Project on Quantitative

Business Techniques
INSTRUCTOR NAME:
MR.SYED ANWAR HUSNAIN

SUBMITTED BY:
FATIMA ASIF 12223002

DATED 22nd JULY 2013

Page | 2

ACKNOWLEDGMENT

All praises and thanks to Almighty Allah, the creator of this universe by whose power and glory
all good things are accomplished. He is also the most merciful, who best owed on us the
potential, ability and an opportunity to work on this project.

We are grateful to our respected teacher Sir Anwar Husnain who has guided us in each and
every step of this project. Indeed, without his kind guidance we may not be able to even start this
project. May ALLAH give him the reward which he deserves we are also grateful to all those
members who are related to this project.

We are really grateful to you Sir for clarifying our concepts and making us learn from your
experience. Whatever we learnt from you will definitely help us in our upcoming study and the
professional life ahead. Thank you so much for being so co-operative and so helpful every time.
We hope Sir we have been up to your expectations.

In the end, we are thankful to all our teachers and have a lot of prayers for them who give us the
knowledge and make us able to complete this project.

Page | 3

Objective
The purpose of this project is to apply statistical tools for testing which country is best in Per
capita income
PAKISTAN
INDIA
Another objective of this project is to learn how to apply the statistical in real life situations.

Page | 4
PAKISTANS PER CAPITA INCOME

As calculated by Pakistan Bureau of Statistics on Tuesday this could mean a paltry

jump of $2.8 per capita for 178.91 million population in 2011-12. The per capita
income in 2010-11 was reported at $1,254.
The economists define per capita income as Gross National Product at current market
price in dollar terms divided by the countrys population.
Former economic adviser Dr Ashfaq Hassan Khan told Dawn that the marginal
increase in per capita income indicates the poor economic situation.This reflects the
state of economy where investment is at a 16-year low and saving is the lowest in the
history of this country at 5.8 of GDP, Mr Khan said.
So with such low investment and dismally low saving rate, Dr Ashfaq said what one
could expect in a country like Pakistan.
This paltry growth in per capita is unusual this year, as last years have witnessed
substantial growths as per government documents.
The per capita income was $586 in 2002-03, which rose to $926 in 2006-07 and
$1,085 in 2007-08 but now jumped to $1,256.8.
However, many economists have widely contested this increment in the per capital
income of the people of this country.
In rupee terms, the per capita income grew by 11.9 per cent to Rs114, 370 in 2011-12
as against Rs102, 180 in 2010-11. By taking exchange rate at an average of Rs91
against a dollar the per capita income climbed to $1,256.8 per person this year. Even
this marginal growth was mainly driven by the highest ever increase in remittances
from the overseas Pakistanis. The trend in growth declined because of small increase
in the population.
As per statistics, it was claimed that the growth in population up by 2.1 per cent in
2011-12 to 178.91 million as against 175.31 million in 2010-11. This increase in
population is also claimed to have led to decline in growth in per capita income.
The government projected that the economy will grow by 3.7 per cent by end of this
fiscal year ending June 30, 2012 against the target of 4.2 per cent and actual growth of
3 per cent in 2010-11.

Page | 5

Pakistans per capita income

sr.no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

Years
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

Pakistan ppi (x1)in

10000000
(x1)2
483
233289
493
243049
504
254016
516
266256
527
277729
539
290521
548
300304
564
318096
576
331776
588
345744
601
361201
613
375769
630
396900
644
414736
659
434281
689
474721
685
469225
704
495616
719
516961
735
540225
749
561001
767
588289
784
614656
798
636804
817
667489
834
695556
844
712336
883
779689
900
810000
919
844561

X1=20312

X12=1425079
6

Page | 6

x 1=

x1
n1

x 1=

20312
30

x 1=677.06

The averag of Pakisatns per capita income

677.06

x1
2

x 12
1

(n 11)

S1=

20312 2

S1 =

14250796
1

(29)

S1 =

1 {
1425079613752578 }
(29)

S1 =

1 {
498218 }
(29)

S1=130.15

on the basis of selected sample is

Page | 7

S.D=130.15
In the above calculation it shows that the per capita income of pakistan deviates from the
average by 130.15. S.D shows the spread of data from the mean.Its means the average per capita
income of pakistan is 677.06 and the S.D is away from the mean is 130.15

One Population T-test:

We want to know the per capita income of pakistan according to the mean from the population
of the earners who earn so much which can increase the per capita income. The population mean
is 1000. The per capita income survey a sample of 30.

