SECTION 130.190. Statistics and Business Decision Making (One Credit), Adopted 2015

(a) General requirements. This course is recommended for students in Grades 11 and 12. Prerequisite: Algebra II. This course satisfies a high school mathematics graduation requirement. Students shall be awarded one credit for successful completion of this course.

(b) Introduction.

(1) Career and technical education instruction provides content aligned with challenging academic standards and relevant technical knowledge and skills for students to further their education and succeed in current or emerging professions.

(2) The Finance Career Cluster focuses on planning, services for financial and investment planning, banking, insurance, and business financial management.

(3) Statistics and Business Decision Making is an introduction to statistics and the application of statistics to business decision making. Students will use statistics to make business decisions. Students will determine the appropriateness of methods used to collect data to ensure conclusions are valid.

(4) The process standards describe ways in which students are expected to engage in the content. The placement of the process standards at the beginning of the knowledge and skills listed for each grade and course is intentional. The process standards weave the other knowledge and skills together so that students may be successful problem solvers and use mathematics efficiently and effectively in daily life. The process standards are integrated at every grade level and course. When possible, students will apply mathematics to problems arising in everyday life, society, and the workplace. Students will use a problem-solving model that incorporates analyzing given information, formulating a plan or strategy, determining a solution, justifying the solution, and evaluating the problem-solving process and the reasonableness of the solution. Students will select appropriate tools such as real objects, manipulatives, paper and pencil, and technology and techniques such as mental math, estimation, and number sense to solve problems. Students will effectively communicate mathematical ideas, reasoning, and their implications using multiple representations such as symbols, diagrams, graphs, and language. Students will use mathematical relationships to generate solutions and make connections and predictions. Students will analyze mathematical relationships to connect and communicate mathematical ideas. Students will display, explain, or justify mathematical ideas and arguments using precise mathematical language in written or oral communication.

(5) Students are encouraged to participate in extended learning experiences such as career and technical student organizations and other leadership or extracurricular organizations.

(6) Statements that contain the word "including" reference content that must be mastered, while those containing the phrase "such as" are intended as possible illustrative examples.

(c) Knowledge and skills.

(1) The student demonstrates professional standards/employability skills as required by business and industry. The student is expected to:

(A) demonstrate an understanding of appropriate communication with customers, employers, and coworkers through verbal, nonverbal, or digital means;

(B) demonstrate an understanding of the use of business etiquette;

(C) demonstrate an understanding of appropriate customer service such as building customer relationships and resolving customer complaints; and

(D) demonstrate an understanding of ethical and legal issues in business.

(2) The student uses mathematical processes to acquire and demonstrate mathematical understanding. The student is expected to:

(A) apply mathematics to problems arising in everyday life, society, and the workplace;

(B) use a problem-solving model that incorporates analyzing given information, formulating a plan or strategy, determining a solution, justifying the solution, and evaluating the problem-solving process and the reasonableness of the solution;

(C) select tools, including real objects, manipulatives, paper and pencil, and technology as appropriate, and techniques, including mental math, estimation, and number sense as appropriate, to solve problems;

(D) communicate mathematical ideas, reasoning, and their implications using multiple representations, including symbols, diagrams, graphs, and language as appropriate;

(E) create and use representations to organize, record, and communicate mathematical ideas;

(F) analyze mathematical relationships to connect and communicate mathematical ideas; and

(G) display, explain, and justify mathematical ideas and arguments using precise mathematical language in written or oral communication.

(3) The student uses career planning concepts, tools, and strategies to explore a career in the area of risk management. The student is expected to:

(A) compare and contrast the fundamentals of risk management, including the reasons for and benefits of risk management;

(B) discuss the role of ethics and responsibility in risk management; and

(C) compare and contrast roles, responsibilities, licensing, and certification programs of careers related to managing and analyzing personal and corporate financial portfolios such as financial planners, financial managers, financial analysts, controllers, risk managers, cash managers, treasurers, and chief financial officers.

(4) The student understands and demonstrates the use of statistics in business areas, including accounting, economics, finance, management, and marketing. The student is expected to:

(A) evaluate the use of statistics in accounting such as forecasting consumption, earnings, cash flows, book value, and allowance for doubtful accounts;

(B) evaluate how statistics are used in economics such as reports for labor market, trade balance, Gross Domestic Product, unemployment, and consumer spending;

(C) evaluate how statistics are used in finance such as the use by financial intermediaries or in the evaluation of investments, securities, derivatives, futures, or options;

(D) evaluate how statistics are used in management such as in the evaluation of production efficiency, production quantity, quality control, workforce trends, staffing issues, and employee satisfaction; and

(E) evaluate how statistics are used in marketing such as reports for projected market share, advertising effectiveness, sales effectiveness, brand loyalty, spending habits, and customer satisfaction.

