DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No.– 1
DESCRIPTIVE STATISTICS
Date: 20.03.2023
Calculate the frequency distribution. Create a data file with the following variables.
Label for the variables
Age: 1 (< 25), 2 (25-30), 3 (30-35), 4 (35-40), 5 (>40).
Gender: 1 (Male), 2(Female).
Education: 1 – No education, 2 – Graduate 3- Post Graduate, 4-PhD.
Working Experience (years): 1 (< 1 year) 2(1-5 years), 3(5-10Year),4(10-20), 5(>20 years).
Enter your own data set (minimum 30 data set) in the data view of SPSS than Calculate the
frequency distribution. Graphically represent the variables in the form of BAR and PIE Chart

AIM:

To find out the descriptive statistics details for the given data using SPSS software

ALGORITHM:

Step1:

Start All Programmes SPSS PASW Statistics16

Step2:

Click type in data and give ok.

Step3:

Click variable view enter the variable name; type; width; labels; values and measures.

Step4:

Click the data view and enter the data for all variables.

Step 5:

Click Analyze Descriptive Statistics Frequencies Transfer the variables

Statistics click all the options of Central Tendency and Dispersion continue
click Charts Pie/ Bar Diagrams continue ok.

Step 6:

Save the data file and output file.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT

FREQUENCY TABLE

AGE OF THE PERSON

Frequency Percent Valid Percent Cumulative Percent

Valid <25 5 16.7 16.7 16.7

25-30 8 26.7 26.7 43.3

30-35 6 20.0 20.0 63.3

35-40 5 16.7 16.7 80.0

>40 6 20.0 20.0 100.0

Total 30 100.0 100.0

EDUCATION STATUS

Cumulative
Frequency Percent Valid Percent Percent

Valid NO EDUCATION 8 26.7 26.7 26.7

GRADUATE 10 33.3 33.3 60.0

POST GRADUATE 7 23.3 23.3 83.3

PHD 5 16.7 16.7 100.0

Total 30 100.0 100.0

GENDER OF THE PERSON

Cumulative
Frequency Percent Valid Percent Percent

Valid MALE 14 46.7 46.7 46.7

Female 16 53.3 53.3 100.0

Total 30 100.0 100.0

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

WORKING EXPERIENCE

Cumulative
Frequency Percent Valid Percent Percent

Valid <1YEAR 7 23.3 23.3 23.3

1-5YEAR 9 30.0 30.0 53.3

5-10YEAR 8 26.7 26.7 80.0

10-20YEAR 6 20.0 20.0 100.0

Total 30 100.0 100.0

PIE CHART

AGE OF THE PERSON

<1 YEAR 1-5 YEAR 5-10 YEAR 10-20 YEAR >40

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DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

EDUCATION STATUS

<1 YEAR 1-5 YEAR 5-10 YEAR 10-20 YEAR

GENDER OF THE PERSON

<1 YEAR 1-5 YEAR

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

WORKING EXPERIENCE

<1 YEAR 1-5 YEAR 5-10 YEAR 10-20 YEAR

BAR CHART

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DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

RESULT:

The Descriptive Statistics of given data was found out using SPSSSoftware.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 2A
HYPOTHESIS –PARAMETRIC
DATE:23.03.2023 One Sample ‘T’ Test

The life time of tube for a random sample of 20 provides following figures:

Item 1 2 3 4 5 6 7 8 9 10
Life (in Years) 5. 6. 5.
5 6 5.4 2 3.4 7 5.9
5 5 4
Item 11 12 13 14 15 16 17 18 19 20
Life (in Years) 5. 8.
6 5.7 9 6 7 5.9 5 4.9
8 7

Null hypothesis: Average Life of tube is 5 years. Analyze the above problem through T test.

AIM:

To analyze the problem and test the hypothesis using one sample ‘t’ test using SPSS
Software.

ALGORITHM:

Step 1:

Formulate the Null hypothesis and Alternate hypothesis

Null hypothesis: The average life of tube is 5 years.

Alternate hypothesis: The average life of tube is not 5 years.

Step 2:

Start All Programmes SPSS PASW statistics16

Step 3:

Click Type in data and give ok.

Step 4:

Click variable view and enter the variable name; type; width; labels; values and
measures.

Step 5:

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Click the data view and enter the data for all variables.

Step 6:

Click analyze compare means one sample ‘T’test

Step 7:

Select the variable life of tube as test variable and enter the test value as 5.

Step 8:

Save the data file and output file.

OUTPUT:

One-Sample Test

Test Value = 5

t Df Sig. (2-tailed) Mean Difference

LIFE OF TUBE IN YEARS

2.359 19 .029 .8100

RESULT:

From the output table, the significant value is 0.029 which is less than 0.05. So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level .Hence, it
is concluded that the average life of the tube not equal to 5 years.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 2B
HYPOTHESIS – PARAMETRIC
Date:23.03.2023 Independent Sample ‘T’ Test

The height of males and the height of females were compared.

Research question: Does height create a significant difference between the male
andfemale. Analyze the problem using independent sample t test. Label: Male: 1, Female: 2

Gender 1 1 2 1 2 1 2 1 2 1
Height in Cms 140 146 156 149 154 156 151 148 158 150
Gender 1 2 1 2 1 1 2 2 1 2
Height in Cms 151 159 153 148 155 146 150 152 149 156

AIM:
To analyze the problem and test the hypothesis using independent sample‘t’ test using
SPSS software.

ALGORITHM:

Step 1:

Formulate the Null hypothesis and Alternate hypothesis

Null hypothesis: There is no significant difference between the heights of male and
female.

Alternate hypothesis: There is a significant difference between the heights of male

and female.

Step 2:

Start All programmes SPSS PASW statistics16 Type in data

Step 3:

Click variable view enter the variable name; type; width; labels; values and measures.

Step 4:

Click the data view and enter the data for all variables

Step 5:

Click analyze compare means independent sample‘T’test

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 6:

Select the variable height as test variable and gender as grouping variables. Then enter
the defined groups

Step 7:

Click options then enter the confidence level is 95% continue ok

Step 8:

Save data file and output file.

OUTPUT:

Independent Samples Test

Levene's
Test for
t-test for Equality of Means
Equality of
Variances

95%
Confidence
Sig. (2- Mean Std. Error Interval of the
F Sig. t df
tailed) Difference Difference Difference

Lower Upper

Equal
variances .024 .880 -2.336 18 .031 -4.414 1.889 -8.384 -.444
Assumed
Equal
variances -2.381 17.985 .029 -4.414 1.854 -8.309 -.519
not assumed

RESULT:

From the output table, the significant value is 0.031which is less than 0.05. So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level.Hence,it is
concluded that there is a significant difference between the heights of male and female.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 2C
HYPOTHESIS- PARAMETRIC
DATE:27.03.2023 Paired Sample ‘T’ Test

A researcher wants to compare the pretest scores and posttest scores of 20 students
who has undergone training in an institution.
Research Question is: Does the training have any impact in the scores of the students.
Analyze the problem using paired sample T test.

