ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 31: Statistics for management

Submission date 16/10/2020 Date Received 1st submission

Re-submission Date Date Received 2nd submission

Student Name Nguyen Duc Anh Student ID GBH190058

Class GBH0901 Assessor name Ngo Tran Thai Duong

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism. I understand that
making a false declaration is a form of malpractice.

Student’s signature Anh

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Contents
I. Introduction........................................................................................................................................ 5

II. Qualitative and Quantitative Data ..................................................................................................... 5

1. Descriptive Statistic ....................................................................................................................... 6

a) Measures of Central Tendency ................................................................................................... 6

b) Measures of Variability .............................................................................................................. 7

c) Application ................................................................................................................................. 7

2. Inferential statistics ........................................................................................................................ 8

a) One sample T-test ....................................................................................................................... 8

b) Two sample T-test ...................................................................................................................... 9

c) Regression ................................................................................................................................ 10

III. Applying a range of statistical methods .......................................................................................... 11

1. Definition ..................................................................................................................................... 11

a) Normal Distribution ................................................................................................................. 11

b) Poisson Distribution ................................................................................................................. 12

c) Binomial Distribution ............................................................................................................... 12

2. Application ................................................................................................................................... 13

a) Inference Population Mean ...................................................................................................... 13

b) Poisson Distribution ................................................................................................................. 14

IV. Using appropriate charts/tables ....................................................................................................... 15

1. Pie Chart....................................................................................................................................... 15

a) Definition.................................................................................................................................. 15

b) Advantages and Disadvantages ................................................................................................ 15

2. Bar Chart ...................................................................................................................................... 16

a) Definition.................................................................................................................................. 16

b) Advantages and Disadvantages ................................................................................................ 16

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 3. Histogram ..................................................................................................................................... 16

a) Definition.................................................................................................................................. 16

b) Advantages and Disadvantages ................................................................................................ 17

4. Scatter Plots.................................................................................................................................. 18

a) Definition.................................................................................................................................. 18

b) Advantages and Disadvantages ................................................................................................ 18

V. Conclusion ...................................................................................................................................... 19

References ............................................................................................................................................... 19

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 I. Introduction
This report is created based on the results of surveying data from about 300 enterprises from the food and garment
sectors in Vietnam, the purpose is to explore developments and factors influencing the development of these two
sectors.

The objective of this paper is to apply the methods of analyzing and evaluating raw business data by several
statistical methods, applying statistical methods in business planning and data analysis and evaluate raw business
data by some statistical methods. With the survey scope of about 300 enterprises in the two sectors of garment and
food in Vietnam. The meaning of this study is to apply well methods of analyzing and evaluating business data,
and at the same time to gain a further understanding of the indicators affecting business operations.

This research has used methods such as descriptive statistics, inferential statistics and probability distributions to
exploit data about businesses in the two mentioned sectors.

This study consists of 3 main parts including an introduction to Qualitative and Quantitative data, applying a range
of statistical methods, and understanding and using appropriate charts / tables.

II. Qualitative and Quantitative Data

A quantitative approach is generally correlated with obtaining evidence to support or reject theories that you have
developed at the earlier stages of the research phase. Quantification of information requires little more than deciding
on strategies for mapping observations on numerical scales. This can be as simple as describing a normal unit of
measurement as the meter and adding it to the main axis of the human body, yielding height. People can believe
that they understand their own heights, and perhaps the amount of the population's average height. When faced
with the variability of height or its relationship to other scales, there is a significant reduction in confidence. Where
quantitative research is objectively measuring height or asking for self-reporting, qualitative research can
investigate how respondents feel about their height. Quantitative data analysis can involve the measurement of
variable frequency and the differences between variables (Lemon et.al., 2010).

