FP-062 Business Statistics 061

Group Assignment Final Report

FACULTY OF BUSINESS, FOUNDATION COMMERCE

SEMESTER 1 2017
Group Members:
Daniel Paul Ho Mingjie
Tiffany Chong Nyet Jun
Angelica Elaine Chan Su Min
Wong Jen Lam
 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Contents

Executive Summary ............................................................................................................. 2

Graphical Presentations ....................................................................................................... 3

Measures of Central Tendency ............................................................................................. 6

Measures of Dispersion and Skewness ................................................................................. 7
Measures of Association ....................................................................................................... 8

Scatterplot of Pocket Money and Expenditure & Linear Regression Line ........................... 8

Appendices ........................................................................................................................... 9
One Sample Copy of Filled-in Questionnaire.................................................................... 9
Summarised Data in Tabular Form ................................................................................ 10

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Executive Summary

The objective of this report is to investigate the relationship between two different
quantitative variables. The variables are Amount of Pocket Money received in a month and
Amount of Expenditures in a month.

The data collection method is done through questionnaires distributed (and collected on the
same day) to a sample of 20 students enrolled in Business Statistics 061 out of the all
Foundation Students enrolled in Semester 1 in Curtin University, Sarawak.

The sampling method used was systematic data sampling to select 20 samples from all
Foundation Students. This is done by dividing the total number of student from Foundation in
Semester 1 by the number of samples in order to find the value of k. Then choosing a random
starting point in the Random Digits Table. For this situation, we have selected line 115 as the
random starting point that is within the value of k. After that, counting the kth unit from the
initial starting point and then every 10 th unit after until having a sample size of 20. Lastly,
distributing questionnaires to selected samples.

In summary, we have found that there is a strong positive relationship between the
variables, Pocket Money Received and Expenditures. This is evident through calculations of
Correlation Coefficient (pg. 8) as well as through the scatterplot and best-fit linear regression
line (pg 8). With other calculations such as mean, covariance as well as standard deviation,
we can find out the Correlation Coefficient. The summarized data set (in tabular form) is
placed in the end of the report for references and evidence of work.

In conclusion, the data that is collected through the main data collection method;
questionnaires have been analyzed by creating graphs and tables that enables the calculations
which is essential in proving whether there was a relationship with Pocket Money Received
and Expenditures. Thus, with the calculations made possible with graphs and tables, the two
variables chosen have proven its relationship – the more a person receives, the more that
person spends.

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Graphical Presentations

Graph 1

Number of Genders who filled in Interpretation:

questionnaires Based on the bar chart under
14 Graph 1, it can be observed that
12 the sampling method used had
10 12
selected a higher number of
Frequency

8
6 8 Male
female than of male who filled
4 Female in the questionnaires. Thus,
2 there is 4 more females than
0
Male Female
males that were selected to fill
Gender in the questionnaires.

Graph 2

Interpretation:
Percentage of People who agree with
Based on the Pie Chart
sufficient pocket money received
under Graph 2, it can be
observed that the majority
25% of people who agreed that
the amount of pocket money
Yes
received was enough is
No
higher than those who
75% disagree. With the majority
being 75% that had agreed,
the minority being 25% that
disagreed was also shown.

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Graph 3

Interpretation:
Range of Spendings Amount in RM$$
9 Graph 3 shows a
8
8
histogram showing the
7
6 highest number of people
6
Frequency

5 who spent between

4 RM$201-400 in a month.
3
3 There is only 1 person
2
2
1 who has spent between
1
0
RM$601-800. Hence, the
0-200 201-400 401-600 601-800 801-1000 data tends to be positively
Amount spent (RM$)
skewed.

Graph 4

Interpretation:
Number of people who receive from 0 - 1000
in a month in RM$$ Graph 4 shows a frequency
9 polygon with the highest
8
frequency near the centre with
7
the highest amount received at
6
Frequency

about $RM710.
5

4
The shape of the frequency
3
polygon has a peak near the
2
centre of the graph due to
1

0
having the highest frequency.
200.5 300 500.5 700.5 900.5 1100.5
Amount received (RM$)

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Graph 5

Activities that People spend on

14 13

12

10
Frequency

6 5

4
2
2
0 0
0
Entertainment Food Shopping Transportation Others
Activities

Intepretation:

Based on the bar chart shown above, it can be observed that the most and highest amount

spent on is on Food. While the Others category remains 0, the lowest amount that people

spend is either little or none on Transportation costs.