Pre test 53 54 57 68 66 74 63 71 74 75
Post test 88 96 98 103 108 122 112 120 123 124
Pre test 59 71 69 55 52 61 76 81 61 69
Post test 97 115 111 85 79 94 93 96 87 77

AIM:

To analyze the problem and test the hypothesis using paired comparison ‘T’ test using
SPSS software.

ALGORITHM:

Step 1:

Formulate the Null hypothesis and Alternate hypothesis

Null hypothesis: There is no significant difference between pre-test scores and post
test scores of students.

Alternate hypothesis: There is a significant difference between pre-test scores and

post test scores of students.

Step 2:

Start All Programmes SPSS PASW statistics16 Type in data

Step 3:

Click variable view enter the variable name; type; width; labels; values and measures.

Step 4:

Click the data view and enter the data for all variables

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 5:

Click analyze compare means Paired Sample‘T’test

Step 6:

Transfer the pretest scores and post test scores variables into the variable-1 and
variable-2

Step 7:

Click options then enter the confidence level is 95% continue ok

Step 8:

Save the data file and output file.

OUTPUT:

Paired Samples Test

Paired Differences

95% Confidence
Sig. (2-
Std. Interval of the t df
Std. tailed)
Mean Error Difference
Deviation
Mean
Lower Upper

Pre test scores

- post test -35.950 12.215 2.731 -41.667 -30.233 -13.162 19 .000
scores

RESULT:

From the output table the significant value is 0.000 which is less than 0.05. So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level.Hence, it
is concluded that there is a significant difference between the pre-score and post score of
student who has undergone training in an institution.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 2D
HYPOTHESIS- PARAMETRIC
DATE:27.03.2023 One Way ANOVA Test – Normal

Gupta wants to compare the scores of CBSE students from four metro cities of India
i.e., Delhi, Kolkata, Mumbai, Chennai. He Obtained 10 participant scores based on random
sampling from each of the four metro cities, Collecting 40 responses. He made the following
hypothesis.

NULL HYPOTHESIS: There is no significant difference in scores between different metro

Cities of India.
ALTERNATE HYPOTHESIS: There is significant difference in scores between different
metro cities of India.
Note: This is an independent design, since the respondents are from different cities. Use One
– way between groups ANOVA.

Label for City: 1 – Delhi, 2 – Kolkata, 3 – Mumbai, 4 – Chennai

City Scores of the Student
1 400 450 499 480 495 300 350 356 269 298
2 389 398 399 498 457 400 300 298 369 348
3 488 469 425 450 399 385 299 298 389 390
4 450 400 428 398 359 360 310 295 322 365

AIM:
To analyze the problem and test the hypothesis usingone-wayANOVAtest using SPSS
software.

ALGORITHM:
Step 1:
Formulate the null hypothesis and alternate hypothesis

Null hypothesis: There is no significant difference in scores between different

metroCities of India.
Alternate hypothesis: There is significant difference in scores between differentmetro
cities of India.

Step 2:

Start All programmes SPSS PASW statistics16 Type in data

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 3:
Click variable view enter the variable name; type; width; labels; values and measures.
Step 4:
Click the data view and enter the data for all variables
Step 5:
Click analyze compare means One Way ANOVAtest
Step 6:
Transfer the city variable into factor and another variable score of students into
dependent list.
Step 7:
Click options then enter the confidence level is 95% continue ok
Step 8:
Save the data file and output file.

OUTPUT:

ANOVA
Scores of CBSE Students

Sum of Squares df Mean Square F Sig.

Between Groups 4894.200 3 1631.400 .360 .782

Within Groups 163218.200 36 4533.839

Total 168112.400 39

RESULT:

From the output table, the significant value is 0.782 which is greater than 0.05. So
null hypothesis is accepted at 95% confidence level .Hence, it is concluded that there is no
significant difference in scores between different metro cities of India.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 2E
HYPOTHESIS- PARAMETRIC
DATE:31.03.2023 One Way ANOVA Test – Contrast

SekarKapoor wants to know the Sales in four different metro cities of India in Diwali
season. He assumes the Sales contrast of 2:1:-1:-2 for Delhi: Kolkata: Mumbai: Chennai,
respectively. He collects Sales data from 10 respondents each from the four metro cities.
Frame the required hypothesis, do the analysis using the One-way between groups ANOVA
with planned Comparisons and show the RESULT. Calculate F ratio along with Post Hoc
analysis.

City Sales in Rs. (Lacs)

1 500 498 478 499 450 428 500 498 486 469
2 500 428 389 378 498 469 428 412 410 421
3 421 410 389 359 369 359 349 349 359 400
4 289 269 259 299 389 349 350 301 297 297

AIM:
To analyze the problem and test the hypothesis usingone-wayANOVA test, giving
weightusing SPSS software.

ALGORITHM:
Step 1:
Formulate the null hypothesis and alternate hypothesis
Null Hypothesis: There is no significant difference between Sales in four different
metro cities in India.
Alternate Hypothesis: There is a significant difference between Sales in four different
metro cities in India.
Step 2:
Start All Programmes SPSS PASW statistics16 Type in data
Step 3:
Click variable view enter the variable name; type; width; labels; values and measures.
Step 4:
Click the data view and enter the data for all variables
Step 5:
Click analyze compare means One Way ANOVA test

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 6:
Transfer the Sales variable into dependent list and name of the city into factor
variable.
Step 7:
Click contrast select polynomial then select quadratic Add coefficients then
click post hoc then click Tukey’s and Games howell continue ok.
Step 8:
Save the data file and output file.
OUTPUT:

ANOVA

Sum of Mean
Sales in Diwali season df F Sig.
Squares Square

(Combined) 166071.800 3 55357.267 45.936 .000

164967.68
Contrast 164967.680 1 136.891 .000
0
Linear Term
Between
Groups Deviation 1104.120 2 552.060 .458 .636

Contrast 1102.500 1 1102.500 .915 .345

Quadratic
Term
Deviation 1.620 1 1.620 .001 .971

Within Groups 43383.800 36 1205.106

Total 209455.600 39

Contrast Tests
Value of Std. Sig. (2-
Contrast t df
Contrast Error tailed)
Assume equal
Sales in 1 354.60 34.715 10.215 36 .000
variances
diwali
Does not assume
season 1 354.60 39.148 9.058 21.347 .000
equal variances

