Course Name: Business Statistics (F-107)

A Quantitative Study on the

Financial Information of
Sandhani Life Insurance

Team Infinity
 Course Name: Business Statistics (F-107)

A Quantitative Study on the Financial Information

of Sandhani Life Insurance

Submitted to:

Nusrat Khan Assistant

Professor Department of
Finance Faculty of
Business Studies
University of Dhaka

Submitted by:

Team Infinity
Section: B
Batch: 23rd
Department of Finance
Faculty of Business Studies
University of Dhaka

December 4, 2017
 Group Profile
Group Name: Team Infinity
Section: B
Batch: 23rd
Department of Finance
Faculty of Business Studies
University of Dhaka

Group Members’ Profile

Serial Name Batch Id No Remarks
No.
01 Sadia Alam 23rd 14
02 Shuvo Roy 23rd 36
03 Rakibul Hasan 23rd 54
04 Syma Sunzida 23rd 111
05 Nusrat Jahan 23rd 117
06 Aklima Akter 23rd 136
07 Shaikh Saifullah Khalid 23rd 160
 Letter of Transmittal

December 4, 2017

Course Instructor
Course Name: Business Statistics (F-107)
Assistant Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Subject: Submission of report

Dear Madam,

Here is the in-depth quantitative study of Sandhani Life Insurance’s financial information
that you assigned on October 30, 2017.
We collected the financial information of Sandhani Life Insurance from DSE and secondary
sources and used statistical techniques to represent our findings.
Thank you for giving this kind of creative task. We look forward to working with you

again. Sincerely yours,

………………………
Sadia Alam
Id No: 14
Section: B
Batch: 23rd
On behalf of Team Infinity
Department of Finance
University of Dhaka
Contents
Executive Summary........................................................................................................................................ i
Chapter 1: Introduction ................................................................................................................................ 2
1.1: Foreword............................................................................................................................................ 2
1.2: Objectives of the Study...................................................................................................................... 2
1.3: Research Methods and Company Selection ...................................................................................... 2
1.4: Limitations of the Study..................................................................................................................... 2
Chapter 2: Theoretical Overview.................................................................................................................. 3
2.1: Mean.................................................................................................................................................. 3
2.2: Median............................................................................................................................................... 3
2.3: Percentile and Quartile...................................................................................................................... 3
2.4: Bar Chart, Pie Chart and Frequency Polygon..................................................................................... 3
2.5: Simple Index....................................................................................................................................... 3
Chapter 3: Analytical Study........................................................................................................................... 4
3.1: Graphical Representation of Data ..................................................................................................... 4
3.2: Measures of Location......................................................................................................................... 4
3.3: Measures of Dispersion ..................................................................................................................... 5
3.4: Location of Position ........................................................................................................................... 6
3.5 Simple Index........................................................................................................................................ 6
Chapter 4: Conclusion................................................................................................................................... 8
Works Cited................................................................................................................................................... 9
Appendix A1................................................................................................................................................10
Appendix A2................................................................................................................................................11
Executive Summary
Sandhani Life Insurance is a key business with a long history tracing back to 1990. Today,
it is the one of the largest insurance companies and a major employer in the country with
over 15,000 agents and employees. We collected the financial information of Sandhani Life
Insurance from DSE Library and other secondary sources such as their
financial statements. Our brief report summary is given below.

Background: As background for the study, our group members analyzed the data
of
Sandhani Life Insurance. We collected the data from primary and secondary
sources.

Theoretical Overview: In this section, we briefly described our statistical tools such as
mean, median, mode, standard deviation, bar chart, pie chart, frequency
polygon, percentile, quartile, simple index number etc

Analytical Part: In this section, we showed our case study, calculation and
graphical representation.

Conclusion and Works Cited: Here, we represented our reference from which we took
ideas and basic data for report content.

i
Chapter 1: Introduction

1.1: Foreword
According to scientists’ human has been living in this planet for 10000 of years. During primitive
age human has to deal with only few numbers. But with the page of time society changes, business
changes and after many years the business has taken a complicated form where we have to deal
with thousands of numbers daily. And to do so business statistic plays a vital role in organizing and
presenting those data. Business statistics involve in collecting, organizing, presenting, analyzing
and interpreting the business-related data to make more effective and optimum business decision.
We focused mainly on the quantitative sides in this report. We represented mean, median, mode
etc and other statistical tools to visualize our findings.

