ASSIGNMENT

Course Tittle Pearson BTEC Level 5 Higher National Diploma in Business

Unit Number and Unit 31: Statistics for Management (SFM)

Title:

Assignment Title Data Analysis and Presentation

Name of the Learner Suhail Dilsard

Ref. No. of the 1020162 Pearson Regd. No.

Learner

Assignment Number 1 Batch No & Semester

Issue Date 24.07.2021 Submission Date 02.10.2021

Re-submission Date 02.11.2021 Academic Year

Unit Assessor: Thafani Rasheed Internal Verifier Dilshan

Dissanayaka

Assessor’s Feedback

Grade: Assessor Signature: Date:

Resubmission Feedback

Grade: Assessor Signature: Date

Internal Verifier’s Comments

Signature of the IV Date

Student Agreement: Student Signature

I understand the feedback given to me and agree to carry out Date

the actions in future works as required and indicated.

Please note that grade decisions are provisional. They are only confirmed once internal and
external moderation has taken place and grades decisions have been agreed at the assessment
board.
Plagiarism Policy

The submission of work that borrows ideas, words, diagrams, or anything else from another source
(or sources), without appropriate acknowledgement, constitutes plagiarism. Plagiarism is not
limited to unattributed cutting-and-pasting; it includes the reproduction, without
acknowledgement, of someone else's work, taken from a published (or unpublished) article, a
book, a website, a friend’s (or anybody else’s) assignment, or any other source. When an
assignment or report uses information from other sources, the student must carefully acknowledge
exactly what, where and how s/he has used them. If someone else’s words are used, they must be
within quotation marks and a reference must follow the quotation. Failing to do so leads to
academic misconduct. Academic misconduct is defined as any type of cheating in an assessment
for the purposes of achieving personal gain. When it is determined that academic misconduct has
taken place, a range of penalties may be prescribed which includes expulsion from the programme.

Student Declaration

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 signature: Date:

Unit Learning Outcomes:

LO1 Evaluate business and economic data/information obtained from published sources.

LO2 Analyse and evaluate raw business data using a number of statistical methods

2|Page
LO4 Communicate findings using appropriate charts/tables

3|Page
 Assignment Brief and Guidance

Assume you are applying for a position of Business Analyst in a reputed multinational
organisation. As a part of the selection process, you are presented with a set of data and required
to analyze the data using relevant techniques and present the findings.

You are given the below monthly time series data of beef consumption, beef prices, income, and
chicken prices from 2019 and 2021 in a town:

Qt – Quantity of beef demanded in month t (millions of pounds)

Pt – Price of beef in month t (cents per pound)
It – Disposable income in month t (Millions dollars)
ChickPt – Price of chicken in month t (cents per pound)

Year Month Q P I ChickP

1 211,865 168.2 5,118 75.0

2 216,183 168.2 5,073 75.9

3 216,481 161.8 5,026 74.8

4 219,891 157.2 5,131 73.4

5 221,934 155.9 5,250 73.6

6 217,428 157.2 5,137 74.6

2019
7 219,486 152.9 5,138 71.4

8 218,972 151.9 5,133 69.3

9 218742 147.4 5,152 70.9

10 212243 160.4 5,180 72.3

11 209344 168.4 5,189 76.2

12 215232 172.1 5,213 75.7

2020 1 222,379 159.7 5,219 75.0

2 219,337 152.9 5,247 73.7

4|Page
 3 224,257 149.9 5,301 74.2

4 235,454 144.6 5,313 75.1

5 230,326 151.9 5,319 74.6

6 228,821 150.1 5,315 77.1

7 229,108 156.5 5,339 85.6

8 225,543 164.3 5,343 93.3

9 220,516 160.6 5,348 81.9

10 221,239 163.2 5,344 92.5

11 223,737 162.9 5,351 82.7

12 226,660 160.4 5,345 81.8

Your task now is producing analysis of given raw data and communicating findings
appropriately.