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Post Hoc Tests- Multiple Comparisons

Dependent Variable:Sales in diwali season

Mean 95% Confidence Interval

Std.
(I) city (J) city Difference Sig.
Error Lower Bound Upper Bound
(I-J)
Kolkata 47.300* 15.525 .021 5.49 89.11
Delhi Mumbai 104.200* 15.525 .000 62.39 146.01
Chennai 172.500* 15.525 .000 130.69 214.31
Delhi -47.300* 15.525 .021 -89.11 -5.49
Kolkata Mumbai 56.900* 15.525 .004 15.09 98.71
Chennai 125.200* 15.525 .000 83.39 167.01
Tukey HSD *
Delhi -104.200 15.525 .000 -146.01 -62.39
*
Mumbai Kolkata -56.900 15.525 .004 -98.71 -15.09
*
Chennai 68.300 15.525 .001 26.49 110.11
Delhi -172.500* 15.525 .000 -214.31 -130.69
Chennai Kolkata -125.200* 15.525 .000 -167.01 -83.39
Mumbai -68.300* 15.525 .001 -110.11 -26.49
Kolkata 47.300* 15.529 .038 2.38 92.22
Delhi Mumbai 104.200* 11.484 .000 71.73 136.67
*
Chennai 172.500 15.258 .000 128.44 216.56
*
Delhi -47.300 15.529 .038 -92.22 -2.38
*
Kolkata Mumbai 56.900 15.788 .012 11.43 102.37
Chennai 125.200* 18.713 .000 72.31 178.09
Games-Howell
Delhi -104.200* 11.484 .000 -136.67 -71.73
Mumbai Kolkata -56.900* 15.788 .012 -102.37 -11.43
Chennai 68.300* 15.520 .002 23.68 112.92
Delhi -172.500* 15.258 .000 -216.56 -128.44
*
Chennai Kolkata -125.200 18.713 .000 -178.09 -72.31
*
Mumbai -68.300 15.520 .002 -112.92 -23.68
*. The mean difference is significant at the 0.05 level.

RESULT:

From the entireOUTPUTtable, the significant valuesare less than 0.05. So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level.
Hence, it is concluded that there is a significant difference between Sales in four
different metro cities in India.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 3A
HYPOTHESIS–NON-PARAMETRIC
DATE:03.04.2023 Two Way ANOVA Test

MohitRajan wants to research that whether Sales (dependent) of the respondents

depend on their place (independent) and age (independent). He assigns 10 respondents from
each metro city.
Each respondent can select from 3 age levels. Place: Ram Nagar, Jyoti Colony, VivekVihar
Ram Nagar – 10 respondents, Jyoti Colony – 9 respondents, VivekVihar – 10 respondents

Age : 1 (below 25 years), 2 (25-35 years), 3 (above 35 years).

Place Age Sales (Rs. Lacs)

1 20, 40, 44, 35
Ram Nagar 2 30, 34, 50, 40
3 60, 55
1 15, 25, 30
Jyoti Colony 2 35, 40, 45, 70
3 65, 80
1 80, 75, 30, 10
VivekVihar 2 100, 90, 75
3 150, 89, 99

Analyze using Two-way between groups ANOVA. Find the variable that has
significant effect on Sales.

AIM:
To analyze the problem and test the hypothesis usingtwo-wayANOVA test using
SPSS software.
ALGORITHM:
Step 1:
Formulate the null hypothesis and alternate hypothesis
Null Hypothesis 1: The place has no impact on Sales.
Alternate Hypothesis 1: The place has an impact on Sales.
Null Hypothesis 2: The age group has no impact on Sales.
Alternate Hypothesis 2: The age group has an impact on Sales.
Null Hypothesis 3: The combination of place and age has no impact in sale.
Alternate Hypothesis 3: The combination of place and age has an impact in sale.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 2:
Start All Programmes SPSS PASWStatistics16 Type in data
Step 3:
Click variable view enter the variable name; type; width; labels; values and measures.
Step 4:
Click the data view and enter the data for all variables
Step 5:
Click analyze General linear model Univariate
Step 6:
Transfer the Sales variable intoindependent, name of the place into fixed factor and
age of the person into the random factor. Then Click ok.
Step 7:
Save the data file and output file.
OUTPUT:

Tests of Between-Subjects Effects

Dependent Variable:Sales in Lacs
Type III Sum
Source df Mean Square F Sig.
of Squares
Hypothesis 91467.120 1 91467.120 21.603 .043
Intercept
Error 8509.914 2.010 4234.048a
Hypothesis 8957.647 2 4478.824 10.260 .024
Place b
Error 1845.935 4.229 436.532
Hypothesis 8688.611 2 4344.306 9.915 .028
Age c
Error 1772.663 4.046 438.143
Hypothesis 1754.261 4 438.565 1.169 .354
place * Age
Error 7500.500 20 375.025d
a. MS(Age) + .028 MS(Error)
b. MS(place * Age) + .032 MS(Error)
c. MS(place * Age) + .007 MS(Error)
d. MS(Error)

RESULT:

From the output table, the significant values are 0.024, 0.028 and 0.354. The first two
significance values are less than 0.05 and third value is greater than 0.05. So, null hypothesis
1 and null hypothesis 2 are rejected and null hypothesis 3 is accepted at 95% confidence
level. Hence, it is concluded that the place and the age group separately have impact on Sales
but the combination of place and age group has no impact on Sales.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 3B
HYPOTHESIS –NON-PARAMETRIC
DATE:03.04.2023 Chi - Square Test

Mathu Gupta wants to know whether the serial preference was dependent on location
of the respondent. The responses indicate, 75 respondents each have seen serial Crorepathi
and Big Boss. His responses indicate 66 respondents from Delhi and 84 respondents from
Mumbai. The frequency table is shown below;

Serial Place Frequency

Crorepathi Delhi 40
Crorepathi Mumbai 35
Big Boss Delhi 26
Big Boss Mumbai 49

Conduct a chi square test for independence or relatedness (Based on weigh cases)

AIM:

To analyze the problem and test the hypothesis using chi- square test using SPSS
software.

ALGORITHM:

Step 1:

Formulate the null hypothesis and the alternate hypothesis

Null Hypothesis: There is no relationship between the place of the person and
preference of the serial.

Alternate Hypothesis: There is a relationship between the place of the person and
preference of the serial.

