ECON 260-02: Statistics for Business and Economics

Dominican University

 

Semester: Spring 2009                   Class Meetings:  Wednesday, 7pm-10pm 

Instructor: Kathleen Odell              Room: TBA

Office: 708/524-6997, x 1312         Office Hours:  Before class & by appointment

email: kodell@dom.edu                 Course web page:  http://blackboard.dom.edu

 

 

Course Description:

This course will provide an introduction to basic statistical concepts and procedures including data collection and presentation, measures of central tendency and variability, probability, sampling distributions, confidence intervals, hypothesis testing, and linear regression.   

 

Expected learning outcomes:

By the end of the semester successful students should:

1.    Be able to meaningfully display a data set both graphically and in tables;

2.    Be able to calculate and interpret measures of central tendency and variation;

3.    Be able to calculate the probability of an event;

4.    Be familiar with discrete and continuous probability distributions;

5.    Be familiar with sampling and sampling distributions;

6.    Be able to estimate confidence intervals for a predicted value;

7.    Be able to set up and conduct hypothesis testing; and

8.    Be able to design and execute a simple linear regression.

 

Prerequisites:

Computer Information Systems 120 and Mathematics 170 (Recommended). Please see the instructor if you do not have the recommended prerequisite courses.      

 

Instructional Method:

This course will be a combination of lecture and in-class problem solving using statistical software.

 

Required Text:

Anderson, D., Sweeney, D., and Williams, T.  Statistics for Business and Economics.  Revised 10th edition. Mason, Ohio: Thomson-Southwestern Publishers, 2009.   (ISBN 978-0-324-65839-2)

 

Additional Materials: 

Calculator (for in-class problems and exams). 

 


Evaluation Criteria:

 

There are 1000 points possible over the course of the semester, distributed as follows:

 

Homework – 100 points (10 points each, best 10 will be counted)

In Class Problems – 50 points (10 points each)

Exams – 600 points (4 exams; 150 points each)

Final Project – 250 points (150 points for report; 100 points for presentation)

 

The anticipated grading scale will be 900-100 (A), 800-899 (B), 700-799 (C), 600-699 (D), <600 (Fail). 

 

 

Homework:

Homework is assigned for every chapter. Each homework will be worth 1% of your grade.  Late homework will be worth half credit.  Due dates are listed in the course calendar.  Problem sets are due on the dates listed unless specifically stated otherwise. Stapled hard copies of homework must be turned in during class on the due date.  I cannot accept homework problem sets by email.  Solutions to the homework problems will be provided when problem sets are returned. 

 

In Class Problems:

At five unannounced times throughout the semester I will collect the problems we work on in class.  Each of these collections will be worth 1% of your grade.  They cannot be made up nor will they be accepted late.  This is the attendance / class participation portion of your grade.

 

Tests:

There will be four tests over the course of the semester.  Each test will cover the chapters listed in the course schedule.  The test problems will be very similar to the homework problems.  

 

Final Project:

You will complete a final project using linear regression.  A full description of the project is given later in this syllabus.  Your project will include a written report (worth 150 points) and an in-class presentation (100 points). 

 

Attendance Policy:

Attendance is not specifically required for this course, but you should plan to attend class.  You are responsible for all material that is covered in class that might not be included in the book or may be slightly different from what is included in the book.  If you miss class, you should get the notes from another student.  I cannot provide missed notes (although I will make any electronic notes available on Blackboard).  Also note that if you miss a day when I collect the in-class problems, this will affect your grade.  Homework is due almost every week, so you need to come to class to turn in your homework. 

 

If you miss an exam (or your final presentation), you will get a zero.  Make up exams will not be available unless the student can provide, in advance, written documentation of accident, illness, approved University event, or family emergency. Traffic, misreading the syllabus, sleeping through class, and similar explanations are not valid reasons for missing an exam, and a makeup exam will not be provided under these circumstances.  You must make arrangements IN ADVANCE if you know you will miss an exam – after the fact there is almost no situation in which I will be able to let you make up the exam. 

