BA 275 Quantitative Business Methods

Lecture Hours: 4
Credits: 4

Presents management decision processes utilizing statistical methods. Includes use and application of probability concepts, sampling procedures, statistical estimation, and regression.

Prerequisite: MTH 095 with a grade of C or better; or consent of instructor.
Student Learning Outcomes:

Gather, analyze, interpret, and present statistical information used in the business environment to make management decisions.

Content Outline

Quantitative Business Methods
- Fundamentals
  - Terminology
  - Types of data
  - Collecting data
- Describing sets of data
  - Graphical methods
  - Time series plot
  - Summation notation
  - Central tendency
  - Variability
  - Standard deviation
  - Relative standing
  - Quartiles and box plots
  - Bivariate relationships
  - Distortions
- Probability
  - Random sampling
- Random variables and probability distributions
  - Types
  - Binomial distribution
  - Normal distribution
  - Sampling distributions
  - Sample mean distribution
- Estimation with confidence intervals
  - Large-sample confidence interval for a population mean
  - Small-sample confidence interval for a population mean
  - Large-sample confidence interval for a population proportion
  - Determining sample size
- Tests of hypothesis
  - Elements of the test
  - Large-sample test about population mean
  - P-values
  - Small-sample test about population mean
  - Large-sample test about population proportion
  - Non-parametric test about population median
- Comparison/Analysis
  - Two population means: independent sampling
  - Two population proportions: independent sampling
  - Contingency tables
- Simple linear regression
  - Least squares approach
  - Assumptions
  - Estimating variance (02)
  - Making inferences about the slope (B.)
  - Coefficient of correlation
  - Coefficient of determination
  - Estimation and prediction
- Multiple linear regression
  - Least squares approach
  - Assumptions
  - Inference about the B parameters
  - R2 and Global F test
  - Estimation and prediction
  - Checking assumptions
  - Pitfalls
    - Estimability
    - Multicollinearity
    - Extrapolation
Application to business problems
- Income estimation
- Cost estimation
- Sales forecasting
- Performance evaluation
- Inventory analysis and control
- Quality control