Question no 1

Answer
References

[18] Bertrand Jean-Charles, and Berlemont Damien, In the land of hedge fund, the Sharpe ratio is no
longer king, Sinopia Asset Management, 2005.28 [19]

Rachev Svetlozar T., and Martin Doug, Stable Non-Gaussian Risk Management and Factor Models,
FinAnalytica, Sofia, 2004.

Question no 2
Answer
B)
References

Cormac Butler, Mastering Value at Risk, 1st ed., Prentice Hall, 1999. [15] Rachev Svetlozar T.,
Handbook of Heavy Tailed Distributions in Finance, 1 st ed., Elsevier, Netherlands, 2003.

Question n0 3

References

Amenc Noel, and Veronique Le Sourd, Portfolio Theory and Performance Analysis, 2 nd ed.,
Johnson Wiley & Sons Ltd, England, 2005.
 Question no 4

A) Sampling

Definition: A sample is defined as a smaller set of data that a researcher

chooses or selects from a larger population by using a pre-defined selection
method. These elements are known as sample points, sampling units, or
observations. Creating a sample is an efficient method of
conducting research. In most cases, it is impossible or costly and time-
consuming to research the whole population. Hence, examining the sample
provides insights that the researcher can apply to the entire population.

Types of Sampling
There are five types of sampling: Random, Systematic, Convenience, Cluster, and
Stratified.

• Random sampling is analogous to putting everyone's name into a hat and

drawing out several names. Each element in the population has an equal
chance of occurring. While this is the preferred way of sampling, it is often
difficult to do. It requires that a complete list of every element in the
population be obtained. Computer generated lists are often used with random
sampling. You can generate random numbers using the TI82 calculator.
• Systematic sampling is easier to do than random sampling. In systematic
sampling, the list of elements is "counted off". That is, every kth element is
taken. This is similar to lining everyone up and numbering off "1,2,3,4;
1,2,3,4; etc". When done numbering, all people numbered 4 would be used.
• Convenience sampling is very easy to do, but it's probably the worst technique
to use. In convenience sampling, readily available data is used. That is, the
first people the surveyor runs into.
• Cluster sampling is accomplished by dividing the population into groups --
usually geographically. These groups are called clusters or blocks. The
clusters are randomly selected, and each element in the selected clusters are
used.
• Stratified sampling also divides the population into groups called strata.
However, this time it is by some characteristic, not geographically. For
instance, the population might be separated into males and females. A sample
is taken from each of these strata using either random, systematic, or
convenience sampling.
Business Development Manager

[Intro Paragraph] The first thing to include in the business development manager job
description is an introductory statement about the company. Give prospective
candidates an in-depth look into what shapes the company, the types of employees
that work there, and the goals and philosophy of the company. By putting this
information up front, you will attract like-minded candidates who will appreciate your
organization’s vision.

Business Development Manager Job Responsibilities:

• Builds market position by locating, developing, defining, and closing business

relationships.
• Identifies trendsetter ideas by researching industry and related events,
publications, and announcements.
• Tracks individual contributors and their accomplishments.
• Locates or proposes potential business deals by contacting potential partners.
• Discovers and explores business opportunities.
• Screens potential business deals by analyzing market strategies, deal
requirements, and financials.
• Evaluates options and resolves internal priorities.
• Recommends equity investments.
• Develops negotiating strategies and positions by studying integration of new
venture with company strategies and operations.
• Examines risks and potentials for the business opportunities.
• Estimates partners’ needs and goals.
• Closes new business deals by coordinating requirements; developing and
negotiating contracts; and integrating contract requirements with business
operations.
• Protects organization’s value by keeping information confidential.
• Enhances organization’s reputation by accepting ownership for accomplishing
new and different requests.
• Explores opportunities to add value to job accomplishments.

[Work Hours & Benefits] Talking about work hours and benefits here is an important
placement because potential employees need to know what to expect if they actually
get the job. This will get them interested enough to finish reading the job posting. Be
specific about working conditions or requirements, including travel or remote work.
Additionally, you should mention any type of special benefits that make the employer
stand out, such as parental leave, dog-friendly offices, stock options, or child care.