Step 2:

Start All programmes SPSS PASWStatistics16 Type in data

Step 3:

Click variable view enter the variable name; type; width; labels; values and measures.

Step 4:

Click the data view and enter the data for all variables

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 5:

Click analyze Descriptive statistics cross tabs transfer serial into

row and place in to column click statistics select chi-square then click
ok.

Step 6:

Save the data file and output file.

OUTPUT:

Serial * Place Crosstabulation

Count Place
Total
Delhi Mumbai
Crorepathi 40 35 75
Serial
Big Boss 26 49 75
Total 66 84 150

Chi-Square Tests
Asymp. Sig. Exact Sig. Exact Sig.
Value Df
(2-sided) (2-sided) (1-sided)
Pearson Chi-Square 5.303a 1 .021
Continuity Correctionb 4.573 1 .032
Likelihood Ratio 5.337 1 .021
Fisher's Exact Test .032 .016
Linear-by-Linear
5.268 1 .022
Association
N of Valid Casesb 150
a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 33.00.
b. Computed only for a 2x2 table

RESULT:

From the output table the significant value is 0.016 which is less than 0.05. . So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level. Hence, it
is concluded that there a relationship between the place of the person and preference of the
serial.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 3C
HYPOTHESIS –NON-PARAMETRIC
DATE:06.04.2023 Spearman’s Rank Correlation Test

Pawan wants to see the relationship between monthly household income and retail
purchase by 20 respondents through Spearman’s rank order correlation.

Sl. No. 1 2 3 4 5 6 7 8 9 10
Household income
1 5 0.50 10 3 3 7 8 10 0.40
(Rs. In Lac)
Retail purchase
10 25 10 100 35 30 100 100 150 8
(Rs. In thousand)

Sl. No. 11 12 13 14 15 16 17 18 19 20
Household income
0.30 0.20 0.10 0.15 0.80 5 6 7 8 1
(Rs. In Lac)
Retail purchase
6 3 2 2 10 30 30 20 60 10
(Rs. In thousand)

AIM:

To analyze the problem and test the hypothesis usingsperaman’s rank correlation test
using SPSS software.

ALGORITHM:

Step 1:

Formulate the null hypothesis and the alternate hypothesis

Null Hypothesis: There is no correlation between the household income and the retail
purchase.

Alternate Hypothesis: There is a correlation between the household income and the
retail purchase.

Step 2:

Start All programmes SPSS PASWStatistics16 Type in data

Step 3:

Click variable view enter the variable name; type; width; labels; values and measures.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 4:

Click the data view and enter the data for all variables

Step 5:

Clickanalyze correlate Bivariate click spearman’s click ok

Step 6:

Save the data file and output file.

OUTPUT:

Correlations

Household Retail
income in purchase in
lakhs thousands

Correlation
1.000 .942**
Coefficient
household
income in lakhs Sig. (2-tailed) . .000

Spearman's N 20 20
rho Correlation
.942** 1.000
Coefficient
retail purchase
in thousands Sig. (2-tailed) .000 .

N 20 20

**. Correlation is significant at the 0.01 level (2-tailed).

RESULT:

From the output table the significant value is 0.000 which is less than 0.05. . So null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level. Hence, It
is concluded that there is a correlation between the house hold income and retail purchase.
The correlation co-efficient of 0.942 shows that there is a high positive correlation between
the two variables.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 3D
HYPOTHESIS- NON-PARAMETRIC
DATE:06.04.2023 Mann-Whitney ’U’ Test

The Sales of two retails stores of Delhi(store1) and Mumbai(store2) are compared by
Ganesh. The Sales are in Rs.Lacs. There are 20 respondents, 10 from each store. Apply Mann
– Whitney nonparametric t-test of independent groups to prove the hypothesis.
Null hypothesis: There exists no significant difference in the Sales of two retails shop
Alternative hypothesis: There exists significant difference in the Sales of two retails shop.

Retail Store 1 2 1 1 2 2 2 1 2 1
Sales (Rs. Lacs) 40 30 60 45 55 25 60 80 100 20

Retail Store 2 1 1 2 1 1 2 2 1 2
Sales (Rs. Lacs) 10 80 85 90 120 85 60 55 56 25

AIM:
To analyze the problem and test the hypothesis usingMann Whitney ‘U’ Test using
SPSS software.

ALGORITHM:
Step 1:

Formulate the null hypothesis and the alternate hypothesis

Null hypothesis: There exists no significant difference in the Sales of two retails shop

Alternative hypothesis: There exists significant difference in the Sales of two retails
shop.
Step 2:
Start All programmes SPSS PASWStatistics16 Type in data
Step 3:
Click variable view enter the variable name; type; width; labels; values and measures.
Step 4:
Click the data view and enter the data for all variables
Step 5:
Click analyze Non- parametric Legacy dialogs 2- Indepentent sample

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 6:
The Sales is transferred to the test variable and the retail store into the grouping
variables click defining group 1-1 and 2-2 and select the test type in Mann
Whiteney‘U’ Test click ok.
Step 7:
Save the data file and output file.

OUTPUT:

Mann-Whitney Test

Ranks

retail stores N Mean Rank Sum of Ranks

Delhi 10 11.90 119.00

Sales in lakhs Mumbai 10 9.10 91.00

Total 20

Test Statisticsb

Sales in lakhs

Mann-Whitney U 36.000

Wilcoxon W 91.000

Z -1.061

Asymp. Sig. (2-tailed) .288

Exact Sig. [2*(1-tailed

.315a
Sig.)]

a. Not corrected for ties.

b. Grouping Variable: retail stores

RESULT:

From the output table the significant value is 0.315 which is greater than 0.05. So,null
hypothesis is accepted at 95% confidence level. Hence, it is concluded that there exists no
significant difference in the Sales of two retails shop.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 3E
HYPOTHESIS- NON-PARAMETRIC
DATE:06.04.2023 Wilcoxon Test

A showroom manager compares the laptop Sales for the year in two parts. He wants
to compare the Sales of first half and second half of the year. He recorded the Sales from 20
showrooms and saved their Sales in Rs. Lacs. Apply Wilcoxon signed-rank test of non-
parametric, paired-test to prove the hypothesis.
Null hypothesis: There exists no significant difference in the showroom Sales for the first
and second half of the year.
Alternative hypothesis: There exists significant difference in the showroom Sales for the
first and second half of the year.

Sale 1 (Rs. Lacs) 10 20 25 50 45 30 50 60 100 20

Sale 2 (Rs. Lacs) 20 50 60 35 65 90 110 25 20 35

Sale 1 (Rs. Lacs) 50 90 60 40 20 45 65 56 38 28

Sale 2 (Rs. Lacs) 64 69 95 85 76 68 59 120 60 30

AIM:
To analyze the problem and test the hypothesis usingWilcoxntest using SPSS
software.

