Formula

m = \frac{\text{sum of the terms}}{\text{number of terms}}

m = mean

the Pearson correlation coefficient (PCC, pronounced /ˈpɪərsən/), also referred to

as Pearson's r, the Pearson product-moment correlation coefficient (PPMCC) or the bivariate
correlation,[1] is a measure of the linear correlation between two variables X and Y.

a frequency distribution is a list, table or graph that displays the frequency of various outcomes
in a sample.[1] Each entry in the table contains the frequency or count of the occurrences of
values within a particular group or interval.

Random sampling is a part of the sampling technique in which each sample has an equal
probability of being chosen. A sample chosen randomly is meant to be an unbiased
representation of the total population.

A t-test is a type of inferential statistic used to determine if there is a significant

difference between the means of two groups, which may be related in certain
features. It is mostly used when the data sets, like the data set recorded as the
outcome from flipping a coin 100 times, would follow a normal distribution and
may have unknown variances. A t-test is used as a hypothesis testing tool, which
allows testing of an assumption applicable to a population. 

A Likert scale (/ˈlɪk.ərt/ LIK-ərt[1] but commonly mispronounced /ˈlaɪ.kərt/ LY-

kərt[2]) is a psychometric scale commonly involved in research that
employs questionnaires. It is the most widely used approach to scaling responses in
survey research, such that the term (or more accurately the Likert-type scale) is
often used interchangeably with rating scale, although there are other types of rating
scales.
The scale is named after its inventor, psychologist Rensis Likert.[3] Likert
distinguished between a scale proper, which emerges from collective responses to a set
of items (usually eight or more), and the format in which responses are scored along a
range. Technically speaking, a Likert scale refers only to the former. [4] The difference
between these two concepts has to do with the distinction Likert made between the
underlying phenomenon being investigated and the means of capturing variation that
points to the underlying phenomenon.[5]
When responding to a Likert item, respondents specify their level of agreement or
disagreement on a symmetric agree-disagree scale for a series of statements. Thus, the
range captures the intensity of their feelings for a given item.

A questionnaire is a research instrument consisting of a series of questions (or other types of

prompts) for the purpose of gathering information from respondents.

Skewness is asymmetry in a statistical distribution, in which the curve appears distorted or

skewed either to the left or to the right. Skewness can be quantified to define the extent to
which a distribution differs from a normal distribution.

Kurtosis is a statistical measure that defines how heavily the tails of a distribution differ from
the tails of a normal distribution. In other words, kurtosis identifies whether the tails of a given
distribution contain extreme values.

Data Levels of Measurement

A variable has one of four different levels of measurement: Nominal, Ordinal,
Interval, or Ratio.  (Interval and Ratio levels of measurement are sometimes
called Continuous or Scale).  It is important for the researcher to understand the
different levels of measurement, as these levels of measurement, together with
how the research question is phrased, dictate what statistical analysis is
appropriate.  In fact, the Free download below conveniently ties a variable’s
levels to different statistical analyses.