Business Development Manager Qualifications / Skills:

• Closing skills
• Motivation for sales
• Prospecting skills
• Sales planning
• Selling to customer’s needs
• Territory management
• Market knowledge
• Presentation skills
• Energy level
• Meeting sales goals
• Professionalism

Education and Experience Requirements:

• BA in business administration or a related field

• 3 -5 years of sales experience
• Some Employers prefer holders of a master’s degree

b) Hypothesis testing is an act in statistics whereby an analyst tests an

assumption regarding a population parameter. The methodology employed by
the analyst depends on the nature of the data used and the reason for the
analysis.
four Steps of Hypothesis Testing
All hypotheses are tested using a four-step process:

1. The first step is for the analyst to state the two hypotheses so that only
one can be right.
2. The next step is to formulate an analysis plan, which outlines how the
data will be evaluated.
3. The third step is to carry out the plan and physically analyze the sample
data.
4. The fourth and final step is to analyze the results and either reject the null
hypothesis, or state that the null hypothesis is plausible, given the data

Hypothesis Testing Used in Business

Business owners like to know how their decisions will affect their business. Before
making decisions, managers may explore the benefits of hypothesis testing, the
experimentation of decisions in a "laboratory" setting. By making such tests, managers
can have more confidence in their decisions.

Hypothesis Testing
Hypothesis testing is discerns the effect of one factor on another by exploring the
relationship's statistical significance. For example, one may be interested in how
much rainfall affects plant growth. In a business context, a hypothesis test may be
set up in order to explain how much an increase in labor affects productivity. Thus,
hypothesis testing serves to explore the relationship between two or more variables
in an experimental setting. Business managers may then use the results of a
hypothesis test when making management decisions. Hypothesis testing allows
managers to examine causes and effects before making a crucial management
decision.

Data Collection
As hypothesis testing is purely a statistical exercise, data is almost always needed
before performing a test. Data may be obtained from economic research agencies
or management consultancy firms, who may even carry out the hypothesis testing
on behalf of the business. Data are compiled for a given hypothesis. So if a business
wishes to explore how economic growth affects a firm's profits, the management
consultancy will likely collect data concerning gross domestic product growth and the
profit margins of the company over the past 10 or 20 years.

the Process
Hypothesis testing is performed with specialized statistical software that examines
the relationship between variables of very large samples. Data are fed into the
system and the program does the rest. It is up to the statistician to interpret the
results. There are two main variables the statistician is looking for. The first is that of
"a" itself. The larger the value of "a," the greater the impact of "x" on "y." The other
is that of the critical values. Critical values differ depending on the type of statistical
test carried out, but often values represent significance levels of 1, 5 or 10 percent.
Rejecting the null at 1 percent implies absolute confidence that "x" has no effect on
"y." On the flip side, if the statistician is unable to reject the null even at the 10 percent
level, then he could say with a reasonable level that "x" does have an impact on "y,"
and at a magnitude of "a."

c) Correlation and regression

The word correlation is used in everyday life to denote some form of association. We
might say that we have noticed a correlation between foggy days and attacks of
wheeziness. However, in statistical terms we use correlation to denote association
between two quantitative variables. We also assume that the association is linear, that
one variable increases or decreases a fixed amount for a unit increase or decrease in the
other. The other technique that is often used in these circumstances is regression, which
involves estimating the best straight line to summarise the association.

Correlation coefficient
The degree of association is measured by a correlation coefficient, denoted by r. It is
sometimes called Pearson's correlation coefficient after its originator and is a measure of
linear association. If a curved line is needed to express the relationship, other and more
complicated measures of the correlation must be used.

The correlation coefficient is measured on a scale that varies from + 1 through 0 to - 1.