ALGORITHM:
Step 1:
Formulate the null hypothesis and the alternate hypothesis
Null hypothesis: There exists no significant difference in the showroom Sales for the
first and second half of the year.
Alternative hypothesis: There exists significant difference in the showroom Sales for
the first and second half of the year.
Step 2:
Start All programmes SPSS PASWStatistics16 Type in data
Step 3:
Click variable view enter the variable name; type; width; labels; values and measures.
Step 4:
Click the data view and enter the data for all variables

27
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 5:
Click Analyze Non-parametric Legacy dialogs Related samples.
Step 6:
Transfer thevariables in to variable-1 and variable-2. Click wilcoxnthen click ok.
Step 7:
Save data file and output file.

OUTPUT:

Wilcoxon Signed Ranks Test

Ranks

Sum of
N Mean Rank
Ranks

Negative
5a 9.70 48.50
Ranks

15b
Sales2 - Sales1 Positive Ranks 10.77 161.50

Ties 0c

Total 20

a. Sales2 <Sales1 b. Sales2 >Sales1 c. Sales2 = Sales1

Test Statisticsb

Sales2 -
Sales1

Z -2.110a

Asymp. Sig. (2-

.035
tailed)

a. Based on negative ranks.

b. Wilcoxon Signed Ranks Test

RESULT:

From the output table the significant value is 0.035 which is less than 0.05. So, null
hypothesis is rejected and alternate hypothesis is accepted at 95% confidence level. Hence, it
is concluded that there exists significant difference in the showroom Sales for the first and
second half of the year.

28
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 4A
CORRELATION &REGRESSION
DATE: 10.04.2023 Correlation

15 students have taken their common entrance test after their graduation. The
selection committee wants to see the relationship between the scores of CET and the
percentage achieved in graduation through correlation analysis.

Frame a hypothesis and show the type of relationship (positive or negative

relationship) between the variables.

9 8
CET scores 70 60 65 68 70 75 87 89 90 96 65 80 77
7 6
% in UG 8 7
71 82 73 64 75 69 75 88 90 90 82 73 65
degree 8 4
AIM:

To analyze the problem and test the hypothesisusing correlation test using SPSS
software.

ALGORITHM:

Step 1:
Formulate the null hypothesis and the alternate hypothesis
Null Hypothesis: There is no correlation between the scores of CET and percentage
achieved in graduation.
Alternate Hypothesis: There is a correlation between the scores of CET and
percentage achieved in graduation.
Step 2:
Start All programmes SPSS PASWStatistics16 Type in data
Step 3:
Click variable view enter the variable name; type; width; labels; values and measures.
Step 4:
Click the data view and enter the data for all variables
Step 5:
Click analyze correlate Bivariate transfer the variables click Pearsons
then click ok.
Step 6:
Save data file and output file.

29
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT

Correlations
percentage in
CET Scores
UG Degree
Pearson
1 .539*
Correlation
CET Scores
Sig. (2-tailed) .038
N 15 15
Pearson
.539* 1
Percentage in UG Correlation
Degree Sig. (2-tailed) .038
N 15 15
*. Correlation is significant at the 0.05 level (2-tailed).

RESULT:

From the output table, the significant value is 0.038 which is less than 0.05. Since, the
null hypothesis is rejected and alternate hypothesis is accepted. Hence it is concluded that
there is a correlation between the scores of CET and percentage achieved in graduation. The
correlation co-efficient of 0.539 shows that there is a moderate positive correlation between
two variables.

30
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 4B CORRELATION &REGRESSION

DATE:10.04.2023 Correlation &Regression

A Survey was taken among 15 students; the data collected was “preparatory hours of
thestudent”, “Exam percentage of the student”. The Researcher was to see the direction
ofcorrelation between the preparatory hours and Exam percentage through correlation
analysis. Healso wants to calculate the how much Exam percentage will increase when the
preparatory time is increased by 1 hour. Apply regression to calculate the Unit increase.

Preparatory
hours of the 4 3 7 6 3 4 5 4 8 5 6 3 8 4 3
student
Exam 8
70 60 65 68 70 75 87 89 90 96 97 65 86 77
Percentage 0

AIM:

To analyze the problem and test the hypothesis using correlation and regression test
using SPSS software.

ALGORITHM:

Correlation:

Step 1:

Formulate the null hypothesis and the alternate hypothesis

Null Hypothesis: There is no correlation between the preparatory hours and Exam
percentage.

Alternate Hypothesis: There is a correlation between the preparatory hours and Exam
percentage.

Step 2:

Start All programmes SPSS PASW Statistics16 Type in data

Step 3:

Click variable view enter the variable name; type; width; labels; values and measures.

Step 4:
31
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Click the data view and enter the data for all variables

Step 5:

Click analyze correlate Bivariate transfer the variables click Pearson’s

click ok.

Step 6:

Save data file and output file.

Regression

Click analyze Regression linear Transfer exam percentage as dependent and

preparatory hour as independent select Enter as method click ok

OUTPUT:

Correlations
preparatory hours
Exam Percentage
of the student

Preparatory Pearson Correlation 1 .336

hours of the Sig. (2-tailed) .240
student N 15 14
Pearson Correlation .336 1
Exam
Sig. (2-tailed) .240
Percentage
N 14 14

Regression

Model Summary
Adjusted R Std. Error of
Model R R Square
Square the Estimate
1 .330a .109 .041 11.699
a. Predictors: (Constant), preparatory hours of the student

32
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

ANOVAb
Sum of
Model df Mean Square F Sig.
Squares
Regression 218.112 1 218.112 1.594 .229a
1 Residual 1779.221 13 136.863
Total 1997.333 14
a. Predictors: (Constant), preparatory hours of the student
b. Dependent Variable: Exam Percentage

Coefficientsa
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
(Constant) 67.465 9.124 7.394 .000
1 preparatory hours
2.233 1.769 .330 1.262 .229
of the student
a. Dependent Variable: Exam Percentage

RESULT:

Correlation:

From the output table, the significant value is 0.240 which is greater than 0.05. Since,
the null hypothesis is accepted. Hence it is concluded that there is no correlation between the
preparatory hours and Exam percentage.

Regression:

The model exam score= [67.465+2.233]* hrs. Ther2value is 0.109. It shows that only
10.9% of the variables are explained by the model. The significant value of f is 0.229 which
is greater than 0.05. This indicates that the model is no statistically significant and also
significant value 1 for preparatory hours is 0.229 which is also greater than 0.05. So it is
concluded that the variable is not statistically significant with the model and the units
increased is 2.333.

