[Document title]

[Document subtitle]

Dell3476win10(New) UB-05-19
Assignment front sheet

Learner name Assessor name

Zun Thet Hmu San Daw Nwe Nwe Yi
Date issued Completion date Submitted on
5.1.2021 2.9.2021 30.9.2021
Qualification Unit number and title
Edexcel BTEC Level 5 HND Diploma in
Unit 31: Statistics for Management
Business

Assignment Statistics for Management

title
In this assessment you will have opportunities to provide evidence against the following criteria.
Indicate the page numbers where the evidence can be found.

Criteria To achieve the criteria the evidence must show that Task
Evidence
referenc the student is able to: no.
e
Evaluate the nature and process of business and economic
P1 1 9-11
data/information from a range of different published sources.

Evaluate data from a variety of sources using different methods

P2 1 12-14
of analysis.

Analyze and evaluate qualitative and quantitative raw business

P3 data from a range of examples using appropriate statistical 2 15-35
methods.

Apply a range of statistical methods used in business planning for

P4 3 36-41
quality, inventory and capacity management.

Using appropriate charts/tables communicate findings for a

P5 3 41-58
number of given variables.
 Learner declaration

I certify that the work submitted for this assignment is my own and research sources are fully
acknowledged.

Learner signature: Zun Date: 2.9.2021

Table of Contents
Executive Summary……………….………………………………………………………………………………………………4

Introduction: ..........................................................................................................................5

Company overview ..............................................................................................................6,7

P1: Evaluating the nature and process of business and economic data/information……………...8

The characteristics and benefits of statistics ...........................................................................9

Component’s statistics: ....................................................................................................10,11

Different numerical measurements for processing economic and business data in

statistics.......................................................................................................................12,13,14

P2: Evaluation of data from different sources using various systems of analysis…………….…….14

Sources of data .....................................................................................................................14

Various data analysis approach………………………….……………………………………………………………...15
Various statistical analysis ...................................................................................................15

The statistical method used for Exploratory analysis and confirmatory analysis………………….16

M1: Critical evaluation of the methods of analysis used to present business data and
economic data/information from a range of different published source: ..............................17

P3: Analyze and evaluate qualitative and quantitative raw business data from a range of
examples using appropriate statistical methods………………………………………………………….….18-30

Descriptive statistics type methods.......................................................................................30

Inferential statistics method ............................................................................................31-51

M2: Evaluate the differences in application between descriptive statistics, inferential statistics
and measuring association......................................................................................52

D1: Critically evaluate the differences in application between methods of descriptive,

exploratory and confirmatory analysis of business and economic data, Covers LO1, LO-2……53

P4: Apply a range of statistical methods used in business planning for quality, inventory and
capacity
management: ..........................................................................................................54

Statistical process control: ....................................................................................................54

Case-1……………………………….………………………………………………………………………………………………...55
M3: Evaluate and justify the use of appropriate statistical methods supported by specific
organizational examples........................................................................................................56

D2: Make valid recommendations and judgments for improving business planning through
the application of statistical methods....................................................................................57

P5: Using appropriate charts/tables communicate findings for several given variables: ........58

Different variables in statistics: .............................................................................................58

Case-2……………………………….…………………………………………………………………………………………………59

M4: Justify the rationale for choosing the method of communication...................................60

D3: Critically evaluate the use of different types of charts and tables for communicating given
variables................................................................................................................................61
Conclusion:............................................................................................................................62
Work Cited.........................................................................................................63,64,65,66,67

Executive Summary

At the micro level, individual firms, howsoever small or large, produce extensive statistics on
their operations. The annual reports of companies contain variety of data on sales,
production, expenditure, inventories, capital employed, and other activities. These data are
often field data, collected by employing scientific survey techniques. The description of
statistical data may be quite elaborate or quite brief depending on two factors: the nature of
data and the purpose for which the same data have been collected. While describing data
statistically or verbally, one must ensure that the description is neither too brief nor too
lengthy. The measures of central tendency enable us to compare two or more distributions
pertaining to the same time period or within the same distribution over time.
Introduction

Statistics is a field of study where real-life data are analyzed in order to make rational
decisions. Through statistics, a business can calculate probability, forecasting, correlation etc
of the day-to-day business operations of the organization. These statistics are done by
collecting data from various sources. Statistics helps the company to become cost-effective,
quickly responsive and to manage a certain degree of quality in their product management. In
this report, the author of the report is a business data analyst in Yoma Bank that is tasked to
provide a report on the importance of statistical management in business.

Company Overview of Yoma Bank

Yoma Bank is one of the Myanmar’s largest private banks employing more than 3,000 people.
Established in 1993, Yoma Bank today has one of the largest branch networks in the country,
covering 25 major cities. Yoma Bank aims to become a leader in serving the small and
medium sized enterprises (SMEs) sector, and reach businesses that significantly contribute to
the local economy and build up local communities. Yoma Bank, together with Telenor,
founded Wave Money, Myanmar’s first mobile financial service provider and now the largest
mobile money platform in the country.

Vision

The Bank for your Aspirations

Yoma Bank Mission & Vision is regularly reviewed by Yoma Bank leadership. The current
Mission and Vision wording was approved by the Board of Directors on January 2020.

Mission

Building a Better Myanmar for its people

Thinking about how to “Build a Better Myanmar for its people’’ is the biggest challenge facing
the Group, driving us to build a roadmap to move forward and create value in everything we
do. How is a better Myanmar defined? In our Executive Chairman, U Thein Wai @Serge Pun’s
words, ‘‘better’’ must mean improvements in quantitative, qualitative, spiritual and material
terms over the situation today. Through passion and proficiency aligned with this deep sense
of determination, the Group is committed to building a better Myanmar together with its
people and for its people.

