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BUSINESS
A REPORT ON ANALYSIS OF SHARE STOCK
STATISTICS I
(BA‐205) PRICES OF FIVE COMPANIES
A Report On-
Five Companies
Prepared for-
Tania Afroze
Assistant Professor
Business Administration Discipline
Khulna University
Prepared by-
Name ID
Abdur Rakib Akon 070305
Md Masrul Mollah 070314
Md Nazmul Huda 070323
Ahmed Ibtehaj 070324
SM Mazharul Islam 070351
BBA Program
Business Administration Discipline
Khulna University
Letter of Transmittal
Tania Afroze
Assistant Professor
Business Administration Discipline
Khulna University
Dear Madam,
Here is the report on ‘Analysis of Share Prices Of Five Companies’. This is for you asked
to make a report on any topic on June 17.
As you will see, the statistical calculations we have used a variety of methods and that
resulted some conclusions about all the prices. These calculations are made by the
formulas and techniques we’ve learned through our course of ‘Business Statistics I’.
As a student of BA discipline we enjoyed to prepare this report. We tried our best to make
this report best to present.
Therefore we hope that our report will fulfill your requirements about share prices of the
five companies we’ve observed. Any short comings or mistakes are absolutely our fault
and we will be always available at any time to interpret any portion of the report.
Sincerely yours,
First we would like to thank the Almighty Allah for completing the report successfully.
And it was also a great pleasure to us to make this report. We wish to express thank to all
who helped me a lot during the making of the report.
We would like to express my gratitude and regards to our honorable course teacher and
instructor Mrs. Tania Afroze, Assistant Professor, Business Administration Discipline,
Khulna University.
It was very difficult to make such a report of statistical analysis without group work. We
are so glad that we have made it to complete this assignment. We have chosen these five
companies – Social Investment Bank Ltd., Lanka Bangla Finance Ltd., BD Autocars Ltd.,
Jamuna Oil Ltd., and Square Pharmaceuticals Ltd.
We have collected the prices of the shares from the ‘Daily Prothom-Alo’.
Finally we want to thank all who helped us to prepare this report. And again thank you
also to assign us such type of job.
V
Table of Contents
Appendix 40
Summary of the Report
Share market is like flowing river. Every time the prices of the shares are changing. We
have prepared a report which shows the statistical analysis of the share prices of five
selected companies of first seven working days of May and June. The prices list is given
below-
Page | 1
Chapter 1
Introduction
Origin of the Report
Mrs. Tania Afroze, the honorable course instructor of ‘Business Statistics I’, assigned us
to prepare a report on June 17, 2008 about ‘Statistical Analysis on Five Companies of
May and June’ according to the rules we have learned through the course. So this is the
report as the result of that action.
We are very much passionate to obtain educational background through practical work
besides the theoretical studies. We do not want to study only with the classroom
materials; I want to gather some practical knowledge so that it will help me in achieving
my personal objectives.
• To know something about how share market goes on and how a price change can
have effect on some other variables.
We have collected data from newspaper. We got the needed information from the ‘Daily
Prothom-Alo’. But for the excess of holidays we have included a price of April 30. As the
report is calculation based we have used the secondary source to collect data. We got no
internal data to prepare this report but the secondary data we have collected was sufficient
enough to make it done. And we have used our text book ‘Business Statistics – Gupta and
Gupta’ as a guide to prepare this report.
Page | 3
Limitations of making the Report
We are lucky that we have completed the report successfully within this short time but we
had to face some problems in collecting the data and in making the report. We tried our
best to overcome the difficulties; Allah knows how much we could do. There were
basically 3problems.
Hard to Find
It was so tough to collect the newspaper cutting of May and June. But it we were so lucky
that we got those in collection.
Inaccuracy
The data we have collected was not so accurate. We have got the rates of the last of those
working days. But if we could manage to have the average rate of those days it would be
better for us.
It needs more time to well prepare this kind of report; but we had to prepare it within a
very short time. On the other hand now it took much time during preparatory leave for
our term final examination. We were so busy with my study. In this busyness we had to
give time for this report. This made us so confusing about the report.
Methodology
Primary Sources
Secondary Sources
Page | 4
Method of preparing the report
To prepare this report we have collected the data we needed and made the calculations we
have learned through our ‘Business Statistics I’. And finally we are submitting this report
today.
