Chapter: 01

Report Preliminaries

1.1 Introduction

In this chapter we have tried to describe the origin of the report, objective of the report,
methodology of the report, scope and limitations of the report.

1.2 Origin of the report

The BBA Program under the department of finance offers a course named Business
Statistics (F-107) which requires submitting a report on a specific topic determined by the
course instructor. The report under the headline Socio-Economic Background of General
Investorshas been prepared in order to fulfill the purpose.

1.3 Objectives of the report

There are several objectives to conduct the study which are:

To explore the difference of real world from theoretical views;

To maximize communication capability by mixing up with people of different classes;
To gain firsthand knowledge on the topic that we have been assigned.
To overview the real documents;
To try to find out how updated the theoretical part is;
To get acquainted with the socio-economic background of several general investors.

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1.4 Methodology

To prepare this report we mainly depended on the primary data. But we also take some help
from our seniors and secondary data.
Process of collecting secondary data:

We went to our seniors to know about the procedures of making a standard report. Then
we ask for advices that should be followed to collect a standard data. We have also
taken help from our assigned textbook for information.

Process of collecting primary data:

Primary data are collected from the following sources:
We have collected our necessary primary data by conducting a survey on general

investors. We were guided to form a group of 10 students. A particular brokerage house

was assigned to every group member. We have gone to each of these
assignedbrokerage house individually to collect our necessary data.
1.5 Scope of the report

Everything has some advantage which helps that work to be completed thoroughly. We get
some scope which helps us to make a standard report. Major of them are

Enough Time: We had got enough time to prepare a report so that we could gather
enough information with less tension.
Easy access to brokerage houses: We had a very smooth access to our assigned
brokerage houses because of our identity. So we didnt face any kind of trouble in this
sector.
Easy Topic: The topic of us was much easier because we have learnt the use of
several statistical tools. So we didnt face any problem related to our topic.
Easy access to information: we had an easy access to information. The Brokerage
houses that we visited provided enough information for covering the topic.

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1.6 Limitation of the report

Every study has some limitations. We faced some usual restrictions during the course of our
preparation for the report. The major limitations are as follows:
Lack of knowledge:We dont have enough knowledge about brokerage houses. So
have faced some problems in this side.
Lack of acquaintance: As we dont have any direct references, we found it difficult to
find a smooth access to our assigned brokerage houses. So the report has some limited
information.
Lack of experience:We didnt have much experience about general investors, their
activities andbrokerage houses. So our lack of experience created some limitations in
preparing the report.
We hope that our respected course teacher will overlook the limitations and overview the report
with a positive view.

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CHAPTER: 02
Literature Review

Every study has some limitations. We faced some usual constraints during the course of our preparation
for the report. The major limitations are as follows:
Lack of knowledge: We dont have enough knowledge about how to prepare a report. So face some
problems by this side.
Lack of informations availability: We dont have sufficient information about our topic.so we face the
problem of insufficient information.

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2.1 What is Statistics?

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

2.2

Types of statistics:

The study of statistics is divided into two catagories: Descriptive Statistics,

Inferential Statistics.

2.3 Descriptive statistics:

Descriptive statistics is the discipline of quantitatively describing the main features
of a collection of information. It means descriptive statistics is a method of
organizing, summarizing and presenting data in a informative way.

2.4 Inferential statistics:

Statistical inference is the process of drawing conclusions from data that are
subject to random variation. This methods used to estimate a property of a
population on the basis of a sample.

2.5Population:
The entire set of individuals or objects of interest or the measurements obtained
from all individuals or objects of interest.
2.6Sample:

2.7 Types of Variables:

There are two basic types of variables: Qualitative variable and quantitative
variable.

2.8 Qualitative Variable:

Qualitative data are measures of 'types' and may be represented by a name,
symbol, or a number code. The characteristics being studied is nonnumeric.
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2.9 Quantitative Variable:

Quantitative data are measures of values or counts and are expressed as numbers.
The variables can be reported numerically.

2.10 Frequency Table:

A grouping of qualitive data into mutually exclusive classes showing the number of
observations in each class.

2.11 Bar Chart:

A graph in which the classes are reported on the horizontal axis and the class
frequencies on the vertical axis where class frequencies are proportional to the
heights of the bar.