Qualitative research has been described by Denzin et al.1 as the situated activity of observers in the world. It consists
of a collection of interpretive, material activities that make the world visible. These activities transform the world
into a collection of representations, including field notes, interviews, conversations, photos, recordings, and memos.
Qualitative study at this stage requires an interpretive, naturalistic approach to the world. This means that qualitative
researchers investigate objects in their natural surroundings, seeking to make sense of, or perceive, experiences in
terms of the interpretations that people bring to them (Ritchie and Lewis, 2013).

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There is a fundamental distinction between two types of data: Quantitative data is information about quantity, and
thus numbers, and qualitative data is descriptive and refers to a concept that can be observed but not measured,
such as language.

Various types of qualitative research methods are available, including diary accounts, in-depth interviews, reports,
focus groups, case studies and ethnography. The findings of qualitative approaches provide a deep understanding
of how people interpret their social realities and, as a result, how they behave within the social environment. An
illustration of qualitative data analysis is Assari and Bazargan (2019).

Experiments usually yield quantitative results since they are concerned with measuring objects. However, both
quantitative information may be produced by other research methods, such as controlled observations and
questionnaires. For example, a rating scale or closed question on a questionnaire would generate quantitative data,
since it would provide either numerical data or data that could be categorized (Mcleod, 2019). For instance,
Gendron et al, (2001) is an illustration of quantitative data analysis.

1. Descriptive Statistic
a) Measures of Central Tendency
Mode
The mode of a measurement set is specified to be the most frequently occurring (highest frequency) measurement.
Some of the characteristic of the mode is that it is the most frequent or probable measurement in the data set. For a
data collection, there can be more than one mode. Moreover, it is not influenced by extreme measurements. Modes
of subsets cannot be combined to determine the mode of the complete data set. For classified results, depending on
the categories used, its value may change. For both qualitative and quantitative results, this is applicable.

Median
When the measurements are ordered from lowest to highest, the median of a series of measurements is the middle
value. It is the key value which means that 50% of the measurements are above it and 50% are below it. For a data
set, there is only one median. To evaluate the median of the full data set, the medians of subsets cannot be combined.
Its value is reasonably constant for clustered data, even though the data is organized into multiple categories.
Importantly, it is applicable to quantitative data only.

Mean
The arithmetic mean, or mean, of the measurement set, is defined as the sum of the measurements divided by the
total number of measurements. Specifically, in a data set, it is the arithmetic average of measurements. Furthermore,
there is just one mean. Besides, extreme measurements impact its value. Trimming can help to lower the degree of

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impact. To evaluate the mean of the entire data set, means of subsets may be merged. It is only applicable to
quantitative data (Ott and Longnecker, 2010).

b) Measures of Variability
Range
The range of a set of measurements is defined to be the difference between the largest and the smallest
measurements of the set.

Variance
The variance of a set of n measurements y1, y2, . . . , yn with mean is the sum of the squared deviations divided by
n - 1:

Standard deviation
The standard deviation of a measurement set is identified to be the variance's positive square root (Ott and
Longnecker, 2010).

c) Application

Key Statistics
Statistics l1 (number of employees) d16 (Inventory) f2 (Hours operating/week) d2 (sales in VND billion)
Mean 296 32 56 309
Median 50 15 48 20
Mode 20 30 48 1
Range 8995 365 165 28190
Quartile Range 167 25 8 96
Standard Deviation 995 55 21 2115
SD/Mean 3.356 1.722 0.376 6.850
Valid obs 292 250 260 289

Table 1 Key Statistics

This assigned data is collected from hundreds of firms in Food and Garments sector in 4 regions in Vietnam that
are Red River Delta, North Central Area & Central Coastal Area, South East, and Mekong River Delta. After
applying these key statistics into the assigned data, we know that the average number of employees in firms in Food
and Garment sector is 296, the median number of employees shows that 50% of firms in this sector have more than
50 employees, meanwhile the rest of firms in the sector have less than 50 employees. Moreover, firm with 20
employees account for the greatest number of firms which is reasonable as most of the firms in Food and Garments
sector in Vietnam are in small or micro size.
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 2. Inferential statistics
a) One sample T-test
Hypothesis: The average hours operating in a week for firms in the population is greater than 52 hours.
Confidence level = 95%

