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A Report on

Application of Statistical Tools


in
Course name: Business Statistics- I
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Course code: F-202
Submitted to:
Ms. Lubna Rahman
Lecturer,
Department of Finance,
Faculty of Business Studies,
ni!ersity of Dha"a.
Submitted by: GROUP #
Shahana# Par!in 1$%11&
'aioba (slam 1$%)*1
S.M. +a#rul (slam 1$%1,&
Md.-bu Daud 1$%,..
Md. Milan /ossain 1$%,1.
Mohammad Mar0an 1$%)$1
BBA 16
th
batch
Department of Finance
Faculty of Business Studies
University of Dhaa
Date of submission: 1 !u"y# 20111
Letter of
Transmittal
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1uly 12, ),11
Ms. Lubna Rahman
Lecturer,
Department of Finance
Faculty of Business Studies
ni!ersity of Dha"a.
Sub0ect3 Submission of the report.
Dear Sir, 4e are obliged to submit the term paper entitled 5-pplication of
Statistical tools in Business6, as a partial re7uirement of the Business
Statistics% course under your instruction. 'his report highlights the
application of statistical tools in business and sho8s ho8 these tools help
in collecting and organi#ing data, analy#ing information, dra8ing conclusion
and forecasting on future. 4e ha!e applied our practical "no8ledge of
statistics to get better information on three selected companies.
4e are e9tremely grateful to you for your !aluable guidance, diligent effort
: inspiring 8ords. 4e tried our best to follo8 your instructions, schedule
and discipline obediently and sincerely.
Thank you. Thank you.
Sincerely ;ours
Shahana! "arvin
#n behalf of the $roup
B% B% A% 16
th
Batch
Section& A
Department of Finance
University of Dhaa
Ackno
wledgement
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'o begin 8ith, 8e 8ould li"e to e9press our infinite gratitude to8ards
-lmighty -llah and our course teacher Ms Lubna Rahman. Lecturer,
Faculty of Business Studies, ni!ersity of Dha"a, to pro!ide not only
e9tremely 8ell arranged guidelines to complete our report 8or" but 8ould
also help us to confront problems in our future career. 4e 8ould li"e to
e9press our heartiest appreciation to our all classmates, 8ho ha!e been a
constant support to us and ha!e patiently helped us throughout our report.
4e 8ish to e9tend our than"s to the computer lab assistant and all the
peers of the Department 8ho made it possible to 8or" comfortably e!en in
tough times.

