Course Title: Analytical Techniques

Course Code: MBA 303

Submission of Home Quiz

Submitted to:
Mehdi Rajeb
Assistant Professor
School of Business
University of Liberal Arts Bangladesh

Submitted by:
Hira Mohammad Abdullah
ID No. 172051017
MBA 303: Section 1
Spring 2018

University of Liberal Arts Bangladesh

May 04, 2018
Name: Hira Mohammad Abdullah

Student Number: 172051017

Course: Analytical Techniques [MBA 303]

Declaration

I know that plagiarism is wrong. Plagiarism is to use another’s work and pretend that it is one’s
own.

I have used the academic convention for citation and referencing. Each contribution to, and
quotation in, this Home Quiz from the work(s) of other people has been attributed, and has been
cited and referenced.

This Home Quiz is my own work.

I have not allowed, and will not allow, anyone to copy my work with the intention of passing it
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Signature:

Date: 04-05-2018
Question 1: Which type of company is earning more? National or
Multinational?
For the analysis, we obtained the following tables;

Group Statistics
company type N Mean Std. Deviation Std. Error Mean
Total Annual Sales (in Multinational 91 154.3692 31.12329 3.26261
$million) National 257 146.8280 26.44504 1.64960

Independent Samples Test

Levene's Test for

Equality of Variances t-test for Equality of Means

95% Confidence
Interval of the
Sig. Mean Std. Error Difference
F Sig. t df (2tailed) Difference Difference Lower Upper
Total Annual Equal variances 4.402 .037 2.229 346 .026 7.54122 3.38358 .88624 14.19620
Sales (in assumed
$million) Equal variances 2.063 138.710 .041 7.54122 3.65592 .31267 14.76976
not assumed

Hypothesis: The Test is Significant.

Decision regarding the significance of the Test: Here the observed level of significance 0.041
(p<0.05), hence the test is significant.

Decision: Considering Total Annual Sales as dependent variable and Types of Company as
Independent variable, from independent sample test value is 2.063 with DF 138.710 and the level
of significance is .041. Which indicates the difference in mean Total Annual Sales of
Multinational and National companies is significant. Hence, there is a statistical difference in
Total Annual Sales due to Types of Company.

From the result we can see that, Multinational Company has more earning (M=154.37,
SD=31.123) than National Company (M=146.83, SD=26.445).
 Question 2: Do you think industry of operation has any effect on
total sales?
For the analysis, we obtained the following tables;

Descriptives
Total Annual Sales (in $million)
95% Confidence Interval for
Std. Std. Mean
N Mean Deviation Error Lower Bound Upper Bound Minimum Maximum
consumer products 93 135.2086 28.79411 2.98581 129.2785 141.1387 84.10 200.10
industry
Service Industry 157 147.5490 23.81088 1.90032 143.7954 151.3027 98.60 214.60
Real Estate sector 98 163.7020 26.10871 2.63738 158.4676 168.9365 75.40 200.10
Total 348 148.8000 27.89608 1.49539 145.8588 151.7412 75.40 214.60

ANOVA
Total Annual Sales (in $million)
Sum of Squares df Mean Square F Sig.
Between Groups 39188.155 2 19594.077 29.284 .000
Within Groups 230844.185 345 669.114
Total 270032.340 347

Hypothesis: The observed test is highly significant.

Decision regarding the significance of the Test: Here the observed level of significance 0.001
(p<0.05), hence the test is significant.

Decision: Here, considering Annual Total Sales as dependent variable and Industry of
Operation as independent variable, Analysis of variance was done and observed F2, 345 =
29.284 and the observed level of significance is 0.001, so we may conclude that the test is highly
significant and may conclude that Industry of operation has effect on Total annual sales.

Taken together, these results showed, Industry of Operation has an effect on Total Annual Sales.
However it should be noted that Real Estate Sector must be increase to see this type effect.
Question 3: Do you think area of operation has any impact on total
earning of each company? If so, where the companies are earning
the most?
For the analysis, we obtained the following tables;

Descriptives
Total Annual Sales (in $million)
95% Confidence Interval for
Mean
N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum
Asia 44 131.0932 20.51162 3.09224 124.8571 137.3293 75.40 182.70
Africa 15 149.6400 23.47798 6.06199 136.6383 162.6417 98.60 191.40
Europe 40 121.5100 26.86782 4.24818 112.9173 130.1027 84.10 176.90
America 249 156.2622 25.28941 1.60265 153.1057 159.4188 95.70 214.60
Total 348 148.8000 27.89608 1.49539 145.8588 151.7412 75.40 214.60

ANOVA
Total Annual Sales (in $million)
Sum of Squares df Mean Square F Sig.
Between Groups 57461.335 3 19153.778 30.996 .000
Within Groups 212571.005 344 617.939
Total 270032.340 347

Hypothesis: The observed test is highly significant.

