Birla Institute of Technology & Science, Pilani

Work-Integrated Learning Programmes Division

First Semester 2014-2015
Course Handout


Course No. : MM ZG515 / QM ZG515 / MMVA ZG515 / MBA ZC417
Course Title : Quantitative Methods
Instructor : Rajesh Matai

Course Description:

Grouping data, measures of central tendency and dispersion, probability distribution, sampling and
estimation, testing hypotheses, chi-square and analysis of variance, regression and correlation, non-
parametric methods, time series and forecasting, index numbers, decision theory, linear programming,
transportation and assignment problems, queuing theory, network problems, simulation; application of
statistical software and spreadsheets.

Scope and objective

This course combines both statistical techniques and operations research (OR) that are essential for
business managers. This course demonstrates how to apply various business statistics tools and operations
research techniques for managerial decision making. The course also demonstrates how to use Microsoft
Excel for applying techniques learnt so that managers can enhance their decision making skills.

Prescribed Text Books

T1. D.M. Levine, T.C. Krehbiel, M.L. Berenson and P. K. Viswanathan, Business Statistics: A First
Course, Pearson Education, 5
th
Ed., 2011.

T2. Render, Stair & Hanna, Quantitative Analysis for Management, Pearson Education, 10
th
Ed., 2011.

Reference Books

R1. Ken Black, Business Statistics: For Contemporary Decision Making, Wiley, 5
th
Edition, 2010.

R2. Hillier and Hillier, Introduction to Management Science, 3
rd
Edition, Tata McGraw Hill, 2011


Plan of Self Study

S.No.
Topic to be
covered
Learning Objective Reference to Text
Books
1 Data Collection
and Presenting
data
1) Course outline and details T1-Ch. 1 & 2
2) Collecting data and types of data
3) Tables and charts for Categorical and
Numerical data
4) Cross tabulations and scatter
diagrams
2 Numerical
Descriptive
Measures
1) Measures of central tendency,
variation and shape
T1- Ch. 3
2) Numerical descriptive measures for a
population
3) Exploratory data analysis
3-4 Basic
Probability and
some discrete
probability
distributions
1) Basic probability concepts T1-Ch.4 & 5
2) Conditional probability
3) Bayes Theorm
4) Probability distribution for a discrete
random variable
5) Binomial and Poison distributions
5 The Normal
Distribution
1) Continuous probability distributions T1- Ch. 6
2) Normal distribution
3) Evaluating normality
6 Sampling and
Sampling
Distributions
1) Sampling distributions T1-Ch.7
2) Sampling distribution of mean
3) Sampling distribution of proportion
4) Types of sampling methods
7 Confidence
Interval
Estimation
1) Confidence interval estimation for the
mean ( known)
T1-Ch.8
2) Confidence interval estimation for the
mean ( unknown)
3) Confidence interval estimation for
the proportion
4) Determining sample size
8 Fundamentals
of Hypothesis
Testing: One-
Sample Tests
1) Hypothesis testing methodology T1-Ch.9
2) Z test of Hypothesis for the mean (
known)
3) One tail tests
4) t test of Hypothesis for the mean (
unknown)
5) Z test of Hypothesis for the
proportion
9 Review Session Lecture 1 to 8
Syllabus for Mid-Semester Test (Closed Book): Topics in S. No. 1 to 9
10-11 Two-Sample
Tests and One-
1) Comparing means of two
independent populations
T1-Ch.10
Way ANOVA 2) Comparing means of two related
populations
3) Comparing two population
proportions
4) F test for the difference between two
variances
5) ANOVA
12 Chi-Square
Tests
1) Chi-Square Test for differences
among more than two proportions
T1-Ch.11, R1-Ch.12
2) Test of goodness of fit
3) Test of independence
13 Linear
Programming
Problems (LPP)
1) Introduction T2-Ch.7
2) Requirements of a Linear
Programming Problem
3) Formulating LP Problems
4) Graphical Solution to an LP Problem
5) Solving Minimization Problems
6) Four Special Cases in LP
7 Sensitivity Analysis
14-15 LPP: Simplex
method
1) Convert LP constraints to equalities
with slack, surplus, and artificial
variables
T2-Ch.9
2) Set up and solve LP problems with
simplex tableaus
3) Interpret the meaning of every
number in a simplex tableau
4) Recognize special cases such as
infeasibility, unboundedness, and
degeneracy
5) Use the simplex tables to conduct
sensitivity analysis
16-17 Transportation
and
Assignment
problem
1) Structure special LP problems using
the transportation and assignment
models
T2-Ch.10
2) Use the northwest corner, VAM,
MODI methods for solving
transportation problem
3) Solve assignment problems with the
Hungarian (matrix reduction) method
18 Review Session Lecture 10 to 17
Syllabus for Comprehensive Exam (Open Book): All topics given in Plan of Self Study

Evaluation Scheme:

Component Weightage Syllabus (Specify
Chapter Nos. as per
handout)
To be administered online in
during
Quiz 1 5% Lecture 1 to 6 August 16 to August 26, 2014
Quiz 2 5% Lectures 7-8 and 10-
12
September 16 to September 26, 2014
Quiz 3 5% Lectures 13 to 17 October 13 to October 23, 2014

Evaluation Scheme:

EC
No.
Evaluation
Component &
Type of Examination
Duration Weightage Day, Date, Session,Time
EC-1 Assignment/Quiz * To be announced 15% * To be announced
EC-2 Mid-Semester Test
(Closed Book)
2 Hours 35% Saturday, 13/09/2014 (AN)
2 PM 4 PM
EC-3 Comprehensive Exam
(Open Book)
3 Hours 50% Saturday, 08/11/2014 (AN)
2 PM 5 PM

* For details of EC-1 Assignment/Quiz please check the WI LP LMS Taxila web site www.taxila.bits-
pilani.ac.in by J uly 26, 2014

AN: AfterNoon Session; FN: ForeNoon Session

Closed Book Test: No reference material of any kind will be permitted inside the exam hall.
Open Book Exam: Use of any printed / written reference material (books and notebooks) will be
permitted inside the exam hall. Loose sheets of paper will not be permitted. Computers of any kind will
not be allowed inside the exam hall. Use of calculators will be allowed in all exams. No exchange of any
material will be allowed.


Note:
It shall be the responsibility of the individual student to be regular in maintaining the self study schedule
as given in the course handout, attend the online/on demand lectures as per details that would be put up in
the BITS LMS Taxila website www.taxila.bits-pilani.ac.in and take all the prescribed components of
the evaluation such as Assignment (Course Page on LMS Taxila), Mid Semester Test and
Comprehensive Examination according to the Evaluation Scheme given in the respective Course
Handout. If the student is unable to appear for the Regular Test/Examination due to genuine exigencies,
the student must refer to the procedure for applying for Make-up Test/Examination, which will be
available through the Important Information link on the BITS WILP LMS Taxila website
www.taxila.bits-pilani.ac.in on the date of the Regular Test/Examination. The Make-up Tests/Exams
will be conducted only at selected exam centres on the dates to be announced later.

Instructor-in-Charge