STATISTICS FOR

MANAGEMENT
 Table of Contents

INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
(a) Testing Hypothesis for mean earnings in public sector....................................................1
(b) Testing Hypothesis for mean earnings in private sector...................................................2
(c) Producing Earnings-Time Chart for each group...............................................................3
(d) Determination of Annual Growth Rate for each segment.................................................6
TASK 4............................................................................................................................................7
(a) Graphical representation to show changes in price index as per CPI, CPIH and RPI:.....7
(b) Creating Ogive using table 1............................................................................................9
INTRODUCTION
Business statistics can be defined as procedure to make appropriate decisions in the case
of uncertainty. It is used in various aspects of business like econometrics, financial analysis,
production, auditing and more, including marketing research and service improvement. The
present report covers an in-depth knowledge related to data collection, central tendency, ogive
curve, dispersion and variability, for analysing a business situation. Here, different types of data
are shown in graphical manner to identify the spotting trends as well as different patterns related
to different variables. Furthermore, recommendations also provide as per findings within each
section.

TASK 1
A hypothesis can be defined as a proposed statement for analysing a particular business
situation. Having a good hypothesis aid decision-makers in finding new ways for achievement of
business objectives. In statistics, hypothesis is made to measure variability of a proposed
statement. For this purpose, various methods can be used like dispersion, measures of central
tendency, variability and more. While, hypothesis testing is used to analyse whether an
assumption made for a particular data is either rejected or accepted. For this purpose, two events
are made as null hypothesis (H0) and alternative hypothesis (H1).

(a) Testing Hypothesis for mean earnings in public sector

As per given case scenario, a study is undertaken where earning of 1000 persons are
described according to gender basis, who are chosen on random basis from a large population.
Here, assumptions are made for analysing whether average annual gross earnings of given data
of men and women’s salary followed a normal distribution or not. For this purpose, a comparison
is made on data on the basis of men and women in following manner:
Null Hypothesis (H0): Earnings of men in public sector is not considered as significant
as of women.
Alternative Hypothesis (H1): Earnings of men in public sector is considered as
significant as of women.

1
 Public Sector
Year
Men (£) Women (£) Gap (in £) Gap
(%)
2009 30638 25224 5414
2010 31264 26113 5151 -4.86
2011 31380 26470 4910 -4.68
2012 31816 26663 5153 4.95
2013 32541 27338 5203 0.97
2014 32878 27705 5173 -0.58
2015 33685 27900 5785 11.83
2016 34011 28053 5958 2.99

Mean 32276.625 26933.25

Standard
Deviation 1204.14379 987.7715
207137.467 139384.6
SQRT 588.661286
5343.375
Z value 9.07716394

From the above data, it has interpreted that there is £4,910 minimum pay gap in 2011
between earnings of men and women. While, maximum pay gap is recorded as £5,958 in the year
2016. Therefore, it shows that in payment pattern of public sector because there is a continuous
increase in salaries of men and women. Therefore, hypothesis is rejected under this case and
alternate one is accepted.

(b) Testing Hypothesis for mean earnings in private sector

In order to test hypothesis for mean earning in private sectors, a data is gathered by
primary survey method. For this purpose, 1000 respondents chosen on random basis which
includes both men and women, from a large population. In this regard, comparison of data on the
basis of men and women’s earning within private sector is done, by considering below
hypothesis:
Null Hypothesis (H0): Earnings of men in private sector is not considered as significant
as of women.
Alternative Hypothesis (H1): Earnings of men in private sector is considered as
significant as of women.

2
 PRIVATE SECTOR
Year
Men Women
2009 27632 19551
2010 27000 19532
2011 27233 19565
2012 27705 20313
2013 28201 20698
2014 28442 21017
2015 28881 21403
2016 29679 22251
Mean 28096.63 20541.25

Standard Deviation 891.789 994.349

113612.5 141247.1
SQRT 504.8363
7555.375
Z value 14.96599

As per above table, annual earning gap between female and male workers of private sector,
is calculated by subtracting monthly wages of both. Through this process, it has analysed that
significant gap is recorded as £7428, which is near about 33.38%. Therefore, alternative
hypothesis is considered as acceptance region in this case. There is a significant difference
between the earnings of women and men in private sector.