Page | 5
Chapter 2
Statistical Analysis
Business Statistics Chapter 2: Collection of Data
Category of Data: Secondary Data
We didn’t get any internal source of data. We have collected data from newspaper. So we
have collected data from ‘Secondary Source’.
Frequency Distribution
Tabulation of Data
Page | 7
N.B.: May 2008 - 01 (May Day), 02 (Friday), 03 (Saturday), 09 (Friday), 10 (Saturday), June 2008 - 06
(Friday), 07 (Saturday), 09 (Budget Day) were holidays.
Type of Table
Diagrams
Page | 8
Page | 9
Page | 10
As the data is not distributed in frequency we have only made ‘Bar Diagrams’. It is not
possible to draw ‘Histogram’, ‘Frequency Polygon’, or ‘Cumulative Frequency Curves or
Ogives’.
Arithmetic Mean
Page | 11
1. Direct Method
2. Indirect Method
Direct Method
N
X + X 2 + ... + X N ∑X 1
Formula: X = 1 = i =1
N N
X =
∑X
N
Here,
X = Average
X = Observation
N = Number of Observations
X 1 + X 2 + ... + X N ∑X 1
X = = i =1
N N
341.00 + 338.00 + 335.75 + 336.00 + 334.00 + 335.25 + 330.00
X =
7
X = 335.71
Averages:
Prices of May
Prices of June
Page | 12
BD Autocars = 188.7857
Jamuna Oil = 207.2429
Square Pharmaceuticals Ltd. = 5280.6071
Short-cut Method
Formula: X = A+
∑d
N
Here,
X = Average
d = ( X − A) [Here, A = Assumed Mean]
N = Number of Observations
We take,
Assumed Mean, A = 400
X = A+
∑d
N
− 53.25
X = 400 +
7
X = 392 .3929
Averages:
Averages of May
Page | 13
Social Investment Bank Ltd. = 335.71
Lanka Bangla Finance Ltd. = 129.36
BD Autocars = 201.25
Jamuna Oil = 262.09
Square Pharmaceuticals Ltd. = 4656.04
Averages of June
N1 X 1 + N 2 X 2
Formula: X 12 =
N1 + N 2
Here,
X 12 = Combined mean of the two groups.
X 1 = Arithmetic mean of the first group.
X 2 = Arithmetic mean of the second group.
N1 = Number of the observations in the first group.
N 2 = Number of the observations of the second group.
Combined Average of May and June Prices of Social Investment Bank Ltd.:
N1 X 1 + N 2 X 2
X 12 =
N1 + N 2
7 × 335.71 + 7 × 392.3929
X 12 =
7+7
X 12 = 364.0515
Averages:
Page | 14
Lanka Bangla Finance Ltd. = 160.4943
BD Autocars = 195.0179
Jamuna Oil = 234.6665
Square Pharmaceuticals Ltd. = 4968.3236
Median
N +1
Formula: Median = Size of th observation
2
7 +1
= Size of th observation
2
= Size of 4th observation
Medians:
Medians of May
Medians of June
As our data is ungrouped, we didn’t get any formula to calculate Quartiles, Deciles, or
Percentiles.