Four Different Levels of

Measurement
In descending order of precision, the four different levels of measurement are:
Nominal–Latin for name only (Republican, Democrat, Green, Libertarian)
Ordinal–Think ordered levels or ranks (small–8oz, medium–12oz, large–32oz)
Interval–Equal intervals among levels (1 dollar to 2 dollars is the same interval
as 88 dollars to 89 dollars)
Ratio–Let the “o” in ratio remind you of a zero in the scale (Day 0, day 1, day 2,
day 3, …)
The first level of measurement is nominal level of measurement.  In
this level of measurement, the numbers in the variable are used only to classify
the data.  In this level of measurement, words, letters, and alpha-numeric
symbols can be used.  Suppose there are data about people belonging to three
different gender categories. In this case, the person belonging to the female
gender could be classified as F, the person belonging to the male gender could
be classified as M, and transgendered classified as T.  This type of
assigning classification is nominal level of measurement.
The second level of measurement is the ordinal level of measurement.
This level of measurement depicts some ordered relationship among the
variable’s observations.  Suppose a student scores the highest grade of 100 in
the class.  In this case, he would be assigned the first rank.  Then, another
classmate scores the second highest grade of an 92; she would be assigned the
second rank.  A third student scores a 81 and he would be assigned the third
rank, and so on.   The ordinal level of measurement indicates an ordering of the
measurements.
The third level of measurement is the interval level of measurement.  The
interval level of measurement not only classifies and orders the measurements,
but it also specifies that the distances between each interval on the scale are
equivalent along the scale from low interval to high interval.  For example, an
interval level of measurement could be the measurement of anxiety in a
student between the score of 10 and 11, this interval is the same as that of a
student who scores between 40 and 41.   A popular example of this level of
measurement is temperature in centigrade, where, for example, the distance
between 940C and 960C is the same as the distance between 1000C and 1020C.
The fourth level of measurement is the ratio level of measurement.  In this
level of measurement, the observations, in addition to having equal intervals,
can have a value of zero as well.  The zero in the scale makes this type of
measurement unlike the other types of measurement, although the
properties are similar to that of the interval level of measurement.  In the ratio
level of measurement, the divisions between the points on the scale have an
equivalent distance between them.

Both the money market and the capital market are the two different types of the
financial markets where in the money market is used for the purpose of short term
borrowing and lending whereas the capital market is used for the long term assets i.e.,
the assets which have the maturity of more than one year.
Money market and Capital market are types of financial markets. Money markets are
used for short-term lending or borrowing usually the assets are held for one year or less
whereas, Capital Markets are used for long-term securities they have a direct or indirect
impact on the capital. Capital markets include the equity market and the debt market.

What is the Money Market?

Money markets are unorganized markets where banks, financial institutions, money
dealers and brokers trade in financial instruments for a short period of time. They trade
 in short-term debt instruments like trade credit, commercial paper, certificate of deposit,
T bills, etc. which are highly liquid and can be redeemed in the period less than 1.

Trading in the money market is done mostly through over the counter (OTC) i.e. no or little use
of exchanges. They provide businesses with short-term credit and play a major role in providing
liquidity in the economy over the short term. It helps the business and industries with working
capital requirements.

What is Capital Market?

The capital market is a type of financial market where financial products like stocks,
bonds, debentures are traded for a long duration of time. They serve the purpose of
long-term financing and long-term capital requirement. The Capital market is a dealer
and an auction market and consists of two categories:

 Primary market: A primary market where the fresh issue of securities are offered to the

public

 Secondary market: A secondary market where issued securities are traded between the

investors.

Money Market vs Capis

The difference between stocks
and bonds
March 04, 2020

The difference between stocks and bonds is that stocks are shares in the
ownership of a business, while bonds are a form of debt that the issuing
entity promises to repay at some point in the future. A balance between the
two types of funding must be achieved to ensure a proper capital structure
for a business.  More specifically, here are the key differences between
stocks and bonds:

 Priority of repayment. In the event of the liquidation of a business, the

holders of its stock have the last claim on any residual cash , whereas the
 holders of its bonds have a considerably higher priority, depending on the
terms of the bonds. This means that stocks are a riskier investment than
bonds.

 Periodic payments. A company has the option to reward its

shareholders with dividends , whereas it is usually obligated to make periodic
interest payments to its bond holders for very specific amounts. Some bond
agreements allow their issuers to delay or cancel interest payments, but this
is not a common feature. A delayed payment or cancellation feature reduces
the amount that investors will be willing to pay for a bond.

 Voting rights. The holders of stock can vote on certain company issues,
such as the election of directors . Bond holders have no voting rights.

There are also variations on the stock and bond concept that share features
of both. In particular, some bonds have conversion features that allow
bondholders to convert their bonds into company stock at certain
predetermined ratios of stocks to bonds. This option is useful when the price
of a company's stock rises, allowing bondholders to achieve an immediate
capital gain . Converting to stock also gives a former bond holder the right to
vote on certain company issues.