1. Evaluate nature and process of business data obtained from published sources and
suitable methods of analysis for the data.
2. Evaluate the differences between descriptive and inferential data.
3. Using sets of given data, you are to calculate a range of descriptive and inferential
statistics. Justify the use of different methods.
4. Present your findings in the appropriate format using a range of graphs and charts
to communicate data analysis.

Submission Format

The submission is in the form of a research report. The research report should be written in a
concise academic style using 1,5 line spacing and font size 11 of Arial to summarise and
highlight key information and data. You are required to make use of headings, paragraphs and
subsections as appropriate, and all work must be supported with research and referenced using
the Harvard referencing system. Please also provide a bibliography using the Harvard

5|Page
referencing system. The recommended word limit is 2,000–2,500 words, although you will not
be penalised for exceeding the total word limit.

6|Page
 Learning Outcomes and Assessment Criteria

Pass Merit Distinction

LO1 Evaluate business and economic data/information

obtained from published sources

P1 Evaluate the nature and M1 Critically evaluate the

process of business and methods of analysis used to
economic data/information present business and economic
from a range of different data/information from a range
published sources. of different published sources.

P2 Evaluate data from a

variety of sources using
different methods of analysis.

D1 Critically evaluate the

LO2 Analyse and evaluate raw business data using a number
differences in application
of statistical methods
between methods of
P3 Analyse and evaluate M2 Evaluate the differences in descriptive, exploratory
qualitative and quantitative application between and confirmatory analysis
raw business data from a range descriptive statistics, of business and economic
of examples using appropriate inferential statistics and data.
statistical methods. measuring association.

LO4 Communicate findings using appropriate

charts/tables
P5 Using appropriate
charts/tables communicate
findings for a number of given
variables.
D3 Critically evaluate
the use of different types
M4 Justify the rationale
of charts and tables for
for choosing the method of
communicating given
communication.
variables.

7|Page
 Formative Feedback

Grading
Comment
Criteria

P1

P2

P3

P5

M1

M2

8|Page
 M4

D1

D3

9|Page
Contents

1.0 Introduction...................................................................................................................................... 11

2.0 Conceptual Framework.................................................................................................................... 12

3.0 Data Collection................................................................................................................................ 13

4.0 Methods of Analysis........................................................................................................................ 15

5.0 Descriptive Analysis........................................................................................................................ 18

6.0 Scatterplots..................................................................................................................................... 20

7.0 Correlation Analysis......................................................................................................................... 22

8.0 Regression Analysis........................................................................................................................ 24

9.0 Conclusion....................................................................................................................................... 27

10. References...................................................................................................................................... 28

10 | P a g e
1.0 Introduction
Statistics is the study of data, which includes describing the properties of data (descriptive statistics)
and drawing conclusions about a population based on information from a sample (inferential statistics).
The difference between a population and its parameters and a sample and its statistics is one of the
most important ideas in inferential statistics. From the information in a sample, conclusions can be
made about the whole population from which the sample was taken.

Most of the time, statistical analysis is used to gather and study a lot of data. Statistics is a branch of
math that uses charts, tables, graphs, and other tools to do calculations on large amounts of data.
Measurements are the pieces of information that are collected for analysis. Now, if we need to measure
the data based on a situation, we take a sample from a population. The next measurement is then
looked at or figured out.

A month's worth of information about a certain town is given so that it can be analyzed and important
relationships between variables can be seen. There are mainly four variables: the amount of beef sold
in a month (in millions of pounds), the price of beef in a month (in cents per pound), the amount of
money people has to spend in a month (in millions of dollars), and the price of chicken in a month
(cents per pound). Different types of statistics (like descriptive statistics, correlation, regression
analysis, etc.) are used to look at these data and come to conclusions. When the analysis is done,
some economic theories, like the Law of Demand, are also put to the test.

The data set that is given for analysis can be thought of as secondary data because it was gathered by
someone else. All variables are thought of as quantitative and continuous data, and the right tools (line
graphs and scatter plots) are used to analyse the data.