Complete correlation between two variables is expressed by either + 1 or -1. When one
variable increases as the other increases the correlation is positive; when one decreases
as the other increases it is negative. Complete absence of correlation is represented by 0.
Figure 11.1 gives some graphical representations of correlation.
5 Uses of Regression Analysis in Business:
1. Predictive Analytics:
Predictive analytics i.e. forecasting future opportunities and risks is the most prominent application
of regression analysis in business. Demand analysis, for instance, predicts the number of items
which a consumer will probably purchase. However, demand is not the only dependent variable
when it comes to business. Regression analysis can go far beyond forecasting impact on direct
revenue. For example, we can forecast the number of shoppers who will pass in front of a particular
billboard and use that data to estimate the maximum to bid for an advertisement. Insurance
companies heavily rely on regression analysis to estimate the credit standing of policyholders and
a possible number of claims in a given time period. Data Science understanding is key for
predictive analytics.
Read More: 8 Ways to Leverage Predictive Analytics for Business
2. Operation Efficiency:
Regression models can also be used to optimize business processes. A factory manager, for
example, can create a statistical model to understand the impact of oven temperature on the shelf
life of the cookies baked in those ovens. In a call center, we can analyze the relationship between
wait times of callers and number of complaints. Data-driven decision making eliminates guesswork,
hypothesis and corporate politics from decision making. This improves the business performance
by highlighting the areas that have the maximum impact on the operational efficiency and
revenues.
3. Supporting Decisions:
Businesses today are overloaded with data on finances, operations and customer purchases.
Increasingly, executives are now leaning on data analytics to make informed business decisions
thus eliminating the intuition and gut feel. Regression analysis can bring a scientific angle to the
management of any businesses. By reducing the tremendous amount of raw data into actionable
information, regression analysis leads the way to smarter and more accurate decisions. This does
not mean that regression analysis is an end to managers creative thinking. This technique acts as
a perfect tool to test a hypothesis before diving into execution.
4. Correcting Errors:
Regression is not only great for lending empirical support to management decisions but also for
identifying errors in judgment. For example, a retail store manager may believe that extending
shopping hours will greatly increase sales. Regression analysis, however, may indicate that the
increase in revenue might not be sufficient to support the rise in operating expenses due to longer
working hours (such as additional employee labor charges). Hence, regression analysis can
provide quantitative support for decisions and prevent mistakes due to manager’s intuitions.
5. New Insights:
Over time businesses have gathered a large volume of unorganized data that has the potential to
yield valuable insights. However, this data is useless without proper analysis. Regression analysis
techniques can find a relationship between different variables by uncovering patterns that were
previously unnoticed. For example, analysis of data from point of sales systems and purchase
accounts may highlight market patterns like increase in demand on certain days of the week or at
certain times of the year. You can maintain optimal stock and personnel before a spike in demand
arises by acknowledging these insights.

D)

In statistics, a design matrix, also known as model matrix or regressor matrix and often
denoted by X, is a matrix of values of explanatory variables of a set of objects. Each row
represents an individual object, with the successive columns corresponding to the variables and
their specific values for that object.

Matrix organizational structure

Matrix organizational structure is often used in project

management because it speaks to both the product of the project
and the function of the management producing it. Let’s take a
closer look at this type of organizational structure to determine its
pros and cons in project management.
What Is Matrix Organizational Structure?
The matrix organizational structure is a combination of two or more
types of organizational structures. The matrix organization is the
structure uniting these other organizational structures to give them
balance. Usually, there are two chains of command, where project
team members have two bosses or managers.

Often, one manager handles functional activities and the other is a

more traditional project manager. These roles are fluid and not
fixed, as the balance of power between these two kinds of
managers isn’t organizationally defined.

It will employ the best of both structures and management styles

to strengthen strengths, and make up for weaknesses. This way, if
an organization is working on producing two products or services
at the same time, they can organize both and use that duality to
their advantage through the matrix organizational structure.
Origins of the Matrix Organizational
Structure
The matrix organizational structure came about as a business
response to the rise of large-scale projects. They needed fast-track
technology applications and required the ability to process great
amounts of data in an efficient manner. Project organization was
needed to respond quickly to interdisciplinary needs, without
upsetting the functional organizational structures already in place.

Matrix organizational structures were first developed in the

aerospace industry in the U.S. as projects grew in complexity
during the mid-century. Until that point, they had been using a
single hierarchical organization, which was fine when there was
only one very large project.

However, with more and more projects having a variety of sizes

and complexities, there was a need for expanding beyond one
discipline. So, as time went on, the use of one discipline to
structure a project become increasingly rare. But there remained
a need for a single source of information and responsibility for each
project. Therefore, instead of creating many autonomous projects,
a matrix of projects was developed.