33
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 5A LINEAR PROGRAMMING PROBLEMS

DATE:13.04.2023 Minimization Problem

Solve the following linear programming problem.

Minimize Z = 2 X1 + 3 X2
Subject to
X1 + X2 > 6
7 X1 + X2 > 14
X1, X2 > 0
AIM:

To solve the linear programmimg problems using POM software.

ALGORITHM:

Step 1:

ClickPOM software

Step 2:

Click Module select linear programming

Step 3:

Enter the no of constraints and no of variablesand then click minimize then click ok.

Step 4:

Enter the objective function values and constraints values.

Step 5:

Then click solve button for solving the problem

Step 6:

Save the datafile and output file.

34
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT

*** LINEAR PROGRAMMING ***

=======================================================================
PROBLEM NAME: Minimization
=======================================================================
Min Z= 2 X1 + 3 X2
ST
(1) 1 X1 + 1 X2 >= 6
(2) 7 X1 + 1 X2 >= 14
=======================================================================
SOLUTION:
=======================================================================
ITERATION NUMBER 4

VARIABLE MIX SOLUTION

------------ --------
Slack 2 28.000
X1 6.000

Z 12.000
=======================================================================
SENSITIVITY ANALYSIS:
=======================================================================
CONSTRAINTS:
-----------------------------------------------------------------------
RANGE OF RHS
CONSTRAINT TYPE OF SHADOW FOR WHICH SHADOW
NUMBER CONSTRAINT PRICE PRICE IS VALID
---------- ---------- ------ ----------------
1 >= 2.000 2. -- +INF
2 >= 0.000 -INF -- 42.
NOTE: THE SHADOW PRICE REPRESENTS THE AMOUNT Z WOULD
CHANGE IF A CONSTRAINT'S RHS CHANGED ONE UNIT.
-----------------------------------------------------------------------
DECISION VARIABLES:
-----------------------------------------------------------------------
NONBASIC AMOUNT Z IS REDUCED (MAX) OR INCREASED (MIN)
VARIABLE FOR ONE UNIT OF X IN THE SOLUTION
-------- --------------------------------------------
X2 1.
-----------------------------------------------------------------------
RESULT:
From the outputtable, the optimal solution is
Min Z= 12.00
X1= 6

35
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 5B
LINEAR PROGRAMMING PROBLEMS
DATE:13.04.2023 Maximization Problem

Solve the following linear programming problem.

Maximize Z = 6 X1 + 8 X2
Subject to
5 X1 + 10 X2 < 60
4 X1 + 4 X2 < 40
X1, X2 > 0
AIM:

To solve the linear programmimg problems using POM software.

ALGORITHM:

Step 1:

Click POM software

Step 2:

Click Module select linear programming

Step 3:

Enter the no of constraints and no of variables and then click maximize and then click
ok.

Step 4:

Enter the objective function values and constraints values.

Step 5:

Then click solve button for solving the problem

Step 6:

Save the data file and output file.

36
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT
*** LINEAR PROGRAMMING ***
=======================================================================
PROBLEM NAME: MAXIMIZATION
=======================================================================
Max Z= 6 X1 + 8 X2
ST
(1) 5 X1 + 10 X2 <= 60
(2) 4 X1 + 4 X2 <= 40
=======================================================================
SOLUTION:
=======================================================================
ITERATION NUMBER 3
VARIABLE MIX SOLUTION
------------ --------
X2 2.000
X1 8.000

Z 64.000
=======================================================================
SENSITIVITY ANALYSIS:
=======================================================================
CONSTRAINTS:
-----------------------------------------------------------------------
RANGE OF RHS
CONSTRAINT TYPE OF SHADOW FOR WHICH SHADOW
NUMBER CONSTRAINT PRICE PRICE IS VALID
---------- ---------- ------ ----------------
1 <= 0.400 50. -- 100.
2 <= 1.000 24. -- 48.
NOTE: THE SHADOW PRICE REPRESENTS THE AMOUNT Z WOULD
CHANGE IF A CONSTRAINT'S RHS CHANGED ONE UNIT.

-----------------------------------------------------------------------
DECISION VARIABLES:
-----------------------------------------------------------------------
NONBASIC AMOUNT Z IS REDUCED (MAX) OR INCREASED (MIN)
VARIABLE FOR ONE UNIT OF X IN THE SOLUTION
-------- --------------------------------------------
-------- NONE
-----------------------------------------------------------------------
-----------

RESULT:
From the output, the optimal solution is
Max Z= 64
X1 = 8
X2=2

37
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 6A
TRANSPORTATION &ASSIGNMENT
DATE:17.04.2023 Transportation -North West Corner Rule & Least Cost Method

Find the feasible solution for the transportation problem using North –West Corner and least
cost rule

To
D E F Supply
From
A 6 4 1 50
B 3 8 7 40
C 4 4 2 60
Demand 20 95 35 150

AIM:

To solve the transportation problems by North West Corner Rule method using
TORA software.

ALGORITHM:

Step 1:

Click TORA software

Step 2:

Click Module Select transportation Enter a new problem then enter the problem
title no.of sources and destinations &user defined name into yes.

Step 3:

Enter the names of sources and destinationand enter the amount value of demand and
supply

Step 4:

Enter the cost values and press F8

Step 5:

Then save the program file and click solve problem User guided procedure North
West Corner Rule (For Least cost choose least cost method)Final iteration click
view solution/ sensitivity summary then press enter key.

38
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:

North West Corner Method

Least Cost Method

RESULT:

From the output, the optimal solution

North West Corner Method

The transportation cost = Rs.555.

Least cost solution

The transportation cost = Rs.555.

39
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 6B TRANSPORTATION &ASSIGNMENT

DATE:17.04.2023 Transportation - Vogel’s Approximation method

Find the basic feasible solution for the following transportation problem using Vogel’
approximation method.

To
D1 D2 D3 D4 Supply
From
O1 11 13 17 14 250
O2 16 18 14 10 300
O3 21 24 13 10 400
Demand 200 225 275 250 950

AIM:

To solve the transportation problems by Vogel’s approximation method using TORA

software.

ALGORITHM:

Step 1:

Click TORA software

Step 2:

Click Module select transportation Enter a new problem then enter the problem
title no.fo sources and destinations &user defined name into yes.