Objectives of Yoma Bank

Administration
Provides administrative services to support the Bank in next year.

Banking and Currency

Provides banking services to the Yoma Bank and issues currency in next five months.

Finance
Ensures the integrity of the Bank’s financial information in this month.

Financial Sector Supervision

Supervises and regulates Belize’s financial institutions in 2021.

Human Resources
Promotes efficiency, productivity and employee development and satisfaction in next five
years.
Information Technology
Supports the Bank’s operations through the strategic use of information technology in next
six months.

Internal Audit
Provides monitoring compliance to enhance the Bank’s governance process at 2021-2022.

Office of the Governor

Oversees the strategic direction, management and day-to-day operations of the Bank.

Office of Strategy Management

Oversees projects and programs in support of the Bank’s strategic objectives at 2022.

Research
Provides the Bank and Government leaders with timely and well-organized information in
next month.

Security
Protects the Bank’s staff, property and lawful visitors in this year.

Meaning and Definitions of Statistics

Statistics is the science of accumulating, organizing, presenting, surveying, presenting data in

an informative way to make decision making in business easier. Statistics are important
various ways as they make the collection of data into useful information [ CITATION Lin12 \l
2057 ].
The characteristics and benefits of statistics

i. Statistics are expressed through a numerical number. For example, the probability
rate of 67%, mean weight 66kg, the inflation rate of 2.6%. These are all statistical
numbers describing various states.

ii. The facts relative to a group of items or individuals are described by statistics.
Which means that statistics are aggregates of fact.

iii. Various factors can affect the result of statistics. This is the reason why the
statistics also keeps a margin of error that can describe if the real result id
dissimilar to the nominal result [ CITATION Lin12 \l 2057 ]. The influence of a factor
cannot simply be isolated.

iv. Statistics help to forecast fluctuations and booms in the business. This helps the
company by taking advantage of and preparing for them.

v. It helps the company to make a sound decision by correctly estimating the

earnings and cost of a certain investment.

vi. It helps to compare the difference between two products to help the business by
improving the bad one [ CITATION Bad12 \l 2057 ].
 vii. It helps to find the correlations between different elements of the business. This
helps the company by combining the elements that help the company to increase
the profit.

Component’s statistics

There are mainly four components of statistics. These components are given below: Figure:
components of statistics.

i. Formulating question: This is the first component of statistics. Every

statistic starts with addressing a problem or a question. In this question,
the business organization asks different requirements to be calculated
[ CITATION Bat11 \l 2057 ].

ii. Collecting data: The data that is relevant to the question is collected in this
component. The ways to collect data effectively and the factors from which
the data will be collected is described in this stage.

iii. Organizing and analyzing: The data is then organized in different sections
and analyzed accordingly. The different types of question require different
types of analyzing in order to get the expected answer.

iv. Conclusion: After analyzing, the result is given. With this result, the
organization takes a decision or interprets the result. With this, the
statistics for the problem are concluded.

Different numerical measurements for processing economic and business data

in statistics
In statistics, there are different numerical measurements that a company can use to analyze
the economic and business data to make an effective decision. Through this type of
measurement, a company can know about the chance, dispersion and other factors regarding
their products and operations. Some of the common numerical measurements are given
below:

i. Mean: Mean or average is the result of the summation of some constant numbers
which are then divided the number of that numbers [ CITATION Gra11 \l 2057 ].
ii. Median: Median is the midpoint of a sample or population that divides the lower
half of the sample from the higher half of the sample.
iii. Mode: The mode is the most frequent variable that can be found in a sample. So,
the value that is found maximum time in a sample or population is called mode. A
mode is compared with a mean to get an idea of the sample’s way of skewness.
iv. Percentile: Percentile is a measure that is used in statistics which indicates the
value below that a given percentage of observations in a sample fall [ CITATION
Har07 \l 2057 ].

v. Range: Range is described as the difference between the maximum and minimum
value of a sample or population. Standard deviation: Standard deviation how
much the sample deviates from the mean of the sample. The equation of standard
deviation:

Where, S = standard deviation

S = √ variance

In statistics, business firms or organizations use different sources and methods of analysis to
evaluate and describe data and turn them into information. Through these different sources,
the company collects different types of data that are used. There are also various types of
statistical analysis.
Sources of data

The sources of data are identified in two different categories. These are primary sources and
secondary sources [ CITATION Gra11 \l 2057 ]. In the primary source, the data is collected into
different methods. These data are unprocessed and not tailored in any way. So, there are also
data that are not relevant to the current problem that the company wants to resolve. In
primary sources data is collected through personal investigation, questionnaires, using local
sources and the internet. In secondary data sources, the data are tabulated, processed,
sorted and tailored to individual needs by an organization or a person. If an organization uses
this type of source, then it is easy for them to conduct an analysis but it has the risk of not
including all the class that the firm needs. The sources of secondary data are research
journals and newspapers, government and semi-government organizations and teaching and
research organizations. The Internet is also a source for the secondary organization.

Differences between Primary Data and Secondary Data

The difference between primary and secondary data in Statistics is that Primary data is

collected firsthand by a researcher (organization, person, authority, agency or party etc)
through experiments, surveys, questionnaires, focus groups, conducting interviews and
taking (required) measurements, while the secondary data is readily available (collected by
someone else) and is available to the public through publications, journals and newspapers.
Primary data means the raw data (data without fabrication or not tailored data) which has
just been collected from the source and has not gone any kind of statistical treatment like
sorting and tabulation. The term primary data may sometimes be used to refer to first-hand
information. Data which has already been collected by someone, may be sorted, tabulated
and has undergone a statistical treatment. It is fabricated or tailored data [ CITATION Ull14 \l
2057 ].

