NUMERACY AND DATA

ANALYSIS
London School of Commerce
In association with the University of Suffolk

*Individual Report *
Data Analysis and Forecasting

Module Leader: Dr. Uma Mohan

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Student: Bogdan Zariescu

Student ID: S207325

TABLE OF CONTENTS

Introduction..........................................................................................................................................................................................3
Arranging data in a table format...........................................................................................................................................................3
Column and LINE chart for gas data......................................................................................................................................................4
Mean.....................................................................................................................................................................................................5
Median..................................................................................................................................................................................................5
Mode.....................................................................................................................................................................................................6
Range.....................................................................................................................................................................................................6
Standard deviation................................................................................................................................................................................6
Forecasting............................................................................................................................................................................................7
Conclusions...........................................................................................................................................................................................9
References.............................................................................................................................................................................................9

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INTRODUCTION

This report commences with a table which is presenting data of gas bills from last 10 months. In order to
compare data from table, two charts will be created: Column Chart and Linear Chart. Moving forward,
Mean, Median, Mode and Range will be calculated based on data that will be presented at the beginning of
this report. On the other side, Variation will be calculated because based on this can be identified value of
Standard Variation. This report will be ended with importance of Forecasting and value of Forecasting in 12 th
and14th month.

ARRANGING DATA IN A TABLE FORMAT

Data illustrate how things differ and is showing by how much [ CITATION Ras20 \l 2057 ]. In order to
illustrate how gas bills, differ and by how much it was created a table in which were added data of gas bills
from last 10 months, starting with April and ending with July as it can be seen below:

Months Gas bill (£)

April 63.53
March 78.81
February 82.75
January 88.42
December 98.69
November 84.78
October 78.81
September 64.32
August 42.75
July 40.56
Table 1: Value of gas bill starting with April and ending with July.

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COLUMN AND LINE CHART FOR GAS DATA

Column Charts are often described as bar charts. Though, in Microsoft Excel, a column chart has bars that
run vertical whilst a bar chart has bars that run horizontal. Both of them are used to compare data points in
one or more series of data [ CITATION QIM20 \l 2057 ]. Based on data last 10 months of gas bills will be
created Column chart and Line chart.

Gas bills for last 10 months

98.69
88.42 84.78
78.81 82.75 78.81
63.53 64.32

42.75 40.56
Gas bill (£)

ril ch ry ry be
r
be
r er be
r st
Ju
ly
Ap ar rua nua m m tob m ugu
M b a ce ve Oc e A
Fe J
De pt
No Se
Month

Figure 1: Column chart for Gas bills from last 10 months.

Line chart is used when is needed to show or focus on data trends [CITATION Bes20 \l 2057 ]. In order to
show how data tends for gas bills from last 10 months, below Line Chart was created:

Gas bills from last 10 months

98.69
88.42 84.78
78.81 82.75 78.81
63.53 64.32
GaS BILLS (£)

42.75 40.56

ril ch ar
y ry be
r
be
r
be
r
be
r
us
t
Ju
ly
Ap ar ru ua m m to m g
M b an ce ve c te Au
Fe J
De o O
ep
N S
Month

Figure 2: Line chart for gas bills from last 10 months.

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MEAN

The mean is the most popular measure of central tendency. It can be used with both discrete and continuous
data. The mean is equal to the sum of all the values in the data set divided by the number of values in the
data set [ CITATION Lae20 \l 2057 ]. In order to calculate Mean, bellow formula is going to be used:

MEAN : µ=
∑x
N

Where:

 µ = Mean
 ∑ = Sum of / Total
 x = Individual data value
 N = Number of items

In this case, formula will be:

µ=
∑x
N

723,42
µ=
10

µ= £72.34.

Based on above, it was proved that Mean is £72.34.

MEDIAN

The median is the middle score for a set of data that has been arranged in order of magnitude [ CITATION
Lae20 \l 2057 ].

N +1 10+ 1 11
Median position: = = = = 5.5th position.
2 2 2

Median position = 5.5th position.

In order to find out the median values of gas bills (£) from last 10 month, these values will be arranged from
lowest value to the highest value: 40.56, 42.75, 63.53, 64.32, 78.81, 78.81, 82.75, 84.78, 88.42, 98.69. From
this list median values are £78,81 and £78,81.

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 78.81+78.81 157.62
Median = = = 78.81 Median = £78.81
2 2

MODE

Mode is the most frequent number which means that the mode is the number that occurs the highest number
of times [ CITATION Kha20 \l 2057 ]. In this particular case, the most repeated number from gas bills (£):
63.53, 78.81, 82.75, 88.42, 98.69, 84.78, 78.81, 64.32, 42.75, 40.56, is: 78.81 as we have this value repeated
twice in last 10 months for gas bills.

Can be concluded that Mode is £78.81.

RANGE

Range defines the difference between the highest and lower values in the data but when is no variation in
variable, the range is zero [ CITATION Ada06 \l 2057 ].

