Statistics Assignment | Statistical Tools Application

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REPORT SHOWING THE APPLICATION OF STATISTICAL
TOOLS TO EVALUATE DATA
INSTITUTION
NAME
COURSE
DATE

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Interpretation of statistical analysis to make a decision.
Statistical analysis tools are essential tools for a thorough and scientifically validate the
analysis of the data collected using the surveys, questionnaires, observations, sampling and
among other methods of data collection. These statistical tools include meaning, mode, median,
variance, standard deviation, and range. During my analysis, I will be using standard deviation to
analyze the data collected since it is the often used statistical tool to measure factors which
involves business such as risk, market availability, sources of raw materials, the efficiency of the
workers among others. (Clarke, 1994)
The data was collected from the global market, and various methods of data collection
were applied such as an application of online questionnaires and observation. The questionnaire
was the primary method of data collection asked. The finding of the data collected was analyzed
using the statistical tools, and the results were as discussed below. (Johnson, 1999)
The findings of the data collected
Market. The market forces are affected by the demand and supply of the goods in the
market by the customers. The market is bear is the alternative of the bull since the as peak
declines to the smallest market level known as the Troup for a significant level of time. Felt
events are the real events such as the war, earthquakes, political uncertainties and the fall of the
value of the money. Untouchable activities related to the market psychology, where the market
phycology is affected by the real events such as any unforeseen political events may lead to the
fall of the prices which would further increase reactions and the behavior of the investors. If
some of the financial institutions start disappearing their stocks, this fear will grasp, and this
would spread to other investors. (Peters, 1994)

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Interest rates. The variation of interest rate in the onetime rate of return caused by the
fluctuations in the market interest rate. Most of the respondents showed that interest rate affects
the prices of the securities such as the bonds and stocks. Variations in the market rate are caused
by the government monetary policies and the change that occurs in the treasury bills of the
interest rate and remunerations. If high rates are offered, the investors would prefer to have the
other alternative the investment from private sector bond to the public sector bond. If the stock
market is in bad condition, investors would need swift money to the bond market to have the
assured rates. (Gelman, 2014)
Purchasing power. The variation in the return is caused by the loss of ability of money to
buy of the currency due to increase in prices. Inflation may be caused by cost push and demand
pull. Demand-pull means demand for goods and services are in excess surplus. At the full
employment level of factors of production, the economy would not be able to supply more
products in the short term to cater the demand, and this leads to higher prices of the goods and
services. The equilibrium between the demand and supply is attained at the top level of prices.
Cost-push is the rise of the price which is caused by the rise in the prices of the factors of
production such land and labor. High price levels lead to continuous demand for high wages, and
this leads to the spiral effects on the price levels which implies inflation. (Clarke, 1994)
Business operations. Most of the respondents of our survey suggested that this arises
from the inability of a firm to compete it's in competitive edge under the growth and stability of
the economy. The varying of the economy that occurs in the operating environment is reflected
in the operating income and the expected income. The managers should know that this effects
can be internal or external forces which can cause it to happen. (Kettinger, 1997)

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Financial management. It is caused by the change of the income to the equity capital due
to the borrowed money associated with capital structures. Presence of the debts and performance
capital results to the commitment of paying interest. The variation in income cost borrowed
money in risk in highly levered firms is greater than those companies with low livered risks.
Financial leverage is unavoidable as the manager who has to decide on how much to be funded
by equity capital and capital borrowed. (Mingers, 1997)
Another finding which we found in our survey included managerial efficiency,
technological change in production, availability of raw materials, changes in the consumer
preferences and the labor problems. (DiMaggio, 2013)
The results of the finding after analyzing using the statistical analysis tools.
Market. It involves a careful study of the price behavior to determine the type of the stock
with steady growth. The standard deviation and beta coefficient indicate the volatility of the
price. Standard deviation and beta coefficient are variables for stock which are included in price
indices. Looking at the beta values, the investors can gauge the risk factors and consequently
make the wise decision according to the risk tolerance. The investor would be prepared to hold
the stock for a period of ripe benefits of the rising prices in the market. (Peters, 1994)
Interest rate. Investors should hold the investment to the maturity. If the investors sell his
stock in the middle due to the fall of the interest, the capital invested will experience a heavy