A Statistical Analysis

On

Salary and service tenure of international brands limited

Course Name: Business Mathematics and Statistics

Course Code: EMBA-502, Sec: 1
Prepared for
Dr. M Amir Hossain, Ph. D.

Prepared by

Syed Md. Fakruuddin , ID No: 2018-3-96-006

Fahrin Chowdhury, ID No: 2018-2-91-013

Khaled Shaifulla, ID No: 2018-2-91-027

Irfan Hossain Khan, ID No: 2018-2-91-015

Shaikh Bin Mizan, 2018-2-91-014

MD Nahidul Hoque , 2018-2-91-019

Submission Date:
8th December, 2018
Table of Contents

Scenario ........................................................................................................................................................ 2
Objective....................................................................................................................................................... 2
Source of Data .............................................................................................................................................. 2
Data Presentation ........................................................................................................................................ 2
Frequency Distribution............................................................................................................................. 2
Stem-and-Leaf Displays ............................................................................................................................ 3
Histogram ................................................................................................................................................. 4
Frequency Polygon ................................................................................................................................... 5
Cumulative Frequency Polygon/ Ogive Curve ......................................................................................... 5
Pie Chart ................................................................................................................................................... 6
Measures of Central Tendency .................................................................................................................... 7
Measure of Dispersion ................................................................................................................................. 9
Correlation and Regression ........................................................................................................................ 10
Correlation & Coefficient of Determination Analysis ........................................................................... 13
Regression Analysis ................................................................................................................................ 13
Conclusion .................................................................................................................................................. 14
Annexure .................................................................................................................................................... 15

1
Scenario:

This report presents statistical analyses of salaries for the employees of International Brands
Limited. This report also measures relationship between Salary and Service Tenure of this
company.

Objective:
By observing this scenario, we will represent a group data in a frequency table later determine
the Central Tendency, Dispersion. Finally, we will observe the Correlation and Regression
between two variables- Salary and Service Tenure.

Source of Data
The data of Gender, Designation, Service Tenure and Salary of all the permanent employees of
International Brands Limited is collected from the company’s Humane Resource Department.

Data Presentation
We will analyze the collected secondary data based on our knowledge acquired in the course
EMBA-502, Business Mathematics and Statistics. We will present the collected data by different
statistical table and graphs and will measure the Central Tendency and Dispersion or Variability.
Finally, we will analyze the Correlation and Regression between Salary and Service Tenure.
Frequency Distribution

Frequency distribution is a grouping of data into categories showing the number of

observations in each mutually exclusive category. Goal is to establish a table that will quickly
reveal the underlying shape of the data.

2
Frequency Distribution of Salary of the permanent employees of International Brands Limited-

CI (in thousand) Frequency

20-60 54
60-100 19
100-140 7
140-180 4
180-220 2
220-260 2
260-300 0
300-340 1
340-380 0
380-420 1
Total 90

Table1: Frequency Distribution of Salary

Comments:

 Salary ranged from about Tk.20,000 to TK. 420,000

 About 60% of salary in the range Tk. 20,000 to Tk. 60,000
 Only 2% employees get salary between Tk. 300,000 to Tk. 420,000
Stem-and-Leaf Displays

A statistical technique for displaying data. Each numerical value is divided into two parts: stem
and leaf. Stem is the leading digit of the value. Leaf is the trailing digit of the value.