Both stocks and bonds may be traded on a public exchange. This is a

common occurrence for larger publicly-held companies , and much more rare
for smaller entities that do not want to go through the inordinate expense of
going public .

What Is the Time Value of Money (TVM)?

The time value of money (TVM) is the concept that money available at the
present time is worth more than the identical sum in the future due to its
potential earning capacity. This core principle of finance holds that provided
money can earn interest, any amount of money is worth more the sooner it is
received. TVM is also sometimes referred to as present discounted value.
 Why the Time Value of Money (TVM) Matters to
Investors
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By BRIAN BEERS

 Updated Apr 2, 2018

The time value of money (TVM) is an important concept to investors because a

dollar on hand today is worth more than a dollar promised in the future. The
dollar on hand today can be used to invest and earn interest or capital gains. A
dollar promised in the future is actually worth less than a dollar today because
of inflation.
Provided money can earn interest, this core principle of finance holds that any
amount of money is worth more the sooner it is received. At the most basic level,
the time value of money demonstrates that, all things being equal, it is better to
have money now rather than later.

Why Is the Time Value of Money So Important in

Capital Budgeting Decisions?
by Cam Merritt

When a business chooses to invest money in a project -- such as an expansion, a

strategic acquisition or just the purchase of a new piece of equipment -- it may be years

before that project begins producing a positive cash flow. The business needs to know

whether those future cash flows are worth the upfront investment. That's why the time

value of money is so important to capital budgeting.

Capital Budgeting
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Capital budgeting (or investment appraisal) is the process of determining the viability to
long-term investments on purchase or replacement of property plant and equipment,
new product line or other projects.
Capital budgeting consists of various techniques used by managers such as:
1. Payback Period
2. Discounted Payback Period
3. Net Present Value
4. Accounting Rate of Return
5. Internal Rate of Return
6. Profitability Index
All of the above techniques are based on the comparison of cash inflows and outflow of
a project however they are substantially different in their approach.
A brief introduction to the above methods is given below:
 Payback Period measures the time in which the initial cash flow is returned by the
project. Cash flows are not discounted. Lower payback period is preferred.
 Net Present Value (NPV) is equal to initial cash outflow less sum of discounted cash
inflows. Higher NPV is preferred and an investment is only viable if its NPV is positive.
 Accounting Rate of Return (ARR) is the profitability of the project calculated as
projected total net income divided by initial or average investment. Net income is not
discounted.
 Internal Rate of Return (IRR) is the discount rate at which net present value of the
project becomes zero. Higher IRR should be preferred.
 Profitability Index (PI) is the ratio of present value of future cash flows of a project to
initial investment required for the project.

The current ratio is a liquidity ratio that measures a company's ability to pay

short-term obligations or those due within one year. It tells investors and
analysts how a company can maximize the current assets on its balance
sheet to satisfy its current debt and other payables.
Profit margin, net margin, net profit margin or net profit ratio is a measure of profitability. It is
calculated by finding the net profit as a percentage of the revenue. 

What Is the Quick Ratio?

The quick ratio is an indicator of a company’s short-term liquidity position and
measures a company’s ability to meet its short-term obligations with its most
liquid assets.
Since it indicates the company’s ability to instantly use its near-cash assets (that
is, assets that can be converted quickly to cash) to pay down its current liabilities,
it is also called the acid test ratio. An acid test is a quick test designed to
produce instant results—hence, the name.
What Is The Quick Ratio?
The Formula for the Quick Ratio Is
\begin{aligned} &QR=\frac{CE+MS+AR}{CL}\\ &\text{Or}\\ &QR=\frac{CA-I-PE}
{CL}\\ &\textbf{where:}\\ &QR=\text{Quick ratio}\\ &CE=\text{Cash }
\&\text{ equivalents}\\ &MS=\text{Marketable securities}\\
&AR=\text{Accounts receivable}\\ &CL=\text{Current Liabilities}\\
&CA=\text{Current Assets}\\ &I=\text{Inventory}\\ &PE=\text{Prepaid
expenses} \end{aligned}QR=CLCE+MS+AROrQR=CLCA−I−PE
where:QR=Quick ratioCE=Cash & equivalentsMS=Marketable securiti
esAR=Accounts receivableCL=Current LiabilitiesCA=Current AssetsI=In
ventoryPE=Prepaid expenses

Asset Turnover Ratio

By ADAM HAYES

 Updated Mar 8, 2020

What Is the Asset Turnover Ratio?

