MBA 611 STATISTICS AND QUANTITATIVE METHODS

Fall 2003

INSTRUCTOR
Dr. Tung Liu
Office: WB 105
Office hours: M-Th: 10:00-12:00, 2:30-3:30
Phone: (765) 285-3405
Fax: (765) 285-8818
Email: tliu@bsu.edu
Course Homepage: Blackboard at http://www.bsu.edu/mybsu

COURSE DESCRIPTION

This course is on the use of statistics and quantitative methods for making
business decisions. The topics include: applications of probability, hypothesis
testing, analysis of variance, correlation, advanced regression, time series
analysis, forecasting, linear programming, and simulation.

Prerequisites: Undergraduate Statistics.

TEXTBOOKS

Newbold, Carlson, Thorne, Statistics for Business and Economics, 5 th edition,

Prentice Hall, 2003.

Render, Stair, and Balakrishnan, Managerial Decision Modeling with

Spreadsheets, Prentice Hall, 2003.

COURSE PACKET
The course packet includes my MBA 611 Lecture Notes and MBA 611 Course CD.
This packet is required for this class and will be available at T.I.S. Bookstore. You
can contact T.I.S. Bookstore at (888) 723-6404, (765) 282-1811, or email to
textbkbs@tisbook.com.

COURSE SUPPLEMENTS
This course has three credit hours and will meet two hours a week. For the third
hour students will review information in CD-Rom or video tapes.

INTERNET:
Our course homepage is at http://web.bsu.edu/tliu/mba605. From this page, you
can review course information and download course materials. Students must
know how to connect to the Internet from school, office, or home. Each student
must have an email address. I will use your Ball State email address as your email
address. If you want to change it, you need to notify me.
COMPUTATION
We will use Microsoft Excel and statistical software EViews in this course. You
can purchase EViews student version 3.1 from T.I.S. Bookstore. The software
information is available from the software supplier QMS at
http://www.eviews.com. You will need to use Excel and EViews for most
assignments. You will learn how to download data from the Internet for your
homework. You need to bring a calculator to the class.

ASSIGNMENTS
There will be six homework assignments. Each assignment is worth 20 points. For
on campus students, I will collect the homework at the start of class. For off-
campus students, all the faxes of your homework need to be in by 5:00 p.m. of the
due date. Late papers will NOT be accepted.

QUIZZES
There will be two quizzes. Each quiz will have 40 points. The quizzes will be
given on the Internet. Each quiz will be available on the Internet for four days
(Friday through Sunday). You will have one hour for each quiz to answer the
questions on the Internet.

PROJECT
Students need to write a project for this course. This project is on the use of a
multiple linear regression model. The project has 50 points.

EXAMS
There will be one midterm and the final exam. Each will have 150 points. You
need to bring probability tables and a calculator to the exam. You can also bring
one sheet of paper with your own notes for the midterm and the final exam.

GRADING
There are 550 points in total in this course. Course grades will be calculated by
the following absolute scale:

87% - 89.9% B+ 77% - 79.9% C+ 67% - 69.9% D+

93% or above A 83% - 86.9% B 73% - 76.9% C 63% - 66.9% D
90% - 92.9% A- 80% - 82.9% B - 70% - 72.9% C - 60% - 62.9% D -
Below 60% F

CLASS SCHEDULE AND IMPORTANT EVENTS

Week Date (Monday) Event
1 Aug. 25
2 Sept. 1 No Class
 3 Sept. 8 Homework 1
4 Sept. 15 Homework 2
5 Sept. 22 Quiz 1 (Fri. Sun, Sept. 26 28)
6 Sept. 29
7 Oct. 6 No Class
8 Oct. 13 Midterm (Oct. 11)
9 Oct. 20 Homework 3
10 Oct. 27 Homework 4
11 Nov. 3 Quiz 2 (Fri Sun, Nov. 7 9)
12 Nov. 10
13 Nov. 17 Project
14 Nov. 24 Homework 5
15 Dec. 1
16 Dec. 8 Homework 6
17 Dec. 13 (Sat.) Final

Note that a grade of C (2.0) or above is required in each course in order to

graduate. If you are not sure you can pass this course, please notice the following
deadlines.

August 29: Late registration and change-of-course end

September 25: First course withdrawal period ends
September 29: Last course withdrawal period ends
COURSE OUTLINE

Part I. Review of Basic Statistics (Newbold, Chapters 1-9)

A. Introduction (Sections 1.1-1.3) (Self-Study)
B. Descriptive Statistics (2.4, 2.5) (Self-Study)
C. Random Variables and Normal Distribution (5.1-5.3, 6.3) (Self-Study)
D. Statistical Inference Concerning Means (7.1, 7.2, 8.1-8.3, 8.6, 9.1-9.3, 9.6)
(Week 1, 3)

Part II. Analysis of Variance (Chapter 15)

A. Comparison of Several Population Means (15.1)
B. One-Way Analysis of Variance (15.2) (Week 4)
C. Two-Way Analysis of Variance (15.4) (Week 5)
 Part III. Simple Regression (Chapters 3 and 10)
A. Covariance and Correlation (3.1-3.3, 10.1)
B. Simple Linear Regression (10.2, 10.3)
C. Coefficient of Determination (10.4) (Week 6)
D. Statistical Inferences about Coefficients (10.5)
E. Prediction with a Simple Linear Regression (10.6) (Week 8)

Part IV. Multiple Regression (Chapter 11)

A. Model and Assumptions (11.1, 11.2)
B. Coefficient of Determination and Adjusted R-Squared (11.3)
C. Statistical Inferences about Coefficients (11.4) (Week 9)
D. Tests on Sets of Regression Parameters (11.5)
E. Building a Multiple Regression Model (11.8, 12.2) (Week 10)

Part V. Checking Assumptions in Regression(Chapter 12)

A. Assumptions in a Linear Regression (12.1, 12.4)
B. Multicollinearity (12.5)
C. Heteroscedasticity (12.6) (Week 11)
D. Autocorrelated Errors (12.7)

Part VI. Time Series Analysis and Forecasting (Chapter 17)

A. Time Series Modeling (17.3)
B. Time Trend, Autoregressive Models, and Forecasting (17.6) (Week 12)

Part VII. Linear Programming

A. Linear Programming Models (Render, 2.1-2.8) (Week 13)
B. Linear Programming Modeling and Applications (Render, 3.1-3.7) (Week
14)
C. Linear Programming Sensitivity Analysis (Render, 4.2, 4.4, 4.5, 4.7)
(Week 15)

Part VIII. Simulation (Render, 10.4, 10.5) (Week 16)

DISABILITY STATEMENT
If you need course adaptations or accommodations because of a disability, if you
have emergency medical information to share with me, or if you need special
arrangements in case the building must be evacuated please make an
appointment with me as soon as possible. My office location and hours are listed
above.