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SYLLABUS

Statistical Methods in Economics

Objectives:
The course aims to equip the students with statistical tools and concepts that help in decision making. The emphasis is on
their application in business.

Sr. No. Content

1 Definition of Statistics: Importance and scope of statistics and its limitations, Types
of data collection: Primary and Secondary: Methods of collecting Primary data,

Classification and Tabulation of data: Frequency and cumulative frequency
distribution

2 Central Tendency: Mean, Median and Mode and their Properties, Application of

Mean, Median and Mode
3 Dispersion: Meaning and characteristics. Absolute and relative measures of

dispersion including Range, Quartile deviation, Percentile, Mean deviation,
Standard deviation, Skewness and Kurtosis: Karl Pearson, Bowley, Kelly’s

methods

4 Correlation: Definition, types and its application for Economists, Correlation:
Scatter Diagram Method, Karl Pearson’s coefficient of correlation, Rank

correlation method
5 Linear Regression Analysis: Introduction and lines of Regression, Coefficient of

regression method simple, Correlation analysis vs. Regression Analysis

6 Index number: Introduction and Use of index numbers and their types, Methods:
Simple (unweighted) Aggregate Method, Weighted aggregate method, Methods:

Simple (unweighted) Aggregate Method, Methods: Simple Average of Price

Relatives, Methods: Weighted Average of Price Relatives, Test of consistency:
Unit test, Time Reversal Test, Factor Reversal Test and Circular, Cost of Living

index and its uses. Limitation of Index Numbers
7 Time Series Analysis: Introduction and components of time series, Time Series

Methods: Graphic, method of semi-averages, Time Series Methods: Principle of
Least Square and its application, Methods of Moving Averages

8 Theory of Probability: Introduction and uses, Additive and Multiplicative law of

probability
9 Theory of Estimation: Point estimation, Unbiasedness, Consistency, Efficiency and

Sufficiency, Method of point estimation and interval estimation

10 Types of Hypothesis: Null and Alternative, types of errors in testing hypothesis,
Level of significance