You are on page 1of 25

FACULTY OF APPLIED SCIENCE

DIPLOMA IN SCIENCE
AS120

STATISTICS & PROBABILITY


STA108
GROUP PROJECT
RELATIONSHIP BETWEEN SOCIAL MEDIA PROMOTION AND SALES FOR 100
DIFFERENT COMPANIES

GROUP: AS1204I
LECTURER’S NAME:NOOR AMALINA NISA BINTI MOHD ARIFFIN
DUE DATE: 3 JULY 2022

NO. NAME NO. MATRIX

1 NUR’AIN BINTI BADRUL HISYAM 2020464184

2 NURUL ATIKAH BINTI WAN IBRAHIM 2020476378

3 NUR SYAZWANI BINTI AB SHARIF 2020882694


TABLE OF CONTENT

ACKNOWLEDGEMENT……………………………………………………………………………. 2

CHAPTER 1: INTRODUCTION

1.1 Background of Study ………………………………………………………………………….. 3


1.2 Objectives of Study …………………………………………………………………………….. 3
1.3 Significance of Study …………………………………………………………………………... 4

CHAPTER 2: METHODOLOGY

2.1 Data Description ………………………………………………………………………………... 5


2.2 Graphical Technique …………………………………………………………………………… 6
2.3 numerical Technique …………………………………………………………………………… 8

CHAPTER 3: RESULTS AND INTERPRETATION

3.1 Data Presentation …………………………………………………………………………….. 12


3.2 Descriptive Statistics Analysis ………………………………………………………………. 18
3.3 Correlation and Regression Analysis ………………………………………………………. 19

CHAPTER 4: CONCLUSION

4.1 Report Summary ……………………………………………………………………………… 22

REFERENCES…………………………………………………………………………………….. 23

1
ACKNOWLEDGEMENT

First and foremost, we would like to express my deepest gratitude to my lecturer,


Madam Noor Amalina Nisa for the patience and dedication that she showed throughout this
whole semester teaching us. Her guidance has helped a lot in the completion of this study
report. Beside my lecturer, we would like to thank the rest of the team members who
contributed in writing this study report. Thank you for the cooperation and dedication in
writing this study. Last but not least, we want to thank our parents and family for giving birth
to us and continuously giving us their support and also keep praying for our success. Thank
you.

2
CHAPTER 1: INTRODUCTION
1.1 Background Study

The Internet and social media are common things that almost all of society have,
especially in this modern era. According to Jones (2013), social networking has evolved into
an obsession and practically a way of life for online culture, altering how we interact with
coworkers, loved ones, and our favourite brands. The data statistics showed that 132.7
million people used the internet in Indonesia in 2018, while 130.0 million people used social
media.

The corporate environment has been impacted by the internet's recent rapid
expansion, particularly in marketing. With new promotional tools, consumer interactions, and
relationship-building, the internet gives businesses the chance to reach a larger audience
and develop appealing value propositions that were previously impossible. Because buyers
and sellers communicate with each other via internet connections and the interaction allows
for the development of customer relationships, the internet has also fundamentally altered
how buyers and sellers engage. As a result, the prospect of being able to better serve clients
and meet their demands has delighted the vendor.

Every company's marketing development is a crucial and pertinent area that can
raise recognition and net profit. Every business organisation in the current world can
accomplish marketing objectives online. It should be mentioned that when attempting to
achieve the specified goals, a specific social network, or a mix of several of them at the
same time may be important. It's important to consider the aspects of social networks that
contribute to the company's goals being met. The definition and categorization of social
networks, the safety of personal information on social media platforms, and the significance
of online word-of-mouth are all given a lot of attention.

1.2 Objectives of Study

1. To investigate the relationship between two variables which are social media promotion
and company sales.

2. To obtain the type of graph that is suitable for the data.

3. To find the values of mean, standard deviation, and interquartile range.

3
4. To determine the correlation and regression of data.

