STATISTICS IN REAL LIFE

NAME – Arnold Anthony

CLASS – B.Com Sem. 3

INTRODUCTION –

Statistics is a branch of mathematics that deals with the

collection, review, and analysis of data. It is known for drawing
the conclusions of data with the use of quantified models.
Statistical analysis is a process of collecting and evaluating data
and summarizing it into mathematical form.
Statistics can be defined as the study of the collection, analysis,
interpretation, presentation, and organization of data. In simple
words, it is a mathematical tool that is used to collect and
summarize data.
Uncertainty and fluctuation in different fields and parameters
can be determined only through statistical analysis. These
uncertainties are determined by the probability that plays a
very important role in statistics.
MEAN –
Mean is an essential concept in mathematics and statistics. The
mean is the average or the most common value in a collection
of numbers.
In statistics, it is a measure of central tendency of a probability
distribution along median and mode. It is also referred to as an
expected value.
It is a statistical concept that carries a major significance in
finance. The concept is used in various financial fields, including
but not limited to portfolio management and business
valuation.

VARIANCE –
In a data set, variance refers to a statistical measurement of the
distance of each number from the mean and thereby from
every other number. It is a factor used by experts to determine
market volatility and market security. The square root of
variance returns the standard deviation which is instrumental in
determining the risk factor associated with an investment and
consequently the profit it returns.
USE OF MEAN AND VARIANCE –

MEAN –
The mean can be used to represent the typical value and
therefore serves as a yardstick for all observations.

For example, if we would like to know how many hours on

average an employee spends at training in a year, we can find
the mean training hours of a group of employees. This mean
can then be used to compare against an individual’s annual
training hours to judge if he has had comparable opportunity
for training as his colleagues. Similarly, to compare the annual
training hours of a smaller group against a more comprehensive
group, their respective means can be used. An example would
be comparing the mean number of annual training hours for
women and for all employees.

VARIANCE –
Variance is a statistical measurement used to determine how
far each number is from the mean and from every other
number in the set. You can calculate the variance by taking the
difference between each point and the mean. Then square and
average the results.
EMPIRICAL STUDIES –

1) Jindal Saw –

Date Open
Dec-22 94.95
Nov-22 77.45
Oct-22 80.85
Sep-22 86.95
Aug-22 86.75
Jul-22 78.65
Jun-22 87.7
May-22 90.1
Apr-22 91.9
Mar-22 86.75
Feb-22 100.45
Jan-22 99.1

MEAN = 88.466667
VARIANCE = 54.335152
2)Bank of Baroda –
Date Open
Dec-22 167.75
Nov-22 148.05
Oct-22 131.4
Sep-22 129.95
Aug-22 118.05
Jul-22 97.8
Jun-22 100.95
May-22 111.9
Apr-22 112.7
Mar-22 106.2
Feb-22 109.4
Jan-22 81.95

MEAN = 118.00833
VARIANCE = 543.38856
3)Adani Power –

Date Open
Dec-22 337.05
Nov-22 331.25
Oct-22 370.55
Sep-22 416
Aug-22 314.05
Jul-22 264
Jun-22 310.6
May-22 279.1
Apr-22 188
Mar-22 123.6
Feb-22 108
Jan-22 100.05

MEAN = 261.8541667
VARIANCE = 11442.62248
4)Tata Consultancy Services –

Date Open
Dec-22 3421
Nov-22 3209
Oct-22 3004.6
Sep-22 3189.6
Aug-22 3327.05
Jul-22 3262
Jun-22 3385
May-22 3513
Apr-22 3746.15
Mar-22 3560.1
Feb-22 3780
Jan-22 3744

MEAN = 3428.458
VARIANCE = 61214.58
5)Emami –

Date Open
Dec-22 480
Nov-22 473.9
Oct-22 504
Sep-22 478
Aug-22 450
Jul-22 424.8
Jun-22 415.55
May-22 490
Apr-22 447.3
Mar-22 491.15
Feb-22 503
Jan-22 518

MEAN = 472.975
VARIANCE = 1035.678
 CONCLUSION –

• If we take a look of the above data of the different

companies, we found that that the standard deviation of Tata
Consultancy Services to be very high at 247.41 as compared
to other companies which means that it is highly volatile. But
the standard deviation of Jindal Saw is very less 7.37 which
means that it is less volatile.

• As a result of the above empirical study we come to the

conclusion that investing in securities of Jindal Saw in
comparison to other four companies mentioned above, will
give a positive return as it is less volatile.

• Higher the standard deviation higher the risk, lower the

standard deviation