AZUSA PACIFIC UNIVERSITY

SCHOOL OF BUSINESS & MANAGEMENT

BUSI 311: Quantitative Analysis

Spring 2008, Roger B. Conover:

Wilden 219; (626) 815-3823; rconover@apu.edu

 

Azusa Pacific University

MISSION STATEMENT

Azusa Pacific University is an evangelical Christian community of disciples and scholars who seek to advance the work of God in the world through academic excellence in liberal arts and professional programs of higher education that encourage students to develop a Christian perspective of truth and life.

 

SCHOOL OF BUSINESS AND MANAGEMENT

MISSION STATEMENT

The mission of the School of Business and Management is to advance the Kingdom of God by integrating a Christian perspective into life through business and management education. We are dedicated to maintaining a dynamic teaching environment where current, relevant business theories and practical tools are implanted, and students develop linkages between faith, learning and application

 

Summary:

This course presents students with mathematical tools useful for business decision-making. In addition, management tools such as forecasting, linear programming and project management techniques will be developed. The course will use a textbook, lectures and discussions. Student evaluation will be based on homework, periodic exams and a comprehensive final exam.

 

This is a course about how to make good decisions. "Quantitative" means that most of the decisions that we will look at have numbers associated with them (an inescapable result of the fact that business decisions are usually associated with issues of goods and money). "Analysis" means that we will not be satisfied until we have developed a well-structured way of thinking about the issues. In the complex world of modern business, the failure to think clearly about the problems that you encounter will have serious consequences for your ability to accomplish your business goals.

 

Prerequisites:

1.      College Algebra with a grade of B or better is a prerequisite for this course. You must be able to apply college algebra to solving problems.

2.      Basic knowledge of Microsoft Excel (or equivalent spreadsheet program).

 

Required Text: Quantitative Analysis, compiled by Roger B. Conover (Prentice Hall Custom Business Resources, 2005) from Balakrishnan, Render and Stair (Prentice Hall, 2005) and Taylor (Prentice Hall, 2005).

 

 

Office Hours: Drop by my office Monday 10:30 – 12 noon and Wednesday 1:30 – 3 PM, or make an appointment with me. E-mail also works for some questions.


Upon completion of this course, students are expected to:

 

  1. Know what analytical thinking is and why analytical thinking is important for business decision-making

 

  1. Know how to apply analytical thinking to a variety of business problems.

 

  1. Know how to use Excel (or other spreadsheet software) to help organize information and solve analytical problems that arise in a variety of business situations. This includes being able to build their own spreadsheets to solve problems using moderately sophisticated mathematical functions included in Excel and being able to correctly interpret the resulting output.

 

  1. Be able to identify maximization and minimization problems in business, to extract the relevant data from the business situation and to formulate a Linear Programming (LP) problem that will help them solve the problem. Students should be able to correctly solve basic LP problems by hand and be able to correctly formulate the Excel spreadsheet to solve larger LP problems. Students should also be able to correctly interpret the output generated by Excel for application to their business problem.

 

  1. Be able to distinguish between risk and uncertainty. Students should be able to extract the relevant data from the business situation and to use the tools of decision analysis (including expected returns, risk aversion and decision trees) to help make good decisions in the face of risk or uncertainty. Students should be able to correctly solve basic decision problems by hand and be able to correctly formulate the Excel spreadsheet to solve larger decision problems. Students should also be able to correctly interpret the output generated by Excel for application to their business problem.

 

  1. Be able to identify problems in business which consist of a sequence of interrelated elements or activities (“projects”). Using the tools of PERT / CPM, students should be able to clearly identify the objective, organize the project to best meet the objective and manage the elements of a project throughout its duration. Students should be able to correctly solve basic PERT/CPM problems by hand and be able to correctly formulate the Excel spreadsheet to solve larger PERT/CPM problems. Students should also be able to correctly interpret the output generated by Excel for application to their business problem.

 

  1. Be able to identify business situations in which estimates of future unknown values are required at the present time in order to be able to make decisions. Students should be able to identify the appropriate qualitative or quantitative method for developing a forecast for the unknown values. Students should also be able to correctly interpret the reliability of their forecasts. Students should be able to correctly solve basic forecasting problems by hand and be able to correctly formulate the Excel spreadsheet to solve larger forecasting problems. Students should also be able to correctly interpret the output generated by Excel for application to their business problem.