(5) The student understands and demonstrates the ethical and responsible use of statistics in business. The student is expected to evaluate how statistics are used in accounting, economics, finance, management, and marketing.

(6) The student evaluates risk-management strategies and techniques in corporate finance to maximize profit and minimize loss. The student is expected to:

(A) manage risk to protect business stability;

(B) analyze the relationship between risk management and operations; and

(C) evaluate various risk-management strategies and techniques, including the use of insurance, stock, derivatives, and options.

(7) The student evaluates financial information using statistical analysis to assist business decision making using appropriate software. The student is expected to:

(A) communicate the value of statistical information in a variety of business disciplines and environments;

(B) assess statistical information portrayed in areas such as advertising, investments and securities, human resource management, and economics;

(C) generate a spreadsheet to collect, collate, organize, and analyze quantitative data; and

(D) use spreadsheets and graphical techniques to present data in a manner that is understood by and meaningful to colleagues and clients.

(8) The student understands and demonstrates the defining and collecting of data. The student is expected to:

(A) define the types of variables and the measurement scales of variables;

(B) understand the collecting of data and its source;

(C) understand populations and samples;

(D) understand sampling methods; and

(E) understand and define survey error types.

(9) The student will understand and demonstrate the organization and visualization of data. The student is expected to organize and visualize categorical data and numerical data.

(10) The student understands and demonstrates the use of descriptive measures. The student is expected to:

(A) understand and calculate the central tendency of the data set using mean, median, and mode;

(B) understand and determine the variation of the data set using range, sample variance, sample standard deviation, population variance, population standard deviation, coefficient of the variation, and Z score; and

(C) understand and demonstrate the measure of shape of the data set using skewness, symmetry, and kurtosis.

(11) The student understands and demonstrates the use of probability. The student is expected to:

(A) define event, compound event, complement of an event, sample space, marginal probability, conditional probability, independence, multiplication rule, multiplication rule for independent events, probability of an event, impendence, and Bayes' Theorem; and

(B) define and calculate simple probability, compound probability, marginal probability, general addition rule, marginal probability using the multiplication rule, and probability with Bayes' Theorem.

(12) The student understands and demonstrates the use of probability distribution for discrete variables. The student is expected to understand and demonstrate the use of the uniform distribution, the binomial distribution, and the Poisson distribution.

(13) The student understands and demonstrates the use of probability distribution for continuous variables. The student is expected to understand and demonstrate the use of the normal distribution, uniform distribution, and exponential distribution.

(14) The student understands and demonstrates the use of sampling distribution, sampling distribution of the mean, and the central limit theorem. The student is expected to:

(A) calculate the population mean and population standard deviation;

(B) calculate standard error of the mean; and

(C) calculate the Z- and X-bar for the sampling distribution of the mean.

(15) The student understands and demonstrates the use and construction of confidence intervals. The student is expected to:

(A) construct a confidence interval for the mean for a known and unknown population standard deviation; and

(B) evaluate ethical issues associated with confidence intervals.

(16) The student understands and demonstrates hypothesis testing for one sample tests and two sample tests. The student is expected to:

(A) understand and demonstrate the use of hypothesis testing, null hypothesis, and alternative hypothesis;

(B) create a null hypothesis and alternative hypothesis;

(C) understand and demonstrate the use of Type I error and Type II error;

(D) calculate the level of significance and calculate beta risk;

(E) understand and demonstrate the use of the complements of Type I error and Type II error by calculating the confidence coefficient and the power of a statistical test;

(F) understand and calculate Z test for the mean;

(G) understand and demonstrate a one-tail test hypothesis and its associated critical values and p-value; and

(H) understand and demonstrate a two-tail test hypothesis and its associated critical values and p-value.

(17) The student understands analysis of variance. The student is expected to understand and demonstrate the analysis of more than two populations.

(18) The student understands and demonstrates the use of chi-square test. The student is expected to use a chi-square test.

(19) The student understands and demonstrates the use of nonparametric test. The student is expected to use nonparametric tests such as the Wilcoxon Sum test.

(20) The student understands simple linear regression. The student is expected to:

(A) understand and demonstrate the use of various types of regression models;

(B) create the regression equation; and

(C) make predictions based on regression models.

(21) The student understands an introduction to multivariable regression: The student is expected to use a multivariable regression model.

(22) The student understands time series analysis and forecasting. The student is expected to:

(A) understand times series models;

(B) understand trend component;

(C) understand seasonal component; and

(D) understand cyclical component.

(23) The student demonstrates an understanding of a postsecondary plan. The student is expected to:

(A) understand educational, military, and current job opportunities; and

(B) create a postsecondary plan that includes topics such as application requirements; testing requirements; certification requirements; associated deadlines; associated costs, including living expenses; job prospects and opportunities; beginning earnings; expected future earnings; and resumes and cover letters.

Source Note: The provisions of this §130.190 adopted to be effective August 28, 2017, 40 TexReg 6601