Various data analysis approach

When data are examined, cleansed, transformed and modeled through a system, the system
is called data analysis. In statistics, the organization uses a different data analysis approach to
analyze the data they have collected from the sources. These approaches are given below: i.
Deductive approach: In the deductive approach, a hypothesis is created based on current
existing theory and the data is analyzed by testing that hypothesis [ CITATION Hay12 \l 2057 ]. In
this approach, quantitative data is analyzed. ii. Inductive approach: In this approach, the start
is done through the data or observations that are collected in the sources. Then a theory or
hypothesis is given according to an analysis of the trends. Qualitative data is used in this type
of approach.

The statistical method used for Exploratory analysis and confirmatory analysis

The statistical methods that are used for statistical analysis are descriptive statistics and
inferential statistics. These are explained below: (i). Descriptive statistics: The statistical
methods of organizing. Analyzing, and presenting data in an explanatory way is called
descriptive statistics [ CITATION Bad12 \l 2057 ]. It describes a collection of information. There
are different types of descriptive statistics. These are frequency, tendency, variation, and
position. (ii). Inferential statistics: the statistical methods used to estimate the whole
population based on a sample of the population is called inferential statistics [ CITATION
Bat11 \l 2057 ]. A portion or part of the population of interest is called inferential statistics. In
inferential statistics, compares, test and predict future outcomes through probability
outcomes.

M1 Critical evaluation of the methods of analysis used to present business data

and economic data/information from a range of different published source

Data can be collected from primary and secondary sources. Data that are collected from
published sources can be considered as secondary sources of data. The given data can be
used to identify the range of rents in the banks of the Myanmar and make the decision to
charge the best rent for the customers.

Two different data sets provide different advantages for an organization to analyze data. The
advantages that the deductive approach of data analysis provides are straight lessons and the
point outcome. In this approach, rules can be applied more explicitly and can be explained
quickly. It is a time-saving approach and allows more time for practice and application
purposes.

There are some disadvantages to this approach. This is a formal approach that encourages
learning language by simply knowing rules. It is a passive way of data analysis and requires a
trained person or teacher. Another approach is inductive. This approach has many
advantages. An inductive approach is a meaningful approach. It is easy to memorize and
helps students discover themselves through the analysis. This approach is active and provides
an interesting lesson. It is a two-way communication approach or student-centered. Active
involvement in the lesson is helpful in this approach to make the student attentive and
motivated. But this approach also has some disadvantages. This approach is time-consuming,
frustrates students. This may lead to a false conclusion or rule. Both approaches have
advantages and disadvantages in different ways. Both can be used according to the need.

Differences Between Qualitative Data and Quantitative Data

The variables that are used in statistics can be categized into two different categories. These
are qualitative and quantitative data. The difference between qualitative and quantitative
data is given below:

Quantitative Qualitative
 It consists of data that can be numerically It consists of descriptive type data
measured and quantified.

Statistical analysis is easier in this type of Statistical analysis is relatively harder.

data.

This type of data collection is structured. The data collection is unstructured.

The research methodology for this type of The research method for this type of data is
data is conclusive (Graham, 2011). exploratory.

The research method for this type of data is This type of data is text-based.
exploratory.

Relationship between mean, median and mode and skewed distribution

It can calculate summary measure for advertising expenses and sale revenues of an
organization and comment increase data or not based on the results. Then, measure of
dispersion such as range, mean deviation, standard deviation and coefficient of variation of
that organization can also calculated and compared both advertising expenses and sale
revenues. They are calculated as below provided the following table.

Let x=advertising expenses ($000)

X= 10,9,5,6,8,10

x x – x́ |x− x́| ( x−x́ )2

10 2 2 4
9 1 1 1
5 -3 3 9
6 -2 2 4
8 0 0 0
10 2 2 4
∑ x = 984 ∑ x −x́ = 0 ∑|x− x́| = 10 ∑ ( x− x́ )2 = 22
(a) Summary measures:
Mean, Medium and Mode

Mean:

Mean x́ =
∑x
n

48
=
6

= 8 ($000)

Let x = export ($000) of the organization

Mean = 5,6,8,9,10,10

Medium:

Data array: 5,68,9,10,10

Medium = ( n+12 ) th
value

= ( 6+12 ) th
value

= 3.5th value

8+9
=
2

= 8.5 ($000)

Mode=10 ($000)

Mean ¿ Medium ¿ Mode

The distribution of advertising expenses is negatively skewed.

The advertising expenses are increasing.

(b) Range=10-5=5($000)
Mean deviation MD =
∑ |x− x́|
n

10
=
6

= 1.67 ($000)

Variance

Simple Variance S2 = ∑ ( x−x́ )2

n−1

3,800
=
5

= 760

Standard deviation (S)

S = √ Variance

= √ 4.4

= 2.10 ($000)

Coefficient of variation (CV)

Standard Deviation
CV = x 100
mean

2.10
= x 100
8

= 26.25 %

Let y = sales revenue ($000)

Y=15,11,14,18,20,18

y y – ý | y − ý| ( y− ý )2
15 -1 1 1
11 -5 5 25
 14 -2 2 4
18 2 2 4
20 4 4 16
18 2 2 4
∑ y = 96 ∑ y− ý =0 ∑| y− ý| = 16 ∑ ( y − ý )2 = 54
Mean:

(a) Mean ý =
∑y
n

96
=
6

= 16 ($000)

Medium:

Data array: 11,14,15,18,18,20

Medium = ( n+12 ) value

th

= ( 6+12 ) th
value

= 3.5th value

178+180
=
2

15+18
=
2

= 16.5 ($000)

Mode

Mode = 18($000)

Mean ¿ Medium ¿ Mode

The distribution of advertising expenses is negatively skewed.