Page | 15
Mode
Modes:
Modes of May
Modes of June
Geometric Mean:
Here,
G.M . = Geometric Mean
X = Observations
N = Number of Observation
Page | 16
131.80 2.1199
135.10 2.1307
137.30 2.1377
136.70 2.1358
∑ log X = 14.7771
14.771
G.M . = anti log
7
G.M . = anti log 2.110
G.M . = 129.1269
Geometric Means:
Harmonic Mean
N
Formula: H .M . =
⎛1⎞
∑ ⎜⎝ X ⎟⎠
Here,
H .M . = Harmonic Mean
X = Observations
N = Number of Observation
Page | 17
Harmonic Mean of Prices of Lanka Bangla Finance Ltd. of June:
1
list
X
X, 1
Price X
175.6 0.0057
181.1 0.0055
182.2 0.0055
191.1 0.0052
210.9 0.0047
205.2 0.0049
195.3 0.0051
⎛1⎞
∑ ⎜⎝ X ⎟⎠ = 0.0367
N
H .M . =
⎛1⎞
∑ ⎜⎝ X ⎟⎠
7
H .M . =
0.0367
H .M . = 190.8755
Harmonic Means:
Page | 18
Business Statistics Chapter 5: Measures of Variation
Range
Formula: Range = L − S
L = Largest Value
S = Smallest Value
Ranges:
Ranges of May
Ranges of June
Page | 19
Average Deviation
Here,
A.D. = Average Deviation
X = Observation
Med. = Median
N = Number of Observations
Here,
Median = 191.50
A.D.( Med .) =
∑ | X − Med . |
N
19
A.D.( Med .) =
7
A.D.( Med .) = 2.7142
Average Deviations:
Page | 20
Jamuna Oil = 2.1429
Square Pharmaceuticals Ltd. = 30.6786
Here,
A.D. = 2.1429
Median = 263.20
2.1429
∴ Coefficient of A.D.( Med .) =
263.20
= 0.0081
Page | 21
Standard Deviation
Formula: σ=
∑(X − X ) 2
Here,
σ = Standard Deviation
X = Observation
X = Average
N = Number of Observations
∑d ⎛ ∑d ⎞
2 2
Here,
σ = Standard Deviation
d= X−A
A = Assumed Mean
N = Number of Observations
Standard deviation taken from Actual Mean of the Prices of Jamuna Oil Ltd. of
June:
Here,
Average = 207.2429
Standard Deviations:
Page | 22
Standard Deviations of May
Take,
Assumed Mean = 4660.50
∴σ = −⎜ ⎟
7 ⎝ 7 ⎠
σ = 49.9760
Standard Deviations
Page | 23
Social Investment Bank Ltd. = 3.1408
Lanka Bangla Finance Ltd. = 7.6150
BD Autocars = 3.8126
Jamuna Oil = 2.7570
Square Pharmaceuticals Ltd. = 49.9760
N 1σ 1 + N 2σ 2 + N 1 d1 + N 2 d 2
2 2 2 2
Formula: σ 12 =
N1 + N 2
Here,
N1 = Number of observations of the first group
N 2 = Number of observations of the second group
σ 1 = Standard Deviation of the first group
σ 2 = Standard Deviation of the second group
d1 = | X 1 − X 12| |
d 2 = | X 2 − X 12| |
X 1 = Average of the first group
X 2 = Average of second group
X 12 = Combined Average of the two groups
Here,
N1 = 7
N2 = 7
σ 1 = 49.8210
Page | 24
σ 2 = 64.0233
X 12 = 5292.25
X 1 = 4656.04
X 2 = 5280.6071
d1 = 312.2836
d 2 = 312.2835
N 1σ 1 + N 2σ 2 + N 1 d1 + N 2 d 2
2 2 2 2
σ 12 =
N1 + N 2
7 × 49.8210 2 + 7 × 64.0233 2 + 7 × 312.2836 2 + 7 × 312.2835 2
σ 12 =
7+7
σ 12 = 317.5084
Coefficient of Variation
σ
Formula: C.V . = × 100
X
Here,
C.V . = Coefficient of Variation
σ = Standard Deviation
X = Arithmetic Mean of the observations
Here,
σ = 64.0233
X = 5280.6071
64.0233
∴ C.V . = × 100
5280.6071
= 1.2124
Page | 25
Coefficients of Variations
Page | 26
Page | 27
Page | 28
Page | 29
Karl Pearson’s Coefficient of Correlation
Formula: r=
∑ ( X − X )(Y − Y )
∑ ( X − X ) ∑ (Y − Y )
2 2
r=
∑ xy
∑x ∑y2 2
Where, x = ( X − X ) and y = (Y − Y )
Here,
X = Observation from the first group
X = Arithmetic Mean of the first group
Y = Observation from the second group
Y = Arithmetic Mean of the second group
Page | 30
Working
May ( X − X ), June (Y − Y ),
Prices, x2 Prices, y2 xy
Day x y
X Y
1 341.0000 +5.2900 27.9841 361.7500 -30.6429 938.9873 -162.1009
2 338.0000 +2.2900 5.2441 357.2500 -35.1429 1235.0234 -80.4772
3 335.7500 +0.0400 0.0016 369.0000 -23.3929 547.2278 -0.9357
4 336.0000 +0.2900 0.0841 431.0000 +38.6071 1490.5082 +11.1961
5 334.0000 -1.7100 2.9241 414.0000 +21.6071 466.8668 -36.9481
6 335.2500 -0.4600 0.2116 414.5000 +22.1071 488.7239 -10.1693
7 330.0000 -5.7100 32.6041 399.2500 +6.8571 47.0198 -39.1540
∑X = ∑x = ∑x 2
= ∑Y = ∑y= ∑y 2
= ∑ xy =
2350.0000 0.0300 69.0537 2746.7500 -0.0003 5214.3571 -318.5893
r=
∑ xy
∑x ∑y
2 2
− 318.5893
r=
69.0537 × 5214.3571
r = −0.5309
N ∑ dxd y − ∑ dx ∑ d y
Formula: r=
N ∑ d x − (∑ d x ) N ∑ d y − (∑ d y )
2 2 2 2
Here,
r = Correlation Coefficient
N = Number of Observations
dx = X − Ax
X = Observation of the first group
Ax = Assumed Mean of the first group
dy = Y − Ay
Y = Observation of the second group
Ay = Assumed Mean of the second group
Page | 31
Calculation of Correlation Coefficient of the prices of Lanka Bangla Finance Ltd.
