Course Outline
Intermediate Statistics for Economics
Course Code: Eco 402
Course Objective: The course aims to equip students with a solid foundation in statistical analysis for
business and economics. It covers key concepts such as probability theory, random variables, and
sampling distributions, emphasizing their application in business contexts. Students will develop skills in
statistical inference, including hypothesis testing and confidence intervals, as well as regression and
correlation analysis for understanding relationships between business variables. The course also
introduces time series analysis for forecasting and trend analysis, preparing students to use statistical
methods for informed decision-making and problem-solving in dynamic business environments. By the
end, students will be proficient in applying these techniques to real-world business challenges using
statistical software.
Textbook: "Statistical Analysis for Business and Economics" by Donald L Harnett and James L.
Murphy
Chapter 1: Introduction to Statistics and Probability: Overview of Statistics and Probability, Types of
Data and Variables, Descriptive vs. Inferential Statistics.
Chapter 2: Basic Probability Theory: Introduction to Probability, Sample Spaces and Events, Basic
Probability Rules, Conditional Probability and Bayes’ Theorem
Chapter 3: Probability Theory: Discrete Sample Spaces, Probability Model , Experiment and Sample
Spaces, Subjective and Objective Probability, Counting Rules (Permutations and Combinations),
Probability of the Complement, Conditional Probability and Special Cases, Mutually Exclusive Events
and Independent Events, Marginal and Joint Probabilities, Bayes' Rule
Chapter 4: Discrete Random Variables and Expectations: Introduction to Random Variables and
Probability Distributions, Probability Mass Functions (p.m.f.) and Cumulative Mass Functions (c.m.f.),
Expected Values and Variance of Random Variables, Bivariate Probability Functions and Covariance,
Expectations of Linear Transformations
Chapter 5: Discrete Probability Distributions: Binomial Distribution, Bernoulli Trials and Binomial
Formula, Characteristics and Use of Binomial Distribution, Hypergeometric Distribution, Poisson
Distribution, Parameters, Mean, and Variance, Practical Applications
Chapter 6: Probability Theory: Continuous Random Variables: Probability Density Functions (p.d.f.)
and Cumulative Distribution Functions (c.d.f.), Normal Distribution and its Applications, Standard
Normal Distribution and Z-scores and T-scores.
Chapter 7: Sampling and Sampling Distributions: Sample Designs and Sampling Errors, Probability
and Non-Probability Sampling, Sampling Distribution of the Mean and Standard Error, Central Limit
Theorem, Sampling Distribution of the t-distribution and chi-square Distribution, Student’s t-test and F-
distribution
Course Outline
Intermediate Statistics for Economics
Course Code: Eco 402
Chapter 9: Estimation: Properties of a Good Estimator (Unbiasedness, Consistency, Sufficiency),
Confidence Intervals for Population Parameters (Mean, Proportions), Determining Sample Size,
Statistical Inference and Hypothesis Testing
Chapter 10: Hypothesis Testing: One-Sample Tests: Types of Hypotheses and Testing Frameworks,
One-Sample Tests for Means and Proportions, Power of a Test and Type I/II Errors
Chapter 13: Simple Regression and Correlation Analysis: Introduction to Regression Models, Least
Squares Estimation, Measures of Goodness of Fit (R², SSE) Correlation Analysis and Interpretation,
Hypothesis Testing for Regression Coefficients
Chapter 14: Multiple Regression and Correlation Analysis: Multiple Regression Models and
Assumptions, Estimation and Interpretation of Multiple Regression Coefficients, Measures of Fit
(Adjusted R², Standard Error of Estimate), Testing Hypotheses in Multiple Regression, Analysis of
Variance (ANOVA) in Multiple Regression
Course Conclusion
• Review of Key Concepts
• Real-World Applications
• Final Exam Preparation
This textbook will provide both theoretical grounding and practical applications, guiding you through
complex statistical methods and their relevance in business and economics contexts.