Representing the salary data in a stem and leaf display

Stem Leaf
2 5779
3 001223448
4 0000045555555557788899
5 0022445555555666678
6 000024555556

3
 7 00238
8 7
9 0
11 005
12 3
13 2355
14 0
15 0
16 5
19 0
21 0
23 5
24 5
30 0
41 0

Table2: Stem and Leaf Display of Salary

Histogram
Histogram for Salary earns by the employees:

60 54
50

40
Frequency

30
19
20

10 7
4 2 2 0 1 0 1
0

Salary (in 000)

Graph 1: Histogram for Salary

4
Frequency Polygon

Frequency Polygon for Salary earns by the employees:

70

60
58
50
Frequency

40

30

20
15
10 9

0 2 2 2 1 1
0 0
40 80 120 160 200 240 280 320 360 400
Salary (CI Midpoint)

Graph 2: Frequency Polygon for Salary

Cumulative Frequency Polygon/ Ogive Curve

Upper
CI Limit of f fc
the Class
0-20 20 0 0
20-60 60 58 58
60-100 100 15 73
100-140 140 9 82
140-180 180 2 84
180-220 220 2 86
220-260 260 2 88
260-300 300 1 89
300-340 340 0 89
340-380 380 0 89
380-420 420 1 90

Table3: Cumulative Frequency Distribution of Salary

5
 Ogive Curve
100
90
80
Cumilative Frequency
70
60
50
40
30
20
10
0
0 50 100 150 200 250 300 350 400 450
Salary

Graph 3: Less than type Ogive Curve for Salary

Pie Chart

Pie Chart for the Gender of the employees:

Gender Analysis

18%

72%

Male Female

Graph 4: Pie Chart for the Gender of the Employees

6
Measures of Central Tendency
Measure of Central Tendency is a single value that summarizes a set of data. It locates the center
of the values.

Arithmetic Mean

Population mean (µ) = ∑X/N = 6,758,000/90

= 75,089
Here, N=90, ∑X=6,758,000
Comment: Average salary of the company is Tk. 75,089

Central Tendency Measurement by Group Data

Mid-
Class f fx fc (x-x¯) │x-x¯│ f│x-x¯│ (x-x¯)˄2 f(x-x¯)˄2
point, x

20-60 40 54 2,160 54 -35.11 35.11 1,896.00 1,232.79 66,570.67

60-100 80 19 1,520 73 4.89 4.89 92.89 23.90 454.12

100-140 120 7 840 80 44.89 44.89 314.22 2,015.01 14,105.09

140-180 160 4 640 84 84.89 84.89 339.56 7,206.12 28,824.49

180-220 200 2 400 86 124.89 124.89 249.78 15,597.23 31,194.47

220-260 240 2 480 88 164.89 164.89 329.78 27,188.35 54,376.69

260-300 280 0 0 88 204.89 204.89 0.00 41,979.46 0.00

300-340 320 1 320 89 244.89 244.89 244.89 59,970.57 59,970.57

340-380 360 0 0 89 284.89 284.89 0.00 81,161.68 0.00

380-420 400 1 400 90 324.89 324.89 324.89 105,552.79 105,552.79

Total 2,200 90 6,760 1,519.11 3,792 341,927.90 361,048.89

7
Here we get, Σf =90, Σfx=6,760.

Mean, X¯ = Σfx / Σf = 6,760 / 90 = 75.11

𝑁
−𝑓𝑐
2
Median = 𝐿 + ( ) 𝑋𝑐
𝑓

Here, L = Lower limit of the median class

fc = Cumulative Frequency of pre- median class
f = Frequency of the median class
C = Class Interval
N = Total number of observation
N/2= (90/2) = 45
So, 20-60 is the Median class.
Median = 20 + ((90/2-0) / 54) X 40 = 53.33

Mode = L + (∆1 / ∆1 + ∆2) X C

Here L = Lower limit of the modal class
∆1 = Difference between frequency of modal and pre-modal class
∆2 = Difference between frequency of modal and post-modal class
C = Class Interval
As 57 is the highest frequency, 20-60 is the Modal class.
Mode = 20 + (35 / (35+ 54)) X 40 = 35.73

Observation:
After the calculation, we are observing that this is a positive skewed distribution of central
tendency where the value of Mean > Median > Mode

8
Skewed Distribution of Mean, Median and Mode:

Graph 5: Positive Skewness Graph (mean>median>mode)

Measure of Dispersion

The dispersion is the tendency of data to be scattered over a range. Dispersion is the important
feature of a frequency distribution. It is also called spread or variation. Range, variance and
standard deviation are all measures of dispersion. Common measure of dispersion are, range,
inter quartile range and quartile deviation, average deviation or mean deviation and standard
deviation.