Executive Summary
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Statistics in!ol!es analysis. -s 8e are assigned to prepare a report for
course no F%),)=Business Statistics% (> based on three companies?
financial information of fi!e years, 8e ha!e been assigned B-'- Shoe
Bangladesh Ltd ,Singer Bangladesh Ltd and British% -merican 'obacco
Bangladesh @orporation =B-'B@> for this purpose. 4e ha!e done
statistical analysis on their profits, assets, liabilities, e7uities, return on
assets, return on e7uity and staffs. 4e ha!e used different types of
diagrams and graphs to present these topics comparati!ely
.Besides, 8e ha!e also calculated mean, median, mode, standard
de!iation, co%efficient of !ariation and inde9 using these data of the
three companies.
Table
of Contents
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Sl.
No
Contents Page
no
01 (ntroduction of the report
7-9
02 Literature Re!ie8
10-15
03 @ompany profile
16-20
04 -pplication of Statistical
tools in business
21-49
05 Summary and Findings
50-51
06 @onclusion
51
07 Bibliography
52
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Introduction of
the Report
#ri$in of the report&
'his report is prepared as a fulfillment of partial re7uirement of Business
Statistics% (. 'his report 8as authori#ed by our course Ms Lubna Rahman.
Lecturer of BB-, as a term paper to be submitted on 1uly ), ),11.
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#b'ective of the report &
'his report gi!es us the "no8ledge of statistical methods that helps
us to understand ho8 decisions are made : gi!es us a better
understanding ho8 they affect us.
'o analy#e information based on specific characteristics.
'o ma"e inferences about a sample based on information.
'o ma"e the use of statistical tools such as Mean, Median, Mode,
Regression : others about a population.
(t helps to ta"e reliable decisions nationally : internationally
(ethodolo$y of the report&
(nformation for the report has been obtained both from primary and
secondary sources3
(nter!ie8s ha!e been ta"en and the 7uestions as"ed guided by the
7uestionnaire.
Secondary data from !arious sources 8ere also collected. Boo"s and
reports obtained from !arious libraries and agencies ha!e been used.
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Boo"s from Dha"a ni!ersity libraries 8ere consulted in
understanding different theories and principles and formulating
7uestions.
'he information thus collected from !arious sources 8ere first
organi#ed and then analy#ed to dra8 conclusions.
)imitations of the *eport&
'he ma0or limitations encountered are3
Lac" of e9perience on our part has acted as constraints in the
8ay of meticulous e9ploration on the topic.
Lac" of efficiency in bro8sing through internet 8as a problem
because of 8hat 8e could not gather much more information.
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Literature
Review
Statistics is the formal science of making effective use of numerical data relating
to groups of individuals or experiments. It deals with all aspects of this, including
not only the collection, analysis and interpretation of such data, but also the
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planning of the collection of data, in terms of the design of surveys and
experiments.
Statistical methods can be used to summarize or describe a collection of data; this
is called descriptive statistics. This is useful in research, when communicating the
results of experiments. In addition, patterns in the data may be modeled in a way
that accounts for randomness and uncertainty in the observations, and are then used
to draw inferences about the process or population being studied; this is called
inferential statistics.
Definition of Statistics&
enerally by the term !statistics" we mean the science of collecting, organizing,
presenting, analyzing # interpreting data to assist in making more effective
decisions. Statistics makes it possible to predict the likelihood of events.
4.(. Bing is the science of statistics is the method of judging
collection, natural or social phenomena from the results
obtained from the analysis or enumeration or collection of
estimates.
$or example, in a company !%", there are &''' employees # we determine the
mean working time of the employees, (ere the mean is one of the important
statistical tools which give us the average working time of the employees.
+ypes of Statistics&
)*escriptive statistics.
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)Inferential statistics.
Descri$ti%e statistics:
+ethods of organizing, summarizing, # presenting data in an informative way .
$or example, according to the ,ureau of -abor Statistics, the average hourly earnings of
production workers were .&/./0 for 1anuary 2''3. It is an example of descriptive statistics.
&nferentia" Statistics:
The method used to estimate a property of a population on the basis of a sample.
"opulation&
The entire set of individuals or ob4ects of interest or the measurements obtained
from all individuals or ob4ects of interest.
$or example, the accounts receivable at the end of *ecember for -orrange 5lastics
Inc. is a population.
Sample&
Sample is a part or portion of the population of interest.
$or example, 2' rickshaw)pullers of an observation of &'' rickshaw)pullers is an
example of sample.
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+ypes of variables&
&. 6ualitative variable
). Cuantitati!e !ariable
,ualitative variable&
4hen the characteristic of data being studied is nonnumeric, it is called a
Cualitati!e !ariable or an attribute. For instance, the 7ualitati!e !ariables
are gender, religious affiliation, state of birth, eye color etc.
D9ample3 Eender, religious affiliation, eye color etc are the e9ample of
7ualitati!e !ariable.
,uantitative variable&
4hen the !ariable studied can be reported numerically, the !ariable is
called a 7uantitati!e !ariable.
-.ample 3 'he ages of a company?s employees, number of children in a
family, 8eight etc.
,uantitative variables may be-
Discrete !ariable
@ontinuous !ariable
Discrete variable& (t only includes certain !ariables and there are gaps
bet8een the !ariables.
Example3 children of a family, state of o8ning 'F sets.
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/ontinuous variable& (t includes any !alue 8ithin a specific range.
Example3 EP- and @EP-.
Statistical +ools&
(ean&
The mean of a data set is the average of all the data values. It denotes the
central location of data. The sample mean X is the point estimator of the
population mean m. Sample mean can be obtained by summing the value of
x over all of the observations and then dividing it by the number of
observation n.

(edian&
'he median of a data set is the !alue in the middle 8hen the data
items are arranged in ascending order.