 

  1. For each of the above analytical tools, be able to correctly apply sensitivity analysis to the solutions that they obtain. They should be able to identify which elements of their business problems, if changed, may significantly affect their decisions and which elements may not. They should also be able to correctly identify situations in which they need and should acquire further information before making a decision. Students should be able to correctly interpret the sensitivity reports generated by Excel for application to their business problem.

 

General Grade Expectations:

Your grade will depend upon your performance on the homework, tests and the final exam. No extra credit is available except as may be occasionally announced in class. Students who are concerned about their grades should see the instructor as early as possible during the semester to work out possible strategies for improving your performance. Grades will not be changed after the course is over except in the case of clerical error. Grade appeals procedures may be found in the Student Handbook.

 

In general, the following guidelines will apply to this course. Your specific grade will be determined by the point total that you accumulate throughout the course.

 

Grade A: Outstanding knowledge regarding details, assumptions and implications of quantitative analysis; demonstrates superior thinking with information relevant to application, critique, relationship to other information.

B: More than adequate knowledge regarding technical terms, distinctions, ability to begin using information; demonstrates ability to think clearly about the information and its relationship to other information.

C: Basic knowledge needed to function and carry on learning regarding major principles, central terms, major figures, awareness of the field.

D: Serious gaps in knowledge, confusion of concepts and categories, inability to recall basic information.

F: Absence of knowledge, incapable of carrying on a conversation about the subject, misunderstands most concepts, confuses all categories.

 

Specific Grading Policy: There are 500 points possible in the course:

            Homework (5 x 30)                                                  150     (Scale TBA)              

            Exams (2 x 100)                                                       200     (Scales TBA)

            Final (comprehensive)                                           150     (Scale TBA)

Homework problems are assigned below and are due at the beginning of class on the days indicated. You may discuss the homework in groups, but copying the answers of another student is expressly prohibited. Do not show your paper or computer files to another student, just talk about what the next steps are. If you get stuck, you may discuss the steps in the solution process, but you must not copy answers. When in doubt, ask the course professor for help instead. This obviously implies that each person must turn in their own answers. On the days that problem sets are due, the answers will be reviewed immediately, so no late papers can be accepted. MAKE A COPY of your homework and hand in the original so that you can look over your answers in class.

 

The exams will be one class period each. The final will be comprehensive, though weighted toward the material from the last part of the course. The exams and the final will consist of a combination of objective/short answer problems, multiple choice problems, Excel spreadsheet design problems and calculation problems. No notes or study aids (including the papers of other students) may be used on the exams. Only basic-function calculators are permitted. No other electronic devices are permitted, including programmable or graphing calculators, cell-phones or PDA’s. There will be no make-up exams. With prior approval of a valid, documented excuse, the percentage that you receive on the final will be assigned as your score on the missed exam. There is no provision for missing more than one exam, and you must take the final.

 

Problem Solving:

Practicing by solving problems is ABSOLUTELY ESSENTIAL to learning mathematical techniques. The following is a list of problems from the end of the chapters that we will cover. This represents the minimum required for a basic understanding of the material. I expect that you will work more problems than just these. I cannot stress enough the importance of working these and other problems from the chapters!

 

Problem set #1

Chapter 1- Introduction: 25, 27, 28, 29

Chapter 2- LP Models (set up all problems algebraically): 5 (show graphically); 13 (solve graphically and by Excel); 25, 26 (solve graphically); 40, 43 (solve with Excel)

 

Problem set #2

Chapter 3- LP Application: Set up algebraically then solve each using Excel: 3, 7, 14, 21, 35, 45

Chapter 4- LP Sensitivity: 10 (set up and solve graphically); 13, 16, 19, 20, 21.

 

Problem set #3

Chapter 5- PERT: 16 (set up and solve using Excel); 18, 20, 32 (by hand); 35 (draw the network diagram to show your result)            

 

Problem set #4

Chapter 6- Decisions:  14, 15, 26, 27, 32, 35, 40, 41

 

Problem set #5

Chapter 7- Forecasting:  2, 5, 14, 19, 25, 29, 31, 45

 

Educational Support:

 

Please make use of the variety of support systems developed to enhance your achievement in this class. First, a tutor in the LEC may be available for this course. See the LEC for additional information on meeting times and places. I also strongly recommend making use of my office hours for help with the material in this course. We can make an appointment if my office hours do not match your schedule.