11 | P a g e
2.0 Conceptual Framework
One or more formal theories, either in its entirety or in part, along with additional concepts and empirical
data gleaned from the body of previous research make up the components of a conceptual framework.
It is employed for the purpose of demonstrating the links between these ideas and how they relate to
the research study.

A conceptual framework is a representation of what you anticipate learning as a consequence of

conducting research. It identifies the factors that are pertinent to your study and illustrates the potential
connections that might be made between them. It is important to develop a conceptual framework
before beginning the process of data collection. It is frequently portrayed through the use of visuals.

Demand for Beef

Price of Beef

Disposable Income

Price of Chicken

Independent Variables are as follows.

 Price of Beef
 Disposable Income
 Price of Chicken

Dependent variable is the demand.

 Demand

12 | P a g e
3.0 Data Collection
Qualitative Data

Qualitative data is the descriptive and conceptual findings collected through questionnaires, interviews,
or observation. Analyzing qualitative data allows us to explore ideas and further explain quantitative
results.

Quantitative Data

The term "quantitative data" refers to information that is presented in the form of counts or numbers,
each of which may be assigned a unique numerical value. Data refers to any piece of quantifiable
information that may be utilized by academics for the purposes of statistical analysis and mathematical
computations in order for them to arrive at findings that are applicable in the real world.

Data Collection

Data collection refers to the process of acquiring, measuring, and evaluating specific insights for the
purpose of study utilizing procedures that are recognized and well-established in the field. Using the
information that they have accumulated, a researcher will be able to evaluate their hypothesis. No
matter what topic is being investigated, the part of the research process that involves acquiring data is
often the first and most important step. Research fields that require distinct types of information call for
the collection of that information to be done in accordance with certain protocols

 Null hypothesis is a statistical hypothesis that is to be tested.

 Alternative hypothesis is the alternative to the null hypothesis.

The following are the results of applying the given data set to the test of the null hypothesis and the
alternative hypothesis.

13 | P a g e
Null hypotheses
Hypotheses 1: There do not have a relationship between price of beef and demand for beef
Hypotheses 2: There do not have a relationship between disposable income and demand for beef
Hypotheses 3: There do not have a relationship between price of chicken and demand for beef

Alternative Hypotheses
Alternative Hypotheses 1: There exists a negative relationship between price of beef and demand for
beef
Alternative Hypotheses 2: There exists a positive relationship between disposable income and
demand for beef
Alternative Hypotheses 3: There exists a positive relationship between price of chicken and demand
for beef

14 | P a g e
4.0 Methods of Analysis
Descriptive Data Analysis

Descriptive methods include the construction of mean and median tables, the determination of
dispersion measures such as variance and standard deviation, and the development of cross-
tabulations, or "crosstabs," which can be used to evaluate a large number of competing hypotheses.
Differences across categories can be easily observed, and this is where many of these theories begin.
Specialized descriptive methods are used to assess segregation, discrimination, and inequality. In
order to put a number on discrimination, it is common practice to employ decomposition methods or
conduct audit investigations. More type segregation or outcome inequality is not necessarily good or
bad, but it is often considered as an indication of unjust social processes, and understanding these
processes requires a proper evaluation of the levels through time and space.

Primary Data

Primary data is a sort of information that is collected by researchers directly from primary sources
utilizing procedures such as tests, questionnaires, and interviews. Primary data is sometimes referred
to as first-hand information. Primary data are the most useful for academic research since they are
often collected directly from the point of origin, or source, of the information being investigated.

Secondary Data

Secondary data refers to information that has already been compiled from primary sources but has
been made readily available to academics so that they can use it in their own research projects. It
refers to a type of knowledge that was compiled in the past.

Advantages of Secondary Data

 Effort and time-savings

Comparatively speaking, gathering secondary data for research purposes is far less time-consuming
and difficult than gathering primary data. Researchers can skip the preparation phase and jump right

15 | P a g e
into the analytical phase. In addition, academics can concentrate on their research instead of spending
time tracking out and analyzing primary sources.

