GL BAJAJ INSITUTE OF MANAGEMENT AND RESEARCH

Plot No-2 , Knowledge Park-III, Greater Noida

FORMAT OF LECTURE PLAN AND SYLLABUS OUTLINE

Quantitative Techniques in Management

(Code: PG04)
(No. of Credits: 03)

PGDM (BATCH: 2017-19, TERM:I)

(Dr. Anand Rai)

Associate Professor-Finance

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Introduction about the course:

About the course: Probability and statistics are fundamental to management

education. This module is designed to prepare students to analyze data and make
decisions using statistical methods. The course include probability distribution,
sampling, hypothesis testing using t test, z test, F test etc.. It also include analysis of
variance and Chi- square test on Goodness of fit.

Why the course is important to be part of this program: The ability to understand
and apply probability concepts and statistical methods is fundamental to management
decision making. The quantitative evaluation of a problem often yields a more
informed decision than a subjective one. The focus of this module is on concept
development and its application for data analysis and decision making. Knowledge
of these methods will prove useful for decision making in financial analysis,
marketing, operations management, policy modeling, strategy and other areas.
Students also develop a basic understanding about conducting research and using
analytical tools and software.

Course Objective:
As an executive in corporate world, you will continuously face situations which require
sound decision-making. Be it a recruitment and selection process, a decision on the
marketing campaign strategies, or to decide between debt and equity investment, a thorough,
complete and sound decision-making is inevitable for long-term success. Therefore, it is
important that thoughtful consideration is put into each one that needs to be made. Presently,
overwhelming data is deemed to be a key source of intelligence and competitive advantage
for business organizations. With the explosion of electronic data available to organizations
and the demand for better and faster decisions, the role of data driven intelligence is
becoming central in organizations. But merely analyzing data isn't sufficient from the point
of view of making a decision. It has to be backed by judicious interpretation too. For a future
manager, the ability to manage, analyze and interpret data is extremely important, and this forms the
main crux of the course Quantitative Techniques in Management.

On completion of the module, students would learn:

Concepts of probability, various probability distributions, decision analysis,

confidence intervals, hypothesis testing, correlation and regression analysis

Concepts of probability and statistics and their practical applications in business

To use SPSS / MS Excel to solve varied business problems, involving probability

and statistics

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Course Learning Outcomes:

After the completion of the course, students should be able to:

Develop and present tables and charts for categorical, nominal and continuous data.
Describe the properties of central tendency, variation, and shape in numerical data.
Compute descriptive summary measures for a population.
Choose the appropriate distribution for given situation.
Understand the importance of binomial distribution and learn to choose the
appropriate distribution for given situation. They would also be able to understand
the application of Poisson distribution in business and would be able to differentiate
between all the distributions.
Understand the applications of normal distributions in different areas.
Understand the importance of sampling for various business scenarios and use of
appropriate sampling techniques according to situations.
Formulate hypothesis, the confidence level attached to support the formulated
hypothesis and chances of formulated hypothesis getting rejected.
Choose the suitable test and interpret the result to know whether the assumptions
made for single population should be accepted or rejected for small and large
samples.
Test the association and interpret the relationships between the categorical
variables.
Differentiate between the two populations or more than two populations. They will
also be able to identify an appropriate statistical test for data sets with more than two
groups. Students will also be able to interpret the result and find out whether groups
are same or not.

Pedagogy:
Every topic will be discussed in the class in the form of lecture session initially. The objective is not
just to understand the concept but also to have a thorough knowledge of the ramifications and the
applications of the concept in business parlance. Course will follow following tools for effective
learning:
Lectures
Case studies
Group discussion based on case studies
Team presentations on assigned topics
Quizzes
Discussion related to current topics

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Lecture Design:

S.N. Topics No. of Lecture/ No. of

Sessions Exercise/GD Hrs
UNIT-1 (Probability Distribution)
1 Introduction to Business Statistics: Why learn 1 Lecture 1.5
statistics, Data Collection, type of variables
2 Introduction to Business Statistics: Presenting 1 Lecture and 1.5
data in Tables and charts Numerical
3 Numerical Descriptive measures: Mean, Median, 1 Lecture and 1.5
Mode, Varinace and Standard Deviations Numerical
Case: Ashas Compensation Suit
4 Numerical Descriptive measures: Mean, Median, 1 Lecture and 1.5
Mode, Varinace and Standard Deviations Numerical
5 Understanding Probability and Statistics 1 Lecture 1.5
Understanding and choosing the correct
distributions
6 Application of Binomial Distribution and 1 Lecture and 1.5
Poisson Distribution Numerical
7 Normal Distribution 1 Lecture and 1.5
Numerical
Total Hrs 7 10.5
UNIT-2 (Sampling and Sampling Distribution
and Estimation)
8 Sampling: Simple Random Sampling, Stratified 1 Lecture and 1.5
Sampling Numerical
9 Sampling: Systematic Sampling, Multistage 1 Lecture and 1.5
Sampling Numerical
10 Sampling: Systematic Sampling, Multistage 1 Lecture and 1.5
Sampling Numerical
Team-1 Presentation
11 Non Random Sampling 1 Lecture and 1.5
Team-2 Presentation Numerical
12 Application of Estimation 1 Lecture and 1.5
Team-3 Presentation Numerical
Total Hrs 5 7.5
UNIT-3 (Parametric Inference)
13 Introduction to Hypothesis Testing: one tailed 1 Lecture and 1.5
and two tailed test, Type I and Type II eror Numerical
Team-4 Presentation
14 One sample test 1 Lecture and 3
Team-5 Presentation Numerical
Case Study-1 GD (Ashas Compensation Suit)
15 Two sample test 1 Lecture and 1.5
Team-6 Presentation Numerical