The sale revenue is increasing.

(b) Range=20-11=9 ($000)

Mean deviation MD =
∑ |x− x́|
n

16
=
6

= 2.67 ($000)

Variance

Simple Variance S 2
=
∑ ( x−x́ )2
n−1

54
=
5

= 10.8

Standard deviation (S)

S = √ Variance

= √ 10.8

= 3.29 ($000)

Coefficient of variation (CV)

Standard Deviation
CV = x 100
mean

3.29
= x 100
8

= 20.56%

Comment
CV (Adv. Exp.) = 26.25%

CV (Sales Revenue) =20.56%

Sales revenue data is relatively more stable than advertising expenses data.

Descriptive statistics type methods

Business data is evaluated through different descriptive statistics methods for many different
reasons. These types of statistical methods help a company such as Yoma Bank in many ways.
Some of them are given below:

i. Measures of central tendency: Descriptive statistics can be used in different measures

of central tendency such as mean, median, mode [ CITATION Har07 \l 2057 ].
ii. Measures of variability: This type of statistical method is also helpful for measuring
variability. Range, standard deviation, etc are a measure of variability [ CITATION
Pol09 \l 2057 ].
iii. Measure of Dispersion: The measures of central tendency are not adequate to
describe data. Two data sets can have the same mean but they can be entirely
different. Thus, to describe data, one needs to know the extent of variability.
"Dispersion is the measure of the variation of the items’’[ CITATION Sur18 \l 2057 ].
iv. Mean Deviation: The mean deviation is also known as the average deviation. As the
name implies, it is the average of absolute amounts by which the individual items

¿
deviate from the mean. Symbolically, MD=¿ x−x̄ ∨ n ¿where, MD = mean deviation, x

= each value in data set, x̄ = mean of all values in the data set and n = number of
values in the data set.

Inferential statistics method

Inferential statistics use a sample of the population interest to estimate the characteristics of
the population. Through inferential statistics, GSK can make many different uses. Some of
them are given below:

i. Linear regression analysis: This can be used to understand a product's

dependability in an independent factor [ CITATION Lan132 \l 2057 ].
ii. Significance test: This is used to decide if two samples of data are different from
each other. How much significance can be found in the two data set are found
from this.
iii. Correlation analysis: The degree of which two variables have a relationship can be
found through correlation [ CITATION McC10 \l 2057 ].
iv. Probability: The probability of a population can also be described with inferential
statistics by analyzing the sample to a real-valued function which is defined on a
set of events within a probability space which satisfies properties of measures like
countable additivity [ CITATION And08 \l 1033 ].

For Example
There are 10 males and 5 females who applying for the job of accountant in Yoma
Bank and only one girl will be selected as accountant. n (male) = 20, n(female) =

20
20, n (total) = 20+20= 40, P (one female accountant) = = 0.5. From the above
40
calculation, the probability of each female is 0.5 selected to apply as an accountant
in Yoma Bank.

Probability Distribution

In random variable,

Expected value of random variable = E(X)= x P(x)

Variance of random variable = V (X)= E ( X 2 ) - E( X)2

 =  x 2P(X) - x P( X )2

For Example

Yoma Bank also offers mobile banking system to contribute in the market. The following
table is provided to control the mobile banking service that Yoma Bank offers in a day and to
calculate expected value and random variable.

P(X) XP(X) x 2P(X)

Quantity
0 .1 .1 .1
1 .2 .3 .4
2 .3 .8 2.4
3 .3 .5 3.2
4 .1 .7 1.8
Total 1.0 2.4 7.4

E(X) = 2.4

V(X) = 7.4 -(2.4)2

= 7.4 -5.76

= 1.64

Standard deviation of X = SD(X)= √ 1.64 = 1.280

Discrete Probability Distribution

Discrete probability distribution means that a statistical distribution which shows

probabilities of outcomes by finite value [ CITATION Bab07 \l 1033 ].

Binomial Probability Distribution

1 (a) Characteristics
There are four main characteristics of binomial probability distribution [ CITATION And11 \l
1033 ]. The first one is that the number of trials which is denoted as “n” is finite and fixed. The

next characteristic is that each trial owns only two mutually possible outcomes such as
success and failure. The third is probabilities of success and failure are constant for each trial
Probability (success)=Probability(failure)=1-p. The last characteristic is the trials are
independent of each other.

Binominal probability distribution: x

P(x) = n C x p (1− p)n− x; x=0,1,2, ---------, n

Where, n = number of trials

p = P(success)

1-p = P(failure)

x = number of successes in the sample 0,1,2, ----, n

Mean of binomial distribution: μ = np

Variance of Binomial distribution: σ2 = np (1-p)

The speed with mobile banking that company can resolve their software problems and
internet work blocks is very important. It is reported that Yoma Bank can solve its customer
problems the same day in 80% of the cases. There are 10 cases reported today which are
representative of all complaints. The following calculation is provided how many problems
would the company can resolve today and compute standard deviation. And it is also
calculated that the probability that 6 of the problems can solve today.

Solution

n =10 cases
p =probability that company can resolve customer problems the same day 80%=0.80

1-p =1-0.80 =0.20

Problem can resolve the same day or resolve not the same day (only two possible outcomes)

P(x) = nC x p x (1− p)x , x= 0,1,2,3, --------, n

= 10 C x (0.8)x (0.2)10−x , x= 0,1,2,3, --------, 10

a. Expected value E(x) = np = 10 x 0.8 = 8 problems

Stand Deviation SD (x) = √ np(1−p) = √ 10∗0.8∗0.2 = 1.26 problems
b. Probability that 6 of the problems can be resolve today
P(x=6) = 10 C 6 (0.8)6 (0.2)10−6 = 0.08808

According to the above calculation, 8 problems would the company can resolve today and
standard deviation is 1.26. The company has 0.08808 probability that 6 problems can resolve
today.