Now measuring Dispersion by using these data:

Range = Difference between lowest and highest value
= Max – Min = 420- 20 = 400
Mean Deviation: The arithmetic mean of the absolute values of the deviations of the
observations from the arithmetic mean.
MD = ∑f│x-x¯│ / ∑f
Here, ∑f│x-x¯│ = 3,793, ∑f =90

So, MD = ∑f│x-x¯│ / ∑f = 42.13

Variance: Variance is the arithmetic mean of the squared deviations of observations from the
mean.

9
Variance = (∑f (X-X¯) ˄2) / ∑f
Here ∑f (x-x¯) ˄2 = 361,048.89 and ∑f = 90

So, Variance = (∑f (X-X¯) ˄2) / ∑f = 4,011.65

Standard Deviation, SD = Root over Variance = √4,011.65 = 63.34

Observation:
Large value of dispersion indicates that estimation of the central tendency is not reliable.

Correlation and Regression

Now measuring Correlation and Regression by using the data from two variable – one is Salary
here we represent as Y and another one is the Service Tenure which is represented as X.
Here, we consider Salary as the dependent on Service Tenure. Let’s observe the relation between
these two variables.
Calculation Table:
Service Salary (in
Serial Tenure 000) (X-X¯) (X-X¯)^2 (y-y¯) (y-y¯)˄2 (X-X¯) (y-y¯)
(X) (Y)
1 5.00 65.00 -0.16 0.03 -10.09 101.79 1.63
2 3.00 40.00 -2.16 4.67 -35.09 1,231.23 75.83
3 3.00 55.00 -2.16 4.67 -20.09 403.56 43.41
4 5.00 48.00 -0.16 0.03 -27.09 733.81 4.36
5 3.00 44.00 -2.16 4.67 -31.09 966.52 67.19
6 5.00 47.00 -0.16 0.03 -28.09 788.99 4.53
7 2.50 30.00 -2.66 7.08 -45.09 2,033.01 119.99
8 7.00 40.00 1.84 3.38 -35.09 1,231.23 -64.52
9 6.00 33.00 0.84 0.70 -42.09 1,771.47 -35.31
10 5.00 38.00 -0.16 0.03 -37.09 1,375.59 5.98
11 5.00 64.00 -0.16 0.03 -11.09 122.96 1.79
12 10.00 132.00 4.84 23.41 56.91 3,238.87 275.39
13 5.00 32.00 -0.16 0.03 -43.09 1,856.65 6.94
14 3.00 45.00 -2.16 4.67 -30.09 905.34 65.03