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 Case Study-2 GD (The Tractor Industry in
India: Largest in the world- Ch-2 N. Bajpai)
Total Hrs 3 4.5
UNIT-4 (Chi square Test on goodness of fit)
16 Introduction to chi-square test 1 Lecture and 1.5
Team-7 Presentation Numerical
Case Study-3 GD (Hero Honda Motors Ltd:
Aiming to capture the growing market in India,
Ch-4, N. Bajpai)
17 Hypothesis testing using chi-square test 1 Lecture and 1.5
Team-8 Presentation Numerical
Case Study-4 GD (Case on Sampling
Distribution from Levine, Timothy)
Total Hrs 2 3
UNIT-5 (Analysis of Variance)
18 Introduction to Analysis of Variance technique 1 Lecture and 1.5
for hypothesis testing. Numerical
Team-9 Presentation
Case Study-5 GD (Data file Mutual Funds
Web Case)
19 One Way ANOVA 1 Lecture and 1.5
Team-10 Presentation Numerical
Case Study-6 GD (Air Conditioner Industry in
India: Replacement of the unorganised sector by
the Organised sector)
20 Two Way ANOVA 1 Lecture and 1.5
Case Study- 7 GD (Case on Hypothesis testing Numerical
of New Product Launch)
Case Study-8 GD (Case on ANOVA test for
Comaprison of life of different brands of tyre)
Total Hrs 3 4.5
Total Course Hrs 20 30

Presentations:

Team-1 (Session-10):
A survey of 1264 women asked who was their most trusted shoping advisers. The results

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were as follows

Shoping advisers %
Advertising 7
Friends/Family 45
Manufacturer Website 5
New Media 11
Online user reviews 13
Retail websites 4
Sales people 1
Other 14

Q-1: Construct a bar chart, a pie chart, and a pareto chart

Q-2: Which graphical method do you think is best to portray these data?
Q-3: What conclusions can you reach concerning womens most trusted shoping advisers

Team-2 (Session-11):
Pick any 30 listed large cap company from product industry and collect the profit for the
Financil Year 2016-17. Do some statistical analysis to derive meaning information from the
data set.

Team-3 (Session-12):
Each day at a large hospital, several hundred laboratory tests are performed. The rate at
which these tests are done improperly ( and therefore need to be redone) seems steady, at
about 4%. In an effort to get to the root cause of these non-conformances (i.e. test that need
to be redone), the director of the lab decided to keep records over a period of one week. The
laboratory tests were subdivided by the shift of workers who performed the lab tests. The
results are follows:

Lab test performed Day Shift Evening shift Total

Non Conforming 16 24 40
Conforming 654 306 960
Total 670 330 1000

Q-1: Construct contigency table based on total percentages, row percentages, and column
percenatages.
Q-2: Which type of percentage- row, column, or total do you think is most informative for
these data? Explain.
Q-3: What conclusion concerning the pattern of non conforming laboratory test can the
laboratory director reach?

Team-4 (Session-13):

Collect the profit and sales of Infosys for the last ten years and present descriptive statistics

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of both the sales as well as profit related data.

Team-5 (Session-14): According to Burton G Malkiel, the daily changes in the closing price
of a stock follow a random walk- that is, these daily events are independent of each other
and move upward or downward in random manner and can be approximated by a normal
distribution.To test this theory, use internet or newspaper to select three company from
NSE/BSE and then do the following:
Q-1: Record the daily closing price of these companies for six weeks (30 values)
Q-2: Record the daily changes in the closing stock prices of these companies.

For each of your six data set, decide whether the data are approximately normally distributed
by
a) Eaxamining Histogram
b) Comparing data characteristics to theoretical properties
c) Construct a normal probability plot
d) Discuss the result a) through c). What can you say about three stock with respect to
daily closing prices and daily changes in closing prices? Which, if any, of the data
sets are approximately normally distributed?