 

 

Chapter Coverage and Homework Problems:

 

(Subject to change!!!)

 

Section

Title

Problems

1-1

Applications in Business & Econ

 

1-2

Data

 

1-3

Data Sources

 

1-4

Descriptive Statistics

 

1-5

Statistical Inference

 

1-6

Computer & Statistical Analysis

 

Exercises

 

6, 8, 12, 14, 19

 

Section

Title

Problems

2-1

Summarizing Qualitative Data

2, 6

2-2

Summarizing Quantitative Data

11, 12, 18

2-3

Exploratory Data Analysis: S & L

22, 27

2-4

Cross Tabulations & Scatters

36, 37 (c,d)

 

Section

Title

Problems

3-1

Measures of Location

3, 4, 7

3-2

Measures of Variability

15, 18

3-3

Measures of Shape, Location, Outliers

27(a,b), 28(a,b), 30, 31, 32

3-4

Exploratory Data Analysis

 

3-5

Measures of Association Between Variables

45, 48, 49

3-6

Weighted Mean and Grouped Data

 

 


 

Section

Title

Problems

4-1

Experiments, Counting Rules, Probabilities

9, 10, 11, 12

4-2

Events and their Probabilities

16, 18, 21

4-3

Basic relationships of Probability

27, 28, 29

4-4

Conditional Probability

33, 34

4-5

Bayes’ Theorem

 

 

Section

Title

Problems

5-1

Random Variables

6

5-2

Discrete Probability Distributions

7, 12

5-3

Expected Value and Variance

15, 17, 20

5-4

Binomial Probability Distribution

26, 33, 34, 35

5-5

Poisson Probability Distribution

38, 43, 44

5-6

Hypergeometric Probability Distribution

 

 

Section

Title

Problems

6-1

Uniform Probability Distribution

2, 5, 6

6-2

Normal Probability Distribution

12, 14, 17, 21, 22, 25

6-3

Normal Approximation of Binomial Probabilities

 

6-4

Exponential Probability Distribution

 

 

Section

Title

Problems

7-1

Sampling Problem

 

7-2

Simple Random Sampling

 

7-3

Point Estimation

11, 17

7-4

Intro to Sampling Distributions

 

7-5

Sampling Distribution of x-bar

19, 23, 28

7-6

Sampling Distribution of p-bar

32, 35, 40

7-7

Properties of Point Estimators

 

7-8

Other Sampling Methods

 

 

Section

Title

Problems

8-1

Interval Est. of µ, σ known

6, 10

8-2

Interval Est. of µ, σ unknown

15, 18, 19

8-3

Determining Sample Size

23, 27, 28

8-4

Interval Est. of Population Proportion

32, 33, 36, 38

 


 

Section

Title

Problems

9-1

Developing Null and Alternative Hypotheses

1, 2, 3, 4

9-2

Type I and Type II Errors

5

9-3

Hypothesis Test for µ, σ known

16, 18, 20

9-4

Hypothesis Test for µ, σ unknown

28, 33

9-5

Hypothesis Test of Pop. Proportion

39, 41, 44

9-6

Hypothesis Testing and Decision Making

 

9-7

Calculating the Probability of Type II Error

 

9-8

Determining the Sample Size

 

 

Section

Title

Problems

14-1

Simple Linear Regression Model

 

14-2

Least Squares Method

1, 6, 7, 11, 12

14-3

Coefficient of  Determination

18

14-4

Model Assumptions

 

14-5

Testing for Significance

27

14-6

Using the Regression for Estimation

36

14-7

Computer Solution

43

14-8

Residual Analysis (Model Assumptions)

49

14-9

Residual Analysis (Outliers)

52

 

Section

Title

Problems

15-1

Multiple Regression Model

 

15-2

Least Squares Method

5, 6, 9

15-3

Multiple Coefficient of Determination

11, 16

15-4

Model Assumptions

 

15-5

Testing for Significance

25

15-6

Using the Regression for Estimation

30

15-7

Qualitative Independent Variables

35, 37, 38

15-8

Residual Analysis

 

15-9

Logistic Regression

 

 

 


Final Regression Project: 

 

1.  Determine a research question that you would like to answer.  Choose a question that interests you. 

 

For regression studies you are looking for a cause and effect type question.

