BUSINESS STATISTICS AND MATHEMATICS

2 BUSINESS STATISTICS AND MATHEMATICS (Programme Master in Financial Control) Faculty: Prof. C. P. GuptaTHE COURSE ForunderstandingthedynamicsandcomplexitiesofFinance,onehastobuild necessaryquantitativeskills.Today,nonecanimaginebeingafinancial-wizard withouthavingstrongbackgroundinquantitativetechniques.Fromeverycorner, financialdataisbeingbombarded,andoneshouldbestronginanalyzingand modelingthemtocomeoutwithsoundfinancialdecisions.Therefore, itisstrongly recommendedthateveryfinancemanagershouldbetrainedinquantitative techniques.And,thiscourseispreciselyaimedatachievingthisobjectivemake todays students of Finance, the future financial-wizards capable to managing financial data using quantitativetechniques for sound financial decision making. It primarily concentrates on developing the following capabilities among the students: 1)Themathematicalabilityofhandlingdata,optimizingcertainobjectivesand solve system of linear equations.2)Honing the skills of using statistical tools for capturing basic characteristics of the data. 3)ThecapabilitiestohandleuncertaintythroughProbabilityTheoryandother related topics.4)Buildingnecessarycapabilitiessothatthestudentscanmakenecessary inferences about the population on the basis of sample information.5)Learninghowtomakesoundfinancialdecisioninanuncertainty environment. 3 6)Theabilitytoestablishrelationsamongthefinancialvariables,andmake forecast for the future. To be more specific, the Course is committed to develop students quantitative ability to process, analyze and infer necessary conclusion so that they would be able to take sound financial decisions. PEDAGOGY TheCourseisabout50hoursofclass-roominteraction.Thethrustofthe pedagogy adopted would essentially be in two directions first, make the foundation strong in the theoretical concepts; and second, encourage the students to apply them insolvingvariousfinancialproblems.Onthewhole,thedrivingforcebehindthe pedagogy will be learn and apply. Students will be exposed to and be encouraged to usesoftwarelikeMS-EXCEL,andSPSSfornecessaryprocessingofdatausing MathematicalandStatisticalTechniqueslearntintheCourse.Anumberofreallife problemsandcaseswillbediscussedtoequipthestudentswithapplication-skills. Students have to devote lot of time in self-study and practice the techniques learned duringtheCourse.Theyshouldrememberthemoreonepractices,themores/he becomes perfect in applying what all are being learnt. 4 BUSINESS STATISTICS AND MATHEMATICS: Session-Plan Session Number(s) Topic(s) 1Differential and Integral Calculus Their Application in Business and Finance 2Matrices and Linear Algebra - Their Application in Business and Financeand Implementing them using MS-EXCEL 3-4Introduction to Statistics and Basic & Descriptive Statistics, Moments and their Applications in Financial Statistics 5-6Probability Theory And Bayes Theorem Its application in Business and Financial Problems 7-10Random Variable, Probability Distribution, Expectation and Variance of Probability Distribution, Theoretical Distribution Discrete and Continuous.11-12Sampling and Sampling Distribution, Standard Error, and Statistical Inference Estimation 13-16Statistical Inference Hypothesis-Testing: Parametric and Non-Parametric Tests 17-18Analysis of Variance One Way and Two-Way 19-20Correlation and Regression Their Application in Business and Finance21-23Index Numbers Commodity Price and Share Price Indices 24Time Series Analysis and Forecasting 25-26Decision Theory and Decision Tree Evaluation Criteria Quizzes and Concept Test 15% Final Examination70% Assignments and Presentations15%References: 1. StatisticsforBusinessandEconomics:DavidR.Anderson,DennisJ. Sweeney,andThomasA.Williams,ThomsonSouth-WesternCollege Publishing. (Latest Edition) 2. StatisticsforBusiness:DecisionMakingandAnalysis;RobertE.Stine and Dean Foster, Pearson Education, India. 5 3. FrankS.Budnick,AppliedMathematicsforBusinessEconomicsand Social Sciences, McGraw Hill. (Latest Edition) 4. BusinessStatistics:FirstCourse;DavidM.Levine,MarkL.Berenson, Timothy C. Krehbiel and P. K. Viswanathan, Pearson Education, India. 5. BusinessMathematics&Statistics;JKThukral,MayurPaperback, Paperback. 6. BusinessMathematics:Theory&Applications;SharmaJK,Ane Paperback.