(of May and June):
∑X = ∑d x = ∑d x
2
= ∑Y = ∑d y = ∑d y
2
= ∑d x dy =
905.50 -17.10 447.69 3.70 1027.95 -2780.714
1341.40
1− r2
Formula: P.E.r = 0.6745
N
Here,
P.E.r = Probable error of Coefficient of Correlation
r = Correlation Coefficient
N = Number of observations
Page | 32
1 − (10.2148) 2
P.E.r = 0.6745 ×
7
P.E.r = −26.3457
Probable Errors of Correlation Coefficients of the share prices of May and June:
6∑ D 2 6∑ D 2
Formula: R = 1− or1 −
N ( N 2 − 1) N3 − N
Here,
R = Rank Correlation Coefficient
D = R1 − R2
R1 = Rank of observation of the first group
R2 = Rank of observation of the second group
N = Number of Observations
Rank Correlation Coefficient of the prices of BD Autocars Ltd. of May and June:
Page | 33
6∑ D 2
∴ R = 1−
N3 − N
20
∴ R = 1− 3
7 −7
∴ R = 0.6429
Formula:
Regression Equation of X on Y:
X = a + bY
To determine the values of a and b the following two normal equations are
to be solved simultaneously:
∑ X = Na + b∑ Y
∑ XY = a∑ Y + b∑ Y 2
Regression Equation of Y on X:
Y = a + bX
To determine the values of a and b the following two normal equations are
to be solved simultaneously:
∑ Y = Na + b∑ X
∑ XY = a∑ X + b∑ X 2
∑ X = 1834.60 ∑ X 2
= 480875.66 ∑ Y = 1450.70 ∑ Y 2
=300949.29 ∑ XY =
380134.53
Then the regression equation of the prices of May on the prices of June of Jamuna Oil
Ltd. is –
X = 312.3160 – 0.2424Y
Regression equations:
Page | 35
Regression Equation using Arithmetic Mean
Formula: Y − Y = b yx ( X − X )
X − X = bxy (Y − Y )
Here,
X = Observation of the first group
Y = Observation of the second group
X = Arithmetic Mean of the first group
Y = Arithmetic Mean of the second group
b yx =
∑ xy and b = ∑ xy
∑ x2 ∑ y2
xy
x = X−X
y = Y −Y
Here,
X = 32592.25 and Y = 5280.6071
− 20963.96
b yx =
17374.9300
b yx = 1.2066
Then the equation of the price of June on price of May of Square Pharmaceuticals Ltd. is-
(Y − 32592.25) = 1.2066( X − 5280.6071)
Or, Y = 10898.4480 – 1.2066X
Regression equations:
Page | 36
Lanka Bangla Finance Ltd. → X = 23.9350 + 0.5504Y
Page | 37
Chapter 3
Report Ending
Conclusion
It was really a tough job to complete this report without any error. But our group work made this
possible to make this without any error. We are thanking again to the Almighty, you who gave us
such an assignment and those who helped us and made this report more beautiful and complete
in information.
Page | 39
Appendix
We have collected our all the data from newspaper. We have attached the copies of the paper
with this report.