1.3 Significance of Study

There are some of the significance that have been discovered during this study. The
first one can interact with customers. This may be one method a firm uses to understand its
needs to meet client expectations. An organisation's contact with individual customers was
facilitated by social media. For businesses that don't use it, it poses a challenge, but it also
presents a significant opportunity. The next one is as internet communication has grown,
marketers are now able to share and exchange information with customers, and customers
are also able to do the same with other customers. The ability to share knowledge and
information among other people online has become one of the main benefits of using social
media. Through the creation of chats, forums, and other entities, which are commonly
referred to as connected communities, businesses start interacting with customers and
allowing for interactivity among them. Finally, social media also can lead to the growth in
business. Growing trends show that social connection between businesses and customers
boosts revenue and strengthens customer loyalty. According to an SMM research, more
than 65% of firms use social media to increase leads.

4
CHAPTER 2: METHODOLOGY
2.1 Data Description

In this study, the population refers to all of the elements of a group where
measurement of data was taken. These elements can be either a group of individuals,
objects, events, organizations and many others and can be in large or small numbers.
Meanwhile, sample in statistics refers to a group of interest that was picked from the
population to represent the whole data. Sample was used in study when the number of the
population is too large therefore, a subset of the population was used in estimation to the
whole population. This group of samples can be determined by using a selection process
called a sampling technique. However, there is no sampling technique used in this study
because the data was not collected first-hand by the researcher. In this study, population
refers to the company that used social media promotion. The sample that was used for this
study is 100 different companies that use social media promotion to advertise their business.
The source of data that was used in this experiment is secondary data. This source of data
can be defined as the existing data that was collected by another person previously and was
shared publicly for the use of a third party. This source of data is different from primary,
which is first hand data collected by the researchers by using methods like interviews,
questionnaires, direct observation or online surveys. The advantages of using secondary
data is it consumes less time, cost and effort because the data is ready and always available
for use. This, however, means that the data may contain errors and cannot be trusted as
authentic. Primary data , despite consuming more cost, time and effort to perform, is more
accurate and reliable considering the data was tailored specifically to meet the researcher's
needs.

In statistics, there are 2 types of variables which are qualitative variable and
quantitative variable. Qualitative variable is a non-numeric form of data that is descriptive
and is expressed in terms of language. Some of the examples for qualitative variable are
gender, race and brand of shirts. As for quantitative variable, it can be defined as data that
can be expressed in numbers and graphs. Some examples for quantitative data are income,
weight, height, size and age.. Quantitative variable can be categorized in two types which
are discrete quantitative variable and continuous quantitative variable. Discrete quantitative
variable is a distinct, countable value that can be measured precisely. Examples for discrete
quantitative variable are the number of students in the library, the number of components
produced from an assembly line and the shoe size of a sample of students. Meanwhile,
continuous quantitative variable can be defined as data that can be approximated to some

5
degree of accuracy within a given range. This is because the possible values for continuous
variable are infinite and can include all the fraction and decimals values within a range.
Examples for continuous quantitative variable are lengths, heights, weights and temperature.
From the data collected in this study, the description for the variables which social media
promotion that act as the independent variable and company sales that act as the dependent
variable is as the table below:

Variables Types of variables Scale of measurement

Social media promotion Continuous quantitative variable Ratio scale


● The value was measure ● Involve a true zero
in numbers. point

Company sales Continuous quantitative variable Ratio scale


● The value was ● Involve a true zero
expressed point

2.2 Graphical Technique

There are several graphical techniques that were learned in this subject. Some of
the graph included bar chart, histogram, ogive and scatter plot.

Histogram is a graphical representation of class frequencies. The x-axis in the graph


represents the class boundaries of the data and the y-axis represents the class frequencies.
The x-axis which is the class frequency was labelled at equal intervals. Then, vertical bars
were drawn along the equally labelled intervals with the same width and no space between
the bars. The height of the bar will follow the class frequency of the data. If the bar has
unequal class widths then extra calculation was needed in order to determine the frequency
density. The class frequency will instead be replaced with frequency density as the height of
the bar.

6
Figure 2.1

Ogive or also known as cumulative frequency polygon is a type of graph that was
constructed to visualise the cumulative frequencies with similarity to histogram. The
difference between histogram and ogive is that ogive was plotted with a single point marking
at top to mark the cumulative frequency instead of vertical bars like in histogram. The type of
cumulative frequencies is the less-than ogive which was obtained by plotting the less-than
cumulative frequencies against the upper class boundaries. On the x-axis, will be the class
boundaries which will be ,arked at equal intervals while the y-axis will represent the
cumulative frequencies. Then the single point marking will be connected by smooth curves.