Pros and Cons of a Matrix Organizational

Structure
A matrix organizational structure is not a one-size-fits-all solution.
There are advantages and disadvantages that need to be
understood to know if it’s the right one for the organization.
Pros

One of the biggest pros of using a matrix organizational structure

is that it allows the sharing of highly skilled resources between
functional units and projects. Communications are open, which
helps knowledge move throughout the organization with less
obstruction. Because the matrix organizational structure
fosters better communications, it makes the normal boundaries
between groups more porous, which allows for more collaboration
and an integrated, more dynamic organization.

This structure can serve as a great boon for employees who are
looking to widen their experience and skill sets. They can be part
of many different aspects of various projects. It puts them in an
environment that facilitates learning and gives them an
opportunity to grow professionally.

Plus, the functional departments have highly skilled people, and

those people are available to help the project team if needed. This
creates a pool of valuable resources that can be dipped into and
provides more flexibility to resolve issues without having to source
new resources.

Furthermore, efficiencies are enhanced, and teams remain loyal

because the structure provides a more stable environment where
job security is strengthened. People work harder and have more
buy-in to projects when they feel the rug isn’t going to get pulled
out from under them.
Cons

There can be some confusion when a team member is subject to

two managers. That can also create unnecessary conflict. This is
especially true if both managers have equal authority.

Then there is the functional manager and project manager. There

can be some sparks flying between these two managers in terms
of what they believe to be the authority in the organization. That
confusion can show up with team members, too, if their roles and
responsibilities aren’t clearly defined. And that confusion can lead
to conflict if resources are hard to come by and competing
managers are fighting for them.

There are a lot of managers in a matrix organizational structure,

which is not to everyone’s liking. And there can be a financial
downside to that too. Having more people in managerial positions
is going to have an impact on the organization’s bottom line.

Team members can feel the strain of working in a matrix

organizational structure, in that their workload can be heavy.
Often, they’re tasked with their regular assignments and then
additional work, which can lead to burnout or some tasks being
ignored.

Finally, there’s the overall expense of the matrix organizational

structure. This goes beyond having multiple managers but also the
added expense of keeping on resources that might not be used all
the time.
Not that some of these disadvantages can’t be overcome. They just
require being cognizant of the stress points and working more
cooperatively towards relieving them.

Why Use a Matrix Organizational Structure?

The matrix organizational structure is an answer to the problem
of managing large and complex projects. When working on a large
project, a highly hierarchical structure can be an obstacle in the
path of moving that process forward successfully.

Instead of trying to find a workaround to a situation that might not

have a viable solution, a matrix organization structure provides a
new system that can more properly address the complexities of
large projects.

The problem of having the function and skills fragmented in an

organization makes it more difficult to handle large projects
successfully. It’s harder with this type of top-down organizational
structure to have a holistic view. The perspective at the top is
distorted, while a matrix organizational structure can see a
problem from a closer standpoint and have varied approaches of
solving it.

The matrix organizational structure is more catholic in that it acts

as if there is not a single best way to organize a project. It sees
alternatives rather than one established way forward.

ProjectManager.com Can Run a Matrix

Organizational Structure
Given the complexity of a matrix organizational structure, it’s
critical to have the right tools to make sure team members are
receiving their tasks in a clear and orderly fashion. Two bosses can
create a muddle, so having all project communication house in one
software is essential.

ProjectManager.com has a “My Work” section that enable team

members to see all of their tasks in one place, regardless of
whether a project or functional manager assigned it to them. This
enables them to manage their workflow more efficiently, marking
their progress and adding comments along the way for managers.
They can also work on tasks by projects too, if they want to stay
in one mindset before moving on to another project.

References

1. Marvin R. Gottlieb (2007). The Matrix Organization Reloaded: Adventures in Team and Project
Management. ISBN 978-0275991333.
2. ^ "Types of Matrix Organizational Structure".
3. ^ "What are the 4 Types of Organizational Structures?".
4. ^ Jump up to:a b Glenn Rifkin (July 15, 1994). "COMPANY NEWS: Big Charge To Be Taken By
Digital". NYTimes.com.
5. ^ CIO. April 1991. p. 66 https://books.google.com/books?id=sAUAAAAAMBAJ. .. the explosion of
stand-alone PCs in the '80s .. ensuing rise of departmental computing Missing or
empty |title= (help)
6. ^ John Markoff (November 15, 2005). "Microsoft Enters the High-Performance Computing
Fray". NYTimes.com.