Poisson Probability Distribution

2(a) Characteristics

Poisson probability distribution has the following characteristics: It is a separate type of

probability distribution, and each event is independent of any other occurrence. Poisson
distribution defines separate occurrences between intervals and can range from zero to
infinity in each interval. The last sign is that the number of cases through the test is
continuous [CITATION las17 \l 1033 ].

Poisson probability distribution:

e−µ µx
P(x) = , x = 0, 1, 2, 3, ……
x!
Where, μ = the mean number of successes in the particular interval

x = the number of successes in the sample = 0,1,2, ----------

An internal study by the Technology service department at Yoma Bank revealed that
company employees receive an average of two emails per hour. The following calculation
describes the assuming of these emails’ arrival is approximately by Poisson distribution. And
it also calculated about the probability that Dean Cleland who is the founder and CEO of
Yoma Bank received exactly one email between 4:00 P.M and 5:00 P.M yesterday and the
probability that he did not accept any emails within this period.

Solution

Let µ = average number of emails received per hour

µ=2

Let x = number of emails received

x = 0, 1, 2, 3, …...

e−µ µx
P(x) = , x = 0, 1, 2, 3, ……
x!

e−2 2 x
P(x) = , x = 0, 1, 2, 3, ……
x!

Where e−2 = 0.1353

(a) Probability that received exactly one email

e−2 2
P(x=1) = = 0.2706
1!

(b) Probability that did not received any emails

e−2 20
P(x=0) = = 0.1353
0!
According to the above Poisson distribution of Yoma Bank, the probability that exactly one
email is 0.2706 received between 4:00 P.M and 5:00 P.M yesterday and the probability that
he did not accept any emails is 0.1353 within this period.

Continuous Probability Distribution

A type of distribution that deals with continuous types of data or random variables. The
continuous random variables deal with different kinds of distributions [ CITATION Sta20 \l
2057 ].

Normal probability distribution

3(a) Characteristics

According to [ CITATION Men051 \l 1033 ], the main characteristics of normal probability

distribution is that asymptotic, unimodal, symmetric and the mean, median and mode are all
equal. And in normal probability distribution, the sum of all possible values of all probabilities
must equal. Normal probability distribution is symmetrical around its center perfectly.
Briefly, normal distribution is symmetrical bell-shaped curve. Its standard deviation is one
and the mean is zero. And area under the curve is one.

Normal probability distribution:

Let X = normal random variable

μ = mean

σ = standard deviation

X follows normal distribution with mean μ and standard deviation σ

X N (μ , σ ¿
 x−μ
Let Z =
σ

Where Z follows standard normal distribution with mean zero and standard deviation one.

In Yoma Bank, the mean profit for the year 2019 was $3,000. It assumes that $700 is its
standard deviation and that the amount of profit follows normal probability distribution. The
below solution describes that the percent of the profit are between $3,000 and $3,700 and
the percent of the profit are more than $2,300 but less than $3,700.

Solution

Let X = amount of profit ($)

Mean, µ = $3,000

Standard deviation, σ = $700

X ~ N (µ, σ)

X ~ N (3,000, 700)

x−µ
Z=
σ

x−3,000
Z=
700

(a) Probability that the profit is between $3,000 and 3,700

3,000−3,000 x−3,000 3,700−3,000

P (3,000 < x < 3,700) = P ( < < )
700 700 700

= P (0 < z < 1)

= 0.3413

= 34.13%

(b) Probability that the profit between $2,300 and $3,700

 2,300−3,000 x−3,000 3,700−3,000
P (2,300 < x < 3,700) = P ( < < )
700 700 700

= P (-1 < z < 1)

= P (-1 < z < 0) + P (0 < z < 1)

= P (0 < z < 1) + P (0 < z < 1)

= 0.3412 + 0.3413

= 0.6826

= 68.26%

In the above calculation of Yoma Bank’s normal distribution, the percent of the profit
between $3,000 and $3,700 is 34.13% and the percent of the profit more than $2,300 but less
than $3,700 is 68.26%. Therefore, Yoma Bank can get the year profit of 2019 can get less than
$3700. This mean that the company cannot get more than $3700 in current years.

Estimation

Estimation is a division of statistics and signal processing that determines the values of
parameters through measured and observed empirical data[ CITATION Sta201 \l 2057 ].

Point Estimation

The simplest form of inferential statistics is when we want to get an idea about a single
parameter of a population, such as its mean, µ. This is referred to as point
estimation[ CITATION JTo16 \l 2057 ].

Interval Estimation (Confidence Interval)

4(a) Confidence interval for population mean

Population standard deviation known,

σ
x̄± z
√n

Where, n = random sample size

x̄ = sample mean

σ = population standard deviation

When confidence interval is 90%, the value of z is 1.645

When confidence interval is 95%, the value of z is 1.96

When confidence interval is 99%, the value of z is 2.58

The planning department of Yoma Bank reports that the distribution on its daily sales follow
normal distribution with standard deviation of $3,000. The mean daily sales to be $20,000 is
showed by a random sample of 40 days. The below calculation describes the point estimate
of the population mean and develops 99% confidence interval for the population mean and
interpret the result.

