SYLLABUS FOR B.Sc.

(Applied Statistics & Analytics)

Semester VI

Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Introduction to Data Science Code:

Teaching Scheme Evaluation Scheme

Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
4 - - 4 40 60
Pre-requisite:
 Curious about playing with data
 Familiar with the basic math and statistic concepts
 Know the fundamentals of programming and data base
Objectives:
Introduction to the theoretical foundations, algorithms, and methods of deriving valuable insights from
data. Include detection and identification of outliers and anomalies, understanding the sequential and
temporal patterns; data mining techniques and algorithms; machine learning techniques such as
supervised and unsupervised learning.
Outcomes:
After completion of the course, students would be able to :
Basic understanding of the key concepts, algorithms and models relevant to data science, including detect
and identify outliers and anomalies, understand the sequential and temporal patterns, data mining
algorithms, and machine learning techniques.

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Introduction to Data, Data Patterns, and Data Mining, Linear and Nonlinear 20
Regression Models, Naïve Bayes Classifier, Decision and Regression Trees
2 Artificial Neural Networks for Classification and Prediction, Support Vector 10
Machines, k-Nearest Neighbor Classifier and Supervised Clustering, Hierarchical
Clustering, K-Means Clustering and Density-Based Clustering, Self-Organizing Map
3 Probability Distributions of Univariate Data, Association Rules, Bayesian Network, 15
Principal Component Analysis, Multidimensional Scaling

4 Univariate Control Charts, Multivariate Control Charts, Autocorrelation and Time 15

Series Analysis, Markov Chain Models and Hidden Markov Models, Wavelet
Analysis
Total 60
Text Books:
1. Nong Ye (2014): Data Mining: Theories, Algorithms, and Examples, CRC Press
2. Jiawei Han, Jian Pei, Micheline Kamber (2012):Data Mining: Concepts and Techniques, Third
Edition, Elsevier

Reference Books:

1. N Burlingame and L Nielsen (2012): A simple introduction to Data Science: , New Street
Communications
2. D C Montgomery (2002): Introduction to Statistical quality control:, 4th Edition, Wiley India
Any other information
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : R for Data Science Code:

Teaching Scheme Evaluation Scheme

Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
4 - - 4 40 60
Pre-requisite:

 Curious about playing with Data

 Familiar with the basic Math and Statistics concepts
 Familiar with Machine Learning and Data Mining techniques
 Know the fundamentals of Programming and Data base

Objectives:

The goal is to gain a better understanding of the techniques in data science, to get acquainted with the
basics of statistics and the R software, and to be able to write R programs to solve machine learning/data
mining/statistical problems.

Outcomes:

After completion of the course, students would be able to :

 Learn tools and techniques for Statistical analysis and Data transformation
 Understand Data Mining techniques and their implementation
 Analyze Data using Machine Learning algorithms in R

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Fundamentals of R Programming 10
R Data Structures, Reading data into R, R Control Statements, Loops and R functions

2 Univariate and Multivariate Analysis 15

Univariate Control Charts, Multivariate Control Charts, Autocorrelation, Markov
Chain Models and Hidden Markov Models, Wavelet Analysis

3 Outliers/Anomalies detection and Sequential/ Temporal patterns 15

Probability Distributions of Univariate Data, Association Rules, Bayesian Network,
Principal Component Analysis, Multidimensional Scaling

4 Machine Learning Techniques 20

 Machine Learning Model Developments, Linear and Non-linear Regression,
Classification Naive Bayes Classifier, Decision Trees and Regression Trees, Support
Vector Machines, Data Mining, Anomaly Detection, Clustering

Total 60

Text Books:

1. Karthik Ramasubramanian, Abhishek Singh (2017): Machine Learning Using R, Apress

2. Y Zhao (2013): R and Data mining: Examples and Case studies, Elsevier

Reference Books:

1. Bater Makhabel (2015): Learning Data mining with R, Kindle Edition

2. D Toomey (2014): R For Data Science, Kindle Edition
3. R B Koushik, S K Ravidran (2016): R Data Science Essential, Kindle Edition
4. Walter Zucchini, Iain L. MacDonald, Roland Langrock(2016): Hidden Markov Models for Time
Series: An Introduction Using R, Second Edition, CRC Press
5. Emilio L. Cano, Javier Martinez Moguerza, Mariano Prieto (2015): Quality Control with R: An ISO
Standards Approach, Springer

Any other information :

Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Principles of Marketing Code:

Teaching Scheme Evaluation Scheme

Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
4 - - 4 40 60
Pre-requisite:
 Curious about playing with data
 Familiar with the basic math and statistic concepts
 Know the fundamentals of programming and database
Objectives:
Introduction to the principle of marketing with specific reference to customer behavior and marketing
strategy.
Outcomes:
After completion of the course, students would be able to :
Basic understanding of the key concepts of marketing, use of internal and external data/ information
needed for marketing decisions

Detailed Syllabus: ( unit wise plan )

Unit Description Duration

1 Principles of Customer Behavior and Marketing strategy 15

 4 P’s of Marketing
 STP (Segmentation, Targeting and Positioning)
 Principles of customer Behaviour and Marketing Strategy
 Marketing Channels
 Porter 5-point analysis
 Creating a Brand
2 Key Aspects of the Marketing Process 15
 Marketing Environment- Demography, Socioeconomic environment
 Marketing Information- Assessing Information Needs, Developing
Information
 Marketing Technology- Assessing technological needs, choosing the
right technology, channels
 Principles of digital marketing
 Model of consumer behavior- buyer decision process, types of buyer
behavior, Role of pricing and promotion
 Nudge framework and power of habit creation
3 What do my market looks like? (modeling interrelationship techniques) 15
Segmentation: Tools and Techniques
Key metrics in marketing
Relationship between marketing and other business units
 4 Introduction to Market Research 15
Role of Market Research in Business decision making
Principles of survey design
Statistical Techniques- Factor analysis, discriminant analysis
Total 60

Text Books:
1. Philip Kotler, Kevin Lane Keller : (2016): Marketing Management , 15th edition , Pearson Education
Limited
2. Philip Kotler: (1998): Marketing Management - Analysis Planning Implementation and Control,
9th edition , Prentice-Hall of India Pvt. Ltd.
3. Peter Fader- Customer Centricity: Focus on the Right Customers for Strategic Advantage,
(Wharton Executive Essentials), (2012)
Reference Books:
1. Anderson, Sweeney & Cochran : (2010) : Statistics for Business and Economics , 11th edition , South-
Western Cengage Learning Inc.
2. Rajendra Nargundkar: (2003) : Marketing Research (Text & Cases) , 2nd edition, Tata McGraw Hill
Education
Any other information
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Statistical Modeling in Marketing Analytics Code:

Teaching Scheme Evaluation Scheme

Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
4 - - 4 40 60
Pre-requisite:
 Curious about playing with data
 Familiar with the basic math and statistic concepts
 Know the fundamentals of programming and data base
Objectives:
The objective of this course is to train the students with various statistical techniques, models and metrics
that help in providing actionable insights leading to better marketing decisions.
Outcomes:
After completion of the course, students would be able to :
Analyze and critically interpret data, build statistical models of real situations in marketing.

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Marketing Analytics Landscape 10

Process Model for Data Mining,
Database Marketing and Data Mining,
Basic Tools for understanding Data-
a. Response measurement, target v/s control
b. Statistical Tests- t-test, Chi-square test, Test of proportions
2 Segmentation and Clustering- 17
RFM Segmentation
Cluster Analysis – hierarchical clustering, k-means clustering
Tree Based Models- CHAID and CART
3 Marketing Research Tools 15
Principal Components Analysis (PCA)/ Common Factor Analysis (CFA)
Multidimensional Scaling (MDS)
Classification Algorithms: Naive Bayes Classifier, Discriminant Analysis
4 Market Basket and Association Analysis, Collaborative Filtering 18
Statistical Techniques for marketing analytics- logistic regression, multivariate linear
regression
Machine Learning techniques for marketing analytics- Bagging, Boosting, Random
Forest
Total 60

