Northwestern University

The MMM Program

A dual-degree program with the Kellogg School of Management and
the McCormick School of Engineering

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Home  >  Prospective Students  >  Prerequisites

The Probability and Statistics Prerequisite

In order to permit maximum flexibility for advanced coursework, some study in the MMM program is accelerated to take advantage of strong quantitative backgrounds of MMM students. For example, in the MMM program students take

• Advanced versions of Analytical Methods and Operations Management
• Accelerated Finance in place of Finance I and II

In order for MMM students to take these courses, in addition to strong quantitative skills, the program requires them to have some background in elementary probability and statistics prior to arrival on campus. Specifically, students should be familiar with the following topics.

1. Probability: Joint, marginal and conditional probabilities of events, Bayes' rule
2. Random variables: Discrete and continuous probability distributions
3. Mean, variance, covariance and correlation coefficient
4. Binomial and normal probability distributions
5. Statistical estimation, confidence intervals, and hypothesis testing

Typically, these topics are covered in an undergraduate course in statistics based on a text book such as

• Statistics for Business and Economics by David R. Anderson, Thomas A. Williams, Dennis J. Sweeney, 10th edition, Southwestern, 2007
• Basic Practice of Statistics, by David S. Moore, W. H. Freeman Company, 2006
• Statistical Data Analysis: From Elementary to Intermediate, by Ajit Tamhane and Dorothy Dunlop, Prentice Hall 1999

Students who have studied statistics but feel they need a refresher can attend review sessions offered on-campus. However, these review sessions are not a substitute for having taken a course in this important area. You may also review your statistical background through books such as those listed below:

• The Cartoon Guide to Statistics, by Larry Gonick and Woolcott Smith, Harper Perennial 1993
• Statistics Review, by Ajit Tamhane, 1996. This is a useful supplement to the "Cartoon Guide"

If you have not had a formal course in statistics, you should plan on taking one at a community college prior to starting the program.

To assess your level of preparation, you should take a self test on the website and return it to the MMM office by August 31.