1. H0: =1000
H1 :>1000

2. Level of significance:

=.05
3. Test Statistics:

t1=

x 1
S1
n

4. Calculation:

t1=
t1=
t1=

x 1
S1
n

677.061000
130.15
30

322.94
23.7620

Page | 8

t1=13.5906

5. Critical region:
P value
Degree of freedom=n-1
=30-1=29
Then the p value is 0.0000000000005

6. Interpretation:
Since our p value is 0.000000000005 and fall in rejection region. Its means
that we reject H0
and accept H1.Finally we conclude that the per capita income increase with the increase
of employess.

Confident interval:
1-

t
2

=0.5

=0.025

=.025(30-1)
= 2.045

x 1

(n1-1)

S
n

= 677.062.045(
= 677.0648.59

130.15
30

=0.95

Page | 9

=677.06+48.59
=725.65

,677.06-48.59
, 628.47

Interpretation:
Per capita income of pakistan increase within 628.47 to 725.65

INDIAS PER CAPITA INCOME

New Delhi: The per capita monthly income, a measure to assess standard of living, grew at a
slower rate of 13.7 percent to Rs 5,130 in 2011-12 at current prices compared to Rs 4,513 in
2010-11.
"The per capita income at current prices is estimated at Rs 61,564 (per annum) in 2011-12 as
against Rs 54,151 for the previous year depicting a growth of 13.7 percent, as against an increase
of 17.1 percent during the previous year", said the revised data of national accounts released here
on
Thursday.
On the Gross Domestic Saving (GDS) front, the data revealed that the growth at current prices in
2011-12 slowed to 30.8 percent of GDP at market prices as against 34 percent in the previous
year.
The GDS is estimated at Rs 27,65,291 during last fiscal crore as against Rs 26,51,934 crore in
2010-11.
The slower growth in GDS has been mainly due to decline in financial savings of household
sector from 10.4 percent to 8 percent, private corporate sector from 7.9 percent to 7.2 percent and
that of public sector from 2.6 percent to 1.3 percent in 2011-12 as compared to 2010-11.
The rate of Gross Capital Formation at current prices is 35.0 percent in 2011-12 as against 36.8
percent
in
2010-11.

P a g e | 10

The gross domestic capital formation has increased from ` Rs 28,71,649 crore in 2010-11 to Rs
31,41,465
crore
in
2011-12
at
current
prices.
It further revealed that the per capita private final consumption expenditure (PFCE) at current
prices in 2011-12 is estimated at Rs 42,065 as against Rs 36,677 in the year 2010-11, showing an
increase of 14.7 percent as against an increase of 15.7 percent in the previous year.

sr.no.

years

india ppi x in
1000000
(x)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999

278
281
291
292
296
318
343
368
357
378
328
324
311
346
385
390
428
424
445

77284
78961
84681
85264
87616
101124
117649
135424
127449
142884
107584
104976
96721
119716
148225
152100
183184
179776
198025

P a g e | 11
20
21
22
23
24
25
26
27
28
29
30

2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010

460
463
476
543
620
716
791
988
1065
1058
1264

211600
214369
226576
294849
384400
512656
625681
976144
1134225
1119364
1597696

X2=15027

X22=9626203

Mean of X2:

x 2

x2
n2
15027
30

x 2

=500.9
Interpretation:
The averag of Indias per capita income on the basis of selected sample is 500.9.

Standard Deviation:

P a g e | 12

S2=

x2
2

x
22
1

(n21)

S2 =
S2 =

(15027)2
1
9626203
30
(301)

S2=

1 {
96262037527024.3 }
(29)

1 {
2099178.7 }
(29)

S2=268.722
S.D=268.722
Interpretation:
In the above calculation it shows that the per capita income of India deviates from the average
by 268.722. S.D shows the spread of data from the mean.Its means the average per capita income
of India is 500.9 and the S.D is away from the mean is 268.722.

