MS5030: Data Analysis for Management

Instructor: Rahul R. Marathe

Welcome, Batch of 2012 2014!!!

This is MS5030 Data Analysis for Management (DAM). This is part of the first-year MBA core curriculum at DoMS, IITM.

Introduction: Why?
Numbers everywhere! Successful managers are those who can make sense of these numbers. Demand for specialists who can make sense of the data is also large. In todays world, it is more the case of information overload too much data! It is our job to make this data tell us a story! Sort out what is important and what is not!

Introduction: Why?
Whether you will be audited by income tax authorities depends a lot on sampling techniques used by the IT department, and also on you hitting certain numerical signals. The Technical Analysis to decide on the optimal portfolio is based on mining information from the stock price values available. Market research firms use statistical techniques on point-ofsale data to understand buyer behavior. Quality control charts to monitor production are drawn using statistical techniques and theorems. Thats why every manager should know these techniques.
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Introduction: Why?
Evolution of the business environment Extensive use of data analytics creating newer businesses (Example: TV industry July 2012) Or making existing industries better (Example: Better market research using big data, July 2012) Is the demand from analytics industry bigger than that from the software industry? (Economic Times article, June 2012) Hence, leading academic institutions are starting to build analytics into their curriculum (e.g. NYU Stern)

Introduction: Why?
DAM is a pre-requisite for many other courses in your curriculum: BRM requires what you learn in DAM. TQM, OM have substantial statistical component. Second year elective courses in Analytics (e.g. MS6030: Adv. DAM) extends from MS5030. Elective courses such as on Computational Finance are based on the techniques we are going to discuss in this course.

Introduction: Why?
Benjamin Disraeli once famously said, There are three kinds of lies: lies, damned lies and statistics. Or was it lies, DAMned lies and statistics? Darell Huff, in his book, How to Lie with Statistics, noted that the crooks already know these tricks; honest men must learn them in self-defense. So, lets begin!

Introduction: What?
The word statistics (or statistik) comes from the Italian word statista (meaning statesman). First used by Prof. Achenwall of Gottingen. 1. 2. 3. Three categories: Descriptive statistics: How can the data be summarized? Inferential statistics: How can we draw inferences from the data? Predictive statistics: How can we build predictive statistical models using the data available?

Introduction: How? Refer course outline (.doc file)

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