Statistics for Business Decisions


Anita Patra


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Course Name : Statistics for Business Decisions

Code(Credit) : CUTM1211 (4-2-0)

Course Objectives

  • The objective of this course is to familiarise students with the basic statistical tools used for Managerial decision-making.

Learning Outcomes

  • Students will be well equipped to recognize the problem, use appropriate sampling techniques, formulate the appropriate hypothesis, use the appropriate measures of central tendency, measures of dispersion, hypothesis testing technique, and interpret the results thereof.
  • Students will also be able to use excel for data analysis and hypothesis testing.

Course Syllabus


Statistics: Definition, scope and its limitations. Introduction to sampling, Random sampling vs. non-random sampling, Types of sampling, Simple random sampling, stratified random sampling, systematic cluster sampling, Distributions, sampling error, Classification and tabulation of data.

Project work: Collection of data from primary/secondary course, compilation in spreadsheet, tabulation and graphical presentation. Presentations & Report submission. - Assignment -1



Measures of Central Value: Mean, Median, Mode, harmonic mean and geometric mean. Merits, Limitations and Suitability of averages. Relationship between averages.

Practice Sessions on problems (solve using Excel)

Measures of Dispersion: Meaning and Significance. Absolute and Relative measures of dispersion - Range, Quartile Deviation, Mean Deviation, Standard Deviation, Coefficient of Variation, Moments, Skewness, Kurtosis, Which Measure of Dispersion to Use?

Practice Sessions on problems (solve using Excel)- Assignment-2



Correlation Analysis: Meaning and significance. Correlation and Causation, Types of correlation. Methods of studying simple correlation - Scatter diagram, Karl Pearson’s coefficient of correlation, Spearman’s Rank correlation coefficient.

Regression Analysis: Meaning and significance, Regression vs. Correlation, Linear Regression, Regression lines (X on Y, Y on X) and Standard error of estimate.

Practice Sessions (solve problems using Excel)- Assignment-3



Probability: Meaning and need. Theorems of addition and multiplication. Conditional probability. Bayes’ theorem, Random Variable- discrete and continuous. Probability Distribution: Meaning, characteristics (Expectation and variance) of Binomial, Poisson, and Normal distribution. Central limit theorem.

Practice Sessions (solve problems using Excel)- Assignment-4


Hypothesis testing: Concept, Level of Significance, Steps of hypothesis testing, Test of hypothesis concerning Mean; Test of hypothesis Normal Z test & t test for single mean.  Using Non-parametric statistics for hypothesis testing.

Practice Sessions (solve problems using Excel)- Assignment-5


Books recommended:

  1. S.P. Gupta (S.P.): Statistical Methods, Sultan Chand & Sons, 34th Edition.
  2. Richard Levin & David Rubin : Statistics for management, Prentice Hall.
  3. Anderson, Sweeny & Williams: Statistics for Business and Economics, South Western.

Session Plan

Session 1

Session 2

Meaning of data, Sources of data, Data types

Business Statistics_Session-2

Session 3 & 4

Introduction, why sampling, Sampling methods – Probabilistic & Non Probabilistic, Error in Survey

Business Statistics_Session-3 & 4

Session 5, 6 & 7

Data Presentation - Data compilation (excel worksheet), Presentation (array, stem & leaf display), Tabulation, Frequency table, Relative Frequency, Bivariate table, Graphical presentation

Business Statistics_Session-5,6&7

Session 8, 9, 10, 11 & 12

Project (assignment)

  • Students in groups (4 group size) will choose a topic/ problem, where in they need to collect data (within the campus)

The students will be guided in the class to choose a topic, finalise an objective, choose a data collection technique, prepare a questionnaire, collect data, compile & present the data. Use of excel and powerpoint for the exercise will be practiced.

Session 13, 14 & 15

Presentation on the project assigned. Report Submission.

Session 16, 17, 18 & 19

Measures of Central Tendency- Introduction, Definition and Objectives, Requisites of a Good Average, Types of Averages: Arithmetic Mean, Median, Mode, Geometric Mean and Harmonic Mean, Advantages and limitation, Which average to use.

Business Statistics_Session-16,17,18&19

Session 20, 21, 22 & 23

Practice Sessions

Measures of Central Tendency - Mean – Arithmetic Mean (Grouped Data & Ungrouped Data), Weighted Mean, Median (Grouped Data & Ungrouped Data), Mode (Grouped Data & Ungrouped Data)

Use of Excel for the problems

Session 26, 27, 28 & 29

Measures of Dispersion - Mean Deviation, Variance, Standard Deviation, Relative dispersion (Coefficient of Variation), Kurtosis and Skewness

Business Statistics_Session-26,27,28&29

Session 30, 31, 32 & 33

Practice Sessions

Measures of Dispersion - Range, Quartile Deviation, Interquartile range, Percentile, Mean Deviation, Variance, Standard Deviation, Coefficient of Variation

Use of Excel for the problems

Session 34, 35 & 36

Correlation Analysis - Introduction, Significance of the Study of Correlation, Types of Correlation- Scatter diagram, Methods of Studying simple Correlation, Karl Pearson’s coefficient of correlation, Spearman’s Rank correlation coefficient.

Session 37 & 38

Regression Analysis - Difference between Correlation & Regression, Regression Analysis (X on Y, Y on X), Standard error of estimate

Session 39, 40 & 41

Practice Sessions

Correlation and Regression analysis

Use of Excel sheet

Correlation and Regression by using excel-

How to Calculate a Correlation in Microsoft Excel - Pearson's r -

How to calculate Spearman's correlation coefficient

Spearman's coefficient EXAMPLE:

Session 46, 47 & 48

Probability distribution - Probability distribution, Discrete Probability distribution, Continuous Probability distribution, Normal distribution, Binomial distribution, Poisson distribution, Central Limit theorem

Business Statistics_Session-46,47&48

Session 49, 50 & 51

Practice sessions

Previous year question papers and Assignments

Session 56, 57 & 58

Hypothesis Test of Means - Steps in Hypothesis testing, One population - Z-test, t-test

Business Statistics_Session-56,57&58

Session 59, 60 & 61

Practice Sessions

Assignment - Practice problems, Use of Excel

Give live data to the students & Make students formulate a hypothesis, test the hypothesis

Session 62 & 63

Chi-square test- Test of Goodness of fit, Test of Independence, Uses of Chi square test

Business Statistics_Session-62&63

Session 64 & 65

Practice sessions

Chi - square

Use chi square test on the data collected in Assignment-1

Session 66, 67 & 68

Practice Sessions

Using excel for hypothesis tests

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      Professor in Management and an enthusiast learner with teaching and research experience of 20 years. Research interests and publications in the area of Rural entrepreneurship, Banking, Women entrepreneurship. Have been a part of many training and research projects.   “SUCCESS IS NO ACCIDENT. IT IS HARD WORK, PERSEVERANCE, LEARNING, STUDYING, SACRIFICE AND MOST OF […]

    Dr. Bibhunandini Das is working as Associate Professor in Economics in the school of management, Centurion University of Technology and Management, Odisha. Dr Bibhunandini Das has obtained her PhD from the Centre for Development Studies, Jawaharlal Nehru University, New Delhi in 2015. Prior to joining CUTM, she has worked with Indian Institute of Public Health, […]