GOA INSTITUTE OF MANAGEMENT

Sanquelim Campus, Poriem, Sattari, Goa

Course: Bio-Statistics
Program: PGDM – HCM Term: I Credits: 03 Academic Year: 2018-2019
Course Instructor(s): Dr. Rohit Mutkekar, Dr. Sarat K Jena
email: rohitrm@gim.ac.in. , saratjena@gim.ac.in

1. COURSE DESCRIPTION
This course majorly covers the keys concepts of ‘Business Statistics and Operations
Research (BS & OR)’. The BS part will present an overview of the general principles and
applications of statistics relevant to health care and the OR part teaches importance of OR
techniques, with due emphasis on the practical, real-world applications.

2. COURSE OBJECTIVES
The modules in BS are designed to equip students with the essential concepts, tools and
techniques for managerial decision making.

The modules in OR aims to introduce students to use operation research methods and
techniques for effective decisions–making; model formulation and applications that are
used in solving business decision problems.

3. COURSE LEARNING OUTCOMES

 Identification and formulation of the real life problems.

 Decision making.
 Logical and analytical thinking.
 Integrating mathematical modeling approach to real-managerial issue.

4. COURSE CONTENT

Basic Concepts in Statistics (2 Sessions)

Data Processing-Concept of Classification & Tabulation; Measures of Central Tendency
– Mean, Median, Mode; Measures of Dispersion – Range, Quartile Deviation and
Standard Deviation.
Correlation Analysis (1 Session)
Basic Concept and importance of Correlation, Types of Correlation, Methods to
determine Simple Correlation (i.e. Bivariate Data) and testing the significance.

1
Simple Regression Analysis (1 Session)
Fitting of Simple Regression Model, Standard Error of the estimate and Coefficient of
Determination.
Introduction to Probability and Probability Distributions (2 Sessions)
Introduction to Probability, Joint and Conditional Probability. Introduction to Probability
Distribution; Random Variables; Discrete & Continuous Probability Distributions-
Binomial Distribution, Poisson Distribution and Normal Distribution and their
applications.
Testing of Hypothesis & One Way ANOVA (4 Sessions)
Basic Concepts (Null and Alternative Hypothesis), Errors in Hypothesis Testing (Type I
and Type II Errors), Size and Power of the Test, One and Two Tailed Tests.
Large Sample Tests: Hypothesis Test concerning Population Mean, Hypothesis Test
concerning the differences between Two Population Means, Hypothesis Test concerning
Population Proportion and Hypothesis Test concerning the differences between Two
Population Proportions.
Small Sample Tests: Hypothesis Test concerning Population Mean, Hypothesis Test
concerning the differences between Two Population Means (Independent Samples) and
Hypothesis Test concerning the differences between Two Population Means (Dependent
Samples).
Chi-Square Test for Independence of Attributes.
Basic Concepts and Assumptions - One-Way Classification

Linear Programming Problems (LPP) (5 Sessions)

Introduction to Linear Programming Problem (LPP). Formulation of a LPP model for a
given managerial situation. Graphical Method to solve a LPP models. What-if analysis
for linear programming. Simplex Method (with and without use of artificial variables).
Concept of shadow price. Concept of Duality and formulation of Dual LPP model.
Transportation Problem (TP) (2.5 Sessions)
Introduction to TP. Concept of a balanced and unbalanced TP. Methods to obtain initial
basic feasible solution for a TP (North West Corner Rule Method, Matrix Minima
Method and Vogel’s Approximation Method). Test for optimality of a basic feasible
solution using Modified Distribution Method (MODI).
Assignment Problem (AP) (1.5 Sessions)
Introduction to AP. Concept of a balanced and unbalanced AP. Hungarian Method to
obtain the optimum solution for an AP (Minimization and Maximization cases)
Goal Programming Problem (GPP) (1 Session)
Introduction to GPP and illustrative managerial examples.

2
Session Topic covered
1 and 2
Key concepts in Statistics, Concept of Classification and Tabulation,
Measures of Central Tendency and Dispersion (Illustration using some
managerial examples).
3 Correlation Analysis: Basic Concept and importance of Correlation, Types of
Correlation, Methods to determine Simple Correlation (i.e. Bivariate Data)
(Illustration using managerial examples through excel).
4 Regression Analysis: Fitting of Simple Regression Model, Standard Error of
the estimate and Coefficient of Determination (Illustration using managerial
examples through excel).
5&6 Introduction to Probability- Classical Theory with some examples, Joint and
Conditional Probability with some examples. Introduction to Probability
Distribution; Random Variables; Discrete Probability Distributions-
Binomial Poisson & Normal Distribution (Applications based on some
managerial examples)
7&8 Basic Concepts (Null and Alternative Hypothesis), Errors in Hypothesis
Testing (Type I and Type II Errors), Size and Power of the Test, One and
Two Tailed Tests.
Large Sample Tests: Hypothesis Test concerning Population Mean,
Hypothesis Test concerning the differences between Two Population Means,
Hypothesis Test concerning Population Proportion and Hypothesis Test
concerning the differences between Two Population Proportions.
9 Small Sample Tests: Hypothesis Test concerning Population Mean,
Hypothesis Test concerning the differences between Two Population Means
(Independent Samples) and Hypothesis Test concerning the differences
between Two Population Means (Dependent Samples).
10 Chi-Square Test for Independence of Attributes and One Way ANOVA
(Illustration using some managerial examples through excel)
11 Introduction to Linear Programming Problem (LPP) with a Case study and
Formaulation1
12 Formulation 2 and Managerial situation exercise
12 and Graphical Method for solving two-variables problems, Unique optimum
13 solution, and Multiple optimum solution, unbounded solution and No
optimum solution
14
Introduction to simplex method: Standard Canonical form of LPP,
Concept of slack and surplus variables. Solving illustration through
Software manual and software TORA/Excel solver
14 and Concept of Duality and formulation of Dual LPP model.
15
16, 17, Introduction to TP; Introduction to NWCR Method to obtain initial basic
and 18 solution (illustration through some examples for balanced and unbalanced
situations), TP which the objective function is of maximization type; Test for
Optimality (using MODI method for both Non-Degenerate and Degenerate

3
 situations) and Test of Optimality (continued) followed by illustration of TP
examples using software TORA
18 and Introduction to AP; Formulation and Test for Optimality using Hungarian
19 Algorithm for minimization cases. Introduction to AP; Formulation and Test
for Optimality using Hungarian Algorithm for maximization cases followed
by illustration of AP examples using software TORA
20 Introduction to GPP and illustrative managerial examples.

5. PEDAGOGY
Lectures
Working on Software (Excel, SPSS, TORA)
Assignments
Presentations

6. EVALUATION METHOD
1. Quizzes: 20%
2. Mid Term Exam: 30%
3. Project/Assignment: 20%
4. End Exam: 30%
Total: 100%

6. REFERENCE BOOKS

Text Book (BS):

Statistics for Management ed 7 – R. I. Levin and D. S. Rubin, PHI.

Reference Books (Statistics):

Statistics for Management ed 2 – T. N. Srivastava and Shailaja Rego, Tata McGraw Hill.
Business Statistics ed 3 – G. C. Beri, Tata McGraw Hill.

Text Book (OR):

Taha, H. - Operations Research, Operations Research, 8e Pearson Publication.

Reference Books:
Tulsian, P.C. and Pandey, V- Quantitative Techniques (Theory and Problems), Pearson
Education.

Introduction to Operations Research, Hillier and Lieberman (9e Tata McGraw-Hill)