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Welcome to Our Presentation

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Application of Statistical Tools in

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Prepared For

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Lubna RahmanLubna RahmanLecturerLecturer

Department of FinanceDepartment of FinanceUniversity of DhakaUniversity of Dhaka

Prepared By

Name Roll

Shahanaz Parvin 16-117

Taioba Islam 16-251

S.M. Nazrul Islam 16-107

Md.Abu Daud 16-099

Md. Milan Hossain 16-019

Mohammad Marjan 16-261

I am…..

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MOHAMMAD MARJANMOHAMMAD MARJAN16-26116-261

Areas to Focus on

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Definition of statisticsTypes of Statistics Statistical DataStatistical ToolsCase StudyApplication of Statistical Tools

What is Statistics?

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The term ‘statistics’

Simply means data.

It is the science of collecting, organizing, presenting, analyzing &interpreting data to assist in making more effective decisions.

It is a process of analyzing a sample based on which characterizes of a parameter can be identified.

Types of Statistics

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Two types-

Descriptive

Inferential

Method of organizing, summarizing, & presenting data in an informative way

Method to estimate a property of a population on the basis of a sample

I am…..

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TAIOBA ISLAM TAIOBA ISLAM 16-25116-251

Statistical Data

Data are the facts and figures collected, summarized, analyzed, and interpreted.

Population:The amount of data collected from each & every target party.

Sample: Sample is a representative part of the population.

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Classification of Data

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DataData

QuantitativQuantitativee

NumericalNumerical

QualitativeQualitative

Non-Non-numericalnumerical

NumericalNumerical

Statistical Tools

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Statistical Tools Cont’d

Mean:The mean of a data set is the average of all the data values.

Median:The median of a data set is the value in the middle when the data items are

arranged in ascending order.

Standard Deviation:It is a measure of how much spread or variability is present in the sample.

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I am…..

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MD. MILAN HOSSAIN MD. MILAN HOSSAIN 16-01916-019

Case Study on-

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Current Assets Analysis

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Current Assets Analysis

Year Singer (X) BATBC (Y)

2006 1314926287 67546964

2007 1364282367 673783245

2008 1873806868 676467480

2009 2131239364 673260852

2010 1388597492 668461522

∑n=5 8072852378 3367460063

Current Assets Analysis Cont’d

Com p any M ean M edian Standered Dev ision

Cof f icient o f V ariyion

Singer 161457 0 475 .6

1 3 885 9 7 4 9 2

3 6 6 6 2 13 9 9

2 2 . 7 0 7 %

BATBC 6 7 3 4 9 2 0 1 2 . 6

6 7 3 2 6 0 8 5 2

3 0 9 3 4 3 2. .55 9

4 5 . 9 %

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Evaluation:

Over all Singer has far more current asset than BATBC. But the amount fluctuates highly in case of Singer than that of BATBC.

8.98E+16 3.83E+18

6.26E+21 8.48E+15

6.72E+21 8.85E+17

2.67E+22 5.34E+17

5.11E+21 2.53E+18

5.38E+21 3.83E+18

XX YY

I am…..

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MD. ABU DAUD MD. ABU DAUD 16-09916-099

Equity Analysis

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Equity analysis

Year (n) Singer(X) BATBC(Y)

2006 336103088 320593350

2007 329341913 319812885

2008 372987641 327927749

2009 885987077 342714360

2010 1080830466 359966920

Equity Analysis (Cont’d)

Company Mean Median Standard Deviation

Coefficient o f Variation

Singer 6 0 1 0 5 0 0 3 7

3 7 2 9 8 7 6 4

35 61 6 4 6 38..9

5 9 . 2 6 %

BATBC 33 4 2 0 3 0 5 2..8

3 2 7 9 2 7 7 4 9

17 0 8 7 2 7 5.5

51.13 %

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Evaluation:Singer has far more equity than that of BATBC but the equity of Singer changes very much over years which is not seen as much for BATBC.

7.02E+16 1.85E+14

7.38E+16 2.07E+13

5.20E+16 3.74E+14

8.12E+16 7.24E+13

2.30E+17 6.64E+14

5.07E+17 1.32E+15

XX YY

I am…..

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SHAHANAZ PARVINSHAHANAZ PARVIN16-11716-117

Correlation

Measure the association between two variables. Coefficient of correlation: A measure of the strength of the relationship between two variables

Revenue & Tax (Bata shoe Bangladesh Ltd)X= independent variable (revenue).

Y = dependent variable (tax)

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Any relationship between the revenue and tax paymentof Bata shoe Bangladesh Ltd.

Correlation (Cont’d)

Year

Revenue(X)(Bata Shoe

BD Ltd) Tax(Y)

2010 5,663,090,394 199,000,000

2009 5,141,034,678 180,286,000

2008 4,623,312,077 170,219,000

2007 4,097,182,283 160,823,000

2006 3,605,567,170 150,137,000

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Coefficient of correlation:

= 0.989672291 High degree of positive relationship between these two variables. If revenue increases, tax increases and if revenue decreases, tax decreases.

Characteristics of the coefficient of correlation:It can range from -1.00 to 1.00.Values of -1.00 or 1.00 indicate perfect and strong correlation.Values close to 0.0 indicate weak correlation.Negative values indicate an inverse relationship and positive values indicate a direct relationship.

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22 YYXX

YYXXr

Correlation (Cont’d)

The proportion of the total variation in the dependent variable that is explained by the variation in the independent variable.

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Coefficient of Determination (r2): 0.979451243 = 98%

Here 98% variability in the dependent variable Y (tax) can be explained by independent variable X (revenue).

Correlation (Cont’d)

I am…..

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S.M. NAZRUL ISLAM S.M. NAZRUL ISLAM 16-10716-107

Regression analysis: An equation that expresses the linear relationship between two variables . Estimates the unknown values of one variable from known values of another variable. Measures the degree of correlation that exists between the two variables.

The average relationship between X and Y can be described by a

linear equation Y=a + bX

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a

0 X

y=a+bx

b

1 unit X

Regression Analysis

The Standard Error of Estimate: Measures the scatter, or dispersion, of the observed values around the line of regression

Y = a + bx express the change in Y in terms of change in X. b= Coefficient of regression /slope of regression line a= constant

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2)( 2

^

.

nYYs xy

Regression Analysis (Cont’d)

=0.022727144 a = - b =66956383.8

So, the equation is, Y=66956383.8+0.022727144X

If revenue(X) increases by 1 core, tax (Y) will increases by 0.022727144 core. If the value of revenue is zero, the amount of tax will be 66956383.8Error, ei = 21631016.39

r2 = 98% ,as it is not 100%, there is some error.29

2)( XXYYXXb

XY

Regression Analysis (Cont’d)

Point by point slope calculation: average slope= 0.023721688, but b = 0.022727144There are some other variables that can explain the variation in y which have been skipped.

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Regression Analysis (Cont’d)

Any Quarry

For Being with Us

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