4hene!er a data set has
e9treme !alues, the median is the preferred measure of central
location.
(ode&
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n
x x x
n
x
x
n
n
i
i
.........
2 & &
+ +
= =

=
2
&
$ormula
+
=
n
'he median of a data set is the !alue in the middle 8hen the data
items are arranged in ascending order.

4hene!er a data set has
e9treme !alues, the median is the preferred measure of central
location. 'he mode of a data set is the !alue that occurs 8ith
greatest frequency.

'he greatest fre7uency can occur at t8o or more
different !alues.

(f the data ha!e e9actly t8o modes, the data are
bimodal and if the data ha!e more than t8o modes, the data are
multimodal.
Slandered Deviation&
It is a measure of how much spread or variability is present in the sample. It
is the square root of means of square deviation from the arithmetic mean. It
measure the absolute variation of a distribution.
=

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n
X X
2
7 8
Company Profile
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Sin$er Ban$ladesh )td&
Sing e r as a company began its 4ourney in &9:&.
;hen inventor of sewing machine. Isaac +erritt
Singer began to manufacture and market a machine
to automate and assist in the making of clothing.
Singer is now engaged in <etail business which
consists primarily of distribution through company
owned retail stores and direct selling of a wide
variety of consumer durable products for the
homes primarily in =sia 5acific <im, -atin =merica
and the >aribbean. <etail sales activities in these markets are strengthened by
the offer of consumer credit service 8hire purchase7 provided by the
>ompany to its customers. In some of the markets where it operates Singer is
recognized as a leading retailer of consumer electronics and home appliances.
't a ("ance:
1850
Isaac Singer invested .?' and invented sewing, a needle that goes up and down.
1851
The I.+. Singer # >o. manufacturers opened their factory in ,oston and began
fabricating machines for mass consumption.
1854
Isaac Singer renamed the company Singer +anufacturing >ompany and moved
his offices and production facilities to @ew Aork >ity.
1855
The Singer Sewing +achine debuted at a trade exposition in 5aris, $rance, and was
awarded a prize for design innovation.
185
Initiation of hire purchase plan .
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1880
The company began offering an electric motor)driven model
1889
The first electric machine was introduced
1979
Bntry in the ,angladeshi market through the establishment of the Singer Sewing
with a view to Cspread the knowledge of cutting, stitching and embroideryC
20th Century
In the 2'th century, Singer Sewing +achine engaged in a pro4ect to teach
sewing skills to women in developing countries.
British American +obacco Ban$ladesh /ompany (BA+B/>&

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,ritish =merican Tobacco ,angladesh >ompany 8,=T,>7 -imited is a subsidiary
of ,ritish =merican Tobacco, based in -ondon, DE. ,angladesh is one of the 39
countries in which ,=T has manufacturing plants. It is one of the oldest and
largest multinational companies operating in ,angladesh. ,ased in *haka it has
one cigarette factory in *haka and one leaf)processing factory in Eushtia. The
company currently employs around 2'' managers and &''' employees. -isted
both on the *haka and >hittagong stock exchanges, the company is ma4ority
owned 833F7 by a subsidiary of its parent 8<aleigh Investments7. ,=T, started its
4ourney as Imperial Tobacco >ompany limited in the then undivided India in &G&'.
=fter independence in &G/&, ,angladesh Tobacco >ompany -imited 8,T>7 was
incorporated as a private limited company. ,T> has always been a part of ,=T. In
line with the global identity change, ,T> was later named as ,ritish =merican
Tobacco ,angladesh >ompany -imited 8,=T,>7 in &GG9.
,=T,> has one of the most efficient marketing and distribution network in the
country. It has been Huick to identify market trends and eHually adept at
responding to such trends. In response to threats of losing market share to low)
value competitors, it has introduced various stand)in brands in the past. The brand
portfolio of ,=T,> currently consists of ,enson # (edges, 1ohn 5layer old
-eaf, 5all +all, >apstan, Star, Scissors and 5ilot.
BA+A Shoe Ban$ladesh )td&

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Tongi $actory *hamrai $actory

