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Ois 2340

In: Business and Management

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University of Utah
David Eccles School of Business
Department of Operations and Information Systems (OIS)
Class Times: Tuesday & Thursdays 12:25 pm – 1:45 pm
Spencer Fox Eccles Business Building (SFEBB) -160
Fall Semester 2013, Course Syllabus

How we run this class:
To prepare and understand this material, you are invited to participate in class (by asking questions), read the text as specified in the class schedule and do the assigned HW problems.
You can also watch the class video lectures using the link below for review or missed class.
These lectures will be recorded during fall semester 2013 and will be posted as they are made available by the campus media services. The text used is Business Statistics –a decision making approach, 4th custom edition for David Eccles School of business or 9th edition by David Groebner’ Business Statistics.

You will also be given online chapter quizzes which can be accessed through the CIS (CANVAS) system ( These chapter quizzes (“take homes”) are due on or before specified date/times as shown in the class calendar below.

You will also have three proctored midterms on dates specified below and a departmental final exam on Friday December 20th from 3:30 – 5:30 pm.

REQUIRED TEXT: Business Statistics, A Decision Making Approach, Fourth Custom Edition for David Eccles School of Business. ISBN-13: 978-1-269-22304-1
Highly desired: Laptop of your choice with Excel Data Analysis Tool Pack (MACs do not have this). If you don’t have a laptop you can use a PC in the SFEBB basement computer lab. You must at least have a scientific calculator with statistical functions for this class which can also be used during all exams. Please note that for OIS-3440 it would be very helpful to have a laptop.

INSTRUCTOR: Tariq Mughal – Assistant Professor / Program Director Operations Management Web profile:
I encourage you to investigate Operations Management as a possible major for you. To learn more about Operations Management as a possible major within DESB please click on the link below or see me. EMAIL: Please use this email address and NOT Canvas.
OFFICE: Spencer Fox Eccles Business Building, Room 4175
PHONE: (801) 585-9547 – for a quicker response send me an email.
CONSULTATION: M-Th 10:30 am to noon or by appointment.

TA #1: Mr. Zhao Jin
CONSULTATION: Tuesdays & Thursdays noon - 5:00 pm. Zhao will be on the first floor of the new business building SFEBB on the North East open space

TA #2: Ms. Jessica Turcasso
CONSULTATION: Monday & Wednesdays noon to 5:00 pm. Jessica will be on the first floor of the new business building SFEBB on the North East open space

Note about your TAs. Your TAs are there to assist you with your homework problems and other general questions relating to take home exams. They will NOT help you solve your take home exams (although sometimes they do go the extra mile) but can answer similar questions. You may work with your classmates in completing take home exams or ask questions in class. Please see more information regarding this subject below.

Special notes about this class.

1. To get ahead you can also watch previously recorded class lectures which were recorded during an earlier semester using the 7th edition of your text. Your class schedule may not completely synchronize with these video clips but the topics are essentially the same. 2. For general CANVAS Support Help Desk call (801) 585-5959 / (801) 587-3310

GENERAL INFORMATION: This introductory course in Business Statistics encompasses the fundamental tools of descriptive and inferential statistics. We may also use/analyze business cases for better reinforcement of the subject matter. The material presented requires good understanding of concepts completed in classes like College Algebra and Business Calculus. Therefore, a thorough understanding of basic algebraic manipulations is expected. A grade of C or better in those classes and a class in basic computer literacy like Information Systems 2010 are essential prerequisites. Along with the usual homework and exams, a term capstone project is assigned as part of the course. We will examine statistics by analyzing business data in a modern spreadsheet environment. Some use of Calculator will also be required.
COURSE OBJECTIVE: Our main objective in this course is to acquire analytical skills through tools which will enable us to make sense out of data and is an integral part of decision support activities in a modern corporation. This is an introductory course and as a consequence there is emphasis on terminology as well as basic concepts. Common sense and intuition will be nearly as useful as experience and background. Major themes in this course are statistics used to describe information (descriptive statistics), statistics used for prediction (inferential statistics), and classical probability. On a more fundamental basis, we will try to master basic skills needed to perform analysis and acquire fundamental understanding to further investigate more important skills of statistical business modeling, which we hope to master in the next class “Applications of Business Statistics (OIS-3440)”.
Specifically in this class we will investigate and master the following three modules:

Module I will cover chapters 1-4 * Graphs, charts, and tables – describing your data * Describing data using numerical measures * Using probability and probability distributions

Module II will cover chapters 5-7

* Discrete and continuous probability distributions * Sampling distributions

Module III will cover chapters 8 &9

* Estimating population values * Confidence interval estimates * Hypothesis testing

CLASS SCHEDULE: It is extremely important that you do (and understand) the assigned homework problems in order to be ready for the end-of-chapter-take-home-exams. This in-turn will prepare you for the proctored midterm exams. The tentative class schedule is attached. You should follow this schedule as closely as possible; however, some modifications may be necessary during the semester about which you will be informed through the campus email system.

(Note: please update your email through the registrar’s web site.

COMPUTER PROJECTS/CASES: Although there are no cases due in this class, you do have a class capstone project which is described later in this syllabus.
You will also need Excel to help you solve some of the problems and the take home exams. A tutorial for Excel is available on your class website in Canvas. HOMEWORK: The homework assignments are described below. These exercises are considered the minimum required for understanding of the material. Students are encouraged to work more exercises than those assigned. Regular practice is essential for success in Business Statistics. Past data shows that to obtain an average grade of C students spend six hours/week outside of the classroom “digesting” the material. If you are unable to spend at least this much time , please take this course during a different semester.
ACCOMMODATIONS: Students with disabilities needing accommodations such as: accommodated testing, interpreting, note taking, taped textbooks, assistive technology, equipment, accessibility arrangements, etc., must contact the instructor and/or the office of disability resources at the university.
How to Ace the class: The method for success in this class is simple: read the text, attend and participate in class, (make sure to ask questions until you understand the example problems done in the class – you have paid money for this!), do the solved problems in the textbook and keep up on the homework assignments. Many students find that forming study groups with other students is a very effective way to master Business Statistics. Please note that the material in this class will require more than the standard 3 hours of study for every class hour for an average student (like myself).
Free Problem Solving Help: The Operations and Information Systems (OIS) Department was gracious to provide us with TAs. Please see their schedules above. These TAs are to assist you in solving assigned problems/questions from your homework. They are not there to help you solve the take home exams. I encourage you to use this opportunity or we may lose them next semester. These problem-solving sessions are meant to be one-on-one and should be of great benefit to you. Finally, read and be aware of the regulations set forth in the class Schedule and the University of Utah catalog. Please see/email me ASAP about any problems that are affecting your work in this class.
TESTING: There are total of 2,100 possible points to be earned in this class for grading purposes. The distribution of these points is as follow: There will be seven take-home multiple-choice exams from chapters 1 through 9. Each take-home will be worth 100 points and can be completed on the CIS (canvas) system: The lowest or a missed exam is dropped.

PLEASE NOTE THE AVAILABILITY AND CLOSURE DATES FOR THE CANVAS TAKE HOMES ON THE ATTACHED SYLLABUS. Your online chapter exams have no time limit. You can log on and work on a part of it, save and log off and then log on to finish it. They stay available until the due date & time. You can also print them and take your time to solve them and submit them before the deadline.


Note: You can only submit your take home exam on CANVAS once.

To be safe, you should save and submit your answers a few hours before the exams are to be closed. You are allowed to skip / miss one take home exam. However you are advised to complete and submit all take home exams as this work will help you perform better in your midterms and the final. If you take all exams, your lowest scored exam will be dropped from your grade calculation. If you miss a second (or more) exam(s), you will receive zero points.

In addition you will have three proctored midterms worth 300 points each and a proctored final worth 500 points on the dates specified in the attached class calendar. You are responsible for staying abreast of this information. The final exam will be given on the day listed on the attached class schedule. Please note that no substitute or alternative dates can be made for the midterms or the final except in case of life threatening emergency.