Figure 2.2

Scatter plot is the visualisation of the relationship between the independent variable
and dependent variable. The x-axis of the graph will represent the independent variables
while the y-axis will represent the dependent variables. Single mark was marked on the

7
graph as a representation of one study participant’s measure on the variable. The
coordinates of the axes will be determined by the smallest and largest data values of the
variable and the scales of the variables can differ.

Figure 2.3

2.3 Numerical Technique

The data in study can be measured using Measures of Central Tendency. Measure
of Central Tendency can be defined as a single value that represents the whole data. The 3
most common measures of central tendencies are mean, median and mode.

Mean is the average value for a set of data. Mean is fairly easy to calculate and it is
suitable for algebraic manipulation. However, unlike median and mode, the value of mean
cannot be found in the graph. Other than that, the value can differ for grouped and
ungrouped data. The formula that can used to calculate mean is:

Median can be defined as the middle value of a data when sorted in ascending or
descending order. Median falls in the middle where 50% of the observed data is more than
the median value and another 50% of the observed data is less than the median value. In
order to calculate the median, all the values of data are not needed and only the value in the

8
median position is needed. However, median is not suitable for mathematical treatment in
advanced work. The formula that can be used to calculate median is:

Mode is the value that appears most frequently or has the largest frequency in a set
of data. Mode can have one value, more than one value or no value at all. The advantages
of mode is it has an actual value and can be used to describe both quantitative and
qualitative data. However, in grouped data, the value mode can only be estimated and is not
suitable for any knid of statistical calculation. The formula that can be used to calculate
mode is as follow:

The next numerical technique that can be used is the measures of location. The
common measures of location are quartiles and percentiles. Quartile can be used to
calculate interquartile range also can be define as measure of variability around median. A
quartile divides data into three points which is first quartile also known as lower quartile is
the same as 25th percentile, second quartile also known median is the same as 50th
percentile and third quartile also known as upper quartile is the 75th percentile. The formula
that can be used to calculate quartile is:

9
The data in this study also can be measured by measure of dispersion. Dispersion
can be defined as the dispersing, stretching and categorizing of data. In statistics, data
dispersion was used to classify the dataset into their own specific dispersion criteria for easy
understanding. Mean is the measure of central tendency that is mostly used and very
important to describe how that data is scattered and or spread from the central value.

Range can be described as the difference between the largest and the smallest
values in a set of data. Range of the data is very easy to calculate for both ungrouped and
grouped data. However, in order to calculate range, all values in the data set is not needed
and range is very sensitive to outliers. The formula that can be used to calculate range is as
follows:

Next, the most commonly used measure of dispersion is standard deviation which is
the square root of the sum of squared deviation from the mean. The advantages of standard
deviation is it can help in detecting skewness. However, standard deviation is not suitable
measure of dispersion for skewed data. The formula that can be used to calculate standard
deviation is:

Coefficient of Variation (CV) is the ratio of the standard deviation to the mean of the
data. Coefficient of Variation can be used to compare the degree of variation from one data
to another. The formula that can be used to calculate the Coefficient of Variation is as
follows:

10
Lastly, Pearson’s coefficient of skewness which can be defined as a way to measure
the strength of the skewness of a dataset. Based on the value of the coefficient of
skewness, the distributions of one’s data can be determined. If the value of coefficient of
skewness is equal to zero then the distribution is symmetry. If the coefficient of skewness is
less than zero than the distribution is a negative one therefore it skewed to the left.
Meanwhile, if the coefficient of skewness is greater than zero then the distribution is a
positive one and it is skewed to the right. The formula that can be used to calculate
coefficient of skewness is:

11
CHAPTER 3: RESULTS AND INTERPRETATION
3.1 Data Presentative

Company Social Media Sales Company Social Media Sales (in


(in Millions) (in Millions) (in Millions) Millions)