 Cost-effectiveness

In most cases, secondary research will save you money. Focus groups, hiring individuals to interview
people of interest, and maintaining a variety of sensors able to record enormous volumes of data all
come with significant costs. Secondary data, on the other hand, may require little to no financial outlay
on the researcher's part because virtually all of the relevant information is already out there. Secondary
data acquisition is still less expensive than primary data collecting even when such data is insufficient
and one must turn to data providers or otherwise spend money to acquire such data.

 Organize and clean up the data

Prior to its primary use, secondary data is routinely cleansed. This indicates that the data meets or
exceeds some criteria for acceptable data quality. Data quality concerns may be widespread if just
primary sources were used. Therefore, more effort is required to clean it up by the research community.
In addition, secondary material is often organised and easy to read, which can save time even if it
doesn't meet all the needs of the specific secondary research project at hand.

 The massive amount of information

In the end, researchers can only collect so much primary data before they need to begin analysis. Such
restrictions do not exist while using secondary data. Secondary sources include more data than
someone could possibly analyse in a lifetime. Therefore, researchers using secondary data have a
wide variety of options for collecting information.

16 | P a g e
Disadvantage of Primary Data

 There are a variety of needs.

Perhaps the largest drawback of secondary data research is that it is impossible to know in advance
whether or not the data will perfectly match the research objectives. Data analysts working with primary
sources have easy access to all the raw information they require. By contrast, secondary researchers
use only the information that they were able to gather from existing sources.

 Authority over the data gathering procedure

Secondary data analysts cannot be certain that the data is authentic and representative because it was
not acquired using strict criteria. There will always be some mystery, even if they investigate the source
and learn as much as they can about the collection.

 Lacking in originality

Researchers working in the primary research sector collect and analyse first-hand information.
Consequently, individuals will have a better opportunity to develop novel understandings. Although
secondary data analysis can also be original, it will only be so if no other researcher employs the same
data for the same study.

17 | P a g e
5.0 Descriptive Analysis
Descriptive analysis makes use of panels of people who have been trained to identify and characterize
differences between products. Members of the panel should be able to identify and rate the presence
and strength of specific sensory characteristics in a given product. The sensory scientist is able to
collect detailed information about products, down to the tiniest differences in important sensory
properties, by employing descriptive analytic methods. Although not all descriptive methods are
included, some of the most well-known and often used descriptive analysis techniques include
quantitative descriptive analysis, the Spectrums method, and time intensity.

The following will be the descriptive analysis of the details if the analysis against the Beef demand,
Beef price, chicken price and disposal income. The mean, variance, Standard Deviation and Coefficient
of Variation also has been analyses accordingly to help the analysis.

Statistics Beef Demand Beef Price Disposal Chicken Price

Income
Mean 221,049.08 158.28 5,230.17 77.11
Variance 39,031,729.56 51.91 10,130.75 38.43
Standard Deviation 6,247.54 7.20 100.65 6.20
Coefficient of Variation 3% 5% 2% 8%

18 | P a g e
 Chart Title
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Demand (Beef) Price (Beef) Disposal Income Price (Chicken)

Mean Variance
Standard Deviation Coefficient of Variation

Chart Title
Mean Variance Standard Deviation Coefficient of Variation

P r i c e (C h i c k en ) 77.11 38.43 6.28%

D i sp o sal I n c o m e 5230.17 10130.75 100.65

2%

P r i c e (B eef) 158.28 51.91 7.2

5%

D e m a n d ( B e221049.08
ef) 39031729.56 6247.54
3%

The data set shown above describes four variables. Beef demand, price, disposal income, and chicken
price are all calculated in millions of pounds. Beef is demanded 221,049 million pounds per month and
costs 158.28 cents per pound. A pound of chicken costs 77.11 cents. The price of a chicken pound is
around half that of beef. When the standard deviations of chicken and beef prices were compared,
poultry prices had a lower dispersion over mean. Chicken has cost the same as beef in the preceding
24 months. Disposable income has the lowest variance, while chicken costs have the largest. Chicken
prices have a high standard deviation when compared to the mean.