The ,ata Shoe Irganization was founded in &9G? by >zech businessman Tomas
,ata in the city of Jlin, what was then >zechoslovakia. >oming from a family of
shoemakers with a long heritage of eight generations and over three hundred years,
Tomas ,ata capitalized on knowledge, expertise and skills to propel his newly
founded company forward. ,ata is a trusted name in shoe market all around the
world. ,ata Shoe >ompany 8 ,angladesh7 -td. is one of the leading shoe retailers
in our country. Today the ,ata Shoe Irganize at ion is a sprawling geo)centric
company encompassing operations in more than /' countries around the world and
is managed by ? +eaningful ,usiness Dnits 8 +,D7 across : continents. I t serves
more than & million customers per day, employs more than ?2,''' people, operates
more than :,:'' retail outlets, manages retail presence in more than /' countries
and runs ?' production facilities across 23 countries. Today the ,ata Shoe
Irganization is a sprawling geo)centric company encompassing operations in more
than /' countries around the world and is managed by ? regional commercial
business units 8>,Ds7 across five continents. It serves & million customers per day,
employs more than :',''' people, operates :,''' retail outlets, manages a retail
presence in over /' countries and runs 2/ production facilities across 2' countries.
In ,angladesh, ,ata started its operation in &G32. The company is one of the
largest taxKpaying corporate bodies contributing Tk. &.2 billion 8year 2''G7 which
represents approximately /'F of tax paid by the entire footwear sector of
,angladesh. >urrently ,ata Shoe >ompany 8,angladesh7 -imited operates two
manufacturing facilities K one in Tongi and the other in *hamrai. ;ith a
production capacity of &&',''' pairs of shoes daily, the company also has a
modern tannery facility with an output of : million sHuare feet of leather annually.
=nnual shoe sales currently stands at slightly more than 0' million pairs with a
turnover for the year 2''G of Tk : billion.
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Application of
Statistical Tools
in Business
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Application #F Statistical
+ools
Application #F Statistical
+ools
"rofit&
;ear=
n>
Profit of
Singer=G>
Profit of
B-'B@=;>
( ) X X ( ) Y Y
),,$ 11$$2&$<< )&&,)),*. 2.1<DH)
,
1.&<DH)
,
),,& 1,1A1..)A <)2A2.)&< 2.1<DH)
,
&.,)DH)
,
),,A 1A,,,&1&) 22.21*&,) 2.1<DH)
,
1.$$DH)
1
),,. <.$&.,.$. 22.2,$22* 2.1<DH)
,
1.$$DH)
,
),1, )1)&,,<1,. *2)*$A<&< 2.1<DH)
,
1.&.DH)
,
0n12 3433365511 3678361523 7%18-93
6
3%55-93
1

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Mean :
For Singer:
L 8M%Nn7
L 82G222399&&N:7
L :9??:0/32
For BATBC:
L 8MANn7
L 82'?023&9:2N:7
L ?'93:20/'
Median:
For SingerO data values in ascending orderO
&'G200/9&, &&33?/300, &9'''/&/2, 0G3/G'G3G, 2&2/''0&'G
+edian L nP&N2th value
L 88:P&7N27th value
L 0rdvalue
L&9'''/&/2
For BATBC: data values in ascending orderO
2//'22':G, 02?9?G2/0, ??G??&:/'2, ??G?'3??:, :?2:390/0
+edian L nP&N2th value
L 88:P&7N27th value
L 0rdvalue
L??G??&:/'2
)2 | P a g e
Mode:

For Singer: @o modal
For BATBC: @o modal
Standard Deviation:
For Si nger :


I J2.1<DH),K*%1
I 1.,<DH),
For BATA:

I J ).AADH)1K*%1
I &.)1DH),
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&
7 8
2


=
n
Y Y
SD
&
7 8
2


=
n
X X
SD
Coefficient of Variation:
For Singer:
S*N X Q&''
L 1.,<DH)K).)))$AA11L1,,
I <..*M
For BATBC:
S*N Y Q&''
L &.)1DH),K),2<)$1A*)L1,,
I <*.<M
Evaluation:
Iver all Singer has better record of profit earning than ,=T,> but Singer does
not have as much consistency as ,=T,>.
/urrent Assets Analysis&
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/urrent Assets
Analysis
:ear Singer =G> B-'B@ =;>
( ) X X ( ) Y Y
3666 1<12.)$)A
&
$&*2$.$2 A..ADH1$ <.A<DH1
A
366; 1<$2)A)<$
&
$&<&A<)2* $.)$DH)1 A.2ADH1
*
3665 1A&<A,$A$
A
$&$2$&2A, $.&)DH)1 A.A*DH1
&
3664 )1<1)<.<$
2
$&<)$,A*) ).$&DH)) *.<2DH1
&
3616 1<AA*.&2.
)
$$A2$1*)) *.11DH)1 ).*<DH1
A
NnI* 56;35238;
5
886;766668 2%85-931 8%58-91
5