The asset turnover ratio measures the value of a company's sales
or revenues relative to the value of its assets. The asset turnover ratio can be
used as an indicator of the efficiency with which a company is using its assets to
generate revenue.
The higher the asset turnover ratio, the more efficient a company is at generating
revenue from its assets. Conversely, if a company has a low asset turnover ratio,
it indicates it is not efficiently using its assets to generate sales.
Debt Ratio is a financial ratio that indicates the percentage of a company's assets that are provided
via debt. It is the ratio of total debt and total assets.

Accounts payable turnover is a ratio that measures the speed with which a

company pays its suppliers. If the turnover ratio declines from one period to
the next, this indicates that the company is paying its suppliers more slowly,
and may be an indicator of worsening financial condition.

Meaning of Financial Management

Financial Management means planning, organizing, directing and controlling the financial activities such
as procurement and utilization of funds of the enterprise. It means applying general management
principles to financial resources of the enterprise.

Scope/Elements
1. Investment decisions includes investment in fixed assets (called as capital budgeting). Investment
in current assets are also a part of investment decisions called as working capital decisions.
2. Financial decisions - They relate to the raising of finance from various resources which will
depend upon decision on type of source, period of financing, cost of financing and the returns
thereby.
3. Dividend decision - The finance manager has to take decision with regards to the net profit
distribution. Net profits are generally divided into two:
a. Dividend for shareholders- Dividend and the rate of it has to be decided.
b. Retained profits- Amount of retained profits has to be finalized which will depend upon
expansion and diversification plans of the enterprise.
Objectives of Financial Management
The financial management is generally concerned with procurement, allocation and control of financial
resources of a concern. The objectives can be-

1. To ensure regular and adequate supply of funds to the concern.

2. To ensure adequate returns to the shareholders which will depend upon the earning capacity,
market price of the share, expectations of the shareholders.
3. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in
maximum possible way at least cost.
4. To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate
rate of return can be achieved.
5. To plan a sound capital structure-There should be sound and fair composition of capital so that a
balance is maintained between debt and equity capital.
Functions of Financial Management
1. Estimation of capital requirements: A finance manager has to make estimation with regards to
capital requirements of the company. This will depend upon expected costs and profits and future
programmes and policies of a concern. Estimations have to be made in an adequate manner
which increases earning capacity of enterprise.
2. Determination of capital composition: Once the estimation have been made, the capital
structure have to be decided. This involves short- term and long- term debt equity analysis. This
 will depend upon the proportion of equity capital a company is possessing and additional funds
which have to be raised from outside parties.
3. Choice of sources of funds: For additional funds to be procured, a company has many choices
like-
a. Issue of shares and debentures
b. Loans to be taken from banks and financial institutions
c. Public deposits to be drawn like in form of bonds.
Choice of factor will depend on relative merits and demerits of each source and period of
financing.
4. Investment of funds: The finance manager has to decide to allocate funds into profitable
ventures so that there is safety on investment and regular returns is possible.
5. Disposal of surplus: The net profits decision have to be made by the finance manager. This can
be done in two ways:
a. Dividend declaration - It includes identifying the rate of dividends and other benefits like
bonus.
b. Retained profits - The volume has to be decided which will depend upon expansional,
innovational, diversification plans of the company.
6. Management of cash: Finance manager has to make decisions with regards to cash
management. Cash is required for many purposes like payment of wages and salaries, payment
of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of
enough stock, purchase of raw materials, etc.
7. Financial controls: The finance manager has not only to plan, procure and utilize the funds but
he also has to exercise control over finances. This can be done through many techniques like
ratio analysis, financial forecasting, cost and profit control, etc.