Solution

x = the distribution of daily sales

population standard deviation, σ = 3,000

random sample days, n = 40

sample mean, x̄ = 20,000

(a) The best estimation of population mean µ is sample mean (x̄) = 20,000
(b) 99% of confidence interval for the population mean
 z = 2.58
σ
z = x̄ ± z
√n
z = 20,000 ± 2.58

Lower limit = 20,000 – 1,223.80 = 18,776.2

Upper limit = 20,000 + 1,223.80 = 21,223.8

P (18,776.2 < µ < 21,223.8) = 0.99

∴ 99% confidence interval for the population mean is between 18,776.2 and 21,223.8.

Hypothesis Testing

Six steps procedure

Six steps of procedure are operated when a hypothesis testing is evaluated. They are
hypothesis, test statistics, level of significance, decision rule, decision and conclusion.

1. Hypothesis

Null hypothesis and alternative hypothesis are specified in this step.

Null hypothesis : H 0: μ = μ0

Alternative hypothesis: H 1: μ ¿ μ0 (Greater tailed)

: μ ¿ μ0 (Lesser tailed)

: μ ≠ μ0 (Two- tailed)

2. Test Statistics

In this step, the value of z is calculated by the following.

Population standard deviation σ is known,

 x̄−μ0
z=
σ /√ n

Where, n = random sample size

x̄ = sample means

σ = population standard deviation

μ0 = population mean (given)

3. Level of significance

Level of significance 1% or 5% is determined to formulate the critical value z c.

Critical value: z c

Level of significance μ ¿ μ0 μ ¿ μ0 μ ≠ μ0
1% 2.33 -2.33 ± 2.58
5% 1.645 -1.645 ± 1.96
4. Decision rule

Decision rule is determined based on three situations.

 For greater tailed, If z≥ z c,

Reject null hypothesis

Otherwise accept null hypothesis

 For lesser tailed, If z≤ z c,

Reject null hypothesis

Otherwise accept null hypothesis

  For two-tailed, If |z| ≠∨z c ∨¿ ,

Reject null hypothesis

Otherwise accept null hypothesis

5. Decision

The two values of z which is calculated form test statistics and z c which is from table value are
compare to put conclusion.

6. Conclusion

It will draw conclusion based on step 5. In this step, it will state the statement of results or
rejection or acceptance of null hypothesis and future direction of research.

The waiting time for clients at Yoma Bank follows a normal distribution within a mean of 4
minutes and a standard deviation of 2 minutes. At this department, the quality-assurance
department sampled 50 customers and found that the mean waiting time was 3.25 minutes.
The following calculation makes sure that the mean waiting time is less than 4 minutes.

Solution

n = 50 customers

sample mean x̄ = 3.25 minutes

Population means μ0= 4 minutes

Step 1: Null Hypothesis: H 0: µ = 4 minutes

The mean waiting time is 4 minutes.

Alternative Hypothesis H 0: µ < 2 minutes

The mean waiting time is less than 4 minutes.

 x̄−μ0
Step 2: Test statistics:z =
σ /√n

x̄−μ0
z=
σ /√n

z = -2.65

Step 3: Level of significance: 5%

Critical value: z c = -1.645

Step 4: Decision rule:

If z ≤ z c, Reject null hypothesis.

Otherwise accept null hypothesis

Step 5: Decision:

Z=-2.65

z c = -1.645, reject null hypothesis

Z< -1.645, reject null hypothesis

Step 6: Conclusion:

Since reject null hypothesis, accept alternative hypothesis.

Therefore, the mean waiting time is less than 4 minutes.

The above calculation: Hypothesis testing makes sure that the waiting time of Yoma Bank is
less than 4 minutes.
According to the above calculation of estimation and hypothesis testing of Yoma Bank, there
are 50 customers who are sampled by quality-assurance within the organization. 99% of
confidence interval is also suitable with its long-term company direction. Based on the above
calculations, the mean waiting time was 3.25 minutes and the company can get the profit less
than $3700 by 68.26%. Therefore, Yoma Bank cannot get the profit more than $3700 within
current years. For this reason, the organization can meet its objectives in the year of 2020
according to the statistical testing calculation. According to the above estimation and
hypothesis testing of Yoma Bank, the company makes the application of estimation and
hypothesis testing, planning which are recommend to improve its business. Yoma Bank
always makes and prepare a test statistic from estimation and a hypothesis test in order to
measure how many typical or standard errors the experimental point estimate is away from
the predictable value of null hypothesis.

Correlation Coefficient

Let x = number of rooms

Let y = kilowatt-hours used (thousands)

Price ($) (x) Demand (y) xy x2 Y2

12 9 108 14,4 81
9 7 63 8,1 49
14 10 140 196 100
6 5 30 36 25
10 8 80 100 64
8 6 48 64 36
10 8 80 100 64
10 10 100 100 100
5 4 20 25 16
7 7 49 49 49
∑ x = 91 ∑ y = 74 ∑ xy = 718 ∑ x 2= 895 ∑ y2 = 584
Correlation Coefficient
 n xy – ( x)( y)
(a) r = 2 2 2 2
√[ n x −( x) ] [ n y −( y) ]
10 718−9174
= 2 2
√[ 10 895−( 91) ] [ 10584−(74) ]
=0.904

Since r-0.904, number of rooms and kilowatt-hours are positive strongly correlated.

This means that……

(a) The equation of the linear regression line for kilowatt-hours used on number of rooms
is-

Y=a + bx

Where y = kilowatt-hours (Thousands)

X=number of rooms

A and B are unknown constant

By least squares method,

∑ xy−¿ ∑ x ∑ y ¿
b = n 2
n ∑ x 2−( ∑ x )

a = ý - bx́

a =
∑ y –b∑x
n n

10718−91 74
b =
10 895−(91)2

=0.67

74 91
a = – 0.67( )
10 10
 =1.303

The estimated equation of linear regression line for kilowatt-hours on number of rooms is,

ý = 1.303 + 0.67x

(b) For six -room house, x= 6

Estimated kilowatt-hours used will be,

ý = 1.303 + 0.67 (6)

=5.323 (Thousands)

This prediction is interpolation

M2 Evaluate the differences in application between descriptive statistics,

inferential statistics and measuring association.

