Financial Statistics: Analysis of Data and Use of Statistical Tools for Business Decision Making

Question and Answer
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Financial Statistics

Question and Answer
Executive Summary
There is no corner left, where use of statistics is negligible in business area, whether it is decision
making, or providing treat to their client, all comes under controlled calculated expense, so that it
cannot hamper the profit of business and, the hero is statistics which guide all the processes from
background. In this report we have tried to show that how we can retrieve the useful information
from given chunk of data. To process the data, into useful information, we have so used several
tools and table so that, we can easily grab the useful information which is hidden behind this
data. Further, the in-depth use of statistical tools shows that what can be out future direction
based on historical data and relationship with future.
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Question and Answer
Contents
Solution 1.........................................................................................................................................4
Solution 2.........................................................................................................................................4
Solution 2(1)................................................................................................................................6
Solution 2(ii)................................................................................................................................7
Solution 2(iii)...............................................................................................................................7
Solution 3.........................................................................................................................................8
Solution 3(a)................................................................................................................................8
Solution 4.......................................................................................................................................10
Solution 4(1)..............................................................................................................................10
Solution 4(2)..............................................................................................................................11
Solution 5.......................................................................................................................................11
Solution 5(i)...............................................................................................................................12
Solution 5(ii)..............................................................................................................................12
Solution 5(iii).............................................................................................................................13
Solution 5(iv).............................................................................................................................13
Solution 6.......................................................................................................................................14
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Question and Answer
Solution 1
The first method of selecting random sample, we have used VLOOKUP function of excel for
selecting the random sample in this case, The VLOOUP function extract the data on given
criteria =VLOOKUP (Lookup value, table array, column index number, false), the false value
extract if there is exact match. Th use of VLOOKUP function is more useful in extracting data
from given references, and very useful tools in analysis when data extraction from database is
tedious task.
The second method, the random sample is extracted by index function, INDEX (array,
RANDBETWEEN (array)), column number), from this function we can extract the random
number in given data. The combination of INDEX and RANDBETWEEN function provide the
best random variable, but we must keep in mind that this variable is very susceptible to change,
even, minute change in column also results variation in processed data and cause problem. So
during analysis we must copy first the extracted data and then analyse, so that it cannot be
changed later.
Solution 2
The summary statistic of given sample is as below
Table 1-Summary statistics
Age Purchases DollarAmt
Mean 38.7000 Mean 26.6400 Mean 173.7000
Standard Error 1.9582 Standard Error 1.4922 Standard Error 9.7947
Median 38.0000 Median 27.5000 Median 179.0000
Mode 23.0000 Mode 26.0000 Mode 262.0000
Standard Deviation 13.8465 Standard Deviation 10.5516 Standard Deviation 69.2588
Sample Variance 191.7245 Sample Variance 111.3371 Sample Variance 4796.7857
Skewness 0.2137 Skewness 0.0969 Skewness 0.0357
Range 55.0000 Range 42.0000 Range 288.0000
Minimum 15.0000 Minimum 9.0000 Minimum 53.0000
Maximum 70.0000 Maximum 51.0000 Maximum 341.0000
Sum 1935.0000 Sum 1332.0000 Sum 8685.0000
Count 50.0000 Count 50.0000 Count 50.0000
Confidence Level
(95.0%) 3.9351
Confidence Level
(95.0%) 2.9987
Confidence
Level(95.0%) 19.6831
The Summary statistics is the main part of any data analysis. Simply from above three column
we can say that, the middle column is more linear, i.e. following some set of linear rules, because
its standard deviation is very less. Confidence interval is high, and error is also very less.
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Question and Answer
Table 2- Age wise frequency table and % of no of purchase
Age Range Frequency Frequency %
15-24 235 17.64%
25-34 336 25.23%
35-44 340 25.53%
45-54 166 12.46%
55-64 218 16.37%
65-74 37 2.78%
Grand Total 1332 100.00%
The age wise frequency, illustrates that, the maximum number of purchases, were done by 35-44
age group. Therefore, if we invest on film of their choice, we can profit more, the second age
group which followed by 25-34 age group, i.e. 50% of purchase done by only these two groups
Figure 1-Histogram of frequency given above
The above statement is verified by the Histogram given above. We can see that almost 55% is
capture by only first two groups which is 35-44 and 25-34. This is very useful information that
can be needing to analyse, that, if films are purchased according to their choice, we cannot make
loss, at ay condition. Further, if we analyse their eating habits and some extra service like, home
delivery, we can make even more profit. Rest of the people are either very young or quite old,
their mindset is dissimilar with the above-mentioned group.
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Question and Answer
18%
25%
26%
12%
16% 3%
Age wise Frequency Pie Chart
15-24
25-34
35-44
45-54
55-64
65-74
Figure 2- Pie chart of age wise frequency
The third evidence for above statement is in the pie chart. We can capture the 26% and 25%
people by giving their choice of movies. I think even raising the price of movie is not objected
by these people.
Table 3- Age wise and choice wise expenditure
Sum of
DollarAmt Column Labels
Age Range Action Comedy Drama SciFi
Grand
Total
15-24 489 508 62 481 1540
25-34 492 248 752 680 2172
35-44 534 567 687 422 2210
45-54 379 182 522 1083
55-64 328 111 409 570 1418
65-74 262 262
Grand Total 1843 1813 2092 2937 8685
The table given above, looks like very complex at first stage, but if we go, little deep into it, we
will get lot of information which is very helpful. From above table we can observe that, the
maximum expenses occurred by user is in Sci-fi genre, followed by Drama, Action and comedy.
This clearly indicates that, if we Sci-Fi movie is made available to them, they will lose pocket
happily. We must inform in advance about the upcoming movies to their choice people, so that
they can plan earlier to watch the movie.
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