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Mean:
For SingeL 8M%Nn7
L 89'/29:20/9N:7
L&3&?:/'?/:.3
For BATBCL8MANn7
L 8003/?3''30N:7
L 3/0?G2'&2.3

Median:
For Singer:
*ata values are in ascending orderO

&0&?G2329/, &03?29203/, &099:G/?G2, &9/09'3939, 2&0&20G03?
+edianO nP&N2th value

L 88:P&7N27th value
L 0rdvalue
L&099:G/?G2
For BATBC:
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*ata values are in ascending orderO

3/:?93G3?, 339?3&:22, 3/023'9:2, 3/0/902?:, 3/3?3/?9'
+edianO nP&N2 th value

L 88:P&7N27th value
L 0rdvalue
L 3/023'9:2

Mode:
For Singer: @o modal
For BATBC: @o +odal
Standard Deviation:


For Singer:

L R:.0/3?:BP&/N:)&
L 03332&0GG
$or ,=T,>O

L R0.92//0BP&0N:)&
L0'G0?02.::G
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&
7 8
2


=
n
Y Y
SD
&
7 8
2


=
n
X X
SD

Coefficient of Variation:

For Singer:
S* X NQ&''
L0 3 3 3 2 &0 G G N &3&?:/'?/:.3Q &''
L22./'/F

For BATBC:
S*N Y Q&''
L0'G0?02 .::GN3/0?G2'&2 .3Q&''
L ?:.GF

Evaluation:
Iver all Singer has far more current asset than ,=T,>. ,ut the amount
fluctuates highly in case of Singer than that of ,=T,>.
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*eturn on Assets Analysis&
@et Income
$ormulaL
Total =ssets
Return on -ssets
-nalysis
;ear
=n>
Singer =G> B-'B@
=;>
( ) X X ( ) Y Y
),,$ ,.,$<$2A21
*
,.1$)$2.A,
1
,.,,,<&*A<
.
,.,,,1<12<
.
),,& ,.,$*,..).
&
,.1&)*A**1
*
,.,,,<)1$A
.
,.,,,2*&.&
&
),,A ,.,22<.A2<
&
,.1<A&*.,1
<
,.,,12.)&A
<
,.,,,1*22,
A
),,. ,.,$,A1$,$
2
,.1),<21<,
A
,.,,,2.<$A
1
,.,,,.*1<2
),1, ,.1A1)1)&<
2
,.1$1*A..,
.
,.,,.$<AA$
.
,.,,,1A,A)
$
0n12 6%7121;747
6
6%;2243227
2
6%13833563 6%66156873
7
<1 | P a g e

Mean:
For Singer L 8M%Nn7
L 8'.?&:&/?G?3N:7
L '.'90'0?G9G
For BATBC L 8MANn7
L 8'./::G2::?:N:7
L '.&:&&9:&'G
Median:
For Singer: *ata values are in ascending orderO

'.'??0G9?0/, '.'3'9&3'3?, '.'303?9?&:, '.'3:'GG2G/, '.&9&2&2/0?
+edian L nP&N2th value
L 88:P&7N27 th value
L 0
rd
value
L'.'303?9?&:
<) | P a g e
For BATBC: *ata values are in ascending orderO

'.&3&:9GG'G, '.&2'0?&0'9, '.&09/:G'&0, '.&323?G9'&, '.&/2:9::&:,
+edian L nP&N2th value
L 88:P&7N27th value
L 0
rd
value
L '.&09/:G'&0
Mode:
For Singer: @o modal
For BATBC: @o +odal
Standard Deviation:
For Singer:

L R'.'&2022932:N:)&
L '.':::'?&G0

For BATBC:
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&
7 8
2


=
n
Y Y
SD
&
7 8
2


=
n
X X
SD

L R'.''&9'0?2?:N:)&
L '.'2&20003G
Coefficient of Variation:

For Singer:
S*N X Q &''
L '.':::'?&G0N'.'90'0?G9G Q &''
L 33.9??F

For BATBC:
S*N Y Q &''
L '.'2&20003GN'.&:&&9:&'G Q&''
L &?.'?:F
Evaluation:
The <I= of ,=T,> does not change much year to year whereas that of singer
changes very freHuently.
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-<uity Analysis&
-<uity analysis
:ear =n> Singer=G> B-'B@=;>
( ) X X ( ) Y Y
3666 <<$1,<,AA <),*.<<*, &.,)DH1$ 1.A*DH1
2
366; <).<21.1< <1.A1)AA* &.<ADH1$ ).,&DH1
<
3665 <&).A&$21 <)&.)&&2. *.),DH1$ <.&2DH1
2
3664 AA*.A&,&& <2)&12<$, A.1)DH1$ &.)2DH1
<
3616 1,A,A<,2$
$
<*..$$.), ).<,DH1& $.$2DH1
2
NnI* 866232615
2
16;161236
7
2%6;-91; 1%83-91
2
<* | P a g e
Mean:
For Singer L 8 M%Nn7
L 80'':2:'&9:N:7
L 3'&':''0/

For BATBC L 8 MANn7
L 8&3/&'&:23?N:7
L 00?2'0':2.9
Median:
For Singer: data values are in ascending orderO
02G0?&G&0, 003&'0'99, 0/2G9/3?&, 99:G9/'//, &'9'90'?33
<$ | P a g e
+edian L nP&N2 th value
L 88:P&7N27th value
L 0
rd
value
L0/2G9/3?

For BATBC: data values are in ascending orderO
0&G9&299:, 02':G00:', 02/G2//?G, 0?2/&?03', 0:GG33G2'
+edian L nP&N2 th value
L 88:P&7N27th valu
L 0
rd
value
L 02/G2//?G

Mode:

For Singer: @o modal
For BATBC: @o modal
Standard Deviation :
$or Si nger O

L:.'/?&0 BP&/:N :)&
L 0:3&3?309.G
<& | P a g e
&
7 8
2


=
n
X X
SD
For BATBC:


L&. &3/GBP&::N:)&
L &/'9/2/:.:3
Coefficient of Variation:

$or Singer L S*N X Q &''
L 0:3&3?309 .GN3'&':''0/ Q &''
L:G.23F

$or ,=T,> L S*N Y Q &''
L &/'9/2/: .G00?2'0':2 .9Q &''
L :&.&0F
Evaluation:
Singer has far more eHuity than that of ,=T,> but the eHuity of Singer
changes very much over years which is not seen as much for ,=T,>.
<A | P a g e
&
7 8
2


=
n
Y Y
SD
*eturn on -<uity =*#->&
@et 5rofit
$ormulaL
Shareholders" BHuity
Return on D7uity
;ear =n> Singer=G> B-'B@=;
>
( ) X X ( ) Y Y
),,$ ,.<)*,,1 ,.,AA,2) ,.,,,2)1 *.&AD%,*
),,& ,.<*21A2 ,.,A2&.A ,.,,)2$. ,.,,,11&$<
$
),,A ,.)&).A* ,.,A.22* ,.,,,..< <.A2D%,*
),,. ,.),<1&1 ,.1,2A.A ,.,1,)$$ A.*$D%,*
),1, ,.<$&11& ,.111,<& ,.,,<.22 ).<&D%,2
<. | P a g e
0n12 1%233725 6%7;533 6%6156; 2%86--67


Mean:
For Singer L 8 M%Nn7
L 8&.:22?:9N:7
L'.0'??G2
For BATBC L 8 MANn7
L 8'.?/922 N:7
L '.'G:3??
2, | P a g e
Median:
For Singer: data values are in ascending orderO
'.2'0&/&, '.2'0&/&, '.02:''&, '.0:?&9?, '.03/&&/
+edian L nP&N2 th value
L 88:P&7N27th value
L 0
rd
value
L'. 02:''&


