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GIFT University
 To present you the Practical implementation
of the statistical tools in the Industries,

 To present you the Forecasting Model

through Correlation and Regression Model

 To present you the use of Dispersion tool in

calculating the Risk.
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 Combine effort of the Group.

 Tasks were divided.

 Tasks
were assigned according to there
competences.

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 To implement the statistical tools on the provided data and to
generate a Forecasting Model on the Basis of Available Data.

 Different tools that were used are as following

•Mean • Correlation
•Median
•Regression Analysis
•Quartile Deviation
• Coefficient of
•Mean Deviation Determination

•Standard Deviation •Coefficient of Variance

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We have selected two washing machine manufacturing
companies
companies for our project and these companies are:

 Ever Green

 Finex Manufacturer

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 Profile of Ever Green

stablished in 1988

ounder was Mr. Javaid Khalid , Mr. Muhammad Tarique

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 Profile of Finex:

 Established in 1994

 Founders is Chaudhary Imran Cheema .

 Has been operated as a sole proprietor .

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he data of 28 months is collected to calculate two specific variables
which are:

› Purchases
› Sales

For Purchases and Sales calculations data is sorted on monthly basis.

Data is analyzed by using various statistical tools and interpretation of
this data is shown further.
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he most important tool for average is Arithmetic Mean which
is average value.

= ∑x/ n

753.9

n Interpretation: GIFT University 11

 x = ∑x/ n
= 803.2244286

Interpretation:
The average Sales of the Washing Machine during last 28
months is 803.2244286 and this value is also in
thousands.

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edian is used to measure the average, when there is variation
in the data.

758

Interpretation:
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 = 847.96

Interpretation

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tandard deviation is the most appropriate method of calculating
dispersion.

√∑X2/n – (∑X/n) 2

230.4291375

nterpretation:

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 =√∑X2/n – (∑X/n) 2

=306.4203131

Interpretation:
Here the spread in the data is 306.4203131, if there is less

variation and spread in the data then the data is better.

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Coefficient of Variation of
Sales

oefficient of variation is used for the comparison between the two

different variables.

S/ ҳ * 100

25.7693175

nterpretation:

he coefficient of variation of Sales according to the situation is

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Coefficient of Variation of
Purchases

S/ ҳ * 100

24.44392797

nterpretation:
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Skewness

kewness tells whether the given data is normally distributed or

not.

kewness of Purchases

3 (mean – median)/S.D

-0.977221702

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ean deviation tells the actual deviation of the data from its arithmetic mean.

.D (mean) of Sales:

∑|- x |/n

176.6785

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t is a descriptive measure of the strength of linear association
between two variables.

= n∑xy – (∑x) (∑y)/ √ {n∑x2 – (∑x) 2} {n∑y2 – (∑y) 2}

0.3595933

Interpretation:
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egression analysis is basically used to forecast the future.

= a + bx

69.64227421 + 0.9730589001x

b = n ∑xy – (∑x) (∑y)/ n ∑x2 – (∑x) 2

=0.9730589001
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he most important tool for average is Arithmetic Mean which
is average value.

= ∑x/ n

593.7142857

n Interpretation: GIFT University 24

 edian of Purchases:

591.25

nterpretation:

he median is 591.25 Value is in thousands.

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tandard deviation of sales:

√-Σx2/n- (Σx/n) 2 = 201.9154895

Interpretation:

e re the spread in the data is201.9154895,

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 oefficient of variation of sales:

S/x * 100

34.00886493

he coefficient of variation of sales is 34.00886493 which shows the per unit

risk associated with a given variable.

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 .D (mean) of Purchases

Σ|x-x|/n

4510204.929

he value of mean deviation about mean of Purchases is 4510204.929

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 = n∑xy – (∑x) (∑y)/ √ {n∑x2 – (∑x) 2} {n∑y2 – (∑y) 2}

=0.53249

he value of correlation between sale and advertisements of this

company is 0.53249 which shows that there exists an almost
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 = a + bx

= n ∑xy – (∑x)(∑y)/ n ∑x2 – (∑x)2

-0.143680751

= ∑y – b∑x/n

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e have concluded that the average purchases and sales of Ever
Green is more then Finex. The reason is that the Ever Green has
got a greater market share and has more investment and
production as compared to the Finex.

urther the correlation between the purchases and sales is strongly

positive for Finex which means that the sales of this company
greatly depend on the purchases of raw martial, its number of
unites produce and quality of its production.

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s the sales are directly dependent on the quality and standardized products
so all these two companies, Ever Green and Finex Manufacture have to
work hard for their efficient production which would then increase their
sales and in the end their profits.

hese companies should try to bring some innovations in order to attract

more customers which would have direct impact on the sales.
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isplay Centers of all these companies should be developed, so their sales
could be increase.

hese companies have got a manual and computerized system of data

handling which usually creates problems, so a fully computerized system
should be introduced.

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