Text Books:
1. Paul E. Green, Donald S. Tull (2014): Research for Marketing Decisions, Prentice-Hall of India Pvt.
Ltd.
2. Wayne Winston, Marketing Analytics (2013) : Data-Driven Techniques with Microsoft Excel
Reference Books:
1. Stephan Sorger (2013): Marketing Analytics: Strategic Models and Metrics, Createspace
Independent Publishing Platform
2. Kishore K. Das & Dibyojyoti Bhattacharjee (2014): Statistics for Business and Marketing Research,
PHI Learning Pvt. Ltd.
Any other information
Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Fundamentals of Financial Risk Code:

Teaching Scheme Evaluation Scheme

Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
L - - 4 40 60
Pre-requisite:
 Basic should have general understanding of Finance
 Basic understanding of various types of Financial risks that business faces

Objectives:
The objective of this course is to establish the context for Financial Risk and its management,
significantly enhance the understanding of the financial risks faced by businesses in various
industries including Banking & Financial Services. Establish a strong foundation for application
of statistical tools and concepts to finance, to quantify, assess, mitigate and monitor risk.

Outcomes:

After completion of the course, students would be able to :

 Understand and evaluate complex dimensions of the financial risks
 Quantify risks
 Map statistical concepts and techniques to finance for risk assessment, mitigation and
monitoring
 Develop basic financial risks models

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Risk Management Process– Overview and Introduction 5

 Introductory concepts of the securities market
 Basics of Financial risk management
 Introduction to Statistical tools and techniques applicable for Financial Risk
Management

2 Risk Measurement and Analysis 20

 Quantification of Risk
 Probabilistic foundations of financial modelling and pricing
 Evaluating loss data, Analysis of distribution of loss data
 Duration Analysis
 VaR and Non-VaR measurements and analysis
 Copulas
3 Detailed insight into Individual Types of Risks 10
 o Credit Risk
o Market Risk
o Operational Risk
o Interest rate risk
o Currency Volatility
o Cash Flow Cycle
o Liquidity
o Asset Liability Management
o Maturity Mismatch
o Re-pricing
o Acturial Risk
4 Risk Modelling – Principles and Practice 22
Emphasis on calibrating and validating various models for managing risk
 Discounted Cash Flow Modeling
o Certain / Un-Certain Cash flows
o Risks and its impact on the cash flows
o Impact of risk on expected return and discounting factors
o Other key factors impacting risk profile of the business
 Overview Various Model adopted for different types of risk.
o Market Risk
 VAR model
o Credit Risk:
 Implied probability of default
 Transition matrix,
 LGD, EAD
 Credit Scoring
o Operational Risk:
 Loss Data analysis
 Catastrophic modelling
 Project Risk analysis
o Project risk evaluation tools and techniques
 Insurance & finance risk modelling
o Risk based Product pricing and underwriting
o Risk measurement, Loss data analysis
o Catastrophic loss modelling
 Credit and other financial ratings – models and implications
5  Detailed Example in Financial Risk Management 3
o Financial Services Company
o Non-Financial Services Company
o Insurance
Total 60

Text Books:

1. Financial Risk Management: A Practitioner's Guide to Managing Market and Credit

Risk- Steve L. Allen
2. Identifying and Managing Project Risk--Book by Tom Kendrick
3. The essentials of risk management- Book by Michel Crouhy
 4. Risk Management and Financial Institutions – John C Hull

Reference Books:

1. Risk Management for Insurers: Risk Control, Economic Capital and Solvency II-Book by
René Doff
2. Fundamentals of Enterprise Risk Management: How Top Companies Assess Risk- Book
by John J. Hampton
3. Risk Management in Banking- Book by Joel Bessis

Any other information : NA

Program: B. Sc. Applied Statistics & Analytics Semester : VI

Course : Statistical Modelling in Financial Risk Code:

Teaching Scheme Evaluation Scheme
Internal Continuous Term End
Lecture Practical Tutorial Credit Assessment (ICA) Examinations (TEE)
(weightage) (weightage)
4 - - 4 40 60
Pre-requisite:
 Application skills related to various statistical tools and techniques
 Basic understanding of various types of Financial risks that business faces

Objectives:
To build a foundation and provide application oriented perspective of Financial Risk. Equip the
students with necessary skills to perform statistical modelling for financial risk management

Outcomes:
After completion of the course, students would be able to :
 Understand and evaluate complex dimensions of the financial risks
 Develop basic financial risk models using statistical techniques

Detailed Syllabus: ( per session plan )

Unit Description Duration

1 Review of Financial Risk Management and Related Mathematical Tools 2

2 Financial Risk Management in the Binomial Model 8

 The binomial model of a financial market.
 Absence of arbitrage, uniqueness of a risk-neutral probability measure,
martingale representation
 Hedging contingent claims in the binomial market model. The Cox-Ross-
Rubinstein formula. Pricing and hedging options
 Utility functions and St. Petersburg’s paradox. The problem of optimal
investment.
 The term structure of prices, hedging and investment strategies in the Ho-Lee
model
 The transition from the binomial model of a financial market to a continuous
model. The Black-Scholes formula and equation – an overview

3 Advanced Analysis of Financial Risks: Discrete Time Models 10

 Fundamental theorems on arbitrage and completeness.
 Pricing and hedging contingent claims in complete and incomplete markets
  The structure of options prices in incomplete markets and in markets with
constraints
 Hedging contingent claims in mean square
 Gaussian model of a financial market in discrete time. Insurance appreciation
and discrete version of the Black-Scholes formula

4 Analysis of Risks: Continuous Time Models 10

 The Black-Scholes model. "Greek" parameters in risk management, hedging
and optimal investment
 Beyond the Black-Scholes model
 Imperfect hedging and risk measures

5 Fixed Income Securities: Modeling and Pricing 7

 Elements of deterministic theory of fixed income instruments
 Stochastic modelling and pricing bonds and their derivatives

6 Implementations of Risk Analysis in Various Areas of Financial Industry 7

 Real options: pricing long-term investment projects
 Technical analysis in risk management
 Performance measures and their applications

7 Insurance and Reinsurance Risks 8

 Modelling risk in insurance and methodologies of premium calculations
 Risks transfers via reinsurance
 Elements of traditional life insurance
 Risk modelling and pricing in innovative life insurance

8 Solvency Problem for an Insurance Company 8

 Ruin probability as a measure of solvency of an insurance company
 Solvency of an insurance company and investment portfolios
 Solvency problem in a generalized Cramér-Lundberg model

Total 60

Text Books:
1. Steven Shreve: Stochastic Calculus for Finance II
2. Alexander Melinkov (2011): Risk Analysis in Finance and Insurance, 2nd ed, Chapman &
Hall/ CRC Financial Mathematics series.
3. Alexander J., Rudiger & Paul (2010): Quantitative Risk Management, 1st ed, New Age
Publishers.
4. Michel Crouhy (2014): The essentials of risk management, 2nd Ed., McGraw-Hill
Education.
 5. John C Hull (2015): Risk Management and Financial Institutions, 4th Ed., Wiley Finance
Series.

Reference Books:
1. Michael Miller (2012): Mathematics and Statistics for Financial Risk Management, 1st ed,
Wiley Finance.
2. Tiziano Bellini (2016): Stress Testing and Risk Integration in Banks, 1st ed, Academic
Press
3. Rüschendorf & Ludger (2013): Mathematical Risk Analysis, 1st ed, Springer
4. Joel Bessis (2015): Risk Management in Banking, 4th Ed., Wiley.
Any other information :
The teaching will be supplemented with a detailed case example to demonstrate the techniques
taught.
Industry Research papers on the relevant topics will also be used extensively while teaching.