Decision: Here, considering Annual Total Sales as dependent variable and Area of Operation
as independent variable, Analysis of variance was done and observed F3, 344 = 30.996 and the
observed level of significance is 0.001, so we may conclude that the test is highly significant and
may conclude that area of operation has impact on total earning of each company.

A one-way ANOVA was conducted to compare the impact of Area of operation on Total Annual
Sales in Asia, Africa, Europe and America. Descriptive test indicated that the mean score for the
America (M=156.262, SD=25.289) was significantly more than others. Taken together, these
results suggest that sales in America really do have an impact in Total Sales. Specifically, my
results suggest that when companies did business in America, they can earn most.
Question 4: How a new company can improve their total sales?
Which factors affect the total sales? Please make appropriate
recommendations.
For the analysis, we obtained the following tables;
Model Summary

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

1 .729a .531 .522 19.27660
a. Predictors: (Constant), Number of Products currently offering in the market, Area of Operation, Industry of
Operation, Expenditure in Quality Assurance and maintainance (in $ million), Research and Development
Expenditure (in $million), Marketing Expenditure(in $ million)

Decision: According to the model summary, Multiple correlation coefficient R= .729 which
indicates there is a strong positive correlation exists among Total Annual Sales and all other
independent variables i.e., Number of Products currently offering in the market, Area of
Operation, Industry of Operation, Expenditure in Quality Assurance and maintenances, Research
and Development Expenditure, Marketing Expenditure. Also the adjusted R-square is 0.522
which shows, 52.2% of the total variation in the dependent variable (Total Annual Sales) could
be explained by the variation of all independent variables.

Significance of the Model:

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 143321.062 6 23886.844 64.283 .000b
Residual 126711.278 341 371.587
Total 270032.340 347
a. Dependent Variable: Total Annual Sales (in $million)
b. Predictors: (Constant), Number of Products currently offering in the market, Area of Operation, Industry of
Operation, Expenditure in Quality Assurance and maintainance (in $ million), Research and Development
Expenditure (in $million), Marketing Expenditure(in $ million)

Hypothesis: The model is Significant.

Decision regarding the significance of the model: Here the observed F6, 341 = 64.283 and
observed level of significance 0.001, hence the model is highly significant.
Estimation of the Model:
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 18.000 7.015 2.566 .011
Area of Operation 3.516 1.050 .132 3.348 .001
Industry of Operation 4.321 1.556 .115 2.777 .006
Marketing Expenditure(in $ million) .584 .155 .218 3.758 .000
Research and Development .753 .167 .241 4.500 .000
Expenditure (in $million)
Expenditure in Quality Assurance and .821 .165 .276 4.972 .000
maintainance (in $ million)
Number of Products currently offering -.070 .138 -.026 -.504 .614
in the market
a. Dependent Variable: Total Annual Sales (in $million)

Estimated regression model would be,

Total Annual Sales (Y) = 18.000+ 0.132. Area of Operation+ 0.115. Industry of
Operation+0.218. Marketing Expenditure+0.241. Research and Development
Expenditure+0.276. Expenditure in Quality Assurance and Maintenance+(-0.026). Number of
Products currently offering in the market

So the final model is,

Total Annual Sales (Y) = 18.000+ 0.132. Area of Operation+ 0.115. Industry of
Operation+0.218. Marketing Expenditure+0.241. Research and Development
Expenditure+0.276. Expenditure in Quality Assurance and Maintenance.

Decision: A multiple regression was carried out to investigate which factor affect Total Sales.
From the above final model we can see that Expenditure in Quality Assurance and Maintenance
significantly has the highest affect in Total Sales (B= +0.276). All others factors except Number
of Products currently offering in the market as it is insignificant. Research and Development
Expenditure and Marketing Expenditure also have a big affect in total sales.
Recommendation:

If a new company gives attention to increase their product quality it will improve their total sales
as it has highest affect in Total annual Sales. A high quality full Research center can ensure the
market demand and good quality product. As they are new in business they should increase their
expenditure in market, so that they can be able to introduce their High quality product in the
market. Though No. of products currently offer in the market has no affect in total sales, so
company should reduce rising low quality product. And can stop producing low quality product
by ensure increase in expenditure to Quality Assurance, Research and Development, Marketing.