For BATBC: data values are in ascending orderO
'.'9?/G9, '.'99'?2, '.'9G??:, '.&'?9G9, '.&&&'0/
+edian L nP&N2th value
L 88:P&7N27th value
L 0
rd
value
L '. '9G??:
Mode:

For Singer: @o modal
For BATBC: @o +odal

Standard Deviation:

For Singer:
21 | P a g e
&
7 8
2


=
n
X X
SD

LR'.'&9'/N:)&
L . '3/2&2



For BATBC:

LR'.''':03?0:N:S&
L .'&&:9&


Coefficient of Variation:

For Singer L S*N X Q &''
L.'3/2&2N'.0'??G2 Q &''
L 22.'/F
For BATBC L S*N Y Q &''
L.'&&:9&N'.'G:3?? Q &''
L &2. &&F
Evaluation:
Iver all in case of <IB ,=T,> is better than Singer as it has less >T
S*.


2) | P a g e
&
7 8
2


=
n
Y Y
SD


/orrelation&
= group of techniHues to measure the association between tow variables. =nd the
usual first step is to plot the data in a scatter diagram. ;e show a scatter diagram
below)
2< | P a g e

In this scatter diagram dependent variable is corporate tax and independent
variable is company revenue. =s revenue increases tax increases. So there is a
positive relationship between age and them we see in the scatter diagram.
/oefficient of correlation&
The >oefficient of >orrelation is a measure of the strength of the relationship
between two variables. It reHuires interval or ratio)scaled data.
/haracteristics of the coefficient of correlation&
22 | P a g e
800.00 600.00 400.00 200.00 0.00
revenue
1200.00
1000.00
800.00
600.00
400.00
200.00
0.00
t
a
x
It can range from )&.'' to &.''.
Talues of )&.'' or &.'' indicate perfect and strong correlation.
Talues close to '.' indicate weak correlation.
@egative values indicate an inverse relationship and positive values indicate
a direct relationship.
Formula of correlation coefficient
/oefficient of Determination
The coefficient of determination is the proportion of the total variation in the
dependent variable that is explained or accounted for by the variation in the
independent variable. It is the sHuare of the coefficient of correlation.
It ranges from ' to &.
It does not give any information on the direction of the relationship between
the variables.
2* | P a g e
*e$ression analysis&
=n eHuation that expresses the linear relationship between two variables . It
estimates the unknown values of one variable from known values of another
variable. It obtains a measure of error involved in using in regression line as a basis
for estimations. It measures the degree of association or correlation that exists
between the two variables. The average relationship between % and A can be
described by a linear eHuation ALa P b% whose geometrical presentation is in the
following diagram)
2$ | P a g e
+he Standard -rror of -stimate&
'he standard error of estimate measures the scatter, or dispersion, of the
obser!ed !alues around the line of regression
'he formulas that are used to compute the standard error3
Application of these tools in business&
To organize, analyze the company information and to draw conclusion from this
we have used statistical tools)correlation and regression analysis. (ere we have
tried to find out that whether there is any relationship between the revenue and tax
payment of ,ata shoe ,angladesh -td.

%L independent variable 8revenue7.
A L dependent variable 8tax7
2& | P a g e
2
7 8
2
U
.