Let muy be the average hours operating in a week for firms in the population.
H0: muy=52
H1: muy>52
Assume that H0 is true
Let Xbar be the be sample average hours operating in a week of a random sample of 260 firms.
Xbar apporximately follows a normal distribution with:
Mean(Xbar)= 52
SD(Xbar)= 1.302364713
P(Xbar>56)= 1 -P(Xbar<56)
P(Xbar<56)= 99.9%
P(Xbar>56)= 0.1%
We are 99.9% confident that H1 is true --> accept H1

Table 2. One Sample T-test

From the data of samples collected from 260 enterprises in the food and garment sector, we can see that the average
working time of employees in Vietnamese enterprises is quite high, over 52 hours. These average working hours
correspond to the average working hours per day of over 7.4 hours. This figure is reasonable as based on the
International Labor Organization survey released in 2019, the average number of hours worked in a typical week
generally does not change much from 2013 to 2018, 47.5 hours in 2013 and 47.44 hours in year 2018. Statistics
show that most employees work 48 hours per week, then between 40 and 56 hours per week. This is the number of
actual working hours per week so these hours may include overtime.

From the two peaks representing 40 and 48 hours in Figure 1, we can see that the actual working hours fall within
the statutory weekly working hours threshold of 40 and 48 hours. The third peak (56 hours worked weekly) can be
considered to include 8 hours of working time per week (ILO Vietnam, 2019).

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 Figure 1. Number of weekly working hours of employees from 2013
to 2018

b) Two sample T-test

Compare Means
Descriptive Statistics
VAR N Mean Std Dev Variance Minimum Maximum
f2 Food Sector (Hours operating/week) (1) 124 55.3306 22.1469 490.4833 3 168
f2 Garments Sector (Hours operating/week) (2) 130 54.2231 16.0813 258.6088 40 168

Means Report
VAR Mean 95% LCL 95% UCL
f2 Food Sector (Hours operating/week) (1) 55.3306 51.3938 59.2674
f2 Garments Sector (Hours operating/week) (2) 54.2231 51.4325 57.0136
Mean Difference (1-2) 1.1076 -3.6972 5.9123

t-test assuming unequal variances (heteroscedastic)

Hypothesized Mean Difference 0.0000
Mean Difference 1.1076
Variance (Welch-Satterthwaite) 371.7856

Test Statistic 0.4543

Degrees of Freedom 224

H1: Mu1 - Mu2 ≠ 0 / Not equal (two-tailed)

t Critical Value (5%) 1.9706 p-value 0.6501 H1 (5%) Rejected

H1: Mu1 - Mu2 < 0 / Less than (lower-tailed)

t Critical Value (5%) -1.6517 p-value 0.6750 H1 (5%) Rejected
H1: Mu1 - Mu2 > 0 / Greater than (upper-tailed)
t Critical Value (5%) 1.6517 p-value 0.3250 H1 (5%) Rejected

Table 3 Two Sample T-test

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From the table of data collected from 65 enterprises in the garment industry and 67 enterprises in the food industry,
we can see that the average number of hours worked per week of firms in the two industries is relatively equal, and
equal to about 52 hours. In addition, according to ILO research, workers in the Foreign direct investment sector
(FDI) have the highest number of working hours, at 51 hours. Labors in industries such as garments, electronics
and furniture have quite a high number of working hours, over 50 hours per week. These industries also have a high
concentration of FDI enterprises (ILO Vietnam, 2019).

c) Regression
Linear Regression
Dependent variable d2 (sale in VND billion)
Independent variables l1 (number of employees)
N 288