Step 3:

Enter the names of sources and destination and enter the amount value of demand and
supply

Step 4:

Enter the cost values and press F8

Step 5:

Then save the program file and click solve problem User guided procedure
Vogel’s approximation method Final iteration view solution/ sensitivity
summary then press enter key

40
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT

RESULT:

From the output, the optimal solution is

Vogel’s Approximation Method

The transportation cost = Rs.12075

41
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 6C TRANSPORTATION &ASSIGNMENT

DATE:20.04.2023 Assignment -1

The following matrix gives the cost involved to perform jobs 1, 2 and 3 operators A,
B and C. Assign the operators and jobs to minimize the total time taken to complete the jobs.

Operator Job 1 Job 2 Job 3

A 10 16 7
B 9 17 6
C 6 13 5

AIM:

To solve the assignment problems and find out the minimum total time taken to
complete the jobs using POMsoftware.

ALGORITHM:

Step 1:

Click POM software

Step 2:

Click Module Select assignment problem

Step 3:

Enter the title of the problem

Step 4:

Enter the no of objects assigned and then click minimize the problem.

Step 5:

Rename the sources and destination and enter the values of the object assigned.

Step 6:

Click solve button and save data and output file.

42
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:
*** LINEAR PROGRAMMING ***
=======================================================================
PROBLEM NAME: problem 1
=======================================================================
Min Z= 10 X1 + 16 X2 + 7 X3 + 9 X4 + 17 X5 + 6 X6 + 6 X7 + 13 X8 + 5 X9
ST
(1) 1 X1 + 1 X2 + 1 X3 = 1
(2) 1 X4 + 1 X5 + 1 X6 = 1
(3) 1 X7 + 1 X8 + 1 X9 = 1
(4) 1 X1 + 1 X4 + 1 X7 = 1
(5) 1 X2 + 1 X5 + 1 X8 = 1
(6) 1 X3 + 1 X6 + 1 X9 = 1
=======================================================================
SOLUTION:
=======================================================================
ITERATION NUMBER 10

VARIABLE MIX SOLUTION

------------ --------
X2 1.000
X8 0.000
X6 1.000
X4 0.000
X7 1.000
Artificial 6 0.000

Z 28.000

Assignment Problem Solution

job1 job2 job3

A 0 1 0
B 0 0 1
C 1 0 0

Total cost or profit is $ 28

RESULT:
From the output table, the optimal solution is
The Optimum allocation is
Operator Job
A Job 2
B Job 3
C Job 1
The Minimum time = 28

43
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 6D TRANSPORTATION &ASSIGNMENT

DATE:20.04.2023 Assignment -2

A firm wants to purchase three different types of equipment and five manufactures
have come forward to supply one or all the three machines. However, the firms’ policy is not
to accept more than one machine from any of the manufactures. The data relating to the price
(in lakhs of rupees) quoted by the different manufactures are given below.

Machines
Manufacturers
1 2 3
A 2.99 3.11 2.68
B 2.78 2.87 2.57
C 2.92 3.05 2.80
D 2.82 3.10 2.74
E 3.11 2.90 2.64

Determine how best the firm can purchase three machines.

AIM:

To solve the assignment problems and find out the assignment cost using
POMsoftware.

ALGORITHM:

Step 1:

Click POM software

Step 2:

Click Module Select assignment problem

Step 3:

Enter the title of the problem

Step 4:

Enter the no of machines and number of the manufactures and select minimize.

Step 5:

Enter the data for machine and manufactures

Step 6:

Click solve button and save the data and output file.

44
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:

*** LINEAR PROGRAMMING ***

=======================================================================
PROBLEM NAME: Problem 2
=======================================================================
Min Z= 2.99 X1 + 3.11 X2 + 2.68 X3 + 2.78 X6 + 2.87 X7 + 2.57 X8 +
2.92 X11
+ 3.05 X12 + 2.8 X13 + 2.82 X16 + 3.1 X17 + 2.74 X18 + 3.11 X21
+ 2.9 X22 + 2.64 X23
ST
(1) 1 X1 + 1 X2 + 1 X3 + 1 X4 + 1 X5 = 1
(2) 1 X6 + 1 X7 + 1 X8 + 1 X9 + 1 X10 = 1
(3) 1 X11 + 1 X12 + 1 X13 + 1 X14 + 1 X15 = 1
(4) 1 X16 + 1 X17 + 1 X18 + 1 X19 + 1 X20 = 1
(5) 1 X21 + 1 X22 + 1 X23 + 1 X24 + 1 X25 = 1
(6) 1 X1 + 1 X6 + 1 X11 + 1 X16 + 1 X21 = 1
(7) 1 X2 + 1 X7 + 1 X12 + 1 X17 + 1 X22 = 1
(8) 1 X3 + 1 X8 + 1 X13 + 1 X18 + 1 X23 = 1
(9) 1 X4 + 1 X9 + 1 X14 + 1 X19 + 1 X24 = 1
(10) 1 X5 + 1 X10 + 1 X15 + 1 X20 + 1 X25 = 1
=======================================================================
SOLUTION:
=======================================================================
ITERATION NUMBER 17

VARIABLE MIX SOLUTION

------------ --------
X5 1.000
X22 1.000
X8 1.000
X14 1.000
X15 0.000
X6 0.000
X3 0.000
X16 1.000
X23 0.000
Artificial 10 0.000

Z 8.290

45
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Assignment Problem Solution

M1 M2 M3 M4 M5
A 0 0 0 0 1
B 0 0 1 0 0
C 0 0 0 1 0
D 1 0 0 0 0
E 0 1 0 0 0

Total cost or profit is $ 8.29

RESULT:

From the output table, the optimal solution is

The total cost is Rs.8.29

The Optimum allocation is

Manufacturer Machine

A Machine 5(Dummy)

B Machine 4(Dummy)

C Machine 1

D Machine 2

E Machine 3

46
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. 7A PROJECT PLANNING

DATE:24.04.2023 CPM

A project schedule has the following characteristics as shown in Table given below

Activity Name Time(Days) Activity Name Time(Days)

1-2 A 4 5-6 G 4
1-3 B 1 5-7 H 8
2-4 C 1 6-8 I 1
3-4 D 1 7-8 J 2
3-5 E 6 8-10 K 5
4-9 F 5 9-10 L 7

1. Compute Te and TL for each activity.

2. Find the critical path.
3. Calculate the project duration.
AIM:

To solve the problem using Critical path Method and find out the critical path and project
duration usingTORA software.

ALGORITHM:

Step 1:

Click TORA software

Step 2:

Select Project Planning Critical path Enter new problem

Step 3:

Enter the title to the problem, numberof nodes in the project, probabilistic duration as
“no”and activity name.