1 2.91 54.73 51 0.46 104.35

2 2.41 46.68 52 7.24 326.38

3 2.91 150.18 53 8.70 300.73

4 6.92 298.25 54 3.37 255.16

5 1.41 56.59 55 2.09 161.72

6 1.03 105.89 56 2.40 39.63

7 4.27 198.68 57 1.73 169.01

8 2.29 108.73 58 0.41 50.99

9 7.13 270.19 59 2.44 70.47

10 2.23 48.28 60 3.36 58.59

11 5.15 224.96 61 6.10 237.77

12 3.19 145.54 62 6.11 322.10

13 3.92 229.63 63 2.64 181.08

12
14 3.03 276.17 64 2.53 145.92

15 2.37 121.34 65 0.36 228.56

16 0.06 123.53 66 3.95 288.98

17 0.94 212.76 67 4.53 49.82

18 1.85 89.82 68 8.08 299.10

19 3.67 353.80 69 6.55 351.36

20 4.64 329.35 70 1.08 55.01

21 3.88 162.19 71 6.74 223.10

22 2.83 276.40 72 4.59 247.14

23 4.56 128.48 73 5.51 274.71

24 6.89 349.86 74 3.21 289.18

25 1.23 272.25 75 4.12 168.04

26 4.06 192.46 76 0.87 91.18

27 4.62 342.91 77 3.24 198.32

28 2.18 96.75 78 6.06 349.75

29 3.06 76.99 79 0.83 166.14

13
30 1.97 139.29 80 2.41 59.29

31 5.57 234.85 81 2.64 272.63

32 6.43 323.03 82 2.14 77.42

33 3.56 40.79 83 3.59 349.42

34 5.26 290.78 84 3.82 127.09

35 2.81 150.63 85 1.31 43.07

36 1.91 161.79 86 9.32 336.59

37 4.08 155.60 87 3.70 345.31

38 6.20 263.02 88 4.03 154.21

39 2.19 281.58 89 6.40 304.74

40 3.42 231.67 90 5.79 335.21

41 2.59 148.71 91 1.92 104.18

42 5.61 294.95 92 2.36 112.27

43 3.22 242.82 93 4.21 103.63

44 8.53 351.77 94 3.22 262.40

45 0.68 91.92 95 4.19 51.44

14
46 1.59 32.57 96 7.67 336.76

47 7.78 318.97 97 0.33 72.63

48 2.68 115.26 98 3.80 174.20

49 0.04 101.87 99 0.56 99.00

50 2.57 111.90 100 1.55 56.19

Data: Social Media promotion Vs Sales for 100 different companies

3.1.1. Data and Demographic of Social Media Promotion of Company

MEDIA PROMOTION

Class interval Mid-point Frequency Cumulative


frequency

0.0 - 0.9 4.50 11 11

1.0 - 1.9 1.45 12 23

2.0 - 2.9 2.45 22 45

3.0 - 3.9 3.45 19 64

4.0 - 4.9 4.45 12 76

5.0 - 5.9 5.45 6 82

6.0 - 6.9 6.45 9 91

7.0 - 7.9 7.45 5 96

8.0 - 8.9 8.45 3 99

9.0 - 9.9 9.45 1 100

DATA: Social Media Promotion (in Millions)

15
Figure 1: Ogive Graph of Company vs Media Promotion

This ogive graph provides information about the numbers of company versus media
social promotion from companies. Based on the frequency in the data above, the highest
number of companies which is 22 companies are doing social media promotion in the range
of 2.0 millions to 2.9 millions. There is only one company that successfully makes social
media promotion between 9.0 millions to 9.9 millions.

3.1.2. Data and Demographic of Sales Company

SALES

Class interval Class boundary Mid-point Frequency Cumulative


frequency

10 - 49 9.5 - 49.5 29.5 7 7

50 - 99 49.5 - 99.5 74.5 17 24

100 - 149 99.5 - 149.5 124.5 17 41

16
150 - 199 149.5 - 199.5 174.5 15 56

200 - 249 199.5 - 249.5 224.5 10 66

250 - 299 249.5 - 299.5 274.5 16 82

300 - 349 299.5 - 349.5 324.5 15 97

350 - 399 349.5 - 399.5 374.5 3 100

DATA: Company Sales

Figure 2: Histogram Graph of Company vs Sales

From this Histogram Graph, there are 17 companies that make sales between 49.5
millions to 99.5 millions while another 17 companies making sales in the range of 99.5
millions until 149.5 millions. Meanwhile, the companies that make sales in the range of 349.5
millions until 399.5 millions which is the smallest number of companies are 3 companies.

