Quantitative Analysis for the Firm

Assignment 1
Submitted to:
Mr. Mohanasundaram
Submitted by:
A.R.Sidhardha
BLR0906032009

Quantitative Analysis for the Firm

1)
Average
Working
Funds

Net Profit

Fee
Income /
Total
Income
(%)

Operating Cost to
Profit
Income
/Employee Ratio
(%)

Return on
Capital
Employed
(%)

Return
on
Average
Assets

Capital
Adequacy
Ratio (%)

(%)
Mean
94,104
Median
54,084
Standard
Deviation
112628.6435
Q1
33633
Q3
101263.5
Inter
Quartile
67630.5
Range
410,279
Correlation
0.979907683
Skewness
2.89497337
Regression
a=2674.51

1127.17 13.13333
698
12.95

0.166667 46.73333
0.1
45.6

18.83333
19.5

1.3
1.25

12.14917
12.305

1106.37613 5.832563
601.5
8.1
1185
17.15

0.152753 4.246781
0.0575
44.325
0.2125
50.8

3.663911 0.316228
18.75
1.1
20.25
1.45

1.505357
11.53
12.69

583.5
3,969

9.05
16.9

0.155
0.37

6.475
13.5

2.51101566 0.036049
b= 0.01644

1.406924

-0.01101

1.5
14

0.35
1.1

1.16
5.57

-0.93179 0.455368

-0.23843

Formulae:
Mean (

Median (Q2) =
Q1 (Quartile) =
Q3 (Quartile) =

Inter Quartile Deviation = Q3 Q1

Correlation (r) = (
A.R.Sidhardha
BLR0906032009

Standard Deviation

(
(

Page 2

Quantitative Analysis for the Firm

Here, Correlation is found between Average Working Funds and Net Profit because the other
elements are ratios.
The correlation is 0.979907683. It is strongly positively correlated.
Skewness (Skp) =

Here, Regression is found between Average Working Funds and Net Profit because the other
elements are ratios.
Regression (Y on X) Y = a + bx
Y = 2674.51 - 0.01644 x

Graphical Representation:

Net Profit
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0

Net Profit

The above graph shows us the Net profit of different banks. Horizontal axis represents different
banks and vertical axis represents their respective net profits. State Bank of India has the highest
net profit with UTI bank having the lowest net profit.

A.R.Sidhardha
BLR0906032009

Page 3

Quantitative Analysis for the Firm

500,000
450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0

Banks vs. Average Working Funds

Series1

The above graph shows us the average working funds of different banks. Horizontal axis
represents different banks and vertical axis represents average working funds. State Bank of
India has the highest working funds with HSBC bank having the lowest working funds.

A.R.Sidhardha
BLR0906032009

Page 4

Quantitative Analysis for the Firm

Operating Profit / Employee

0.6
0.5
0.4
0.3
0.2
Operating Profit / Employee

0.1
0

Banks

The above graph shows us the profit earned to number of employees ratio for different banks.
Horizontal axis represents different banks and vertical axis represents profit earned by
employees. HSBC has the highest profit earned to employee ratio with Punjab national bank
having the lowest profit earned to employee ratio.

A.R.Sidhardha
BLR0906032009

Page 5

Quantitative Analysis for the Firm

2)
H0: The mean delivery time is less for the local pizza restaurant than for the national pizza chain.
(16.7<18.88)
H1: The mean delivery time is more for the local pizza restaurant than for the national pizza
chain. (16.7>18.88) [One tail test]
Level of Significance is given as = 0.05.
Test Statistics: t =
Where s = (

~ t n1 + n2 2 df

/ n1+ n2 - 2

Local(x1) National(x2) (x1-16.7) x2-18.88

(x1-16.7)^2
(x2-18.88)^2
16.8
22
0.1
3.12
0.01
9.7344
11.7
15.2
-5
-3.68
25
13.5424
15.6
18.7
-1.1
-0.18
1.21
0.0324
16.7
15.6
0
-3.28
0
10.7584
17.5
20.8
0.8
1.92
0.64
3.6864
18.1
19.5
1.4
0.62
1.96
0.3844
14.1
17
-2.6
-1.88
6.76
3.5344
21.8
19.5
8.8
0.62
77.44
0.3844
13.9
16.5
-2.8
-2.38
7.84
5.6644
20.8
24
4.1
5.12
16.81
26.2144
16.7

18.88

137.67

73.936

x1 = 16.7
x2 = 18.8
(x1-16.7) ^2 = 137.67
(x2-18.88) ^2 = 73.936
From calculation:
The values of s = 3.4286
The calculated values from the test statistics formula is 1.4220
The table value is 1.734 @ 18 df

A.R.Sidhardha
BLR0906032009

Page 6

Quantitative Analysis for the Firm

=0.05

Inference: As the table values is greater than the calculated accept the null hypothesis H0.

A.R.Sidhardha
BLR0906032009

Page 7

Quantitative Analysis for the Firm

3)
Expected
Frequency

Bearish

Neutral

9
8.1
8.7
4.2

Bullish

46.5
41.85
44.95
21.7

94.5
85.05
91.35
44.1

H0: There is no significant relationship between age and attitude.

H1: There is significant relationship between age and attitude.
Level of Significance is given as = 0.05.
Test Statistics:
(

Observed
Observed Expected Expected
8
9
40
46.5
102
94.5
12
8.1
34
41.85
89
85.05
7
8.7
41
44.95
97
91.35
3
4.2
40
21.7
27
44.1

(Observed
Expected)^2
-1
-6.5
7.5
3.9
-7.85
3.95
-1.7
-3.95
5.65
-1.2
18.3
-17.1

(Observed - Expected) ^2 \
Expected
1
42.25
56.25
15.21
61.6225
15.6025
2.89
15.6025
31.9225
1.44
334.89
292.41

0.11
0.91
0.60
1.88
1.47
0.18
0.33
0.35
0.35
0.34
15.43
6.63

Calculated Value: (Observed - Expected) ^2 \ Expected) = 28.58.

Table Value = 12.592.
Inference: As the Calculated value is greater than the Table value, the H0 is rejected.

A.R.Sidhardha
BLR0906032009

Page 8

Quantitative Analysis for the Firm

A.R.Sidhardha
BLR0906032009

Page 9