Statistics and Financial Analysis Coursework 1

Coursework 1

Contents
Contents................................................................................................................................................2
PART 1...................................................................................................................................................4
TASK 1....................................................................................................................................................4
(a) Find the sum and variance in excel sheet.....................................................................................4
(b) Interpretation and analysis of mean and standard deviation.......................................................4
TASK 2....................................................................................................................................................4
(a) Construction of the three tables in excel and paste it here by calculating the value given..........4
(b) Why there is a difference in the mean and standard deviation of grouped and ungrouped data
and which one is more accurate?......................................................................................................5
(c) Give a comment on the minimum amount of the consumer needs estimated to spend on the
top 25% of the expenditure...............................................................................................................6
TASK 3....................................................................................................................................................6
Give the difference between the cross – sectional data and time series data with reference to the
examples considering the demographic profile and lifestyle nature of the consumers....................6
TASK 4....................................................................................................................................................7
(a) Draw a network diagram which shows the movement of forwards and backward passes..........7
(b) Identify the critical path and duration of the project...................................................................8
(c) Distinguish between critical and non – critical activities...............................................................9
TASK 5....................................................................................................................................................9
(a) Construct a correlation matrix and calculate the coefficients between quarterly sales and total
cost and average order value and gross profit...................................................................................9
(b) Identify the best predictor of the quarterly sales, explain the reason..........................................9
(c) Draw a scatter graph and show a trend line of the regression equation....................................10
(d) Interpret the coefficient of correlation and determination........................................................10
(e) State the equation of regression and interpret the value of intercepts.....................................10
TASK 6..................................................................................................................................................11
1. Calculate the coefficients of variation for business A and B.........................................................11
2. By assuming that the risk of retailer is negative, which project should be chosen?....................11
TASK 7..................................................................................................................................................11
Give a reflective learning through the project.................................................................................11
PART 2.................................................................................................................................................11
1. Estimate the variable cost through high – low method...............................................................11
2. Calculate the monthly fixed cost..................................................................................................12
3. Calculate break even of January 2021.........................................................................................12
4. How many t-shirts should be sold to achieve the target profit in January 2021..........................12

5. Calculate margin of safety...........................................................................................................12
6. Interpret the above calculations..................................................................................................12
REFERENCES.........................................................................................................................................13

PART 1
TASK 1
(a) Find the sum and variance in excel sheet.
Expenditure (£) on Stand
Mixers
Mean 224.00
Standard Error 6.58
Median 224.00
Mode 224.00
Standard Deviation 75.00
Sample Variance 5625.00
Kurtosis -0.49
Skewness -0.32
Range 301.00
Minimum 68.00
Maximum 369.00
Sum 29120.00
Count 130.00
Coefficient of Variation 33.5%
(b) Interpretation and analysis of mean and standard deviation.
From the above data set, it can be seen that the mean is 224 while the standard
deviation obtained is 75. Mean is the average of the data set and standard deviation shows
how much the values in a data set are deviated from this calculated mean. The values in the
data set have significant difference among them.
TASK 2
(a) Construction of the three tables in excel and paste it here by calculating the value given.
Table 1
Expenditure (£) Frequency Frequency (%)
Under 100 14 11%
100 and under 200 35 27%
200 and under 300 65 50%
300 and over 16 12%
Total: 130 100%