STUDENT GUIDE

MODULE

: BUSINESS DECISION MAKING

COURSE

: DBA(FT)/DBA(HRM)(FT)/DBA(MM)(FT)/DBA(SCM)(FT)
DBA(AF)(FT)/DBA(BF)(FT)

CODE

: MATS2012/V0B6

Dec 2013
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INTRODUCTION
Business Decision Making is an introductory course in qualitative and quantitative methods
which underpin effective business decision making. The module develops students ability to
incorporate statistical thinking and to take account of variation in the real world during
processes of establishing project initiatives, defining objectives, data collection, data
presentation, data analyses, reporting and decision making.

LEARNING OUTCOMES
On successful completion of this Module, the student will be able to:

Learning outcome 1:
Use appropriate data collection and data presentation techniques

Learning outcome 2:
Apply descriptive statistical measures to business situations

Learning outcome 3:
Demonstrate knowledge and understanding of probability theory and probability distributions

Learning outcome 4:
Understand and apply statistical inference techniques (including hypothesis testing) in
business situations

Learning outcome 5:
Understand and apply simple linear regression and correlation analysis

Business Decision Making

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CONTENTS
TOPIC 1:

Course Overview; Introduction to Statistical Thinking and Business

Decision Making Process; Data Collection and Presentation

TOPIC 2:

Descriptive Statistics

TOPIC 3:

Probability

TOPIC 4:

The Binomial Distribution

TOPIC 5:

The Normal Distribution and The Central Limit Theorem

TOPIC 6:

Confidence Intervals

TOPIC 7:

Hypothesis Testing

TOPIC 8:

Correlation and Regression

TOPIC 9:

Contingency Tables and the Chi-square Test

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ASSESSMENT
The assessment for this module is as follows:
Quiz 1 (online)

15%

Quiz 2 (online)

15%

Final Exam

70%

TOTAL

100%

QUIZ

The Quizzes comprises 30% of the final grade and it covers Topics 1 to 5.
o

Quiz 1 will cover Topics 1 and 2

Quiz 2 will cover Topics 3 to 5

Both of the Quizzes will be administered online through the Moodle. Students are
required to log in to the Moodle to do the Quizzes, by clicking on the respective <Quiz>
link.

The duration of each Quiz is one hour (60 minutes).

Each Quiz must be attempted by the session indicated below.

o

Quiz 1 - by 7th session.

Quiz 2 - by 13th session.

Students will be informed of the dates of each Quiz at the beginning of the term.

The Quizzes aim to test students understanding of concepts and ability to apply
statistical techniques.

FINAL EXAM

The final exam comprises 70% of your final grade.

The exam paper consists of 7 questions of equal marks and lengths, based on all the
topics in this module. Students are to answer 5 out of 7 questions.

It will be administered on a scheduled date after the last session of the module and
duration of the final examination is 3 hours.

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TOPIC 1
COURSE OVERVIEW
INTRODUCTION TO STATISTICAL THINKING AND
BUSINESS DECISION MAKING PROCESS;
DATA COLLECTION AND PRESENTATION
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Explain the role of statistics in business decision making.

2.

Demonstrate knowledge of statistical terms.

3.

Differentiate between two branches of statistics.

4.

Identify types of data.

5.

Identify the four basic sampling techniques.

6.

Organize data using a frequency distribution.

7.

Represent data in frequency distributions graphically using histograms, frequency

polygons, and ogives.

TOPICS
1.

Descriptive and Inferential Statistics

2.

Types of Data

3.

Data collection and Sampling Techniques

4.

Organizing Data

5.

Histograms, Frequency Polygons, and Ogives

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TOPIC 2
DESCRIPTIVE STATISTICS
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Summarize data, using measures of central tendency, such as mean, median and
mode.

2.

Describe data, using measures of variation, such as range, variance, and standard
deviation.

3.

Identify the position of a data value in a data set, using measures of position, such as
quartiles.

TOPICS
1.

Measures of Central Tendency

2.

Measures of Variation

3.

Measures of Position

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TOPIC 3
PROBABILITY
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Determine sample spaces and find the probability of an event, using classical
probability or empirical probability.

2.

Find the probability of compound events, using the addition rules.

3.

Find the probability of compound events, using the multiplication rules.

4.

Find the conditional probability of an event.

TOPICS
1.

Sample Spaces and Probability

2.

The Addition Rules for Probability

3.

The Multiplication Rules and Conditional Probability

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TOPIC 4
THE BINOMIAL DISTRIBUTION
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Describe the characteristics of binomial distribution and explain its use.

2.

Find the exact probability for specified successes in fixed number of trials of a
binomial experiment.

3.

Find the mean, variance, and standard deviation for the variable of a binomial
distribution.

TOPICS
1.

The Characteristics of the Binomial Distribution

2.

Finding Probability of a Binomial Experiment

3.

Mean, Variance and Standard Deviation of a Binomial Distribution

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TOPIC 5
THE NORMAL DISTRIBUTION AND THE CENTRAL LIMIT
THEOREM
LEARNING OBJECTIVES

At the end of the session, participants should be able to:

1.

Identify distributions as symmetric or skewed.

2.

Identify the properties of the normal distribution.

3.

Find the areas under the standard normal distribution, given various z values.

4.

Find probabilities for a normally distributed variable by transforming it into a standard

normal variable.

5.

Find specific data values for given percentages using the standard normal
distribution.

6.

Use the central limit theorem to solve problems involving sample means for large
samples.

TOPICS
1.

Normal Distribution

2.

Applications of the Normal Distribution

3.

The Central Limit Theorem

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TOPIC 6
CONFIDENCE INTERVALS
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Find the confidence interval for the mean when is known.

2.

Determine the minimum sample size for finding a confidence interval for the mean.

3.

Finding the confidence interval for the mean when is unknown.

4.

Find the confidence interval for a proportion.

5.

Determine a minimum sample size for finding a confidence interval for a proportion.

TOPICS
1.

Confidence Interval for the Mean, when is known and Sample Size

2.

Confidence Interval for the Mean, when is Unknown

3.

Confidence Interval and Sample Size for Proportions

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TOPIC 7
HYPOTHESIS TESTING
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Purpose of hypothesis testing.

2.

State the null and alternative hypotheses.

3.

Find critical values for the z test.

4.

State the five steps used in hypothesis testing.

5.

Test means when is known, using the z test.

6.

Test means when is unknown, using the t test.

TOPICS
1.

Steps in Hypothesis Testing Traditional Method

2.

z Test for a Mean

3.

t Test for a Mean

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TOPIC 8
CORRELATION AND REGRESSION
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

1.

Identify the dependent and independent variables of a set of ordered pairs.

2.

Draw a scatter plot for a set of ordered pairs.

3.

Compute the correlation coefficient and using it to comment on the relationship

between two variables.

4.

Compute the equation of the regression line and make prediction for the dependent
variable.

5.

Compute the coefficient of determination and interpret the answer.

TOPICS
1.

Correlation

2.

Regression

3.

Coefficient of Determination

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TOPIC 9
CONTINGENCY TABLES AND CHI-SQUARE TEST
LEARNING OBJECTIVES
At the end of the session, participants should be able to:

Test two variables for independence, using chi-square.

TOPICS

Tests Using Contingency Tables

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