17
3.2 Descriptive Statistic Analysis

Statistics

Media
Promotion Sales

N Valid 100 100

Missing 0 0

Mean 3.5859 189.0913

Median 3.2200 168.5250

Mode 2.41a 32.57a

Std. Deviation 2.15966 101.64606

Range 9.28 321.23

Minimum .04 32.57

Maximum 9.32 353.80

Percentiles 25 2.1500 102.3100

50 3.2200 168.5250

75 4.6350 280.2850

a. Multiple modes exist. The smallest value is shown

3.2.1. Measure of central tendency


The total company for media social promotion and sales is 100. The mean (average) of
media promotion and sales is 3.5859 millions and 189.0913 millions respectively. As shown
in the table, the average of media social promotion (millions) is 3.5859 meanwhile the
average of sales companies (millions) is 189.0913. 50% of the social media promotion
(millions) is less than 3.5859 and the other 50% is more than 3.5859. For a sales company,
50% of sales (millions) is less than 189.0913 and another 50% is more than 189.0913. The
mode of social media promotion (millions) is 2.41a compared to the mode of sales company

18
which is 32.57a. This means the number of most companies that have the same social media
promotions (in millions) is 2.41a while the number of companies making the same number of
sales is 32.57a.

3.2.2. Measure of position


The minimum value and maximum value of the media promotion (millions) is 0.04 and
9.32 respectively. Meanwhile, sales (millions) minimum value 32.57 is and the maximum
value is 353.80. Therefore, the smallest value in the data set of company promotion and
sales is 0.04 and 32.57 respectively while the largest value in the data set for both is 9.32
and 353.80 respectively. Next, 25% of the media promotion (millions) is less than 2.1500
and another 75% is more than 2.1500. 75% of the media promotion (millions) is less than
4.6350 and 25% is more than 4.6350. As for sales companies, 25% of the variable is less
than 102.3100 and 75% is more than 102.3100. 75% of sales companies are less than
280.2850 and the other 25% is more than 280.2850.

3.2.3. Measure of dispersion


The range of social media promotion (millions) and the sales company (millions) are 9.28
and 321.23 respectively. As shown in tables above, standard deviation for the media
promotion (millions) is 2.15966 .Next, the standard deviation for sales company (millions) is
101.64606. This can be concluded that the dispersion of the data is in relation to the mean
for media promotion and sales is 2.15966 and 101.64606 respectively.

3.3 Correlation and Regression Analysis

Correlation and regression analysis is to study the relationship between media promotion
and sales among companies. The independent variable for this study is social media
promotion (Millions) and the dependent variable is sales company.

3.3.1 Correlation Analysis

Model Summary

19
Adjusted R Std. Error of the R Square
Model R R Square Square Estimate Change

1 .682a .465 .460 74.72059 .465

Both the R and R Square value which is 0.692a and 0.465 denote that they have a strong
correlation
.

Scatter Plot

DATA: Scatter Plot for Media Promotion vs Sales Company

From the scatter plot diagram above, we can interpret that the two variables for Graph of
Media Promotion versus Sales Company have a medium positive correlation. The graphs
also have a constant variance.

20
3.3.2. Regression Analysis

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 73.994 14.537 5.090 .000

Media 32.097 3.477 .682 9.231 .000


Promotion

a. Dependent Variable: Sales

The result of Pearson Product Moment (r) shown in table below which is r = 0.682. It
shows a positive correlation between the two variables which are media promotion and sales
among companies. It means that if the company makes more media promotion, it will
increase the sales of the company. The Coefficient of Determination (r2) is used to
determine the ratio of the explained variation to the total variation. In this study, r2 is (0.682)2
= 1.364 point out that 13.64 % of the variation of the sales company(Y) is explained by the
media promotion(X) and the remaining 86.36% is unexplained variability in sales

The regression equation for this study,

Sales Company (y) = 73.994 - 32.097

The Media Promotion (x) from the above equation, when the social media promotion is
increased by Millions, Sales Company will increase by 32.097 Millions. If the media
promotion is zero, the sales of the company will remain at 73.994.