Operations Management
By WILL KENTON

 Updated Jun 26, 2019

What Is Operations Management?

Operations management is the administration of business practices to create the
highest level of efficiency possible within an organization. It is concerned with
converting materials and labor into goods and services as efficiently as possible
to maximize the profit of an organization. Operations management teams attempt
to balance costs with revenue to achieve the highest net operating
profit possible.
KEY TAKEAWAYS
 Operations management is the administration of business practices to
create the highest level of efficiency possible within an organization.
 Operations management is concerned with converting materials and labor
into goods and services as efficiently as possible.
 Corporate operations management professionals try to balance costs with
revenue to maximize net operating profit.
Understanding Operations Management
Operations management involves utilizing resources from staff, materials,
equipment, and technology. Operations managers acquire, develop, and deliver
goods to clients based on client needs and the abilities of the company.
Operations management handles various strategic issues, including determining
the size of manufacturing plants and project management methods and
implementing the structure of information technology networks. Other operational
issues include the management of inventory levels, including work-in-process
levels and raw materials acquisition, quality control, materials handling, and
maintenance policies.
Operations management entails studying the use of raw materials and ensuring
minimal waste occurs. Operations managers utilize numerous formulas, such as
the economic order quantity formula to determine when and how large of an
inventory order to process and how much inventory to hold on hand.

 SM Investments Corporation with Banco de Oro

 Patron Energy Corporation with car maintenance
 Shakey’s Pizza Asia Ventures, Inc. with loyalty card usage

REVIEWER: PRODUCTION MANAGEMENT

1. DIMENSIONS OF QUALITY

Quality Framework

Garvin proposes eight critical dimensions or categories of quality that can serve as a framework for strategic analysis: Performance,
features, reliability, conformance, durability, serviceability, aesthetics, and perceived quality.
 
1. Performance
Performance refers to a product's primary operating characteristics. For an automobile, performance would include traits like
acceleration, handling, cruising speed, and comfort. Because this dimension of quality involves measurable attributes, brands can
usually be ranked objectively on individual aspects of performance. Overall performance rankings, however, are more difficult to
develop, especially when they involve benefits that not every customer needs.
 
2. Features
Features are usually the secondary aspects of performance, the "bells and whistles" of products and services, those characteristics
that supplement their basic functioning. The line separating primary performance characteristics from secondary features is often
difficult to draw. What is crucial is that features involve objective and measurable attributes; objective individual needs, not
prejudices, affect their translation into quality differences.
 
3. Reliability
This dimension reflects the probability of a product malfunctioning or failing within a specified time period. Among the most
common measures of reliability are the mean time to first failure, the mean time between failures, and the failure rate per unit time.
Because these measures require a product to be in use for a specified period, they are more relevant to durable goods than to
products or services that are consumed instantly.
 
4. Conformance
Conformance is the degree to which a product's design and operating characteristics meet established standards. The two most
common measures of failure in conformance are defect rates in the factory and, once a product is in the hands of the customer, the
incidence of service calls. These measures neglect other deviations from standard, like misspelled labels or shoddy construction,
that do not lead to service or repair.
 
5. Durability
A measure of product life, durability has both economic and technical dimensions. Technically, durability can be defined as the
amount of use one gets from a product before it deteriorates. Alternatively, it may be defined as the amount of use one gets from a
product before it breaks down and replacement is preferable to continued repair.
 
6. Serviceability
Serviceability is the speed, courtesy, competence, and ease of repair. Consumers are concerned not only about a product breaking
down but also about the time before service is restored, the timeliness with which service appointments are kept, the nature of
dealings with service personnel, and the frequency with which service calls or repairs fail to correct outstanding problems. In those
cases where problems are not immediately resolved and complaints are filed, a company's complaints handling procedures are also
likely to affect customers' ultimate evaluation of product and service quality.
 
7. Aesthetics
Aesthetics is a subjective dimension of quality. How a product looks, feels, sounds, tastes, or smells is a matter of personal
judgement and a reflection of individual preference. On this dimension of quality it may be difficult to please everyone.
 