Your final exam will be a departmental exam and will be administered together with other sections of your class. The final exam is comprehensive but fewer questions will be from earlier chapters and will consist of mostly from the later chapters 6 through 9.

The last 100 points will be earned by completing a class capstone project. This project can be done in groups of up to 4 students. More information is described about the capstone project at the end of this syllabus. Please note that provisions for making up missed in-class exams are very rarely granted under special circumstances.

Candidates for make-up exams are generally referred to a local beauty shop!

Grades are based on the accumulation of individual test scores, midterms, and the final exam. Scores are determined according to the following scale:

A 93% or higher C 73% – 76% A- 90% – 92% C- 70% – 72%
B+ 87% – 89% D+ 67% – 69%
B 83% – 86% D 63% – 66%
B- 80% – 82% D- 60% – 62%
C+ 77% – 79% E below 60%

A Word of Caution: This class is a collaborative effort. Students are encouraged to present questions in class, via email or visit a TA and work together in groups on assigned homework problems. There are no “dumb” questions in this class. Students can and often work together on take-home exams. It is very important that each group member understands the problems and their solutions because questions of similar concepts may appear in your proctored midterms and the final exam.

OIS-2340-004 Fall 2013 Class Schedule

Tuesday | Thursday | August 27Intro & Overview, Chp 1 – HW, read chapter 1 and do problems stated below.Chp. 1 & 2 exam available online through the CIS (canvas) system: ) until 11 PM September 7th. | August 29Section 2.1 | September 3Section 2.2 | September 5Section 2.3 | September 10Section 3.1 Chp 3 exam available online through the CIS (canvas) system: ) until 11 PM September 14th. | September 12Section 3.2 - 3.3 | September 17Section 4.1, Chp. 4 exam available online through the (canvas) system: ) until 11 PM September 21st. | September 19Section 4.2, Review for Midterm | September 24Proctored Midterm, Chapters 1 - 4 | September 26Section 5.1Chp. 5 exam available online through the CIS (canvas) system: ) until 11 PM October 5th. | October 1Section 5.2 | October 3Section 5.3 | October 8Section 6.1 (skip 6.2)Chp 6&7 combined take home exam available online through the CIS (canvas) system: ) until 11 PM October 26th. | October 10Section 7.1 -7.2 | October 15Fall Break | October 17Fall Break | October 22Section 7.3 | October 24Review for Midterm | October 29Proctored Midterm, Chapters 5-7 | October 31Section 8.1Chp. 8 exam available online through the CIS (canvas) system: ) until 11 PM November 16th. | Nov 5 Section 8.1 Concluded | Nov 7Section 8.2Capstone project discussed in class (see back of syllabus) | Nov 12Section 8.3Capstone project discussed in class (see back of syllabus) due April 24th in class. | Nov 14Section 9.1Chp. 9 exam available online through the CIS (canvas) system: ) until 11 PM November 30th. | Nov 19Section 9.1 concluded | Nov 21Section 9.2 | Nov 26Section 9.3 | Nov 28Thanksgiving Holiday | Dec 3Section 9.3 concluded, Review for midterm Capstone Project Due (worth 100 points) | Dec 5In-class midterm chapters 8 and 9 | Dec 10Review for the final | Dec 12 (last day of class)Review for the final. | Proctored Final exam – Your final exam will be on Friday December 20th from 3:30 to 5:30 pm. Rooms will be announced at a later date. |