Different methods are used to analyze statistics. One way is scattering plots. This plot is
related to the regression analysis. Scatter plots help to plot different data points and try to
find out how much one variable is affected by another variable. The correlation refers to the
relationship between two variables. The closer the variables in the scatter diagram, the more
possibility to create a straight line which eventually indicates a strong correlation among the
variables. The relationship among the variables is used to conduct regression analysis.
Regression analysis refers to the prediction and forecasting of a future event. It is also used to
identify a cause-effect relationship between the variables.

Simple forecasting methods can be an alternative to regression analysis for forecasting

purposes. The methods are average methods, naive method, the seasonal naive method, and
the drift method. In the average forecasting method, the forecast is simply the average of
historical data. In a naive method, the forecast is the last observation of a data set. In a
seasonal naive method, highly seasonal data are used. These methods are used to find out
the relationship between the variables and forecast or predict future situations from the
data. For example, the relationship between output and cost can be found by considering the
last few years' outputs and cost of production.

If the relationship found is positive the higher the cost the higher the output. If the
relationship is negative, the lower the cost the higher the output. Different software can be
used to conduct this analysis. Excel can be used to conduct multiple regression on different
variables. There is a three-step process of data analysis. Evaluate, clean and summarize are
the three steps. First data should be evaluated by ensuring the data file is accurate and
complete, no irregularities should be found in the methodology of the data collection. Clean
the data refers to clearing any bad data from the table. And the last step is summarizing the
data. Summary of the data makes the data ready for conducting analysis using the data.

D1 Critically evaluate the differences in application between methods of

descriptive, exploratory and confirmatory analysis of business and economic
data, Covers LO1, LO2.

Three methods that can be used to analyze business data are descriptive analysis, exploratory
analysis, and confirmatory analysis. These three different methods have different processing
steps.

Descriptive analysis refers to the process of describing the basic features of data in a
particular study. A simple summary of the data and the measures of the data can be found by
the descriptive analysis. Descriptive statistics is a way of presenting quantitative data in a
manageable form. To simplify a large amount of data in an analysis, a descriptive method is
used. Lots of data are processed to a simpler summary is the function of descriptive analysis.
Exploratory analysis refers to the process of exploring a big set of data and concludes to take
the decision. It is referred to as a philosophy of analyzing data. The process of this data
analysis is divided into different parts. The tasks that are needed to cover in this process are
identifying the mistake and data that are missed while collecting data. The second task is
identifying the important variables in the data set. After the step, we have to test a
hypothesis related to a specific model. The last step is to establish a model that can explain
data in the most successful way.

The third analysis process is a confirmatory analysis. In this process, the evaluation of
evidence can be done to decide by challenging the assumptions about the collected data. The
process of confirmatory analysis involves testing the hypothesis, producing the estimates for
the test, conduct a regression analysis and conduct variance analysis.

All three ways are used to analyze data. They have different steps for the analysis. But the
entire ways move towards the conclusion of making a decision based on the data collected.

Quality Management

Quality management is the task of overseeing the total quality control of a product at the
desired level (Harper, 2007). In inventory management, a company supervises the stock
items, materials and non-asset items in a certain measure. Through capacity management, an
organization activates its maximum output capacity and activity [ CITATION Lan132 \l 2057 ].
There are many methods that we can use for quality, inventory and capacity management.
These methods include many charts and diagrams such as Process flow diagram, Pareto
Chart, check sheet, Run Chart, Control chart, Cause, and Effect Diagram.

Statistical process control

When a company employs statistical methods to control and monitor the process, it is called
statistical process control. Its type is a type of quality management that is very useful for the
company. There are various ways of SPC that a company such as GSK can use. These are: i.
Control charts: This chart creates three elements for the process which are the upper limit,
target, and lower limit. The data variations through the process over time is processed
through this chart. ii. Stable process: When the processing system is not identified by any of
the detection processes as abnormal, it is called a stable process [ CITATION Pol09 \l 2057 ]. In a
stable process, the variances are very low and it helps the company to maintain expected
quality in products. iii. Excess variation: When the process identified by the detection process
as abnormal, the other systems are activated to find the source of the variation [ CITATION
Goy10 \l 2057 ]. One of these activities that are used in excess variation is the Pareto chart. iv.

Process stability metrics: The metrics that are created to correct the processes that are
needed for stability. These metrics can also be viewed as supplementing the traditional
process capability metrics.

Case -1:

The SPC method is used here to solve the current problem. Here, control chart for X bar and
Range is drawn:

Figure: Control Chart, X bar. (Source: Zun Thet Hmu San, 2021).
Figure: Control chart, Range. (Source: Zun Thet Hmu San, 2021).

M3 Evaluate and justify the use of appropriate statistical methods supported by

specific organizational examples.

Statistical process control is a way of quality control by using statistical methods. This process
involves monitoring and controlling the process to ensure the quality of the products. To
ensure the process of efficient operation in a business statistical process control can be used.
This process helps to produce more products efficiently and creates less wastage o scrap by
producing this.