21
CHAPTER 4: CONCLUSION
4.1 Report Summary

As a conclusion, the relationship between two variables which are social media
promotion and company sales for 100 different companies is positive. Therefore, it is proven
that social media promotion does affect company sales. The higher the social media
promotion, the higher company sales. This is because social media promotion provides a
medium for businesses to reach and interact with bigger audiences and create a perfect
marketing strategy to attract their buyers. Next, the type of graph that is suitable for the data
is histogram and ogive for it shows frequency distribution of the data. Other than that, the
value of mean from the data for social media promotion is 3.5859 while mean for sales is
189.0913. The standard deviation for both social media promotion and company sales is
2.15966 and 101.64606 respectively. The interquartile range calculated from the data for
both social media promotion and sales is 2.485 and 177.975 respectively. Based on the
scatter plot diagram, both the dependent and independent variables which are sales and
social media promotion respectively have medium positive correlation. The variance also
can be determined which is constant variance. Next, from the Pearson Product Moment, the
two variables show a positive correlation thus indicating that the sales will increase if the
social media promotion is increased. The regression equation obtained from this study which
is Sales Company (y) = 73.994 - 32.097 imply that if the social media promotion increased
by Millions then the sales will increased by 32.097 Millions.by this, we can conclude that all
the objective from this study has been achieved and completed.

22
REFERENCES

1. Bhandari, P. (2020, July 30). Central Tendency | Understanding the Mean, Median &
Mode. Scribbr. Retrieved from: https://www.scribbr.com/statistics/central-tendency/

2. Chen, J. (2021, August 18). Histogram. Investopedia. Retrieved from:


https://www.investopedia.com/terms/h/histogram.asp#:~:text=A%20histogram%20is
%20a%20graphical,into%20logical%20ranges%20or%20bins.

3. Coefficient of Skewness. (n. d.). Cuemath. Retrieved from:


https://www.cuemath.com/data/coefficient-of-skewness/

4. Fromplus Blog. (2020, January 15). Primary vs Secondary Data:15 Key Differences
& Similarities. Formplus. Retrieved from:
https://www.formpl.us/blog/primary-secondary-data

5. Hayes, A. (2021, April 16). Coefficient of Variation (CV). Investopedia. Retrieved


from: https://www.investopedia.com/terms/c/coefficientofvariation.asp

6. Hayes, A. (2022, June 30). Mean. Investopedia. Retrieved from:


https://www.investopedia.com/terms/m/mean.asp

7. Hayes, A. (2022, May 19). Mode. Investopedia. Retrieved from:


https://www.investopedia.com/terms/m/mode.asp

8. Manikandan S. (2011). Measures of dispersion. Journal of pharmacology &


pharmacotherapeutics, 2(4), 315–316. https://doi.org/10.4103/0976-500X.85931

9. Newberry, C. (2022, April 5). Social Selling: What it is, Why You Should Care, and
How to Do It Right. Social Media Marketing & Management Dashboard.
https://blog.hootsuite.com/what-is-social-selling/

10. Ravikiran, A. S. (2022, June 24). Population vs Sample: Definitions, Differences and
Examples. simplilearn. Retrieved from:
https://www.simplilearn.com/tutorials/machine-learning-tutorial/population-vs-sample

23
11. Sugandhi, A. (2021, May 27). Measures of Dispersion: All You Need to Know.
Knowledgehut. Retrieved from:
https://www.knowledgehut.com/blog/data-science/dispersion-in-statistics

12. Sweeney, D. (2012, April 4). Communication: The Link Between Social Media and
Sales. Social Media Today.
https://www.socialmediatoday.com/content/communication-link-between-social-media
-and-sales

13. Thomas, S. (2022, February 17). Discrete vs. Continuous Variables: Meaning and
Differences. Outlier. Retrieved from:
https://articles.outlier.org/discrete-vs-continuous-variables

24

You might also like