Minimum Suggested Homework Assignments

Section Number | Problems Number | 1.4 | 49, 50, 51, 52, 54, 55, 57 | 2.1 | 3 , 5 , 6 , 7 , 10 , 13 , 17 , 18 , and 19 | 2.2 | 24, 26, 29, 33, 41, 42 | 2.3 | 47, 48, 49, 53, 56, 57 | 3.1 | 1, 2, 5*, 6(skip c), 7, 12, 14, 18, 19, 21 | 3.2 | 25, 27, 30, 32, 42, 43 | 3.3 | 47, 50, 52, 53, 57, 66 | 4.1 | 1, 3, 5, 7, 9, 10, 13, 15, 16, 21, 22 | 4.2 | 26, 27, 33, 34, 35, 36, 40, 41, 51 | 5.1 | 7, 8, 9, 12, 21 | 5.2 | 23, 27, 29, 30, 33, 35, 38, 47 | 5.3 | 51, 52, 55, 61, 64, 66, 69 | 6.1 | 1, 5, 6, 8, 9, 11, 13, 15, 16, 18, 22, 28, 29, 30 | 7.1 | 1, 2, 3, 5, 6, 9, 11, 13, 14, 18 19 | 7.2 | 22, 23, 26, 28, 31, 33, 36, 40, 42 | 7.3 | 45, 46, 47, 49, 53, 56, 63 | 8.1 | 2, 3, 5, 6, 7, 10, 12, 15, 17, 20, 21, 24 | 8.2 | 27, 28, 29, 33, 35, 36, 37, 39, 47 | 8.3 | 48, 51, 54, 56, 60, 62, 66 | 9.1 | 4, 7, 8, 10, 11, 12, 16, 17, 18, 22 | 9.2 | 23, 25, 27, 29, 31, 34, 37, 38, 40, 42, 46, 47 | 9.3 | 48, 50, 53, 55, 58, 61, 62, 63, 68 |

Instructions to retrieve Excel data in the SFEBB computer lab

Excel Data Instructions:

Your text book comes with important data files which you will use to solve assigned problems. This data and the associated tutorials are also available through your class website in CIS.

Your text also comes with software which complements Excel. It is called PHStat2.

Before you install this software on your computer, start Excel and click on Tools, add-ins and add analysis tool packs. You may need your Office/ Excel CD.

While in Excel click on tools, Macro, security and select “Medium”.

If you have a laptop (or a PC at home) you should install the Phstat2 software now.

When you want to use this software (PHStat2), first start Excel, then click on the PHStat2 icon on your desktop and select “enable macros”. Now “you’re talking”.

To access the date files in the SFEBB computer lap, do the following:

To open one of the Excel files which comes with your CD/Book go to desktop and double click on applications, course applications, PHStat folder, business statistics CD folder, data files, and Excel folder. Now you should be able to see all the Excel data files. Simply click on one you need to do the job.

Similarly, you can go to lecture notes, tutorials, simulations and a host of other things which can/will make your course experience friendlier.

To start PHStat2 in the SFEBB-computer lab do the following:

It is preferred that before you do these steps, you start Microsoft Excel first.
Go to start, all programs, PHStat2, PhStat2, Enable macros.

David Eccles School of Business
Business Statistics (OIS-2340) Capstone Project
Fall Semester 2013
Theme: Confidence Intervals

Project Objective:

The objective of this capstone project is to provide you with an opportunity to employ in practice the statistical tools and concepts you have learned in this statistics course and to further help in cementing these ideas into part of your skill set as a successful business manager.

Like all real world applications, it is not expected that through the completion of this project you will have utilized every statistical technique that you have learned in this class. Rather, an objective of the assignment will be for you to determine which of the statistical tools and techniques are appropriate to employ for the situation you have selected. However, in this particular case you will be utilizing things like descriptive statistics, computing a confidence interval (at confidence level of your choosing) and then conducting an appropriate hypothesis test (at alpha level of your choice).

Project Description:

You are to estimate the population mean (or proportion) of your choosing and then verifying the same result with an appropriate hypothesis test. You can choose any area of your interest to do this.

For example, if I were interested in estimating the average age of University students, I would collect a random sample (preferably a large sample of 100+ students) by asking them about their age. Then I will input this data in Excel and make histogram to check for the shape of distribution, compute sample average, sample standard deviation, standard error and so forth. Then I will compute a confidence interval at a specific confidence level and perhaps do a hypothesis tests at a suitable alpha level to verify my results.

You can work in teams of up to four individuals and collect data and submit this report. You cannot do this project about estimating age as I have presented in the example above but choose a different subject. Remember, that it can also be about estimating population proportion for example, what proportion of students are Hispanics, or what proportion of women are over 5’ 6” tall, or what proportion of male students weigh more than 170 lbs., etc. Be creative.