1.2: Objectives of the Study

Completing the obligation of the course.
Calculating mean, median, mode, standard deviation on the basis of daily trading data.
Preparing bar chart, pie chart, frequency polygon on the basis of dividend data.
Making percentile, quartile on the basis hypothetical data.
Making simple index number on the basis of net income.

1.3: Research Methods and Company Selection

We have created a group consisting seven members. Then, we visited DSE Library and collected the
daily trade data and dividend data of all listed companies. We collected the dividend data of June
2016 to June 2017 and we also collected the daily trade info of last 3 years. We also analyzed the
financial statements of several companies. We choose a life insurance company named Sandhani
Life Insurance for our report.

1.4: Limitations of the Study

Dependency on secondary data.
Lack of software skill.
Lack of knowledge about Stock markets.

2
Chapter 2: Theoretical Overview
This chapter contains the theoretical overview of what we have done. This chapter will enlighten
the reader of the report about the operation that we have done. We calculated mean,
median, standard deviation, bar chart, pie chart, percentile, quartile, simple index number in our
report. Here are there definitions and interpretations.

2.1: Mean
According to Douglas A. Lind, mean is the summation of all values in the population divided by the
total number of values in the population. In this report, we used daily trade data to calculate the
mean.

2.2: Median
Median is the midpoint of the values after they have been ordered in the descending
order, according to Samul A Wathen. We calculated the median of trading prices.

2.3: Percentile and Quartile

Percentiles divide the data into 100 equal parts, on the contrary, quartiles divide the set of data
into four equal parts. We calculated the quartiles on the dividend data of Sandhani Life Insurance.

2.4: Bar Chart, Pie Chart and Frequency Polygon

Those items mainly show the graphical representation of qualitative
data.

2.5: Simple Index

In a simple index, we make a comparison between the base period and current period. In
our report, we choose 2012 as the base period and 2014, 2015 and 2016 as given period.

3
Chapter 3: Analytical Study
In this chapter we have shown the findings of our analysis. We have calculated
mean, median, mode, standard deviation, variance, Coefficient of variance, simple
index etc.

3.1: Graphical Representation of Data

Figure 3.1: Frequency polygon of daily share price
34.50
Frequcency Polygon
34.00

33.50

33.00

32.50

32.00

31.50
31.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Source: Appendix A1
Interpretation: The Frequency polygon shows the Classes in horizontal axis and class
frequency in vertical axis. Every dot represents the interest point of each class and
their frequency.

3.2: Measures of Location

Mean 32.89

Median 32.70

Mode 32.30

Source: Appendix A1

4
Mean:
X=∑Xi/n
∑Xi= total closing price=625TK
n= total sample = 19

So X= 625/19=32.89TK
Interpretation: Here we have used the closing share price of 2016 of Sandhani Life Insurance
Company Limited. The mean closing price of share is BDT 32.89. This means that their share
had an average value of BDT 32.89. From the data we see that there is a little fluctuation among
the price in December 2016.
Median:
Interpretation: Here the median is BDT 32.70. The typical closing price of share was
BDT
32.70 in 2016. It is the mid value of the share price. That means 50% value is above this and
50% is below this.
Mode:
Interpretation: The mode of the share price is BDT 32.30. That means this value is appeared
more in the price list.
The mean is highly affected by large and small number so the median or mode is better measure of
location for this. And as the mode is easy to calculate we can take it as measure of location for this
purpose.

3.3: Measures of Dispersion

Range 1.80

Variance 0.293859649

Standard deviation 0.54208823

Source: Appendix A1
Range:
Range= Maximum value- Minimum value
The maximum share price is BDT 34.10 and the minimum price is BDT 32.30. So the range is
BDT 1.80. It’s representing small amount of dispersion in the share price.
Variance:
The variance is BDT 0.293859649. This refers to the difference between each closing price and
the mean price. Here the prices are more concentrated.

5
Standard Deviation:
The standard deviation is 0.54208823. It shows a small deviation from the mean. In finance it
also shows the risk for and investment.
Coefficient of Variance:
Found by dividing the Standard Deviation by the mean and finding the percentage of it. In
symbol
CV=Sx/
X*ͳͲͲ
Interpretation: When the return is same and risk is different than we use it. It also helps us to
measure risk.