19 | P a g e
6.0 Scatterplots
A scatter plot is a representation of a set of points that is plotted on both a horizontal and a vertical axis.

Scatter plots are very important in the field of statistics because they can show the degree of
relationship, if there is any link at all, between the values of observed quantities or occurrences (called
variables). In the event that there is no connection between the variables, the points on the coordinate
plane will appear to be scattered at random. If there is a strong link, the points tend to cluster in close
proximity to a line that is straight. The usage of scatter plots, which are useful tools for the visualization
of data, can be employed to illustrate a trend.

In this investigation, the scatter plot is significant because it illustrates the relationship between the
price of beef and the demand for beef, the price of chicken and the demand for chicken, and the
amount of discretionary money.

Relationship between Price of Beef and Demand for Beef

Chart Title
45,000,000.00
40,000,000.00
35,000,000.00
30,000,000.00
25,000,000.00
20,000,000.00
15,000,000.00
10,000,000.00
5,000,000.00
0.00
0.5 1 1.5 2 2.5 3 3.5 4 4.5

Demand (Beef) Price (Beef)

20 | P a g e
 175 240,000
170 235,000
165 230,000
160 225,000
Beef Price

155 220,000
150 215,000
145 210,000
140 205,000
135 200,000
130 195,000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Price (Beef) Demand (Beef)

This chart demonstrates how both the demand for beef and the quantity of discretionary income
available to residents of a town have varied over the course of time. The income from the sale of assets
had a sizeable decline from the beginning of this year until the end of March. This was followed by a
sizeable improvement that began in April and continued through May of this year. The graph of
disposable income shows that there is a discernible increase trend from the month of August through
the month of December. This graph makes it very clear, with the exception of a few months, how
demand and income from disposals are tied to one another. This graph makes it very clear how
demand and income from disposals are related to one another.

The pattern of change in 2019 from March to June for both the pattern of change in income from
disposal and the pattern of change in demand are comparable to one another. After that time, shifts in
the income from beef sales can no longer fully explain fluctuations in the demand for beef because they
have already reached their maximum potential.

7.0 Correlation Analysis

A correlation coefficient is a way to put a value to the relationship. Correlation coefficients have a value
of between -1 and 1. A “0” means there is no relationship between the variables at all, while -1 or 1
means that there is a perfect negative or positive correlation.

The most common correlation coefficient is the Pearson Correlation Coefficient. It’s used to test for
linear relationships between data. In AP stats or elementary stats, the Pearson is likely the only one
you’ll be working with. However, you may come across others, depending upon the type of data you are
working with. It can be symmetric, where you do not have to specify which variable is dependent, and
asymmetric where the dependent variable is specified.

21 | P a g e
 Comparing two Variables Correlation Coefficient

Beef Price Vs Chicken Price 0.3616

Beef Demand Vs Beef Price -0.6008
Beef Demand Vs Disposal Income 0.6858
Beef Price Vs Disposal Income -0.1797
Chicken Price Vs Disposal Income 0.6379
Chicken Price Vs Beef Demand 0.3043

Correlation Coefficient
0.8
0.6
0.4
0.2
0
-0.2
-0.4
-0.6
-0.8

The correlation coefficient between the key variables is depicted in this graph. Beef price and disposal
income, beef price and beef demand, and beef demand and beef price all have an inverse connection.
Beef demand and disposal income have a positive relationship. Beef Demand and the other four factors
have a positive association. Beef demand and beef pricing have a moderately negative association.

Given the low correlation between beef price and disposal income (-0.18), such a claim would be
exceedingly dubious. Beef and chicken prices have a weak but positive association, hovering around
0.4. The relationship between beef prices and disposal income is negative and very weak, whereas the
relationship between chicken prices and disposal revenue is positive and moderate (around 0.64). In

22 | P a g e
other words, the law of demand theory predicts that when prices rise in response to an increase in
disposable income, chicken demand would fall.