10
15 5.00 50.00 -0.16 0.03 -25.09 629.45 4.04
16 2.00 60.00 -3.16 9.99 -15.09 227.67 47.70
17 2.50 60.00 -2.66 7.08 -15.09 227.67 40.15
18 2.00 45.00 -3.16 9.99 -30.09 905.34 95.11
19 6.00 34.00 0.84 0.70 -41.09 1,688.30 -34.47
20 2.00 45.00 -3.16 9.99 -30.09 905.34 95.11
21 4.00 31.00 -1.16 1.35 -44.09 1,943.83 51.19
22 3.00 66.00 -2.16 4.67 -9.09 82.61 19.64
23 5.00 65.00 -0.16 0.03 -10.09 101.79 1.63
24 3.00 25.00 -2.16 4.67 -50.09 2,508.90 108.25
25 5.00 73.00 -0.16 0.03 -2.09 4.36 0.34
26 1.00 27.00 -4.16 17.31 -48.09 2,312.54 200.10
27 1.00 27.00 -4.16 17.31 -48.09 2,312.54 200.10
28 3.00 45.00 -2.16 4.67 -30.09 905.34 65.03
29 3.00 55.00 -2.16 4.67 -20.09 403.56 43.41
30 3.00 60.00 -2.16 4.67 -15.09 227.67 32.61
31 7.00 45.00 1.84 3.38 -30.09 905.34 -55.33
32 7.00 56.00 1.84 3.38 -19.09 364.39 -35.10
33 5.00 49.00 -0.16 0.03 -26.09 680.63 4.20
34 3.00 54.00 -2.16 4.67 -21.09 444.74 45.58
35 3.00 245.00 -2.16 4.67 169.91 28,869.79 -367.20
36 1.00 45.00 -4.16 17.31 -30.09 905.34 125.20
37 6.00 56.00 0.84 0.70 -19.09 364.39 -16.01
38 3.00 48.00 -2.16 4.67 -27.09 733.81 58.54
39 6.00 90.00 0.84 0.70 14.91 222.34 12.51
40 27.00 410.00 21.84 476.94 334.91 112,165.45 7,314.09
41 3.00 58.00 -2.16 4.67 -17.09 292.03 36.93
42 3.00 55.00 -2.16 4.67 -20.09 403.56 43.41
43 9.00 110.00 3.84 14.74 34.91 1,218.79 134.02
44 6.00 47.00 0.84 0.70 -28.09 788.99 -23.56
45 2.00 34.00 -3.16 9.99 -41.09 1,688.30 129.89
46 2.00 32.00 -3.16 9.99 -43.09 1,856.65 136.21
47 14.00 150.00 8.84 78.13 74.91 5,611.67 662.13
48 2.00 65.00 -3.16 9.99 -10.09 101.79 31.89
49 3.00 65.00 -2.16 4.67 -10.09 101.79 21.80
50 2.00 55.00 -3.16 9.99 -20.09 403.56 63.50
51 1.00 45.00 -4.16 17.31 -30.09 905.34 125.20
52 7.00 78.00 1.84 3.38 2.91 8.47 5.35
53 2.00 56.00 -3.16 9.99 -19.09 364.39 60.34
54 3.00 48.00 -2.16 4.67 -27.09 733.81 58.54
55 1.00 52.00 -4.16 17.31 -23.09 533.10 96.08

11
 56 2.00 55.00 -3.16 9.99 -20.09 403.56 63.50
57 2.00 55.00 -3.16 9.99 -20.09 403.56 63.50
58 3.00 56.00 -2.16 4.67 -19.09 364.39 41.25
59 12.00 135.00 6.84 46.77 59.91 3,589.34 409.73
60 9.00 110.00 3.84 14.74 34.91 1,218.79 134.02
61 6.00 45.00 0.84 0.70 -30.09 905.34 -25.24
62 3.00 54.00 -2.16 4.67 -21.09 444.74 45.58
63 2.00 65.00 -3.16 9.99 -10.09 101.79 31.89
64 3.00 60.00 -2.16 4.67 -15.09 227.67 32.61
65 1.00 29.00 -4.16 17.31 -46.09 2,124.19 191.78
66 3.00 72.00 -2.16 4.67 -3.09 9.54 6.68
67 3.00 62.00 -2.16 4.67 -13.09 171.32 28.29
68 3.00 40.00 -2.16 4.67 -35.09 1,231.23 75.83
69 2.00 30.00 -3.16 9.99 -45.09 2,033.01 142.53
70 16.00 300.00 10.84 117.48 224.91 50,585.01 2,437.79
71 6.00 40.00 0.84 0.70 -35.09 1,231.23 -29.44
72 2.00 40.00 -3.16 9.99 -35.09 1,231.23 110.92
73 3.00 52.00 -2.16 4.67 -23.09 533.10 49.90
74 2.00 50.00 -3.16 9.99 -25.09 629.45 79.31
75 2.00 45.00 -3.16 9.99 -30.09 905.34 95.11
76 2.00 49.00 -3.16 9.99 -26.09 680.63 82.47
77 7.00 55.00 1.84 3.38 -20.09 403.56 -36.94
78 8.00 87.00 2.84 8.06 11.91 141.87 33.81
79 4.00 70.00 -1.16 1.35 -5.09 25.90 5.91
80 3.50 70.00 -1.66 2.76 -5.09 25.90 8.45
81 3.00 57.00 -2.16 4.67 -18.09 327.21 39.09
82 16.00 235.00 10.84 117.48 159.91 25,571.56 1,733.26
83 10.00 135.00 4.84 23.41 59.91 3,589.34 289.90
84 14.00 210.00 8.84 78.13 134.91 18,201.01 1,192.46
85 13.00 190.00 7.84 61.45 114.91 13,204.56 900.78
86 8.00 123.00 2.84 8.06 47.91 2,295.47 136.01
87 8.00 115.00 2.84 8.06 39.91 1,592.90 113.30
88 11.00 140.00 5.84 34.09 64.91 4,213.45 379.01
89 14.00 165.00 8.84 78.13 89.91 8,084.01 794.71
90 12.00 133.00 6.84 46.77 57.91 3,353.70 396.05
Total 464.50 6,758.00 0.00 1,653.41 0.00 342,871.29 20,264.21

