Krannert School of Management
MGMT305-0301: Business Statistics (Spring 2002)

Course Information
Title: Business Statistics Semester: Spring 2002 Weeks 1-16
Number: MGMT305-0301 Credits: (3 - 3)
Program: Undergraduate Program Times: Lecture:TR 3:00-4:15 in KRAN G023
Area: Management Education

Course Professors & Admins
NameRoleEmailPhone Office/Hours
Tawarmalani, MohitProfessor 765-496-2620

Course Webpage

Course Description

This course is designed to introduce students to the techniques of statistical description and inference. Coverage will include the study of data distributions, descriptive measures, probability theory including standard probability distributions such as the normal and binomial; sampling distributions, the basic statistical inference methods, and applied linear regression techniques. Additionally, students will be introduced to the use of spreadsheet software to perform basic data analysis.

Upon completion of this course, students should be able to perform basic data analysis with the use of a calculator and tables along with performing the same analysis with the use of spreadsheet software.

Policies and Requirements

The only way you can really understand probability and statistics is by doing many problems. It is important to realize that this course is different than many others in the following respect: you may understand both the lectures and the book quite well, but not be able to do problems efficiently. The list of problems suggested in the syllabus is currently tentative.

A large number of problems from each chapter are suggested for practice. Your proficiency in this course will improve if these problems are done faithfully and in a timely fashion. A portion of these problems will be assigned as homework and graded. No late homework will be accepted. Solutions to problems will be posted on the course web page.

Exams will test both technical ability to carry out standard procedures and your understanding of important concepts. Do not expect exams to consist of homework assignments. Quizzes and exams are closed book. You are required to take all tests. Only under exceptional circumstances, when legitimate and verifiable reasons are provided, makeup tests will be given.

Classroom etiquette requires that you come to class on time and remain until the assigned time for the class to end. Please do not leave early unless it is absolutely necessary. You are expected to attend the section in which you are enrolled. Permission is required to attend any section other than the one in which you are officially enrolled. Attendance will be taken and will be accounted partly for class participation portion of your final grade.

Help Sessions
will be help sessions for the course conducted by FuShiang Tseng (Sean). Sean will discuss homework and other problems during the help sessions. Seanís email Schedule: MW 6:00-7:00pm in Krannert G5 starting January 14, 2002.

Academic Integrity
Students are expected to maintain the standards of academic conduct prescribed in

Homeworks & Quizzes 20%
Class participation & attendance 5%
Exam #1 25%
Exam #2 25%
Final exam 25%
TOTAL 100%

The Registrar's add, drop, and modify deadline dates for the Spring semester are at the website:

Text Books, Cases, and Readings
Title:Statistics for Business and Economics
Author:Anderson, Sweeney, Williams
Publisher:South-western, Thomas Learning

Included below is the course events followed in Spring 2002. For attachments you need to log into Catalyst.

Course Events
Thursday: Jan, 10 2002
Announcement:Course Syllabus
 Welcome to MGMT 305, a course on Business Statistics.
Find attached the course description, the tentative schedule and the syllabus.

Attached to the syllabus is the schedule for quizzes
and homeworks. Please read carefully.
Class Topic:Lecture 1: Notes Attached
 Basic Definitions of Data and Statistics
Reading: Chapter 1: 1.1, 1.2
Thursday: Jan, 10 2002
Class Topic:Lecture 2: Notes Attached
 Data Acquisition and Interpretation
Reading Chapter 1: 1.3-1.5
Summarizing Qualitative Data
Reading Chapter 2: 2.1-2.3
Appendix 2.2 (Softdrink Sale Analysis)
Tuesday: Jan, 15 2002
Class Topic:Lecture 3: Notes Attached
 Chapter 2: 2.4
Appendix 2.2 (PivotTable Report)
Chapter 3: 3.1
Appendix 3.2
Announcement:Homework 1
 1.14, 1.24, 2.9, 2.19, 2.22, 3.5, 3.20,
3.61(not e), 3.64

Note: 1.14 denotes Problem 14 in Chapter 1
Show your calculations clearly.
Due Date: Jan 22nd, 2002
Late Homework will not be accepted.
Thursday: Jan, 17 2002
Class Topic:Lecture 4: Notes Attached
Chapter 3: 3.2, 3.4
Chapter 4: 4.1, 4.2
Tuesday: Jan, 22 2002
Quiz:Quiz 1
 Coverage: Chapters 1,2,3

When: First 15 minutes of class
Class Topic:Statistics In Sports
 In sports, statistics play a central role in informing fans about the status of teams/players.
See for example,

1) NFL Stats (or Google Stats on NFL)
2) NBA Stats (or Google Stats on NBA)
Class Topic:Ebay: Statistics in Practice
 A recent article in Fortune Magazine provides an interesting use of statistics in business.

