5.

Construct an ogive from the data given in Problem 3. 8. The following table exhibits the sales and advertisement expen-
6. The quality control inspector of a firm has rejected different lots diture of a manufacturing company in the past 12 months. Con-
of pumps owing to reasons presented in the table below. With strcut a scatter plot using the data given in the table
the help of this data, construct a Pareto chart. Month Sales (in thousand Advertisement (in
rupees) thousand rupees)
Reasons Percentage of lot rejected
Jan 120 8
Poor wiring 35
Feb 100 10
Poor coil quality 25
Mar 90 6
Poor outer cover 20
Apr 150 7
Defective plugs 15
May 170 8
Defective bearings 5
Jun 180 16
7. A company organized a training programme. After the first
week, the company officials evaluated the training programme. Jul 200 18
The scores (out of 100) of 40 employees are presented below: Aug 190 12
32 36 31 67 65 74 43 Sep 220 17
42 39 56 78 61 46 56 Oct 145 11
34 78 75 78 61 41 31
29 65 45 48 78 62 76 Nov 135 9
43 75 64 73 87 65 41 Dec 200 12
31 56 71 81 85
Construct a stem-and-leaf plot on the basis of the above data.

Ca se s tud y |
Case 2: The Tractor Industry in India: Largest in the World tive growth figures from 2004 to 2005. In terms of sales volume, the
Indian tractor industry is the largest in the world.
Introduction Table 2.01
Demand for tractors in the past years
India is an agriculture-based economy. Nearly 62% (approximately
one-third) of the population in India is dependent on agriculture for Year Demand (in thousands)
livelihood. The impact of globalization is also evident in the farm 1990–1991 139
mechanization process. Tractors play a pivotal role in farm mechani-
zation and hence are one of the key drivers of agricultural productiv- 1991–1992 148
ity. There are huge prospects for growth for the tractor industry in 1992–1993 148
India because India is the largest producer of pulses and the second
1993–1994 138
largest producer of rice, wheat, vegetables, groundnuts, and fruits
in the world. As compared to the world tractor industry, the Indian 1994–1995 163
tractor industry is comparatively young. The Indian tractor industry 1995–1996 202
is also the largest in the world with one-third of the total global pro-
duction being manufactured in India. 1996–1997 245
1997–1998 278
The Growing Indian Tractor Industry 1998–1999 273
The Indian tractor industry has witnessed a slump especially after 1999–2000 280
2000 for a few years (see Table 2.01). In spite of this decline, almost
all the companies were very positive about the growth prospects of 2000–2001 286
the industry. Mariao Gasparri, then MD of New Holland Tractors, in 2001–2002 250
an interview published in the Hindu Business Line in 2000 stated,
2002–2003 215
that the “Indian tractor market has the highest potential for growth.”
Yash Mahajan, the then vice chairman and managing director of 2003–2004 215
Punjab Tractors was also optimistic about the growth of the tractor 2004–2005 220
industry in spite of the decline in sales after 2000. He argued in an
Source: www.indiastat.com, accessed June 2008, reproduced with permission.
interview published in the Hindu Business Line in 2000 that after
seeing growth figures of 14% per year, the decline in sales can be ex-
plained as the natural process of alignment of the industry’s 8% long- Reasons for Growth in the Indian Tractor Industry
term growth. The faith of these gentlemen in the growth of the Indian The Indian tractor industry is a unique example of using a mix of
tractor industry was justified when after the negative growth for the imported technology and indigenous technology to meet national re-
period from 2001 to 2003, the Indian tractor industry exhibited posi- quirements. The government’s stress on farm mechanization, credit

62   Business Statistics

BS_CH-02.indd 62 6/20/2009 10:17:02 AM

 facilities offered by financial institutions, adaptation of multicrop- Table 2.04
ping by Indian farmers, reduced manpower in rural areas, growing Market segmentation on the basis of
Indian economy, fast-growing Indian automotive sector in the world, geographical regions
and the increased disposable income of the population are some of
Segment Share (%)
the key reasons behind the industry’s steady and high growth.
In addition to this the use of technology has enabled tractor manu- North 54
facturers to provide a range of models to customers varying from East 7
below 20 hp to more than 50 hp (Tables 2.02 and 2.03). The tractors
between 21–30 and 31–40 hp continue to dominate the market. The West 23
reason for this segment dominating the market can be explained in South 16
light of the high demand from three states: Punjab, Haryana, and Ut- Source: www.indiastat.com, accessed June 2008, reproduced with permission.
ter Pradesh. North India has 54% of the total market share (see Table
2.04). The majority of the farms in these states has alluvial soil which Major Players in the Market
does not require deep tilling.
In India, the leading six players in the market are Mahindra &
Table 2.02
Leading players in the market Mahindra, Eicher, Escorts, HMT, Punjab tractors, and TAFE. New

Holland of the United Kingdom, John Deere of the United States,
Share by hp (%) and SAME of Italy are the new entrants in the market.
Company Total
21–30 31–40 41–50 Mahindra & Mahindra has set a new record by selling more than
100,000 tractors in a year. In the financial year 2007, Mahindra &
Bajaj Tempo 0.3 2.6 2.5 1.9 Mahindra sold 102,531 tractors. Eicher started operations in 1959
Eicher 24 5.6 – 8.2 and today it is a key player in the Indian tractor industry. Escorts,
Escorts 11.4 9.2 34.5 14 which started production in 1964, is also ready to participate in the
rapidly growing Indian tractor industry by enhancing its production
MGTL 1.7 0.9 1 1.1 capacity to 98,940 tractors per year. HMT has witnessed some decline
HMT 2 4.2 0.8 3.2 in sales in 2006–2007 as compared to the previous year. Punjab Trac-
tors is also ready to join the race. TAFE has also adopted some new
M&M 32.6 27.1 29.3 27.1
marketing strategies such as area-specific branding (Swaraj Andhra
PTL 10.5 18.6 – 14.9 in Andhra Pradesh) to maintain its position in the market. The grow-
TAFE 7.3 21.7 9.1 14.9 ing demand of food grains and agriculture products, agricultural dy-
namism as a key goal of the 11th five-year plan, the improvement in
LTJD – 0.6 9.6 4.1
farm mechanization, etc. are some of the key factors that guarantee a
Int Wac 10.2 9.5 13.2 10.6 boom in the tractor industry in India.
Source: www.indiastat.com, accessed June 2008, reproduced with permission. Suppose you have joined a marketing research firm. The head of the
Table 2.03
firm has instructed you to carry out the following exercise:
Product variation in terms of horse power 1. Construct bar, line, and histogram charts indicating demand of
Type (hp) Share (%) tractors from the data given Table 2.01.
2. Construct a pie chart of leading players from Table 2.02.
Upto 20 hp 0.3 2
3. Construct a pie chart of product variation from Table 2.03.
21–30 hp 21 4. Construct bar, histogram, and pie chart of market segmentation
31–40 hp 56 from Table 2.04.

41–50 hp 14 With the help of these graphs and charts, prepare a brief analysis of
the tractor industry in India.
>50 hp 7
Source: www.indiastat.com, accessed June 2008, reproduced with permission.

Chapter 2 | Charts and Graphs   63

BS_CH-02.indd 63 6/20/2009 10:17:03 AM