Regression Statistics
R 0.6732 R-Squared 0.4533 Adjusted R-Squared 0.4513
MSE 2,462,523.8084 S 1,569.2431 MAPE 3,286.9498
Durbin-Watson (DW) 2.1204 Log lik elihood -2,526.8552
Ak aik e inf. criterion (AIC) 17.5615 AICc 17.5615
Schwarz criterion (BIC) 17.5869 Hannan-Quinn criterion (HQC) 17.5717
PRESS 1,029,357,869.9023 PRESS RMSE 1,890.5447 Predicted R-Squared 0.2009

d2 (sale in VND billion) = - 116.9111 + 1.4243 * l1 (number of employees)

ANOVA
d.f. SS MS F p-value
Regression 1. 583,862,569.2623 583,862,569.2623 237.0993 0.0000
Residual 286. 704,281,809.1925 2,462,523.8084
Total 287. 1,288,144,378.4548

Coefficients Std Err LCL UCL t Stat p-value H0 (5%) VIF TOL Beta
Intercept -116.9111 96.5320 -306.9144 73.0922 -1.2111 0.2269 Accepted
l1 (number of employees) 1.4243 0.0925 1.2423 1.6064 15.3980 0.0000 Rejected 1.0000 1.0000 0.6732
T (5%) 1.9683
LCL - Lower limit of the 95% confidence interval
UCL - Upper limit of the 95% confidence interval

Table 4 Regression

The table above shows the relationship between the number of employees and the revenue of enterprises in the food
sector in Vietnam. The p-value index shows that these two variables are related and specifically proportional to
each other. For each employee, the enterprise adds 1,424 billion VND in sales.

Nowadays, human resource management has been given a higher priority and is one of the important factors
determining revenue. One of the tools that help human resource management achieve greater efficiency are KPI's.

Key Performance Indicators (KPIs) are vital navigation instruments used by managers to understand whether their
business is on a successful voyage or whether it is veering off the prosperous truth.

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In addition to some traditional KPIs, changes thanks to technology have brought modern sales staff more flexible
new KPIs than before. Some effective KPIs are applied by modern sales staff such as Monthly Sales Growth,
Average Profit Margin, Product Performance, Average Cost Per Lead (Marr, 2012).

In addition, the human resource cost issue is also an issue that, if resolved, will bring many benefits to the company.
The director of a securities company said that he did not conduct human resource refinement to cut costs, because
the company recently recruited human resources were right on demand. Instead, he held a full staff meeting to call
on everyone to sympathize with the common problem. The results after that have had positive effects: managers
ask for a 40% reduction in salary by themselves; employee salary reduction of 20%. Thanks to that, the salary
expense of more than 1 billion dong has been reduced to 500-600 million dong / month. The company does not
need to reduce people but still significantly reduce costs (TBKTSG, 2008).

In short, thanks to such factors, the number of employees has greatly influenced the turnover of the company.

III. Applying a range of statistical methods

1. Definition
a) Normal Distribution
The relative frequency histogram for the normal random variable, which is called the normal curve or the normal
probability distribution, is symmetrical around the mean, indicating that data near the mean are more frequent than
data far from the mean. Normal distribution appears as a smooth bell-shaped curve (Ott and Longnecker, 2010).

Figure 2 Example of Normal Distribution

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 b) Poisson Distribution
In the year 1837, S. D. Poisson has developed a discrete probability distribution, popularly called Poisson
Distribution, which has as one of its important applications the modelling of events of a particular time over a unit
of time or space — for example, the number of cars arriving at a toll booth during a given 5-minute period of time.
The event of significance would be the arrival of the vehicle, and the unit of time would be five minutes. A second
example will be the case in which the environmentalist tests the amount of PCB particles contained in a liter of
water sampled from a stream polluted by an electronics factory. The case will be the detection of a PCB particle.
The unit of space will be 1 liter of sampled water (Ott and Longnecker, 2010).

Figure 4 Example of Poisson Distribution

Figure 3 Example of Poisson Distribution

c) Binomial Distribution
As any relative frequency histogram, the binomial probability distribution has a mean, and a standard deviation.
Although the derivations are omitted, we give the formulas for these parameters. If we know p and the sample size,
we can measure mean and standard deviation to locate the center and define the variability for a specific binomial
probability distribution. Thus, we can easily evaluate certain y values that are possible and those that are impossible
(Ott and Longnecker, 2010).