Guidelines for Selecting a Project: The following points will constitute critical success factors for your project. Please pay close attention to these points as they will be used as guidelines for grading your project. The final report should be presented in a professional format using the style and format prescribed below.

Creativity of the Project: * Choosing a project topic is a challenge for most students. You should choose a topic related to your work or your area of study in the Business School about which data can easily be collected from various business classes. You can collect data from any of the OIS-2340 sections. * You need to collect data (preferably from other students by asking them a question(s) or using a survey – no downloads are allowed. * Use Excel to conduct your analysis for computing descriptive statistics, confidence intervals, hypothesis testing, p-values etc., but make sure to describe it in English as to what is going on and what the output means.

Report Writing (your project should be submitted in the following format): Your report needs to leave a professional business impression in both writing quality and its physical appearance. Do not try to make it unnecessary long by leaving lots of white space or large font size. At the same time you must not leave out vital information from it. Most of all it should be:

* Free of spelling and grammar errors. * Single space with a 12-point font size * You should have a cover page with your name(s) and relevant class information and the title of your project. * You should have a page of Executive Summary in which you briefly describe what you were trying to accomplish, what you did, how you did it, what you found and what your recommendations and conclusions are. * You should have an analysis section with Excel output and description in English what you are doing, which equations you used and why and most importantly what do the answers imply. * You should have a conclusion page describing what your results mean and if any inferences should be drawn from them. * Please attach all raw data in an appendix at the end.

The following guidelines will be used in grading your Capstone Project:

* 5 points for presentation – this means that the cover page should have the right names and section numbers and stapled at the top. The name of the Project, the class number, name of your instructor, correct grammar and free of spelling errors.

* 20 points for the Executive Summary – this should describe what the project was all about, how you collected data, (actual data or surveys should be attached in an appendix) what methods were used and why, what the results mean and if any inferences can be made as a consequence. This page is usually written after the project is completed but is placed as the first page for executives (in this case your TAs) to gain the essence of your work. Having read this page, a person should know all about your project. Be brief but concise.

* 50 points for analysis – this should include Excel output and a detail written description (preferably in English) of what all the numbers from Excel output mean and what should be inferred from them. It should describe in “English” what this analysis is all about, which hypothesis are getting tested and why. Which confidence intervals are getting computed and what they mean. What confidence level was chosen and why, what alpha level was chosen and why, what type of hypothesis was done i.e., lower tail, upper tail, or two tail and why.

* 5 points for Summary – It describes once again the results and what they imply and any recommendations you may have as a consequence of having gone through the analysis. What would you do differently if you had more resources, etcetera?

* 20 points for using: * superior writing quality and correct grammar * free of spelling errors * 12 point single space font * addressing ethical issues if any * descriptive in nature

Other related tidbits:

* You can have teams of up to four people work together. * The credit (up to 100 points) will be applied to your overall points earned in the class. All members of the team get same amount of credit. * Please check the due date in your class calendar above. * If your life schedule does not allow you to work in teams, you may work by yourself. * Feel free to ask any questions.

Instructions for downloading free PHStat 2 Software
This software will be needed starting chapter 8.

1: Click on the link below or paste it in your browser window.\ 2: Then on the top left under Books by David F. Groebner, Business Statistics, 9/e,

Click on:
Companion Website
3: Then Select any chapter from numbers at the top by clicking on a chapter number.

On the left hand side you will see several options. Among them close to the bottom is PHStat2. Click on PHStat2.

First you should read the PHStat Read me file with detail instructions (it’s better to print instruction so you have them while installing the program). Then Click PHStat2 download option to download the program.

(Remember, before you can download PHStat or try to run it, you must install the Data Analysis Tool Pack in Excel).

For technical support from the publisher, feel free to harass them at the number below:

Pearson Technical Support: (800) 677-6337

Fall 2013 Important Course Information for the Department of Operations and Information Systems
Adding a course: Students have the option of adding a class the first week of the term if seats are available. During the second week of the term, students must have a permission number to add the class until the last day to add. The University Registrar allows students to add a course late by completing the Late Add Form and paying a fee; however, the departments have discretion on permitting late additions to their courses. The OIS Department will not permit students to add courses past the add deadline. In the case of compelling, non-academic emergencies students can add a course by submitting a Late Add Form and supporting, written documentation to the instructor and the Chair of OIS Department.

