BUSN 41000 (MBA): Business Statistics

Syllabus

• Syllabus

Part 1: Probability and Decisions

Introduction, Probability Concepts and Decisions, Monte-Carlo Simulations.

Slides

• Section 1

RMarkdown

• Hedging Stocks

Homework

• Problem Set 1
• Problem Set 2

Readings

• Seeing Theory

• FiveThirtyEight article

• COVID-19 prevalence rate

• Simpson’s Paradox: video1 , video2

Part 2: Estimation and Inference

Estimation, Portfolio Construction, Confidence Intervals and Testing Hypothesis, Bootstrap.

Slides

• Section 2

RMarkdown

• Annual Returns

Homework

• Problem Set 3
• Problem Set 4

Readings

• Guessing Correlation: wiki , game

• Spurious Correlation

• Demonstration of Normal Approximation/CLT , and more

• Demonstration of Confidence Interval

Part 3: Simple Linear Regression

Least Squares and Conditioning, Analysis of Variance, Capital Asset Pricing Model.

Slides

• Section 3

RMarkdown

• SLR vs. MLR

Homework

• Problem Set 5
• Problem Set 6

Readings

• Moneyball

• Simple Linear Regression App, play!

• XKCD, hypothesis testing, can you get the point?

• XKCD, slope hypothesis testing, can you figure out why?

Part 4: Multiple Linear Regression

Multiple Linear Regression, Simpson’s Paradox, Dummy Variables, and Interactions.

Slides

• Section 4
• Section 5

RMarkdown

• Dummies and Interactions

Homework

• Problem Set 7
• Problem Set 8

Readings

• Chicago Booth Review Article

• AI? Not yet