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 Figure 5 Example of Binomial Distribution

2. Application
a) Inference Population Mean

Inference Population
With probability of 95%, could you estimate the average hours worked per week for all firms

Sample mean= 55.91

Sample SD= 21.00
Sample size= 260
Interval= 2.552331
Lower bound= 53.36
Upper bound= 58.46
With the 95% chance, the average hours worked per week of more than 1 million firms in Vietnam will fall in the interval (53,4 hours and 58,4 hours)
Table 5 Inference Population
With the confidence level of 95%, we can estimate the average operating hours per week of more than 1 million
firms in Vietnam will fall in the interval between 53,4 hours and 58,4 hours based on the inferred data from 260
firms in the Food and Garments sector in Vietnam.

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 b) Poisson Distribution

Poisson
Hours Starting Ending Probability Poisson distribution estimation
1-10 1 10 0% 0.00%
11-20 11 20 0% 0.00%
31-40 21 40 6% 1.60%
41-50 31 50 52% 23.79%
51-60 41 60 30% 71.90%
61-70 51 70 3% 73.30%
71-80 61 80 1% 26.40%
81-90 71 90 2% 2.90%
91-100 81 100 1% 0.10%
111-120 91 120 0% 0.00%
121-130 101 130 0% 0.00%
131-140 111 140 0% 0.00%
141-150 121 150 0% 0.00%
161-170 131 170 2% 0.00%

Table 6 Poisson Distribution of working hours

Poisson Distribution makes strong assumptions regarding the distribution of the underlying data (in particular, that
the mean equals the variance). While these assumptions are tenable in some settings, they are less appropriate for
operating hours per week. Specifically, with the results from the Inference Population distribution and the T-test
methods, we see that the average operating hours are normally in the range from 40 to 60 hours. However, Poisson's
distribution shows that working hours are in the range of 50-70 hours, a 10-hour deviation is relatively large in later
data analysis. Therefore, Poisson should only be a method for the more precise or potential reference or addition of
other methods.

For better illustration, there are studies on Addressing the Spectrum of Alcohol Problems, which researchers found
that standard Poisson has an extremely poor fit and gives a statistically significant p-value (in contrast with all other
models, the result is not highly significant). The unreasonable assumption that the predicted consumption of alcohol
is the same for all subjects can partly explain the poor suitability of the Poisson distribution. Experts suggest careful
not to use Poisson for this analysis. The negative binomial is very consistent, and we see no signs of zero inflation
(Horton et al, 2007).

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IV. Using appropriate charts/tables
1. Pie Chart
a) Definition
The pie chart demonstrates classes or categories of data in proportion to the data collection. The whole pie
represents all the data, while each slice or section represents a different class or category within the whole. Each
slice is designed to report significant variations. In general, the number of categories should be limited to between
3 and 10 (Slutsky, 2014).

Figure 6 Example of Pie Chart

b) Advantages and Disadvantages

Pie Chart is useful for presentations as data can be represented visually as a fractional part of a whole and it provides
a data comparison for the audience briefly to give an immediate analysis or to quickly understand information.
However, it is generally too simple to include in a scientific paper, although multiple pie charts in a single graphic
can convey data more clearly than a table or text. Additionally, if there are too many pieces of data, and even if you
add data labels and numbers may not help here, they themselves may become crowded and hard to read (Franzblau
& Chung, 2012).

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 2. Bar Chart
a) Definition
A bar chart may consist of either horizontal or vertical columns. The bars drawn are of uniform width, and the
variable quantity is represented on one of the axes. Also, the measure of the variable is depicted on the other axes.
The heights or the lengths of the bars denote the value of the variable, and these graphs are also used to compare
certain quantities. The greater the length of the bars, the greater the value. They are used to compare a single
variable value between several groups, such as the mean protein concentration levels of a cohort of patients and a
control group (Slutsky, 2014).