2.12 Pie Chart:

A chart that shows the proportion or percent that each class represents of the total
number of frequencies is know pie chart.

2.13 Frequency Distribution:

A grouping of data into mutually exclusive classes showing the number of
observations in each class.

2.14 Relative Frequency Distribution:

A grouping of data that shows the fraction of the total number of observations in
each class.

2.15 Histogram:
A graph in which the classes are marked on the horizontal axis and the class
frequencies on the vertical axis. The class frequencies are represented by the
heights of the bars and the bars are drawn adjacent to each other.

2.16 Frequency Polygon:

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A frequency polygon shows the shape of a distribution and is similar to a histogram.

2.17 Cumulative Frequency Polygon:

A graph in which class are marked on the horizontal axis and the cumulative
frequencies on the vertical axis.

2.18

Arithmetic Mean/Sample Mean

Arithmetic mean is the ratio of the sum of all the values in the sample and number
of values in the sample.
A sample mean is denoted as A.M, X'= (X/n)
Where, X'= mean of sample
X= sum of all the values in the sample
n= number of values in the sample
In a grouped data, sample mean is calculated as X'= (f.M/n)
Where, X'= mean of sample
f.M= product of the frequency and midpoint in the sample
n= number of values in the sample

2.19 Mode:
Mode is the value of the observation that appears most frequently.
In a grouped data, mode is denoted as Mo= L + (1/ 1+2)*c
Where, L= lowest class value of mode class
c= class interval
1= (frequency of mode class) (frequency of the previous class)
2= (frequency of mode class) (frequency of the later class)

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2.20 Weighted Mean:

Weighted mean is the ratio of the product of the observations and its weights and
the sum of the weights.
Weighted mean is denoted as, X'w= (wX)/w
Where ,X'w= weighted mean
(wX) = product of the observations and its weights
w = sum of the weights

2.21 Standard Deviation:

The squared root of the arithmetic mean of the squared deviations is called
standard deviation.
Standard deviation is denoted as = [( xi x')2 / n]1/2 or.
= [( xi )2 / n]1/2 [population standard deviation]

2.22 Simple Standard Deviation:

The squared root of the ratio of the squared deviations and (n-1) where n is the
number of observations is called standard deviation.
Sample standard deviation is denoted as s = [( xi x')2 / (n-1)]1/2
Citation: The use of (n-1) in the sample variance and sample standard deviation is
that though the use of n is logical since X' is used to estimate , it tends to
underestimate the population variance and population standard deviation of 2 and
. The use of (n-1) as the denominator provides the appropriate correction for this
tendency.

2.23 Dot Plots:

A dot plot groups the data as soon as possible and we do not lose the identity of an
individual observation.

2.24Steam-and-Leaf-Displays
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A statistical techniques to present a set of data. Each numericl value is divided into
two parts. The leading digit(s) becomes the stam and the trailing digit the leaf. The
steams are located along the vertical axis and the leaf values are stacked against
each other along the horizontal axis.
2.25 Other Measures of Dispersion:
These measures includes quartiles, deciles and percentile.

2.26 Quartiles
Quartiles divide the set of observations into four equal parts.
The location of a quartile is at LQ = (n+1)*(Q/4)
2.27 Deciles:
Deciles divide the set of observations into ten equal parts.
The location of a decile is at LD = (n+1)*(Q/10)

2.28 Percentile:
is at LP = (Percentiles divide the set of observations into hundred equal parts.
The location of a percentile n+1)*(Q/100).
2.29 Box Plots:
Box plot is a graphical display that helps us picture a set of data.

2.30 Skewness:
Skewness is a statistical tool that determines the shape of the distribution of the
data of any given sample.

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Skewness is used to observe the data shape to determine whether the distribution
is positively skewed, negatively skewed, symmetric or bi-modal skewness.

Positively Skewed: The peak is single and the values extend much further
to the right than to the left of the peak. Here A.M > Median > Mode.
Negatively Skewed: The peak is single where the values extend much
further to the left than to the right of the peak. Here A.M < Median < Mode.
Symmetric Skewed: The data are spread evenly and A.M = Median = Mode.
Bi-modal Skew: Bimodal skew will have two or more peaks. This is often
happens when the values are from two or more populations.

