PSDA-2

Term Paper On Application Of

Statistic Tools To Analyse
Secondary Data Of A Company
For Past 10 Years
P

INTRODUCTION
Reliance Industry Ltd.
Reliance Group is a conglomerate holding company in India
that has a wide portfolio business. Reliance Industries is
India's largest private sector company 2004 it became the
first Indian private sector organisation to be listed in the
Fortune Global 500 list. The company operates world-class
manufacturing facilities across the country. It is involved in
the oil refining, petrochemical, retail and textile businesses
and boasts consolidated sales of more than $60 billion. It is
a core unit of Reliance Group, which ranks alongside Tata
and Birla among the country's major conglomerates.
Reliance Group was founded by Dhirubhai Ambani. The
company expanded into textiles in the 1960s and entered
the petrochemical sector in the 1980s, amassing a fortune
for Ambani. It is headquartered in Mumbai and is growing
under the leadership of Mukesh Ambani.
 Purpose And Application Of
Statistical Tool
The statistical tool which will be used to analyse Reliance’s
total revenue is measures of central tendency. Mean or
arithmetic average refers to a single representative value
that reads the characteristics of the complex and varied
mass of data. The second tool under central tendency is
Median. It is the value of the variable which divides the
group into two equal parts, one part comprising all values
greater, and the other values less than the median.
Business Applications of Mean
Average is also called measure of location. It is frequently
used in all the aspects of business i.e., number of items
produced per day on a large assembly line, number of
orders received per month for a firm etc...
Here, mean will be used to calculate the average income
that the company has earned in the past 10 years.
Business Applications of Median
Median is positional measures of central tendency.
The median income gives a value close to the average
income gained by the company, without taking the
extreme values into consideration.
DATA OF PAST 10 YEARS

Years Total Income in US $ Million

2010-11 2,61,703
2011-12 3,45,984
2012-13 3,79,117
2013-14 4,10,238
2014-15 3,49,535
2015-16 2,59,062
2016-17 2,73,750
2017-18 3,13,555
2018-19 3,94,323
2019-20 3,65,421
Total 33,52,688
Average 6,09,580
Median 2014.79
 INTERPRETATION
From the above data, following interpretation is made-
Average or Arithmetic mean was calculated to find out
the average income which the company gained in past
10 years. It was calculated by using the formula=
Sum of number of observations
No. of observations
The average income was 6,09,580 US $ million. This
reveals that the company earned at least 6,09,580 US $
million per year.
Median
Median tells about the central value of the data set.
The median income of the company was 2014.79 US $
Million. Median is the most important value as
when the data has several values that occur
frequently, and several comparatively very high
values. So, it gives company, a clear value of
view of their financial performance.
 Conclusion
From this, we conclude that Average and Median are
the most suitable statistical tools to analyse the 10
period secondary data of a company as it doesn’t get
affected by extreme values and is easy to calculate. It
can process and represent large amount of data and
give results accurately. Reliance industries average
income of past 10 years was 6,09,580 US $ million
and median was 2014.79 US $ Million. This gives
company a fair and clear idea about their financial
performance and facilitates comparison of data.

Bibliography
1. www.moneycontrol.com
2. www.economictimes.indiatimes.co
3. www.capitalmarket.com