 

Examples:     What determines the number of games baseball teams win?

                        What determines MBA GPAs?

                        What determines loan defaults?

 

2.  Determine the data you will use to answer this question.

 

Your regression will require 1 dependent variable, 3-5 independent variables, and at least 30 observations.  (More is better!) 

 

Examples:     What determines the number of games baseball teams win?

                        Dependent Variable:                       Number of games won

Independent Variables:                  Team ERA

                        Team Batting Average

                        Team Fielding Percentage

                        30 observations:                               30 teams

                       

                        What determines MBA GPAs?

Dependent Variable:                        MBA student GPA

Independent Variables:                  Student GRE score

                        Student undergraduate GPA

Number of years since completing undergrad

                        30 observations:                               30 students

                       

You will probably be able to think of many interesting research questions, but you must consider whether the data you need is available.  Consider the problem of actually obtaining the data you need.  If you can’t get the data, you can’t do the project.    

 

3.  Enter your data into Excel.

 

4.  Run your regression in Excel.

 


5.  Write up your results.

 

  1. Discussion of Theory / Literature (Why are you doing this?  Who cares?)
  2. Discussion of Model (Why are you using the variables you selected?)
  3. Discussion of Hypotheses (What do you think the results will be and why?)
  4. Data (Explain the data. Where did you get it? How is it measured?)
  5. Results
    1. Coefficients (Sign and Magnitude)
    2. T-scores (Significance)
    3. Interpretation of coefficients.  (What do they mean? Support hypotheses?)
    4. F-Test (Is regression good?)
    5. R-squared or Adjusted R-squared (Is regression good?)
    6. Analysis of Residuals (Normality, Autocorrelation, Heteroskedasticity)
    7. Multicollinearity (Correlation Matrix)
  6.  Conclusions

 

Turn in a printed copy of your Excel file along with your report.  Your report should be at least 3 pages long and should be completely self-explanatory. 

 

Note: This is research.  There is no “right answer.”  Explain why your model is good, how you interpret your results, and why what you have found is important.  Remember, anyone can put data into Excel and push the regression button; what makes you a statistician is that you can interpret the results and give them meaning.

 

 

 

 

Final Project Presentation:

During finals week, you will make a presentation explaining your project and your results. 

 

Note:  I will be grading your written report for content, but the presentations will be graded primarily by your peers for quality of presentation.

 

Late projects and presentations will not be accepted.

 

 

 


Course Calendar:

 

Week

Day

Date

Assignments Due

Lecture Chapters

1

W

Jan 21

 

1, 2

 

 

 

 

 

2

W

Jan 28

Chapter 1

2 (continued), 3

 

 

 

 

 

3

W

Feb 4

Chapter 2

3

 

 

 

 

 

4

W

Feb 11

Chapter 3

TEST 1

4

 

 

 

 

 

5

W

Feb 18

 

4, 5

 

 

 

 

 

6

W

Feb 25

Chapter 4

5, 6

 

 

 

 

 

7

W

Mar 4

Chapter 5

TEST 2

6

 

 

 

 

 

8

W

Mar 11

NO CLASS

Mid-Semester Vacation

 

 

 

 

 

9

W

Mar 18

Chapter 6

7

 

 

 

 

 

10

W

Mar 25

Chapter 7

TEST 3

8

 

 

 

 

 

11

W

April 1

Chapter 8

9

 

 

 

 

 

12

W

April 8

 

9, 14

 

 

 

 

 

13

W

April 15

Chapter 9

TEST 4

14, 15

 

 

 

 

 

14

W

April 22

Chapter 14

15

 

 

 

 

 

15

W

April 29

Chapter 15 (end of class)

LAST DAY OF CLASS

Work on Projects

 

 

 

 

 

Final

 

TBA

Final Project Presentations

 

 

This schedule is subject to change at the instructor’s discretion.