8. Perceived Quality
Consumers do not always have complete information about a product's or service's attributes; indirect measures may be their only
basis for comparing brands. A product's durability for example can seldom be observed directly; it must usually be inferred from
various tangible and intangible aspects of the product. In such circumstances, images, advertising, and brand names - inferences
about quality rather than the reality itself - can be critical.

The Importance of a Strategic Business Plan

If you’re thinking of starting a staffing firm, congratulations! It’s a dynamic, growing market and
one that is great for entrepreneurs and that provides the added satisfaction of helping people,
whether they are your clients or your candidates.
Whether you are an entrepreneur looking to explore a new market, or a staffing pro looking to set
out on your own, there are important steps to consider before you start out.  This can include
assessing your strengths and weaknesses, understanding your market, and choosing your niche…
but really it comes down to one major strategic device… a business plan.
Business plans can seem, at first glance, a daunting process. But if you look at it as steps to help
you grow, a plan can really help you focus on your strengths and ensure success. By analyzing
your plan and checking it for everything from customer service to marketing to sales and even
Website design, you greatly improve your chances for success.

The Purpose of a Business Plan

The primary purpose of a business plan is to gather investors. This can be important when you
looking at seed money for a start-up.
The second purpose is perhaps more important. Put simply, a business plan is your roadmap. 
Ideally, it will be your compass and you can check and see how your growth reflects your vision.
 The Ingredients
Typically speaking, a business plan will contain the following: An executive summary (first in
your plan but usually what you create last); your company description; a market analysis (this
includes your likely customers and candidates and also your competitors); a marketing and sales
strategy; a recruiting plan; a technology strategy; in-house hiring; a funding strategy; and
financial projections.
As you think these steps through, you should always keep opportunities in mind. For example,
outsourcing everything but your core competencies can be a wise decision that allows you to
focus on growing and sustaining your business.
Companies such as Madison can help you with everything from payroll funding to technology
needs.
One other great aspect of working with Madison is that you can marry your plan to real-time
business intelligence. You’ll get trends on sales gross profit, gross margin, MU
% and headcounts; adjustable periods and comparisons with dropdowns for month, quarterly, or
annually, and year-over-year or sequential comparison options, just for starters. In this way, your
plan is not ‘pie in the sky,’ but backed up by real numbers and projections.
A Caveat
One important consideration in your business plan: don’t think of it as written in stone. You’re
dealing, after all, in a dynamic, fluid market –also known as the real world.
You’ve got to maintain your flexibility, and not rigidly adhere to a plan. Keep your eyes on your
vision and your goals, and be ready to adjust to meet them accordingly. Don’t feel tethered to
your original plan. In most cases, you can bet that where you end up is not where you started.
The good news is that staffing is about change and flexibility, and so you should have a natural
affinity for folding that into your business model.

Work with a micro-influencer on social to connect with your target audience

and improve brand awareness. 

Influencer marketing plays a major role in all types of modern

marketing (ads, videos, social media, blogs). But businesses
are no longer limited to major celebrities and names
that everyone knows when deciding to work with an
influencer.
In fact, micro-influencers have found their niche in the social
media world, too — and it's a big role they've started to play in
converting leads, connecting with audience members, and
boosting brand awareness.

Micro-influencers are social media promoters with a smaller,

niche following (typically, thousands to tens-of-thousands of
followers). Although these folks may have fewer followers,
their posts often pack more punch due to their higher level of
engagement.

Additionally, since they’re considered “average” and

“everyday” people (unlike hard-to-reach celebrities), audience
members view micro-influencers more like friends and family
and, therefore, are more likely to trust their opinions and
recommendations.

Legal Behavior

 Organization must make sure every employee knows and observes relevant laws
 They must not disparage competitors or their products by false accusations
 They must not lie to customers and misleading them

Ethical Behavior

 They must not trade secrets through bribery or industrial espionage

 They should avoid bribery, inaccurate labeling, and false advertising

Social Responsibility Behavior

 Individual marketers must exercise their social conscience in specific dealings with customers
and stakkeholders