(c) Producing Earnings-Time Chart for each group

Graphical representation of male workers’ salaries within public sector

3
 35000
34011
34000 33685

32878
33000 32541

32000 31816
31264 31380
Earnings

31000 30638
Earnings
30000

29000

28000
2009 2010 2011 2012 2013 2014 2015 2016

Time

Graphical representation of female workers’ salaries within public sector

28500
28053
28000 27900
27705
27500 27338

27000 26663
26470
26500
26113
Earnings

26000
25500 25224 Earnings
25000
24500
24000
23500
2009 2010 2011 2012 2013 2014 2015 2016

Time

Graphical representation of male workers’ salaries within private sector

4
 30000 29679
29500
29000 28881
28442
28500 28201
28000 27705
27632
Earnings

27500 27233
27000
27000 Earnings
26500
26000
25500
02/07/1905 04/07/1905 06/07/1905 08/07/1905
01/07/1905 03/07/1905 05/07/1905 07/07/1905

Time

Graphical representation of female workers’ salaries within public sector

22500 22251
22000

21500 21403
21017
21000 20698
Earnings

20500 20313

20000
19551 19532 19565 Earnings
19500

19000

18500

18000
2009 2010 2011 2012 2013 2014 2015 2016

Time

5
(d) Determination of Annual Growth Rate for each segment
Annual Growth Rate defines progress of a company within an accounting period. In this
regard, annual growth rate for data given as per salaries of male and female workers within
Public and Private Sector, can be calculated in following manner:
Annual Growth Rate = [(Current year – Previous Year) / (Previous Year)] X 100
Data of male workers within public sector:
Year Public Sector
Men (£) Annual Growth Rate (%)
2009 30638
2010 31264 2.04%
2011 31380 0.37%
2012 31816 1.39%
2013 32541 2.28%
2014 32878 1.04%
2015 33685 2.45%
2016 34011 0.97%

Data for Male workers within Private Sector:

Year Private Sector
Men (£) Annual Growth Rate (%)
2009 27632 0.00%
2010 27000 -2.29%
2011 27233 0.86%
2012 27705 1.73%
2013 28201 1.79%
2014 28442 0.85%
2015 28881 1.54%
2016 29679 2.76%

Data of Female workers within public sector:

Year Public Sector
Women (£) Annual Growth Rate (%)
2009 25224
2010 26113 3.52%
2011 26470 1.37%
2012 26663 0.73%
2013 27338 2.53%
2014 27705 1.34%

6
 2015 27900 0.70%

Data for female workers within private sector:

Year Private Sector
Earnings Annual Growth Rate (%)
2009 19551
2010 19532 -0.10%
2011 19565 0.17%
2012 20313 3.82%
2013 20698 1.90%
2014 21017 1.54%
2015 21403 1.84%
2016 22251 3.96%

TASK 4
(a) Graphical representation to show changes in price index as per CPI, CPIH and RPI:
Consumer Price Index (CPI) (Consumer Price Index. 2019)
Year CPI Change in CPI (year-on-
year)
2007 1256.4
2008 1301.8 3.61%
2009 1330 2.17%
2010 1373.7 3.29%
2011 1435.3 4.48%
2012 1484.9 3.46%
2013 1513.5 1.93%
2014 1535.6 1.46%
2015 1536.3 0.05%
2016 1546.5 0.66%

7
Retail Price Index: (Retail Price Index. 2019)
Year RPI Change in RPI (year-on-
year)
2007 2478.6
2008 2577.9 4.0062938756
2009 2564.2 -0.5314403196
2010 2682.7 4.6213243897
2011 2822.2 5.1999850896
2012 2912.7 3.2067181631
2013 2999.5 2.9800528719
2014 3072.4 2.4304050675
2015 3102.5 0.9796901445
2016 3156.6 1.7437550363
2017 3269.7 3.5829690173

8
(b) Creating Ogive using table 1

Hourly Earnings (£) No. of Leisure Centre Staff Cumulative Frequency

Less than 10 4 4
Less than 20 23 27
Less than 30 13 40
Less than 40 7 47
Less than 50 3 50
Total 50

9
 Ogive
60
50
50 47

40
Cumulative Frequency

40

30 27

20 Cumulative
Frequency

10
4

0
0 10 20 30 40
Upper Class Boundaries

10