To measure the skewness of a sample, the widely used and the simplest formula
made by Professor Karl Pearson is based on the difference between the mean and
the median.
Pearsons co-efficient of skewness, sk = [3*(X' Median)] / s ;
where s = sample standard deviation.
Another measurement of skewness which is widely used for precise calculation is
the software co-efficient of skewness.
Software co-efficient of Skewness, sk = [n / (n-1)(n-2)] * [ (X- X') / s].

2.31 Scatter Diagram:

Scatter diagram is a graphical technique to show the relationship between
variables.

2.32 Median:
The median is the midpoint of the values after they have been sorted in order of
ascending or descending.
In a group data, midpoint is calculated as, Me= L + (N/2-Fc)/fm * c
Where, Me = Median
L = Lower class value of the median class
Fc = Cumulative frequency of the previous class of the median class
fm=frequency of the median class
c = class interval

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N= total frequency

2.33 Range:
The difference between the largest value and the lowest value of a given sample is
called range.

2.34 Mean Deviation

The arithmetic mean of the absolute values of the deviations from the arithmetic
mean is called mean deviation.
Mean deviation is denoted as M.D = ( xi x' ) / n

2.35 Variance
The arithmetic mean of the squared deviations from the mean is called variance.
Variance is denoted as 2

2.36 Simple Variance

The ratio of the squared deviations and (n-1) where n is the number of observations
is called sample variance.
Sample variance is denoted as s2 = ( xi x')2 / (n-1)

2.37 Geometric Mean

The nth root of the product of the given n values of a sample/population is called
geometric mean.
Geometric mean is denoted as G.M= (X1.X2.X3.....Xn)1/n

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CHAPTER: 03
PRACTICAL BACKGROUND

Page 13 of 29

3.1 AGE:
Frequency Table
Class(Age)

Frequency

Relative
Cumulative
Frequency
Frequency
0
0
.18
36
.34
104
.32
167
.05
177
.11
200
Figure 01: Frequency Table of Age

Midpoint

10-20
20-30
30-40
40-50
50-60
60-70

0
36
68
63
10
23

15
25
35
45
55
65

Allusion: Appendix, Question no: 02

Page 14 of 29

HISTOGRAM
80
70

63

60
50
FREQUENCY 40
30
20
10
0

20-30

30-40
AGE

Figure 02: Histogram

Page 15 of 29

40-50

50-60

60-70

FREQUENCY POLYGON
80
70
60
50
FREQUENCY 40
30
20
10
0

15

25

35

45

55

65

MIDPOINT

Figure 03: Frequency Polygon of Age

CUMULATIVE REQUENCY POLYGON

250
200
150
CUMULATIVE FREQUENCY

100
50
0

20

30

40

50
AGE

Page 16 of 29

60

70

Figure 04: Cumulative Frequency Polygon of Age

Class(Age)

Frequency(f)

Midpoint(m)

(m- x )

(m-x)^2

f(m-x)^2

10-20

15

-25.8

665.64

20-30

36

25

-15.8

249.64

8987.04

30-40

68

35

-5.8

33.64

2287.52

40-50

63

45

4.2

17.64

1111.32

50-60

10

55

14.2

201.64

2016.40

60-70

23

65

24.2

585.64

13469.72

Mean=40.8
Median =L + (n/2 p.c.f)/f * h =30+(100-36)/68*10=39.48
Mode = L + [(fm-f1) /[ (fm-f1)+(fm-f2)] x h=30+(68-36)/[(68-36)+(68-63)]*10 =38.64
Skewness:
60
50

48.8

40

39.48

38.65

median

mode

30
20
10
0
mean

Figure 05: Skewness

Elucidation: It is negatively skewed

Mean Deviation=

mx
n

4.8
200 = -0.024

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Variance=

f ( mx)

n1

Standard Deviation=

27871.48
2001

f ( mx )2
n1

= 140.06

27871.48
= 2001 =11.83

3.2 GENDER:

Gender

male; 95%

female; 6%

Figure 06: A Pie Chart Showing thePercentage of Gender

Allusion: Appendix, Question no: 04

3.3 MAIN OCCUPATION:

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Main Occupation

Frequency
33
14

Relative
Frequency
.165
.07

Percentage
Frequency
16.5
7

Cumulative
Frequency
33
47

Financial Service
Government
Service
Business
Academician
Other Service

97
5
51

.485
.025
.255

48.5
2.5
25.5

144
149
200

MAIN OCCUPATION

Financial Service; 17%

Other Service; 26%
Government Service; 7%
Academician; 3%

Business; 49%

Figure 07: A Pie Chart onMain Occupation of Respondent

Allusion: Appendix, Question no: 05

3.4 MONTHLY INCOME:

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Class(monthly
Income)
(10000)-10000
10000-30000
30000-50000
50000-70000
70000-90000
90000-110000