Team-6 (Session-15): Data file Mutual Funds contains info regarding 868 mutual funds.
For expense ratio, three years return and five year returns, decide whether the data are
approximately normally distributed by
a) comparing data characteristic to theoretical value
b) constructing normal probability plot

Team-7 (Session-16): Choose any industry of your choice (like banking, automobile etc.).
Collect the data related to profit and sales for the past 5 years for 6 companies.

Q-1: Construct a relevant bar chart, a pie chart, and a Pareto chart
Q-2: Do analysis and derive meaningful information from the set of data and present

Team-8 (Session-17):
A bank branch located in a commercial district of a city has developed an improved process
for serving customers during the noon to 1pm lunch period. The waiting time, in minutes
(defines as the time customer enters the line to when he or she reaches the teller window), of
sample of 15 customers during this hour is recorded over a period of one week. The results
are as under
4.21, 5.55, 3.02, 5.13, 4.77, 2.34, 3.54, 3.20, 4.50, 6.10, 0.38, 5.12, 6.49, 6.19, 3.79.
Q-1: Compute the mean and median
Q-2: Compute the variance and standard deviation, range, coefficient of variations and Z
scores. Are there any outliers? Explain.
Q-3: Are the data skewed? If so, how?
Q-4: As a customer walks into the branch office during the lunch hour, she asks the branch

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manager how long she can expect to wait. The branch manager replies, almost certainly
less than 5 minutes. On the basis of the results of Q-1 to Q3, evaluate the accuracy of this
statement.

Team-9 (Session-18): See the Excel file name Bulb which shows the life (in hrs) of a
sample of forty 100- watt light bulbs produced by manufacturer A and a sample of forty 100
watt light bulbs produced by manufacturer B.

Q-1: Form a frequency distribution and a percentage distribution for each manufacturer,
using the following class interval widths for each distribution:
1. Manufacturer A: 650 but less than 750, 750 but less than 850 and so on
2. Manufacturer B: 650 but less than 750, 750 but less than 850 and so on
Q-2: Construct Histograms for both the manufacturers
Q-3: Which manufacturer has bulbs with a longer life?

Team-10 (Session-19): Pick any 30 listed large cap company from Service sector and
collect the profit for the Financial Year 2016-17. Do some statistical analysis to derive
meaning information from the data set.

Reference Books/ Suggested Readings

Text Books:
1. David M. Levine, Timothy C. Krehbiel, Mark L. Berenson and PK Viswanathan,
Business Statistics, Fifth Edition, Pearson.
2. U K Srivastava, G V Shenoy, Quantitative Techniques for Managerial Decisions,
New Age International Publishers

References:
1. Render, Barry, Ralph and Michael E Hanna, Quantitative Analysis for Management,
Prentice Hall, New Delhi
2. SC Gupta, Fundamnetal of Statistics, Himalayan Publications
3. Videos from khanacademy.org
4. David M. Levine, David F. Stephen, Timothy C. Krehbiel & Mark L. Berenson, PHI,
Fifth Edition, Statistics For Managers Using MS Excel

5. Glyn Davis & Branko Pecar(GD& BP), Oxford, First Indian Edition, Business
statistics using Excel

6. Ken Black(KB), Wiley, Fourth Edition, Business Statistics For Contemporary

Decision Making

Magazines/ Journals

1. http://serialsjournals.com/journal-detail.php (online)

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 2. The Road to Ruin: The Global Elites Secret Plan for the Next Financial Crisis
(Online)
3. Business Today
4. Outlook Money

Assessments:

Evaluation Criteria
Total marks Assigned: 100

Activity Marks
Case Study Analysis with Group Discussion 10
Quiz 10
Team Presentation 10
Mid Term Examination 20
End Term Examination 50

Assessment Map:

Course A1 A2 A3 A4 A5
Assessment

Notes:

A1: Quiz/ Assignment

A2: Group Discussion/Project
A3: Open Book Examination
A4: Closed Book Examination
A5: Team Presentation

Teaching Map:

Teaching T1 T2 T3 T4 T5 T6
Methodology

Notes:
T1: Lectures
T2: Seminars/Tutorials
T3: Projects & Presentation
T4: Case Discussion

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T5: Guest Lectures/Industrial Visit
T6: Lab Sessions

Curriculum Map:

Learning L1 L2 L3 L4 L5 L6 L7 L8 L9
from
Course

Notes:
Learning from the course related to Knowledge:
L1: Understanding of appropriate techniques sufficient to allow investigation into relevant
business & management issues.
L2: An awareness of current issues in business & management which is informed by
research & practice in the field.
L3: The ability to apply relevant knowledge to practical situation.

Learning from the course related to Skills:

L4: The ability to acquire & analyze data and information.
L5: An improvement in both oral & written communication skills.

Learning from the course related to Attitude:

L6: Understanding of organizations, their external context and their management.
L7: The ability to work & lead effectively in a team based environment.

Learning from the course related to Values:

L8: Being aware of the impact of their individual & corporate actions on society and
recognize ethical business practices.
L9: Being sensitive to the social economic and environmental responsibilities of business.

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