12
Correlation & Coefficient of Determination Analysis

Correlation coefficients are used in statistics to measure how strong a relationship is between
two variables.

Here X¯ = 464.50
Y¯ = 6,758
∑(X-X¯) (y-y¯) = 20,264.21
∑(X-X¯)^2 = 1,653.41
∑(Y-Y¯)^2 = 342,871.29
So, r= 0.8510
The Coefficient of Determination, r^2 = (0.8510)^2 = 0.7242 = 72.42%
Observation:
 So Correlation, r =0.8510 means there is a Strong Positive Correlation between salary
and service tenure
 The Coefficient of Determination r^2 = 72.42% means variation of salary can be
explained by the variation in service duration.

Regression Analysis

The Regression Coefficient is the constant ‘b’ in the regression equation that tells about the
change in the value of dependent variable corresponding to the unit change in the independent
variable.

General form of linear regression model, Y= a + bX

13
Where,
Y : dependent variable
a : intercept term
b : slope of the line
X : independent variable

Here,

So, b^ = ∑(X-X¯) (y-y¯) / ∑(X-X¯)^2

= 20,264.21/ 1,653.41 = 12.25

So, a^ = Y¯ - b X¯
= 6,758 – (12.25 x 464.50)
= 1,067.87
So, linear Regression Model, Y=1,067.87 + 12.25 X

Conclusion

Here according to our main objective of this assignment, we analysis of a group data and calculate
central tendency, dispersion. We also analyzed correlation and regression between two variables
salary and service duration.
We found that Average salary of the employees in International Brands Limited is Tk. 75,089, and
we are observing that there is a positive skewed distribution of central tendency where the value
of Mean > Median > Mode.
We observed, there is a large value of dispersion which indicates that estimation of the central
tendency is not reliable here. We came to a conclusion that in this case there is a Strong Positive
Linear relationship between Salary and Service Duration in International Brands Limited.

14
Annexure

Annex 1: Collected raw data of International Brands Limited.