8.0 Regression Analysis

Regression analysis is a reliable method of identifying which variables have impact on a topic of
interest. The process of performing a regression allows you to confidently determine which factors
matter most, which factors can be ignored, and how these factors influence each other.

The main uses of regression analysis are forecasting, time series modeling and finding the cause and
effect relationship between variables. Regression analysis includes several variations, such as linear,
multiple linear, and nonlinear. The most common models are simple linear and multiple linear.
Nonlinear regression analysis is commonly used for more complicated data sets in which the
dependent and independent variables show a nonlinear relationship.

The benefit of regression analysis is that it can be used to understand all kinds of patterns that occur in
data. These new insights may often be very valuable in understanding what can make a difference in
your business.

Disposable income in
Price of beef in month month
168.2 5,118
168.2 5,073
161.8 5,026
157.2 5,131
155.9 5,250
157.2 5,137

23 | P a g e
 152.9 5,138
151.9 5,133
147.4 5,152
160.4 5,180
168.4 5,189
172.1 5,213
159.7 5,219
152.9 5,247
149.9 5,301
144.6 5,313
151.9 5,319
150.1 5,315
156.5 5,339
164.3 5,343
160.6 5,348
163.2 5,344
162.9 5,351
160.4 5,345

240,000
Beef Demand (Millions of Pounds)

235,000

230,000

225,000 f(x) = 42.5707445545348 x − 1603.00581097591

220,000

215,000

210,000

205,000

200,000

195,000
5,000 5,050 5,100 5,150 5,200 5,250 5,300 5,350 5,400
Disposal Income

24 | P a g e
 175

170

165 f(x) = − 153.775359309034 ln(x) + 2050.59749437349

160

155
Beef Price

150

145

140

135

130
205,000 210,000 215,000 220,000 225,000 230,000 235,000 240,000
Beef Demand

25 | P a g e
The accompanying scatter plot shows the relationship between beef demand and disposal income.

42.571*Disposal Income - 1603 = Beef Demand

If the disposal income is known, the R2 of this regression line is almost equal to 0.5, implying that using
this regression model, beef demand may be forecast with around 50% accuracy.

The scatter plot above depicts the relationship between beef price and beef demand.

Beef Price = - 0.0007* Beef Demand + 311.44

R2 value of this line is approximately equal to 0.36 and that means, by using this equation, beef price
can be predicted around 36% accuracy when the beef demand is known.

26 | P a g e
9.0 Conclusion
Beef prices and disposal income go down together, but not as much as they do with chicken prices. So,
it makes sense to think that the price of chicken goes up when people have more money, but the
opposite is not true. One reason could be that when people's extra money gets better, they may try to
spend some of it on other things while still spending the same amount on beef. As people get more
money, the numbers show that they buy less chicken and more beef.

10. References
1. Marcal, L. and Roberts, W.W., 2001. Business statistics requirements and student performance
in financial management. Journal of Financial Education, pp.29-35.

2. Gogtay, N.J. and Thatte, U.M., 2017. Principles of correlation analysis. Journal of the
Association of Physicians of India, 65(3), pp.78-81.

3. Andrew, G., Arora, R., Bilmes, J. and Livescu, K., 2013, May. Deep canonical correlation
analysis. In International conference on machine learning (pp. 1247-1255). PMLR.

4. 2021. Correlation in statistics: Correlation Analysis explained. Statistics How To. Available at:
https://www.statisticshowto.com/probability-and-statistics/correlation-analysis/ [Accessed
September 4, 2022].

5. Thompson, B., 1984. Canonical correlation analysis: Uses and interpretation (No. 47). Sage.

6. Liang, K.Y. and Zeger, S.L., 1993. Regression analysis for correlated data. Annual review of
public health, 14(1), pp.43-68.

27 | P a g e