3.4: Location of Position

If we want to find any sample based on its position we use location of position. We have
used the data from Appendix A1 to calculate the location of position.
Quartiles:
1st quartile:
Lp = (n+1)* p/100

n=19
p=25
Lp= (19+1)*25/100

Interpretation: The first quartile is BDT 32.5 which means 25% data is below this and 75% data
is above this BDT 32.5
2nd quartile:
Interpretation: The Second quartile is BDT 32.7 Which is actually the median itself. It means
50%
data is above this and 50% is below
this.
3rd quartile:
Interpretation: 5% of the observations are less than BDT 32.3.and 25% is above
this.

3.5 Simple Index

6
In simple index, we compared the current data with base period’s data. Here, we use the
after tax net income of Sandhani Life Insurance. In appendix A2, we showed the data and
full calculation.

7
Formula:
Simple Index= (Pt / Po) (100)
Here, Pt =Current net income of 2014, 2015, 2016
P0 = Base period as well as net income of 2012
Interpretation: We found that after net income increased 4.28% from 2012 until 2016.

8
Chapter 4: Conclusion

We have shown how easily can an insurance company can present and interpret its data
and numbers in a presentable way. In this era, it is true for all the profit, non-
profit organization and even for the government to do things easily without statistic.
Wherever we go whatever we do we will need statistic in order to make our short life even
more simple and easy.

9
Works Cited
Dhaka Stock Exchange. (2017, November 9). Trade Info and Dividend Data of All Listed
Company. Dhaka, Motijhil, Bangladesh.
Lind, D. A. (2015). Statistical Techniques in Business & Economics. New York: Mc Graw Hill
Education.
Rentz, K. (2015). Lesikar's Business Communication. Chicago: McGraw-Hill Irwin.
Sandhani Life Insurance. (2017). About Us: Sandhani Life Insurance. Retrieved December 3,
2017, from Sandhani Life Insurance:
http://www.sandhanilife.com/index.php/Pages/view/MQ==

1
Appendix A1

Calculation of measure of location

TRADEDATE Closing Price

04-12-2016 32.30

18-12-2016 32.30

21-12-2016 32.30

20-12-2016 32.40

11-12-2016 32.50

12-12-2016 32.50

14-12-2016 32.60

15-12-2016 32.60

19-12-2016 32.60

07-12-2016 32.70

06-12-2016 32.80

05-12-2016 32.90

08-12-2016 32.90

22-12-2016 33.30

26-12-2016 33.50

27-12-2016 33.50

29-12-2016 33.50

01-12-2016 33.70

28-12-2016 34.10

1
Appendix A2
Calculation for simple index number

After tax net Amount in BDT crore Index

income
2012 32.7 100
2014 33.5 102.45
2015 32.3 98.78
2016 34.1 104.28

1
Appendix A2
Calculation of Standard Deviation
TRADEDATE Closing Price (Xi X)
2
(Xi̵̵X)
Xi X

1/12/2016 33.7 32.89 0.81 0.6561

4/12/2016 32.3 32.89 -0.59 0.3481

5/12/2016 32.9 32.89 0.01 1E-04

6/12/2016 32.8 32.89 -0.09 0.0081

7/12/2016 32.7 32.89 -0.19 0.0361

8/12/2016 32.9 32.89 0.01 1E-04

11/12/2016 32.5 32.89 -0.39 0.1521

12/12/2016 32.5 32.89 -0.39 0.1521

14-12-2016 32.6 32.89 -0.29 0.0841

15-12-2016 32.6 32.89 -0.29 0.0841

18-12-2016 32.3 32.89 -0.59 0.3481

19-12-2016 32.6 32.89 -0.29 0.0841

20-12-2016 32.4 32.89 -0.49 0.2401

21-12-2016 32.3 32.89 -0.59 0.3481

22-12-2016 33.3 32.89 0.41 0.1681

26-12-2016 33.5 32.89 0.61 0.3721

27-12-2016 33.5 32.89 0.61 0.3721

28-12-2016 34.1 32.89 1.21 1.4641

29-12-2016 33.5 32.89 0.61 0.3721

Sum of Xi= Sum of
2
625 (Xi̵X)
5.2899