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Measures of Central Tendency

Mean of x Median of x Mode of x Variable x Variable y

(Pocket Money) (Expenditure)
∑𝐱 (𝑛 + 1) 500.5 900.5 900.5
𝐱= 2 500.5 700.5
𝐧
20+1
900.5 700.5
= 500.5 100
2
12409 900.5 700.5
𝑥=
20 = 10.5th position 700.5 500.5
700.5 500.5
700.5+700.5
𝑥 = 620.45 = 100 100
2
700.5 900.5
= 700.5 700.5 700.5
500.5 300.5
700.5 500.5
700.5 500.5
100 100
700.5 700.5
900.5 700.5
Mean of y Median of x Mode of y
500.5 300.5
(𝑛 + 1) 500.5 500.5
∑y 500.5
y= 700.5 500.5
n 2
500.5 500.5
20+1
= 2
10408.5
𝑦= = 10.5th position
20
500.5+500.5
𝑦 = 520.43 = 2

= 500.5

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Measures of Dispersion and Skewness

Variance of x Variance of y

∑ 𝑥2 2 ∑ 𝑦2 2
𝜎2 = -𝑥 𝜎2 = -𝑦
𝑛 𝑛
8692204.5 6530104.25
= − 620.452 = − 520.432
20 20

= 434610.225 – (620.45)2 = 326505.2125 – (520.425)2

= 49652.0225 = 55663.03188

Skewness for x Skewness for y

3(𝑥 − 𝑚𝑒𝑑𝑖𝑎𝑛) 3(𝑥 − 𝑚𝑒𝑑𝑖𝑎𝑛)

𝑠𝑘 = 𝑠𝑘 =
𝑠 𝑠

3(620.45 − 700.5) 3(320.425 − 500.5)

sk = sk =
222.97 235.93

𝑠𝑘 = −1.07 𝑠𝑘 = 0.25

Standard Deviation for x Standard Deviation for y

√𝜎 √𝜎

= √49652.0225 = √55663.0318

= 222.97 = 235.93

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Measures of Association

Correlation Coefficient Covariance

𝑆𝑥𝑦 ∑𝑛𝑖=1 𝑥𝑖 𝑦𝑖
𝑟= 𝑆𝑥𝑦 = − 𝑥𝑦
𝑆𝑥 𝑆𝑦 𝑛
41676.03
𝑟= = √55663.0318
(222.97)(235.93)
= 235.93
𝑟 = 0.79

Scatterplot of Pocket Money and Expenditure & Linear Regression Line

Scatterplot for Income and Expenditure amount (in RM$)

1200

1000
Expenditure (RM$)

800

600
y = 0.6343x + 29.646
(Best fit regression line)
400

200

0
0 200 400 600 800 1000 1200
Pocket Money (RM$)

As for the scatterplot above, a best fit regression line is placed which shows that there is a strong
positive relationship between the two variables due to some plots close to or on the line. Thus, the
Correlation Coefficient is close to approximately +1. On future prediction, the values are interpolated
and hence being accurate and reliable due to the predicted values being in the given range of the
variables.

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Appendices
One Sample Copy of Filled-in Questionnaire

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Summarised Data in Tabular Form

 Quantitative Data

 Monthly Pocket Money (How much they receive)

Range Frequency Percent Frequency Relative Frequency

0-200 2 10 0.1

201-400 1 5 0.05

401-600 6 30 0.3

601-800 8 40 0.4

801-1000 2 10 0.1

<1000 1 5 0.05

Total 20 100 1

 Monthly Expenditure

Range Frequency Percent Frequency Relative Frequency

0-200 3 15 0.15

201-400 8 40 0.4

401-600 6 30 0.3

601-800 1 5 0.05

801-1000 1 5 0.05

<1000 1 5 0.05

Total 20 100 1

 Qualitative Data

 Gender

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 Foundation Commerce, Faculty of Business Group Assignment Final Report
FP-062 Business Statistics 061

Gender Frequency

Male 8

Female 12

Total 20

 What They Spend the Most on?

Activities Frequency

Entertainment 2

Food 13

Shopping 5

Transportation 0

Others 0

Total 20

 Do They Feel Enough to the Saving?

Opinion Frequency

Yes 15

No 5

Total 20

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