Dropping a course: The last day for students to drop a term-length class is found in the spring 2013 calendar Dropped classes are deleted from the student’s record, and no tuition is charged. Beginning the eighth calendar day of the term and extending through the midpoint of the term, a student may withdraw from a class or from the University. A “W” is recorded on the academic record. Students may appeal the deadline for withdrawal in the case of compelling, non-academic emergencies by submitting a petition and supporting documentation to the Dean of the College of their major department. For extraordinary reasons approved by the student’s Dean and the Registrar, the grade of “W” may be given after the end of the term. Such requests must be submitted within three years of the affected term(s) or prior to graduation from the University, whichever comes first.

The above information on adding and dropping courses applies mainly to undergraduate courses.

Prerequisites: If you have not completed the prerequisites for the class, please drop this course as soon as possible. If you have questions concerning the prerequisites, please contact the Business Undergraduate Advising Office in SFEBB building first floor.

Final Examinations and Papers: The final for this course is a departmental exam and administered on the date specified in the schedule. Students who wish them (scantrons) back may either pick them up from the faculty member, or provide a self-addressed envelope for the exam/paper to be mailed.

Student Absences: Excused Absences: Students absent from class to participate in officially sanctioned University activities (e.g., band, debate, student government, intercollegiate athletics) or religious obligation, or with instructor’s approval, shall be permitted to make up both assignments and examinations. The University expects its departments and programs that take students away from class meeting to schedule such events in a way that will minimize hindrance of the student’s orderly completion of course requirements. Such units must provide a written statement to the students describing the activity and stating as precisely as possible the dates of the required absence. The involved students must deliver this documentation to their instructors, preferably before the absence but in no event later than one week after the absence.

Americans with Disabilities Act: The University of Utah David Eccles School of Business seeks to provide equal access to its programs, services and activities for people with disabilities. If you will need accommodations in this class, reasonable prior notice needs to be given to the instructor and to the Center for Disability Services,, 160 Olpin Union Building, 581-5020 (V/TDD) to make arrangements for accommodations. All written information in this course can be made available in alternative format with prior notification to the Center for Disability Services.

Student Responsibility: If you have any issues challenges questions, please contact me right away.

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Solution to Corporate Finance five. The standard deviation is equal to the square root of the variance. B-187 Small-Company Stocks: RS 0.0685 -0.0930 0.2287 0.1018 -0.2156 0.4463 RS - R S -0.020950 -0.182450 0.139250 0.012350 -0.305050 0.356850 Total (R S - R S )2 0.000439 0.033288 0.019391 0.000153 0.093056 0.127342 0.273667 Because the data are historical, the appropriate denominator in the calculation of the variance is five (=T – 1). σ2 S = [Σ(R S - R S )2] / (T – 1) = (0.273667) / (6 –1) = 0.054733 The variance of small-company stocks is 0.0547. The standard deviation is equal to the square root of the variance. σS = (σ2 S )1/2 = (0.054733)1/2 = 0.2340 The standard deviation of small-company stocks is .2340. U.S. Treasury bills: RT 0.0616 0.0547 0.0635 0.0837 0.0781 0.0560 RT - R T -0.004667 -0.011567 -0.002767 0.017433 0.011833 -0.010267 Total (R T - R T )2 0.000022 0.000134 0.000008 0.000304 0.000140 0.000105 0.000713 Because the data are historical, the appropriate denominator in the calculation of the variance is five (=T – 1). σ2 T = [Σ(R T - R T )2] / (T – 1) = (0.000713) / (6 –1) = 0.000143 The variance of small-company stocks is 0.000143. The standard deviation is equal to the square root of the variance. σT = (σ2 T )1/2 = (0.000143)1/2 = 0.0119 The standard deviation of small-company stocks is 0.0119. B-188 c. 9.19 The average return on Treasury bills is lower than the......

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