One Population T-test:

We want to know the per capita income of India according to the mean from the population of
the earners who earn so much which can increase the per capita income. The population mean is
800. The per capita income survey a sample of 30.
1. H0: =800
H1 :>800

2. Level of significance:

=.05
3. Test Statistics:

P a g e | 13

t 2=

x 2
S2
n

4. Calculation:

t2=
t 2=

x 2
S2
n

500.9170
268.722
30

t 2=

330.9
49.0617

t2= 6.744

5. Critical region:
P value
Degree of freedom=n-1
=30-1=29
Then the p value is 0.000005

6. Interpretation:
Since our p value is 0.000005 and fall in rejection region. Its means that H0
Is reject we accept the H1 .Finally we conclude that the per capita income increase with
the increase of employess.

Confident interval:
t
2

(n2-1)=.025(30-1)
= 2.045

P a g e | 14

x 2

t
2

(n2-1) n

=500.92.045(

268.722
30

= 500.9100.33
= 500.9+100.33

, = 500.9-100.33

= 601.23

, = 400.57

Interpretation:
Per capita Income of India is increased within the 400.57 to 601.23.

COMPARISON
Pakista
n
ppi
(x1)in
100000
00
483
493
504
516
527
539
548
564
576
588
601
613
630

(x1)2
233289
243049
254016
266256
277729
290521
300304
318096
331776
345744
361201
375769
396900

india
ppi
x
in
100000
0
278
281
291
292
296
318
343
368
357
378
328
324
311

(x)2
77284
78961
84681
85264
87616
101124
117649
135424
127449
142884
107584
104976
96721

P a g e | 15
644
659
689
685
704
719
735
749
767
784

414736
434281
474721
469225
495616
516961
540225
561001
588289
614656

346
385
390
428
424
445
460
463
476
543

119716
148225
152100
183184
179776
198025
211600
214369
226576
294849

798
817
834
844
883
900
919

636804
667489
695556
712336
779689
810000
844561

620
716
791
988
1065
1058
1264

384400
512656
625681
976144
1134225
1119364
1597696

X1=203
12

X12=142
50796

X2=150
27

X22=96262
03

TWO-sample T-test:
We apply two- sample T-test the data to check whether per capita income of both
countries same or not or greater than which is used is calculated as under;
x 1=677.06

x 2

S1=130.15
n1=30

n2 =30

Hypothesis:
1. H0: 1 = 2
H1 :1> 2

2. Level of significance:

=500.9
S2=268.722

P a g e | 16

=.05
3. Test Statistics:

x
( 1x 2)0

t=

s2p (

1 1
+ )
n 1 n2

4. Calculation:
x
( 1x 2)0

t=

t=

s2p (

(677.06500.9)0
1 1
44574.73( + )
30 30

t=

176.16
44574.73(0.033+0.033)

t=

176.16
2941.93

t=

176.16
54.23

t =3.248
So

1 1
+ )
n 1 n2

P a g e | 17

n
( 11) s 21+(n21) s 22
n1 +n22
s2p =
s 2p=

( 301 )( 130.15 ) 2+ ( 301 ) ( 268.722 ) 2

30+302
s 2p=

29(16939.0225)+29(72210.4384)
58

s p=

491231.65+2094102.714
58

s 2p=

2585334.364
58

s p=44574.73

5. Critical region:
P value
Degree of freedom=n-1
=30-1=29
Then the p value is 0.000005

6. Interpretation:
Since our p value is 0.000005 and fall in rejection region. Its means that H0
Is reject we accept the H1 .Finally we conclude that the comparision of Pakistans per
capita income and Indias ppi is increased with the number of employees increased.

Point Estimate:

P a g e | 18

x 1x

677.06 500.9

= 176.16
Interpretation:
The difference between the two population average mean is 176.16.It means that
there is minor difference between the per capita income of both countries.point
x x
estimator 1
2
Has a standard error that describe the variation between two countries per capita income.

Confidence interval:
=

1=

2
t
2

.95

.05

=.025

=.025(n1+n2-2)
=.025(58)
=2.002

x 1
-

x 2

677.06500.9

t
2

(n1+n2-2)
t
2

s 2p (

(n1+n2-1)

1 1
+ )
n1 n2

s p(

1 1
+ )
n1 n 2

P a g e | 19

= 176.162.002

=176.162.002(

54.24

44574.73(

1 1
+ )
30 30

=176.16108.58
=176.16+108.58
=284.74

176.16-108.58
,

67.58

Interpretation:
The comparison of the two countries within the 67.58284.74.