=
n
Y Y
s
x y
;ear
Re!enue=G
>
'a9=;> ( ) X X

( ) Y Y
( )
2
X X ( )
2
Y Y ( )( ) Y Y X X
3616 *,$$<,,.,,<.
2
1..,,,,,,,
,
1,,<&,,*<,,&2 )$,.,&,,,, 1.,&*2ADH1A &.)<.A&DH1
2
).&.,2DH1$
3664 *,121,,<2,$&
A
1A,,)A$,,,
,
*12,..&,<*A A,1.<,,,, ).$*)))DH1& $.&1)*)DH1
<
2.)1.<&DH1*
3665 2,$)<,<1),,&
&
1&,,)1.,,,
,
%),&)*,)2< %1,A&2,,,, &.2)$.*DH1) <.*11AADH1
)
*.1,&11DH1)
366; 2,,.&,1A),)A
<
1$,,A)<,,,
,
%*)A,A**,,<& %11,)&,,,,, ).&.$AADH1& 1.)&,1<DH1
2
*..$,)DH1*
3666 <,$,*,*$&,1&
,
1*,,1<&,,,
,
%
1,,),,2&,,1*,
%)1,.*$,,,, 1.,21<$DH1A 2.A),$$DH1
2
).)2,*2DH1$
n=5 3%661;6-9
15
1%768;-91
2
6%67471-916
2A | P a g e
Coefficient of corre"ation:
I ,..A.$&)).1
So, there is high degree of positive relationship between these two variables. If
revenue increases, tax increases and if revenue decreases, tax decreases.
Coefficient of Determination )r
2
*: ,..&.2*1)2<I.AM
The coefficient of determination is the proportion of the total variation in the
dependent variable that is explained or accounted for by the variation in the
independent variable. It is the sHuare of the coefficient of correlation. (ere G9F
variability in the dependent variable A 8tax7 can be explained by independent
variable % 8revenue7.
@ow,
the linear regression eHuation, A L a P bx express the change in A in terms of
change in %.
(ere,
bL regression of Coefficient/ slope of Coefficient
a= constant
a represents the value of y if the value of x is zero. b explains the change in y if the
value of x increases by & unit.
2. | P a g e
( )( )
( ) ( )


=
2 2
Y Y X X
Y Y X X
r
( )( )
2 7 8 X X
Y Y X X
b


=
I,.,))&)&122
a IY % b X
I$$.*$<A<.A
So, the e7uation is, :166426858%596%633;3;177?
(f re!enue=G> increases by 1 core, ta9 =;> 8ill increases by ,.,))&)&122
core. (f the !alue of re!enue is #ero, the amount of ta9 8ill be $$.*$<A<.A
Drror, e
i I

1)1$<1,1$.<.
-ccording to the simple linear e7uation, yIaHb9, the line should be straight
line. But the line is not straight line. So there e9ists some error. 8e ha!e
calculated error,
e
i in the abo!e.
4e calculated r
)
I .AM ,as it is not 1,,M,from this 8e can understand there is
some error.
Point by $oint s"o$e ca"cu"ation:
*, | P a g e
2
7 8
2


n
Y Y
Slope
),1
I y
)
%y
1
K9
)
%9
1
I ,.,<*A2$&2.
Slope
<,)
I y
<
%y
)
K9
<
%9
)
I ,.,1.222&&$
Slope
2,<
I y
2
%y
<
K9
2
%9
<
I ,.,1&A*A&11
Slope
*,2
Iy
*
%y
2
K9
*
%9
2
I ,.,)1&<$*1$
/ere a%era(e s"o$e+ 0,02-.21/00, but b I ,.,))&)&122. So there
remains some error i.e. the independent !ariable 9 =re!enue> is not the only
reason for the !ariation in dependent !ariable y =ta9>.'here are some other
!ariables that can e9plain the !ariation in y 8hich ha!e been s"ipped.
Summary,
Findins !
Conclusion
*1 | P a g e
;e have studied the statistical tools theoretically and learnt how to use these tools
in our course) ,usiness Statistics ) & 8$)2'27 . In this report, assigned on us by our
course instructor, we have used three assigned companies information. (ere we
have organized and analyzed information and have decision from these.
,y using mean, mode, median, standard deviation, coefficient of variation we have
compared the profitability, current asset ratio, return on eHuity based on these
companies" last five years data. ;e have measured the relationship of these
companies" revenue # tax by using correlation and regression analysis and have
finally measured the error of this relationship.
In our study we have found that, different types of statistical tools helps
businesses to organize, analyze and use from the large numbers of data.. The
companies also use these tools in their decision making and in forecasting,. =t last,
*) | P a g e
Summary and
Findin$s
Summary and
Findin$s

/onclusio
n

/onclusio
n
we can say that, preparing this report by using three companies information has
enabled us to understand the use of statistics. ;e have gathered much experience
which will be helpful for us in future.
&. ,usiness Statistics) S.5. upta.
2. ,usiness Statistics K -ind *= and ; ;athen
<. www.bdstockprice.com www.bdstockprice.com
2. 2. -nnual Report -nnual Report

*< | P a g e
Biblio$raphy
Biblio$raphy

*2 | P a g e

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