15
Annex-1: Raw data of International Brands Limited
SL No Gender Designation Service Tenure Gross Salary
Male
1 Area Distribution Manager 5 65,000
Male
2 Assistant Manager 3 40,000
Male
3 Assistant Manager 3 55,000
Male
4 Area Distribution Manager 5 48,000
Female
5 Assistant Manager 3 44,000
Male
6 Area Distribution Manager 5 47,000
Male
7 Senior Executive 2.5 30,000
Male
8 Branch Manager 7 40,000
Male
9 Branch Manager 6 33,000
Male
10 Distribution Officer Accounts 5 38,000
Male
11 Area Distribution Manager 5 64,000
Male
12 General Manager 10 132,000
Male
13 Distribution Officer Accounts 5 32,000
Male
14 Assistant Manager 3 45,000
Male
15 Area Distribution Manager 5 50,000
Female
16 Senior Executive 2 60,000
Male
17 Senior Executive 2.5 60,000
Male
18 Executive 2 45,000
Male
19 Distribution Officer Accounts 6 34,000
Male
20 Senior Executive 2 45,000
Male
21 Customer Service Officer 4 31,000
Female
22 Assistant Manager 3 66,000

16
 Male
23 Area Distribution Manager 5 65,000
Male
24 Distribution Officer Accounts 3 25,000
Male
25 Area Distribution Manager 5 73,000
Female
26 Executive 1 27,000
Male
27 Relationship Officer 1 27,000
Male
28 Assistant Manager 3 45,000
Female
29 Assistant Manager 3 55,000
Male
30 Assistant Manager 3 60,000
Male
31 Branch Manager 7 45,000
Male
32 Branch Manager 7 56,000
Male
33 Area Sales Manager 5 49,000
Male
34 Assistant Manager 3 54,000
Male
35 National Sales Manager 3 245,000
Female
36 Management Trainee 1 45,000
Male
37 Branch Manager 6 56,000
Male
38 Assistant Manager 3 48,000
Male
39 Manager 6 90,000
Male
40 Managing Director 27 410,000
Male
41 Assistant Manager 3 58,000
Female
42 Assistant Manager 3 55,000
Male
43 Area Sales Manager 9 110,000
Male
44 Branch Manager 6 47,000
Male
45 Executive 2 34,000

17
 Male
46 Executive 2 32,000
Male
47 Associate Director 14 150,000
Male
48 Territory Sales Officer 2 65,000
Male
49 Assistant Manager 3 65,000
Male
50 Senior Executive 2 55,000
Male
51 Executive 1 45,000
Male
52 Senior Manager 7 78,000
Male
53 Territory Sales Officer 2 56,000
Male
54 Assistant Manager 3 48,000
Female
55 Executive 1 52,000
Male
56 Senior Executive 2 55,000
Female
57 Senior Executive 2 55,000
Female
58 Assistant Manager 3 56,000
Male
59 Associate Director 12 135,000
Male
60 Area Sales Manager 9 110,000
Male
61 Branch Manager 6 45,000
Male
62 Assistant Manager 3 54,000
Male
63 Executive 2 65,000
Male
64 Assistant Manager 3 60,000
Male
65 Executive 1 29,000
Female
66 Assistant Manager 3 72,000
Male
67 Assistant Manager 3 62,000
Male
68 Sales Supervisor - Execut 3 40,000

18
 Male
69 Sales Supervisor 2 30,000
Male
70 Director 16 300,000
Male
71 Branch Manager 6 40,000
Female
72 Senior Executive 2 40,000
Male
73 Assistant Manager 3 52,000
Female
74 Senior Executive 2 50,000
Female
75 Senior Executive 2 45,000
Male
76 Senior Executive 2 49,000
Male
77 Branch Manager 7 55,000
Female
78 Senior Manager 8 87,000
Male
79 Senior Executive 4 70,000
Male
80 Assistant Manager 3.5 70,000
Male
81 Assistant Manager 3 57,000
Male
82 Director & COO 16 235,000
Female
83 General Manager 10 135,000
Male
84 Executive Director 14 210,000
Male
85 Associate Director 13 190,000
Male
86 Deputy General Manager 8 123,000
Female
87 Deputy General Manager 8 115,000
Male
88 General Manager 11 140,000
Male
89 Associate Director 14 165,000
Female
90 General Manager 12 133,000

19