Frequency
45
79
46
22
2
6

Relative
Frequency
.225
.395
.23
.11
.01
.03

Cumulative
Frequency
45
124
170
192
194
200

Midpoint
0
20000
40000
60000
80000
100000

HISTOGRAM

FREQUENCY

90
80
70
60
50
40
30
20
10
0

0-10000

10000-30000

30000-50000

50000-70000

MONTHLYINCOME

Figure 08: Histogram of Monthly Income

Allusion: Appendix, Question no: 07

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70000-90000

90000-110000

FREQUENCY POLYGON
80
70
60
50
FREQUENCY 40
30
20
10
0

15

25

35

45

55

65

MIDPOINT

Figure 09: Frequency Polygon of Monthly Income

CUMULATIVE FREQUENCY POLYGON

250
200
150
CUMULATIVE FREQUENCY

100
50
0
10000

30000

50000

70000

90000

MONTHLYINCOME

Figure 10: Cumulative Frequency Polygon of Monthly Income

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110000

Class(Monthly
Income)

Frequency(f)

Midpoint(m)

(m-x)

( mx )2

f ( mx )2

(10000)-10000

45

-27500

756250000

10000-30000
30000-50000

79
46

20000
40000

-7500
12500

56250000
156250000

50000-70000

22

60000

32500

1056250000

70000-90000
90000-110000

2
6

80000
100000

52500
72500

2756250000
5256250000

340312500
00
4443750000
718750000
0
232375000
00
5512500000
315375000
00

fm

5500000
=
200

Mean=

Median= L + (n/2 p.c.f)/f * h = 10000+(100-45)/79*20000 =23924

Mode= L + (fm-f1) /[ (fm-f1)+(fm-f2)] x h =10000+[(79-45)/[(79-45)+(79-

46)]*20000 =20149
Skewness=

30000

=27500

27500
23924

25000
20000

20149

15000
10000
5000
0
Mean

Median

Mode

Figure 11: Skewness

Elucidation: Negatively Skewed

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Mean Deviation=

Variance= =

mx
n

f ( mx )2
n1

Standard Deviation=

135000
200

65568750000
2001

f ( mx )2
n1

= 329491206

= 18151.90

3.5 DEPENDENT MEMBER ON

RESPONDANT:
Dependent member
1
2
3
4
5
6
Above 6

=675

Frequency
20
22
62
60
23
8
5

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Member Depedancy on Income

ABOVE
6; 4% 6; 3%
1; 10%
5; 12%
2; 11%

4; 30%
3; 31%

Figure 12: A Doughnut Chart onthe Number of Dependent Member on Income

Figure 13: Dot Plots Showing Dependent Members of Respondent

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3.6 FIRST INVOLVEMENT IN SHARE

MARKET:
3.7 EDUCATIONAL BACKGROUND
Educational
background
Below S.S.C.
S.S.C.
H.S.C
Graduation
Post graduation

Frequency

Relative Frequency

8
10
18
92
72

.04
.05
.09
.46
.36

Percentage
Frequency
4
5
9
46
36

Cumulative
Frequency
8
18
36
128
200

HISTOGRAM
100
80
60
FREQUENCY 40
20
0

Below S.S.C.

S.S.C.

H.S.C.

Graduation Post Graduation

EDUCATIONAL BACKGROUND

Figure

Page 25 of 29

CUMULATIVE FREQUENCY POLYGON

250
200
150
CUMULATIVE FREQUENCY

100
50
0
Below S.S.C.

S.S.C.

H.S.C

Graduation Post graduation

MONTHLYINCOME

Figure

3.8 EXPEDITURE DEPEDENCY ON SHARE

MARKET:
yes
36

no
164

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164

36

Yes

No

Figure: A Bar Chart on Expenditure Dependency

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CHAPTER: 04
FINDINGS

Page 28 of 29

Page 29 of 29