This method can be more useful along with different types of charts and graphs. To easily
describe a finding or analysis chart or graph can be very helpful. There are different types of
charts and graphs. Bar graphs are very useful to display a number that is not dependent upon
each other. The pie chart helps to show the whole party in the divided format. Line graphs
indicate how a change occurs with time. Cartesian graphs have numbers in both axes of the
chart. This helps to show how one number affects the change in another number. A
frequency table is used to describe the number of occurrences of a particular data type in the
whole data set. The frequency curve shows that the number of observations found in the
frequency distribution is infinitely large. Another useful tool to show the frequency of scores
is the histogram. It mainly shows the number of occurrences of scores in a particular data set.
Different data presentation technique has different advantage and disadvantages. The main
advantage of charts and graphs are: these can show data graphically and categorically, a large
data set can be summarized by these charts and graphs, the trend can be understood better
than the tables, key values can be estimated at a glance. A visual check of accuracy can be
done easily. The disadvantage can be an oversimplification of data; correction can make the
chart more complex.

D2 Make valid recommendations and judgments for improving business

planning through the application of statistical methods.

Business planning is the key to the success of a business. Proper planning helps to identify the
profitable parts of a business. Investing in those areas can help a business to make a huge
amount of profit. Using a statistical approach this planning can be more reach and potential
for a business. Statistical methods can be used efficiently to make decisions for an
organization. Some recommendations can be given to the selected business while using
statistical analysis and make decisions for the organization. First of all, better planning of
business data must be better also. Collecting high-quality data will lead to better planning for
the business. Though the control chart helps to control the variation among data, it is
essential to collect data very carefully to reduce any kind of variations among them.

To improve the planning of business the average need to be understood more clearly and the
probability of an event need to be identified. The performance metrics need to be evaluated
and make an output more potential for the business. The ability to understand the cuts by
using statistics can be improved to make the plan for the business effectively. Improving
these areas will make a better output in planning for the organization.
In statistics, the components are used as steps to make various data into useful information
for the users to use. The various types of data, their sources, and the data analysis process
and methods are described in the previous parts of the report. The data types that are used
in statistics are also categorized in different variables.

Different variables in statistics

There are four different types of variables that are used in statistics. These are:

i. Nominal level data: The variables that have no order and recorded at a nominal

level as labels or names are called nominal level data [ CITATION Lin12 \l
2057 ]. These types of data don’t provide any quantitative value.

ii. Ordinal level data: The data they are categorized in a specific order or sequence is
called ordinal level data. These data are ranked based on the attribute or
qualitative variables. The distance between the categories for these types of data
is not known.

iii. Interval level data: The data that are recorded with a specific measurement of

interval or gap are called interval level data [ CITATION Bad12 \l 2057 ].
The distance or interval between the data is meaningful in this type of data. It is a
quantitative level data.

iv. Ratio level data: Data that are recorded at the ratio level of measuring is called
ratio level data. The zero on the scale of the unit the ratio is based on has a
meaningful interpretation.

Case-2
Running the chi-square test is used to determine whether an association (or relationship)
between the two categorical variables in the population:

Figure: Chi-square test. Batabyal & Nijkamp, 2011; Research tools in natural resource and
environmental economics

Hereafter doing the chi-square test, we find that the p-value which is 0.000957 is less than
the significance value of 0.05. This means that the two categories of students that the sample

represents are not random [ CITATION Bat11 \l 2057 ]. There are a distinct pattern
and relationship between the two categories.
M4 Justify the rational for choosing the methods of communication

Chi-square test is referred to as the good of fit statistic. This test is mainly used to identify
how much possibility there is that the observed distribution has happened for a chance.
When the variables are independent, how well the observed variables fit with the
distribution, can be found by the chi-square test. When continuous variables are used to
make a decision, there are many options like z test, t-test or ANOVA. But it becomes more
complex when the analysis is on a categorical feature, the chi-square test is very helpful. The
main reason for using the chi-square test is the categorical variable. The variables that can be
put into a particular category and can be divided into finite categories can be called the
categorical variables. Categorical variables can be nominal variables and ordinal variables. On
the other hand, the chi-square test is used to test how much statistically significant the
categorical variables are. The given data set is an example of categorical variables. To test the
hypothesis on the distribution of observations in different categories can be conducted by the
chi-square test. The frequency of a charge among the hotels can be found by using the chi-
square test. The data given in the data set are categorical and. The variables can be
distributed in a particular category and there are a finite number of categories found in the
data set. So, using chi-square as the method of communication is very rational and
meaningful for the given data set.
D3 Critically evaluate the use of different types of charts and tables for
communicating given variables

Different types of charts and data are used in an analysis process. It will be very useful in an
analysis of data if the data are presented effectively using different charts and tables. The
appropriate chart also helps to make effective communication among the data sets. Different
charts and graphs have a different way to present data. All the ways connect the data set in a
way that can be understood easily and interpret the data set without any problem. Different
data set requires a specific type of chart or graph to show perfectly. Suppose contribution can
be shown in the pie chart as it is the best way to show data divided among the whole data
set. The given data set of the average rate of the hotel room can be shown in a histogram.
This will be appropriate to find out the common rate currently charged by most of the hotels.
The histogram is a chart to show the frequency of particular data in a data set. In the axis of a
char, x-axis, and y-axis, the values need to make a relation. Total sales of a business can be
shown in any bar chart. It will be meaningful and make communication between the data set
at different times by using separate bars. To establish a relationship and show graphically
total sales and the total cost can be shown in a car chart where two bars, a sales bar, and a
cost bar, stand together to see the comparison of sales against the cost.

Conclusion

Statistics are useful in various ways for a business company. The company can use statistics
to find average earnings of the company, measuring variabilities such as queuing times and
customer arrival rates. It helps a company to become cost-effective, quickly responsive and to
manage a certain degree of quality in their product management. The quality, inventory and
capacity management for the company.
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