Ebay: How can Dot-Com be so Hot?. Look under the subheading: A Land of Charts and Graphs
Class Topic:Statistics in Labor Economics
 Statistics plays a major role in identifying facts
in labor economics.

Bereau of Labor Statistics
Assignment:Homework 1 Due
Class Topic:Lecture 5: Notes Attached
 Reading 4.1-4.3
Thursday: Jan, 24 2002
Class Topic:Lecture 6: notes Attached
 Reading 4.3-4.4
Class Topic:Seating Chart
Class Topic:Homework 2
 4.11, 4.21, 4.26, 4.31, 4.36, 4.42, 4.43, 4.45, 4.55
Tuesday: Jan, 29 2002
Class Topic:Lecture 7: Notes Attached
 Reading: 4.5
(Read 4.4 before coming to class. It will help)
Class Topic:HW 1 Solutions
Wednesday: Jan, 30 2002
Class Topic:Solutions to the Ch4 Handout
Thursday: Jan, 31 2002
Class Topic:Lecture 8
 Reading 5.1-5.3
Class Topic:Homework 3: Due Feb 12
 5.9, 5.17, 5.25, 5.31, 5.32, 5.34, 5.56, 5.57
Quiz:Quiz 2: Chapter 4
Tuesday: Feb, 05 2002
Quiz:Quiz 3: Sections 5.1-5.3
Class Topic:Lecture 9: Notes Attached
 Reading 5.3-5.4
Class Topic:Homework 2: Solutions
Thursday: Feb, 07 2002
Class Topic:Sample Exam for Midterm I
 Some questions are crossed out since the material required for them has not yet been covered in class. Try Part A and Part B before coming to class on Tuesday.
Tuesday: Feb, 12 2002
Class Topic:Homework3: Solutions
Wednesday: Feb, 13 2002
Class Topic:Seating Chart For Midterm
 Excel file has the seats and the word file is the seating chart. Should be marked 3 on your seat.
Class Topic:Interesting Article: Learning
 Students interested in the art of learning may
find the following article interesting:
Class Topic:Exam 1 Instructions
Thursday: Feb, 14 2002
Class Topic:Lecture 10: Notes Attached
 Reading 6.1-6.2
Friday: Feb, 15 2002
Class Topic:Makeup Exam
 Makeup exam is scheduled for Friday, Feb 15th,
4:00-5:45pm in Krannert 469.
Tuesday: Feb, 19 2002
Class Topic:Lecture 11: Notes Attached
Class Topic:Homework 4: Due Feb 26
 6.6, 6.7, 6.14, 6.17, 6.34, 6.37, 6.39, 6.42
Class Topic:Exam I Statistics
Thursday: Feb, 21 2002
Class Topic:Lab Class
 Meet in Krannert Lab: 7th Floor
Copy attached Excel File to a floppy/your account for use in class. Detailed steps in powerpoint slides
Tuesday: Feb, 26 2002
Class Topic:Lecture 12: Notes
Class Topic:Homework 5: Due Mar 5
 Homework 5: Chapter 7
Problems: 27,32,38,43,46,49,50,51
Quiz:Quiz 4
Thursday: Feb, 28 2002
Class Topic:Lecture 13
Tuesday: Mar, 05 2002
Quiz:Quiz 5: Chapter 7
Class Topic:Practice Homework
 Chapter 8: 8, 10, 16, 21, 28, 38, 46, 50, 56, 60,
Case Problem 2 (will not be graded)
Class Topic:Lecture 14
Thursday: Mar, 07 2002
Class Topic:Lecture 15
 They are already part of Lecture 14 notes
Class Topic:Sample Exam for Exam II
 Be ready to ask doubts on Tuesday, March 19th
Thursday: Mar, 14 2002
Assignment:HW 4, 5, not graded, Solutions
 Hw 4: Chap 6, Hw 5: Chap 7, Hw non graded: Chap 8
Monday: Mar, 18 2002
Class Topic:Extended Office Hours
 Monday and Wednesday 1:15-2:45pm this week
Tuesday: Mar, 19 2002
Class Topic:Review Class
 Doubts on sample exam, homework, quizzes?
Class Topic:Solutions to Sample Exam
Wednesday: Mar, 20 2002
Exam:Exam II and Seating
 EE129, Time: 7:00-9:00pm. Good Luck
Seating Chart for this section is the same as for first exam
Class Topic:Exam Instructions
 1) You have 2 hours for the exam
2) The exam is combined (multiple choice+problems)
3) 5 bonus points can be earned
4) You are allowed to use a crib sheet, one sided letter sized which is not to be exchanged
Thursday: Mar, 21 2002
Class Topic:Lecture Canceled
 Lecture is canceled in lieu of the evening exam
Monday: Mar, 25 2002
Class Topic:Makeup exam
 Makeup exam is scheduled for
Monday 10:00-12:00
Venue: Kran 469
Tuesday: Mar, 26 2002
Class Topic:Lecture 16
Wednesday: Mar, 27 2002
Class Topic:CNN/Gallup/USA Today polls
 Look at Gallup for polling results on politics/movies etc. Gallup Management Journal provides business applications. Read this to see how what we study is used in practice.
Thursday: Mar, 28 2002
Class Topic:Lecture 17
 Powerpoint slides (complete chapter) in last lecture
Tuesday: Apr, 02 2002
Class Topic:Lecture 18
Class Topic:Homework 6: Due April 9th
 Chapter 9: 18,19,27,45(a,b,d),49,54,73
Chapter 10: 7, 10, 14
Thursday: Apr, 04 2002
Class Topic:Lecture 19
Tuesday: Apr, 09 2002
Quiz:Quiz 6
 Chapter 9, 10.1
Class Topic:Lecture 20
Class Topic:Homework 7; Due April 18th
 10.19, 10.25, 10.26, 10.42 (excel file attached below),
14.2, 14.5 (not a), 14.11 (not c),
14.44 (f and g find prediction point not interval)
14.45 (not d,e)
Thursday: Apr, 11 2002
Class Topic:Lecture 21
 Notes attached in last lecture
Tuesday: Apr, 16 2002
Class Topic:Lecture 22: Notes Attached
Class Topic:HW 7: Excel file 10.42
 Should be in the CD with the book but attached here too. For 14.44 f) and g) just provide just a point estimate
Class Topic:Corrected HW 6
 I forgot to distribute the HW in class. If you want it, please take it from my office. I will distribute it on Thursday.
Thursday: Apr, 18 2002
Quiz:Quiz 7
 Remaining part of Chapter 10, and what we covered in Chapter 14
Class Topic:Lecture 23
 No new notes for today except the attached problem
Friday: Apr, 19 2002
Class Topic:Handout
 A handout was given with quiz 7. The first 2 pages of the handout will not be on the final exam.
Class Topic:Sample Final Exam
Tuesday: Apr, 23 2002
Class Topic:Lecture on Apr 23rd cancelled
 cancelled to cover 3 hr 45 minutes of exam time
Thursday: Apr, 25 2002
Class Topic:Review Class
 Note the attached sample exam on April 19th, 2002
Class Topic:Pre-Final Totals
Class Topic:Help Session, May 1st
 Have any last minute questions before the final?
Attend the help session