From the following list £63.53, £78.81, £82.75, £88.42, £98.69, £84.78, £78.81, £64.32, £42.75, £40.56, can
be seen that the lowest value is £40.56, and the highest value is £98.69.

Range = highest value – lowest value

= £98.69 – £40.56

= £58.13.

From the above, it was demonstrated that Range = £58.13.

STANDARD DEVIATION

An important measure of variation is standard deviation, which in most of the cases it is unknown
[ CITATION Mai10 \l 2057 ].

During this report it was proved that mean is £72.34. This value was added to below table.

In order to find out the deviation, will subtract the mean from each value (x- μ). Value obtained was added in
bellow table. Furthermore, was squared difference (x – μ)2. and total was calculated.

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Table 2: Value of mean, (x- μ) and (x – μ)2

In order to find out the variance, bellow formula will be used:

x
σ
2
= ∑ (¿−µ)2
N
¿
3327.16
σ2 =
10
2
σ = 332.71 Variance is £332.71

Based on variation, can be calculated standard deviation which is square root of the variance.

x
σ= ∑ (¿−µ)2
N
√¿

σ= √ 332.71
σ = 18.24. Standard deviation is £18.24

FORECASTING

A forecast is a prediction of some future event or events. As suggested by Neil Bohr, making good
prediction is not always easy. The reason that forecasting is so important is that prediction of future events is
critical input into many types of planning and decision making process [CITATION Mon08 \l 2057 ].

In order to forecast, Linear Model is going to be used and it is represented using bellow formula:

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Figure 3: Formula used for Linear Forecasting Model.

Table 3: Data used to find out values of x, y, xy and x²

Calculating ‘m’ value:

x
∑¿
¿
m= 2
N ∑ x −¿
N ∑ xy−∑x ∑ y
¿

55 ¿2
m= 10 (385 )−¿
10 (3681.79) ∑−(55)(723.42)
¿
36817.9−39788.1
m=
3850−3025

−2970.2
m=
825

m = −3.60 m = -£3.60

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Calculating ‘c’ value:

∑ y−m∑ x
c=
N

723.42−(−3.60)(55)
c=
10

723.42+198
c=
10

921.42
c=
10

c = £92.14.

Once values of m and c were calculated, forecasting the gas bill for month 12 and 14 can be identified using
formula mentioned in this report:

y= mx + c

Forecasting gas bill for month 12

y= mx + c, where:

 m= -£3.60.
 c= £92.14
 x = 12.

y = (3.60) (12) + 92.14

y = 43.2 + 92.14

y = £49.02 Forecasting 12th month of £135.34

or :

y = (-3.60) (12) + 92.14

y = -43.2 + 92.14

y = £49.02 Forecasting 12th month of £49.02

Forecasting gas bill for month 14

y= mx + c, where:

 m= -£3.60.
 c= £92.14

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  x = 12.


y = (3.60) (14) + 92.14

y = 50.4 + 92.14

y = £142.54 Forecasting 14th month of £142.54

or

y = (-3.60) (14) + 92.14

y = -50.4 + 92.14

y = £41.74 Forecasting 14th month of £41.74

CONCLUSIONS

Value of gas bills from last 10 month starting with April and finishing with July were gathered and created a
table with all data. Based on these data, were created 2 charts: a Column Chart and a Linear Chart. Mean,
Median, Mode and Range were calculated based on data from table. Moreover, Variation was calculated
because, based on it can be calculated Standard deviation.

At the end of this report was defined and mentioned importance of Forecasting. Moreover, Forecasting was
done for 12th and 14th month.

REFERENCES

Academy, K. (2020, May 16). Mean, median, and mode review. Retrieved from Khan Academy:
https://www.khanacademy.org/math/statistics-probability/summarizing-quantitative-data/mean-median-
basics/a/mean-median-and-mode-review

Adamantios D., S. B. (2006). Taking the Fear Out of Data Analysis. Australia: Thompson pp101.

Desai, R. (2020, May 15). Why is DATA important for your business? Retrieved from Towards Data Science:
https://towardsdatascience.com/how-important-is-data-for-your-business-c15a35c6935e

Maindonald J., Browm J., W. (2010). Data Analysis and Graphics using R, An example based approach, Third Edition. Cambridge:
Cambridge University Press, pp 65.

Montgomery, D. C. (2008). Introduction to Time Series Analysis and Forecasting. Hoboken, New Jersey: John Willey & Sons Inc.

Optimizesmart. (2020, May 12). Best Excel Charts Types for Data Analysis , Presentation and Reporting. Retrieved from
Optimizesmart: https://www.optimizesmart.com/how-to-select-best-excel-charts-for-your-data-analysis-reporting/
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QIMacros. (2020, May 10). How to Make a Column Chart in Excel. Retrieved from QIMacros: https://www.qimacros.com/excel-
charts-qimacros/excel-column-chart/

Statistic, L. (2020, May 11). Measures of Central Tendency. Retrieved from Laerd Statistic: https://statistics.laerd.com/statistical-
guides/measures-central-tendency-mean-mode-median.php

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