Figure 7 Example of Bar Chart

b) Advantages and Disadvantages

Bar graphs are used to match things between different groups or to trace changes over time. Yet, when trying to
estimate change over time, bar graphs are most suitable when the changes are bigger. It is easy to interpret.
Nonetheless, bar charts cannot show individual data points and do not convey more information than a table unless
they compare multiple groups (Franzblau & Chung, 2012).

3. Histogram
a) Definition
The histogram is a specialized type of bar graph that resembles a column graph, also called a frequency distribution
graph, but without any gaps between the columns. It is used to describe information from a continuous variable 's
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measurement. In order to present the frequency of data in each class, individual data points are grouped together
into classes. The frequency is measured by the column's area. These can be used to show how a measured category
is distributed along a measured variable. Usually, for example, these graphs are used to verify if a variable follows
a normal distribution, such as the distribution of protein levels between different people in a population (Slutsky,
2014).

Figure 8 Example of Histogram

b) Advantages and Disadvantages

Histograms are best for showing the shape of the distribution of univariate data with a continuous variable. For a
process that is running smoothly, histograms will display what the normal distribution is. Any variation is quickly
detected by routinely producing histograms. This is a major advantage for organizations because it supports finding
and dealing with process variation quickly. Nevertheless, if the intervals are too large, the distribution will not have
the correct shape (Franzblau & Chung, 2012).

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 4. Scatter Plots
a) Definition
A scatter plot is used to explain the relationship between two variables and whether their values change
continuously, such as the relationship between the levels of concentration of two different proteins being analyzed
(Slutsky, 2014).

Figure 9 Example of Scatter Plots

b) Advantages and Disadvantages

Scatter plots in infographics may not be used that often, but they certainly have their position. They can display
vast amounts of data and make it easy to see correlation between variables and clustering effects. Scatterplots are
invaluable as a quick overview and analytical tool and work with almost any continuous data on a scale.

Unfortunately, scatterplots are not always suitable for presentation. Several problems occur frequently, and it is
best to be aware of each when using scatterplots for analysis or presentation. By putting one dimension on the
vertical axis and a separate dimension on the horizontal axis, a scatterplot operates. A point on the chart represents
each piece of data. Problems with scatterplots are the discretization of values. This occurs when decimal places are
rounded off, measurements are not sufficiently precise or there is a categorical data field (Franzblau & Chung,
2012).

From the information on the chart / chart types above, we can see that the Scatter Plots have the most weaknesses
especially in presenting information. The remaining charts / tables such as pie charts, bar charts, or histogram charts
all have few drawbacks and are suitable for each particular purpose. To represent information with less than ten
variables as a percentage, the most appropriate chart is a pie chart, but for displaying information regarding numbers
of multiple variables, a bar chart seems to be more appropriate, In addition, histograms have their own strengths in
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illustrating the distribution of continuous variables. Therefore, depending on each case, the researcher or the speaker
should choose the appropriate chart to present the information in the most scientific way.

V. Conclusion
In conclusion, this study has found out the main statistical indicators, statistical methods and sample description to
draw conclusions for the parent population. At the same time, giving comments on probabilistic testing methods
and applying these methods to learn about business data of enterprises in the garment and food sectors. Thereby,
in order to support business planning and decision making, it is necessary to first research the market carefully,
especially through surveys from data of influential organizations, or Survey implementation, it is necessary to
survey between regions, different industries and especially to survey competitors in the same industry or the same
region. For the most accurate results, it is best to survey from as many candidates, although there will be dishonest
results, but with a large number of respondents, the bias will be very small.

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Gendron, P., Lemieux, S. and Major, F., 2001. Quantitative analysis of nucleic acid three-dimensional
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Horton, N. J., Kim, E., & Saitz, R. (2007). A cautionary note regarding count models of alcohol consumption
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