Quantitative Analysis Assignment
Quantitative Analysis Assignment
MANAGEMENT
ACADEMY
QAF ASSIGNMENT
NO. 2
USE OF STATISTICAL TOOL FOR
ANALYSIS OF DATA
SUBMITTED
TO
MR. MOHANASUNDARAM
SUBMITTED
BY
The mean value of expenditure in rural development is Rs. 26973.732 crores while the mean
value of expenditure in roads and bridges is Rs. 27962.092 crores. This shows that the
average expenditure in roads and bridges is greater than that of rural development. The
median value for expenditure in rural development is Rs. 24725.42 crores while the median
value of expenditure in roads and development is Rs. 22296.265 crores.
Then we have found the correlation coefficient, the correlation coefficient is found out to be
0.9759. The scatter diagram is also drawn, from the correlation coefficient and scatter
diagram we find that expenditure in rural development and roads & bridges is perfectly
positively correlated. This shows that the expenditure in rural development and roads &
bridges is highly correlated.
I have then used bar diagram to show the expenditure in rural development and roads &
bridges from 1998 to 2007. From this bar diagram we can see that the expenditure in rural
development is more than roads & bridges for first seven years. For the next three years the
expenditure on roads & bridges is more. This shows that from year 1998 to 2004, the
government has spent more on rural development and development of rural areas was the
main objective. In later years more spending was done of building roads and bridges.
In the inferential statistics part, we are using testing of hypothesis to find out whether the
budgetary transaction on rural development is superior to roads and bridges. I have used here
difference in mean and t test as the sample size is less than 30. The calculation is shown in
annexure. I have found that budgetary expenditure on rural development is not superior to
roads and development.
Here consider,
mean =
∑X
N
n n
( )value + ( + 1)value
median = 2 2
2
σ= ∑(X − X ) 2
r=
∑ ( X − X )(Y − Y )
∑ ( X − X ) ∑ (Y − Y )
2 2
Solution: r = 0.9759 this shows that expenditure on rural development and roads &
bridges are perfectly positively correlated.
Diagrammatic representation
Testing of hypothesis
Here I am going to test following hypothesis “is budgetary expenditure on rural development
superior than roads and bridges”
H0: budgetary expenditure on rural development is not superior to roads and bridges
Here as the sample size is less than 30 i.e. n < 30 so I am using ‘t’ test for difference in
mean.
X1 − X 2
t=
1 1
S −
n1 n2
Solution: S = 13953.
Therefore, = 0.1584
tcal
= 2.552
ttab
Thus our hypothesis we accept null hypothesis. This shows that budgetary expenditure on
rural development is not superior to expenditure on roads and bridges.
ANNEXURE
DATA