Assignment

on
Statistics for Management
BUSINESS ORIENATION STREAM

Submitted to: Submitted by:

Dr. Jagdish Bhagwat Nidhi Chaudhary
Section-B
Batch (2021-23)
 Table of Content
S. No. Executive Summary
1. Introduction
2. Objective of the Study
3. Methodology
4. Limitations of the Study
5. Analysis & Interpretation
6. Conclusion
 Executive Summary

The project focuses on the study of the enterprise named Guru Shri Traders based on certain
statistical models like Descriptive statistics Regression & t-test models. The data has been
collected from the enterprise itself. There are certain limitations of the study as it does not
take into account the other market forces with generating the data and the conclusions. It tells
about on which good will help in earning more profits.
 Introduction

The project is based on the analysis of an enterprise named Guru shri Traders, This enterprise
deals various products but mainly focus on i.e., sugar and jaggery and it is in wholesale
business. The data used for this project is of august 1-30th I have applied various statistical
concepts on the data to drive certain managerial conclusions. The concepts include
descriptive statistics and t- test model.

Descriptive Statistics: Descriptive statistics are used to describe the some basic features of
the data in its study. They provide simple summaries about the samples and the measure.
Together with simple graphics analysis, they form the basis of virtually every quantitative
analysis of the data.

T- test: two sample assuming equal variances: This procedure provides sample size and
calculations for one or two-sided two-sample t-tests when the variances of the two groups are
assumed to be equivalent. This is the traditional two-samples t-test. The design corresponding
to this test procedure is sometimes referred to as a parallel-groups design. This design is used
in situation like comparison of the income level of two regions etc.

CONTACT INFORMATION:9009500537
Objectives of the Study

● To study the enterprise in order to draw conclusions on profitability and sales.

● To study the revenue and sales model of the enterprise.
● To apply various statistical model in real life situations.

Methodology

● Primary Data Collection: Primary Data has been collected from the guru shri traders

● This study is limited to the selected enterprise and its data. No other conclusions
about the market or its competitors can be drawn from this.

Limitations of the study

●The study is focused on the chosen enterprise only, no other market data has been collected.

●It does not take into account various other variables while calculating the profit, prices and
revenue.

●The market forces is assumed to be constant.

 Analysis and Interpretation

T- test: two sample assuming equal variances: I have applied T-test on three components
i.e., Quantity Sold, Revenue, and Profit.

1. T-test on Quantity Sold:

H0: µs = µj Null Hypothesis, there is no difference in quantity sold of both goods.
H1: µs > µj Alternate Hypothesis, quantity sold for sugar is greater than Jaggery
Since, P (8.32633E-41)< α (0.05)
So, H1 is accepted and H0 is rejected.
Thus, we can conclude that average quantity of sugar sold in August is greater that
average quantity of jaggery sold during that month.

t-Test: Two-Sample Assuming Equal Variances

  SUGAR JAGGERY
Mean 44.44 11.16
9.92333333
Variance 3 4.306666667
Observations 25 25
Pooled Variance 7.115  
Hypothesized Mean
Difference 0  
df 48  
44.1114030
t Stat 8  
P(T<=t) one-tail 8.32633E-41  
1.67722419
t Critical one-tail 6  
P(T<=t) two-tail 1.66527E-40  
2.01063475
t Critical two-tail 8  

Fig 1: t-test on quantity sold

 2.Descriptive statistics: (Quantity sold)
 In the case of sugar: mean (44.44) < (45) median and mode that
indicates the data is negatively skewed
 In the case of jaggery: mean (11.16) > (11) median and mode that
indicates that the data is positively skewed.

DESCRIPTIVE
STATISTICS

SUGAR   JAGGERY  
       
Mean 44.44 Mean 11.16
Standard Error 0.630026454 Standard Error 0.415050198
Median 45 Median 11
Mode 45 Mode 11
Standard Deviation 3.150132272 Standard Deviation 2.075250989
Sample Variance 9.923333333 Sample Variance 4.306666667
Kurtosis 0.022397581 Kurtosis 0.285538732
-
Skewness 0.799025626 Skewness 0.710885506
Range 12 Range 8
Minimum 37 Minimum 8
Maximum 49 Maximum 16
Sum 1111 Sum 279
Count 25 Count 25

