**DECISION
610 - Probability and Statistics**

**Course Description**

Regardless of the setting, management decisions are necessarily made under conditions of uncertainty. This course introduces a framework for thinking about problems involving uncertainty and, building on this framework, develops tools for interpreting data.

The main topics covered in the course are:

**Basic Probability, Random Variables, Summary Statistics**: basic and conditional probability, probability trees, Bayes' rule; probability distributions, functions of random variables; measures of location and dispersion.**Basic Statistics**: sampling, sampling distributions, Central Limit Theorem, point estimates, confidence intervals.**Regression Analysis**: correlation, simple and multiple regression, interpreting regression parameters and computer output, regression modeling and forecasting.

The emphasis is on application rather than theoretical development. We consider applications in a variety of areas, including finance, marketing, human resources, operations and accounting. The goal of the course is to sharpen students’ quantitative and analytical skills and to provide a foundation in probability and statistics for subsequent courses and for a management career.

**Course Textbooks**

- A Course in Business Statistics (Fourth Edition) by Groebner, Shannon, Fry, and Smith (Prentice Hall). ISBN: 0131676091.
- Managerial Statistics - A Case-Based Approach by Klibanoff, Sandroni, Moselle and Saraniti (Thomson). ISBN: 0324226454