This is an introductory module in Quantitative Analysis .This is a core module for first year students taking a level 8 degree program. The module includes both statistical and mathematical topics.
• Data presentation
Tabulation. Bar charts, Pie charts, time-series graphs, Z charts, Histograms, frequency polygons, Ogives, Lorenz curves
• Summary statistics
Measures of Central Tendency: Arithmetic, Geometric and Harmonic Means, Mode, Median and other quantiles. Measures of Dispersion: standard deviation, mean and quartile deviations. Coefficient of Variation. Skewness. Pearson’s coefficient of skewness.
• Probability
Basic Probability. Mutually exclusive events, independent events, conditional probability, the additive and multiplicative laws of probability. Bayes’ Rule.Probability Distributions. Discrete and continuous distributions. The expected value, variance and standard deviation of a probability distribution. The Binomial, Poisson and Normal Distributions.
• Statistical inference
Methods of sampling and sampling design. The central limit theorem, standard error, sampling distribution, point estimates, confidence intervals and their application to sampling. Small samples and the Students’ Distribution. Hypothesis testing for sample mean and proportion, testing for difference between two sample means and proportions. Chi square test.
• Regression and correlation
Bivariate distributions, scatter diagrams, regression line, least squares regression line. Calculation and interpretation of Pearson’s correlation coefficient and the coefficient of determination. Spearman’s Rank Correlation coefficient. Interpolation, Extrapolation and Forecasting.
• Time-series analysis
Additive and Multiplicative models.
Finding trend by method of moving averages.
Seasonal variation and deseasonalisation of data. Residual variation.Forecasting.
• Financial arithmetic
Arithmetic and Geometric Progressions. Simple and Compound Interest. Continuous compounding using the exponential function. Depreciation.
Nominal and Effective interest rates.
Discounting,PresentValue, Annuities, Sinking Funds and Loan Repayments.
Net Present Value and Internal Rate of Return. Investment Appraisal
• Index numbers
Simple and Weighted index numbers
Laspeyres and Paasche index numbers
Consumer Price Index.
Deflation. Change of base.
• Calculus
Functions and their graphs. Slope of the curve, first and second-order derivatives.
Optimisation. Applications to business: Marginal revenue and marginal cost, maximisation of profit and of revenue, minimisation of costs.
The module will be taught using a combination of lectures, tutorials and laboratory sessions. Course notes and problem sheets will be supplied. Emphasis will be placed on problem solving and business applications.
| Module Content & Assessment | |
|---|---|
| Assessment Breakdown | % |
| Formal Examination | 70 |
| Other Assessment(s) | 30 |