 

Any student in this course who has a disability that might prevent you from fully demonstrating your abilities should meet with an advisor in the Learning Enrichment Center as soon as possible to initiate disability verification and discuss accommodations that may be necessary to ensure your full participation in the successful completion of course requirements.

 

Academic Honesty:

 

Students in this and all courses at Azusa Pacific University are expected, as part of their enrollment, to uphold the following Academic Integrity Pledge:

 

“As a student at this Christ-centered University, I will uphold the highest standards of academic integrity.  I will not lie, cheat, or steal in my academic endeavors, nor will I accept the actions of those who do.  I will conduct myself responsibly and honorably in all my academic activities as an Azusa Pacific University student.”

                       

The mission of Azusa Pacific University includes cultivating in each student not only the academic skills that are required for a university degree, but also the characteristics of academic integrity that are integral to a sound Christian education.  It is therefore part of the mission of the university to nurture in each student a sense of moral responsibility consistent with the biblical teachings of honesty and accountability.  Furthermore, a breach of academic integrity is viewed not merely as a private matter between the student and an instructor but rather as an act which is fundamentally inconsistent with the purpose and mission of the entire university.  A complete copy of the Academic Integrity Policy is available in the Office of Student Life, the Office of the Vice Provost for Undergraduate Programs, and online.

 

Any work throughout the course that appears to have been copied from another source violates the standard of academic integrity. You may not give or receive assistance on exams except from the course professor. You may only work together on homework sets in the manner described above- no copying of work is permitted. If homework or exam papers do appear to be copied, or other cheating occurs, all students involved will receive zero points for that assignment. Second violations will result in all students involved being assigned a grade of “F” for the course. Signing a role sheet for another student is considered forgery and will result in being assigned a grade of “F” for the course. Any other acts of academic dishonesty will be dealt with in a similar manner. In any case of a suspected violation of the standards of academic integrity, the incident will be reported to the Vice Provost’s office and further steps may be taken in accordance with the Academic Integrity Policy of the University.

 

Attendance Policy:

 

Students are expected to attend every class, and attendance will be taken. Students that arrive after class has begun will be counted as absent. Points will be deducted from a student’s final score according to the following schedule:      

0 to 2 = 0;       3 or more = 20 points each.

Students that are late or absent because of an approved university event must inform the instructor prior to such an event. While students are still responsible for assignments due and material presented on such days, this absence will not be counted against their total.

 

Revisions:

 

This syllabus may be revised during the semester by the professor as needed, including dates for exams. Any revisions to the syllabus will be announced in class.

 

 


SCHEDULE OF CLASS MEETINGS: BUSI 311- Quantitative Analysis

 

WEEK                         TOPIC                                                 HAVE READ                                                                                                 

Week 1: Jan 8            INTRODUCTION- Models, Excel;                 1, 2

                                    Linear Programming

 

Week 2: Jan 15          Linear Programming                                       ---

 

Week 3: Jan 22          LP Graphing and Spreadsheets                     ---                               

 

Week 4: Jan 29          Applications of Linear Programming              3       HW #1 due (T)

 

Week 5: Feb 5            Sensitivity Analysis in Linear Programming   4                     

                                                                       

Week 6: Feb 12          Sensitivity Analysis                                         ---     HW #2 due (Th)

 

Week 7: Feb 19          Exam #1 (Tuesday)                                       Chapters 1-4 

Project Management: PERT / CPM               5

 

Week 8: Feb 26          PERT / CPM: Uncertainty                              ---

 

Week 9: Mar 4            PERT / CPM: Crashing                                  ---     HW #3 due (Th)

  

Week 10: Mar 11        Decision Analysis                                            6         

 

March 15 – 24:                       EASTER VACATION!

 

Week 11: Mar 25        Decision Analysis                                            ---                   

 

Week 12: Apr 1          Decision Analysis                                            ---     HW #4 due (Th)

 

Week 13: Apr 8          Exam #2 (Tuesday)                                       Chapters 5, 6

 

Week 14: Apr 15        Forecasting                                                     ---

 

Week 15: Apr 22        Forecasting                                                     ---     HW #5 due (Th)

 

Finals Week: April 28 – May 2.        Check Schedule of Classes for Time.