Fig-2 Descriptive Statistics

2. T-test on Revenue:
H0: µs = µj Null Hypothesis, there is no difference in revenue earned from both
goods.
H1: µs > µj Alternate Hypothesis, revenue earned from sugar is greater than jaggery
Since, P < α (0.05)
So, H1 is accepted and H0 is rejected.
 Thus, we can conclude that revenue earned from sugar in August is greater than
revenue earned from jaggery during that month.
t-Test: Two-Sample Assuming
Equal Variances        
         
Revenue (Rs)
  Revenue (Rs) SUGAR JAGGERY    
Mean 170749.6 44082    
Variance 138059862.3 67194766.7    
Observations 25 25    
Pooled Variance 102627314.5      
Hypothesized Mean
Difference 0      
df 48      
t Stat 44.20679872      
P(T<=t) one-tail 7.52455E-41      
t Critical one-tail 1.677224196      
P(T<=t) two-tail 1.50491E-40      
t Critical two-tail 2.010634758      
         

Fig 3: t-test on revenue

Revenue (Rs) SUGAR Revenue (Rs) JAGGERY

Mean 170749.6 Mean 44082

2349.977552 Standard Error 1639.448281
Median 173250 Median 43450
Mode 173250 Mode 43450
11749.88776 Standard Deviation 8197.241406
138059862.3 Sample Variance 67194766.67
Kurtosis 0.12533892 Kurtosis 0.285538732
Skewness -0.902873088 Skewness 0.710885506
Range 44730 Range 31600
Minimum 142450 Minimum 31600
Maximum 187180 Maximum 63200
Sum 4268740 Sum 1102050
Count 25 Count 25

Fig-
4 Descriptive analysis revenue
 2.Descriptive statistics: (Revenue)
 In the case of sugar: mean (171094) < (173250) median and mode that
indicates the data is negatively skewed
 In the case of jaggery: mean (44640) > (44000) median and mode that
indicates that the data is positively skewed.

3.T-test on profits:
H0: µs = µj Null Hypothesis, there is no difference in profit earned from both goods.
H1: µs > µj Alternate Hypothesis, profit earned from sugar is greater than jaggery
Since, P < α (0.05)
So, H1 is accepted and H0 is rejected.
Thus, we can conclude that profit earned from sugar in August is greater than profit
earned from jaggery during that month.

t-Test: Two-Sample Assuming Equal

Variances    
     
  Profit (Rs) SUGAR Profit (Rs) Jaggery
Mean 2766.4 558
Variance 268782.3333 10766.66667
Observations 25 25
Pooled Variance 139774.5  
Hypothesized Mean Difference 0  
df 48  
t Stat 20.88424461  
P(T<=t) one-tail 4.89761E-26  
t Critical one-tail 1.677224196  
P(T<=t) two-tail 9.79521E-26  
t Critical two-tail 2.010634758  

Fig 5: t-test on profit

2.Descriptive statistics: (Profit)

  In the case of sugar: mean (2766.4) < (3010) median and mode that
indicates the data is negatively skewed
 In the case of jaggery: mean (558) > (550) median and mode that
indicates that the data is positively skewed.

Descriptive statistics
Profit (Rs) SUGAR Profit (Rs) Jaggery

Mean 2766.4 Mean 558

Standard Error 103.6884436 Standard Error 20.75250989
Median 3010 Median 550
Mode 3150 Mode 550
Standard Deviation 518.4422179 Standard Deviation 103.7625494
Sample Variance 268782.3333 Sample Variance 10766.66667
Kurtosis -0.787157626 Kurtosis 0.285538732
Skewness -0.952587592 Skewness 0.710885506
Range 1340 Range 400
Minimum 1880 Minimum 400
Maximum 3220 Maximum 800
Sum 69160 Sum 13950
Count 25 Count 25

FIG-6 Descriptive analysis -profit

 Interpretation: From all three t- test we can say that the enterprise should focus more
on selling sugars than the jaggery because sugar is generating greater revenue as well
as profit than jaggery.
Interpretation: from descriptive analysis we can say that the data is negatively
skewed in the case of sugar it may provide stable profit to the organization but there is
still probability of losses.

Conclusion

We can conclude from the above study that the enterprise will earn more profits from the
sugar as compared to the Jaggery keeping other factors constant.