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Financial Statistics Assignment Solution

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Added on  2021-06-15

Financial Statistics Assignment Solution

   Added on 2021-06-15

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FINANCIAL STATISTICSTUDENT ID:[Pick the date]
Financial Statistics Assignment Solution_1
Introduction The objective of the given report is to analyse the historical sales trends which have been observedin three countries namely Federated Islands, Industria, Nokaragua. These trends need to be analysedwith the usage of various descriptive statistics tool such as summary statistics, correlation andregression analysis. A model also has been suggested using multiple regression so as to be able toforecast the sales for the given countries using the values of the various independent variables.Additionally, a comparison is drawn for the three countries with Sweden so as to identify as to whichcountry is similar to Sweden the most based on the parameters provided. Federated IslandsSummary StatisticsThe relevant descriptive statistics in relation to this country are captured through the summarystatistics as highlighted below.On the basis of the above, it may be estimated that the average annual sales for this country is$713,603. However, the median sales level is higher at $ 756,207 which implies that there have beencertain years when the sales has been significantly lower and some of these values may also beconsidered as outlier. This observation is also confirmed from the skew value which is negative.Additionally the standard deviation along with range highlight that dispersion for sales is mediumonly and not very high which may be attributed to sales moving in an incremental manner only.The mean GDP for this country is $ 223 million. The median amount is slightly higher which may beon account of the higher growth that the country has clocked in the recent years which canpotentially make the previous values as small and potential outliers. Also, the dispersion witnessedin the GDP data for the country has been low to medium as has been captured using the relevantmeasures such as range and standard deviation. Besides, the amount of skew present is only slightand negative.The mean GDP/capita for this country is about $ $17,665. The corresponding median value is smallerat $ 17,434. This may be attributed to the recent economic performance whereby above averageGDP growth may have been observed owing to relatively higher of GDP per capita and potentiallydistorting the mean to some extent. The positive skew value tends to support the same. Further, the
Financial Statistics Assignment Solution_2
dispersion observed with regards to GDP/capita seems to be on the low to medium end onlyconsidering the respective values of standard deviation, range in relation to the mean value.Correlation AnalysisThe correlation analysis of the Sales with various independent variables is highlighted in this section.It is apparent from the above scatter plot that there is a strong positive correlation between thenumber of stores and the sales which is on expected lines as higher number of stores tends toenhance the reach. It is apparent from the above scatter plot that there is a strong positive correlation between theadvertisement and the sales which is on expected lines as higher advertisement tends to promotesales.
Financial Statistics Assignment Solution_3
The relative deviation from the line of best fit is more in this case and hence only medium strengthpositive correlation is observed between the given variables. Regression AnalysisIn order to forecast the sales going ahead, a multiple regression model has been predicted using thegiven information. The output of this model as obtained from MS- Excel is shown below.The key observations from the above result are summarised below.R square or coefficient of determination has come out as 0.9974. This implies that all theindependent variables are jointly able to account for 99.74% of the changes observed in the
Financial Statistics Assignment Solution_4

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