KRAN G23, May 1st, 6-8pm.
Instructor: Sean
Friday: Apr, 26 2002
Class Topic:6 best Quizzes will be counted
Thursday: May, 02 2002
Class Topic:HW 6,7 Solutions
 Note the hw 7 uses the formulae from the book.
However, I attach an excel sheet that does the
same calculations using the formulae covered in class
Saturday: May, 04 2002
Class Topic:Sample Exam Solution
Class Topic:Error in sample
 In multiple choice question 8, the 90% confidence interval is [6.349, 9.651]
Exam:Final Exam
 CL50 224, 1:00-3:00pm. Seating chart will be attached here

You are allowed a letter sized one sided crib sheet. The formula sheet on regression (ch. 14, distributed in class) and the sampling tree (ch. 9, distributed in class) will be attached.

Make sure you have the formulae for hypothesis testing of proportions, formulae from ch. 10 and the remaining formulae from Ch. 14 like MSE, s(b_1) etc on your crib sheet since they will not be provided in the exam

Exam Syllabus: Coverage: Ch 9, 10 and 14

Detailed Syllabus:
ch. 9: 9.1-9.6
ch.10: 10.1-10.3
ch.14: 14.1-14.4
14.5 (F test dropped)
14.6 (interval estimation and further dropped)
14.8 (residual plot against y hat and the
rest dropped, no normal probability plots)
Tuesday: May, 07 2002
Class Topic:Grades in Student Lounge
 Grades are now in student lounge.