
C.F.)/F*i,N1=3N/4,Q3=L+(N1-C.F.)/F*i
Decile N1=N/10, D1=L+(N1-
C.F.)/F*i,N1=9N/10,D9=L+(N1-C.F.)/F*i
Percentile N1=10(N/100), P10=L+(N1-
C.F.)/F*i,N1=90N/100,P90=L+(N1-C.F.)/
F*i
Measures of dispersion
Range Highest Value-Lowest Value
Quartile Deviation Q3-Q1/2
Coeffcient of quartile deviation Q3-Q1/Q3+Q1
Mean Deviation
In Individual Series Σ[X-A.M.]/N
In Discrete & Continuous series ΣF[X-A.M.]/N
Coefficient Of Mean Deviation M.D./A.M.or M or Z
Standard Deviation
In Individual Series √Σd²/N-(Σd/N)2
In Discrete & Continuous series √Σfd²/N-(Σfd/N)2
Coefficient Of Standard Deviation S.D./A.M.
Variance S.D.²
Coefficient of variation S.D./A.M.*100
Coefficient Of Correlation
Karl Pearson r=NΣXY-(ΣX.ΣY)/√(NΣX²-
{ΣX}²).√(NΣY²-{ΣY}²)
8. Spearman 1-6ΣD²/N³-N When ranks are not
repeated
1-6[ΣD²+1/12{m³-m}]/N³-N, When ranks
are repeated
Concurrent deviation C √n (2C-n/n)
Standard Error 1-r²/√N
Probable Error 0.6745 (1-r²/√N)