Step 4:

Enter the node values and names. Press F8

Step 5:

Then save the program file and click solve problem view optimum solution
summaryactivity duration mean/ varianceand press enter key

Step 6:

Save the data and output file.

47
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:

RESULT:

From the output,

Critical path= B E H J K

Project duration= 22.000

48
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 7B PROJECT PLANNING

DATE: 24.04.2023 PERT

R and D project has a list of tasks to be performed whose time estimates are given in the
table.Do the PERT calculations and find the project duration

Activity Activity Name Time(Days) (To) Time(Days) (Tm) Time(Days) (Tp)

1-2 A 4 6 8
1-3 B 2 3 10
1-4 C 6 8 16
2-4 D 1 2 3
3-4 E 6 7 8
3-5 F 6 7 14
4-6 G 3 5 7
4-7 H 4 11 12
5-7 I 2 4 6
6-7 J 2 9 10
AIM:

To analyze the problem using PERT and find out the critical path and project duration
usingTORA software.

ALGORITHM:

Step 1:
Click TORA software
Step 2 :
Select Project Planning Critical path Enter new problem
Step 3:
Enter the title to the problem, no.of nodes as ‘7’ in the project, probabilistic duration
as’yes’ and activity name as ‘yes’.
Step 4:
Enter the node values and names. Press F8.
Step 5:
Then save the program file click solve problem view optimum solution
summary activity duration mean/ variance and press enter key.
Step 6:
Save the data and output file.

OUTPUT

49
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

RESULT:

The out table shows following RESULT

Project duration= 24.000

50
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 8A QUEUING MODELS

DATE:26.04.2023 Problem -1

Customers arrive at a booking office window, being manned by a single individual at a rate
of 25 per hour. Time required to serve a customer has exponential distribution with a mean of
120 seconds. Find the mean waiting time of a customer in the queue.

AIM:

To solve the problem and find the mean waiting time of customers in the queue using
POM software.

ALGORITHM:

Step 1:

Click POM software

Step 2:

Click Module Select waiting line

Step 3:

Enter the title of the problem

Step 4:

Enter the lambda value

Lambda =25/ (60*60) = 0.0069

Step 5:

Enter the Mu value

Mu= 1/120= 0.0083

Step 6:

Select single channel and solve button

Step 7:

Click solve button and save the data and output file.

51
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:

*** WAITING LINE MODELS ***

-----------------------------------------------------------------------
PROBLEM NAME:Problem 1
-----------------------------------------------------------------------

MODEL: Single Channel

Arrival Rate (lambda) = 0.007

Service Rate (mu) = 0.0089

Average Number of Units in Waiting Line = 2.8977

Average Number of Units in System = 3.6842
Average Waiting Time in Line = 413.9562
Average Time in System = 526.3158

Probability of Idle System = 0.2135

Probability of 1 units in the system = 0.1679

Probability of 2 units in the system = 0.1321
Probability of 3 units in the system = 0.1039
Probability of 4 units in the system = 0.0817
Probability of 5 units in the system = 0.0643
Probability of 6 units in the system = 0.0505
Probability of 7 units in the system = 0.0397
Probability of 8 units in the system = 0.0313
Probability of 9 units in the system = 0.0246
Probability of 10 units in the system = 0.0193
Probability of 11 units in the system = 0.0152
Probability of 12 units in the system = 0.0120

-----------------------------------------------------------------------

RESULT:

From the output,

Mean Waiting time in the queue=875.000

52
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 8B QUEING MODELS

DATE:26.04.2023 Problem -2

A belt snapping for conveyors in an open cast mine occur at the rate of 2 per shift.
There is only one hot plate available for vulcanizing. And it can vulcanize on an average 5
belts snap per shift.
a. What is the probability that when a belt snaps, the hot plate is readily available?
b. what is the average number of belts in the system?
c. What is the waiting time of an arrival?
d. What is the average waiting plus vulcanizing time?

AIM:

To solve the problem and find out the probability that when a belt snaps, the hot plate
is readily available,average number of belts in the system, the waiting time of an arrival and
the average waiting plus vulcanizing time using POM software.

ALGORITHM:

Step 1:
Click POM software
Step 2:
Click Module Select waiting line
Step 3:
Enter the title to the problem
Step 4:
Enter the lambda value
Lambda = 2
Step 5:
Enter the Mu value
Mu= 5
Step 6:
Select single channel and solve button
Step 7:
Click solve button and save the data and output file.

53
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:

*** WAITING LINE MODELS ***

-----------------------------------------------------------------------
PROBLEM NAME: Problem 2
-----------------------------------------------------------------------

MODEL: Single Channel

Arrival Rate (lambda) = 2

Service Rate (mu) = 5

Average Number of Units in Waiting Line = 0.2667

Average Number of Units in System = 0.6667
Average Waiting Time in Line = 0.1333
Average Time in System = 0.3333

Probability of Idle System = 0.6000

Probability of 1 units in the system = 0.2400

Probability of 2 units in the system = 0.0960
Probability of 3 units in the system = 0.0384
Probability of 4 units in the system = 0.0154

-----------------------------------------------------------------------

RESULT:

From the output,

The probability that when a belt snaps, the hot plate is readily available = 0.600

The average number of belts in the system = 0.6667

The waiting time of an arrival =0.1333
The average waiting plus vulcanizing time=0.4666

54
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 9A INVENTORY MODELS

DATE:04.05.2023 Problem 1

Alpha industry needs 15,000 units/year of a bought out component which will be used
in its main product. The ordering cost is Rs. 125 per order and the carrying cost per unit per
unit per year is 20% of the purchase price per unit which is Rs 75.

Find a. Economic order quantity

b. Number of orders per year

AIM:

To analyze the problem and find out EOQ using POM software.

ALGORITHM:

Step 1:

Click POM software

Step 2:

Click Module Select Fixed order quantity inv.model

Step 3:

Enter the title to the problem

Step 4:

ClickGeneral tab click Model-1Basic Economic order quantity

Step 4:

Select the production tab and enter the values.

Step 5:

Click solve button

Step 6:

Save the data and output file.

55
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT

*** FIXED ORDER QUANTITY INVENTORY MODEL ***

-----------------------------------------------------------------------
PROBLEM NAME: Inventory 1
-----------------------------------------------------------------------

MODEL I -- Basic Economic Order Quantity (EOQ)

Annual Demand (units per year) D = 15000

Average Ordering Cost ($ per order) S = 125
Carrying Cost ($ per unit per year) C = 15

Order Quantity = 500.

Total Annual Stocking Cost = $7,500.00

Expected # of Orders per Year = 30.

Maximum Inventory Level = 500.

RESULT:

From the output,

Economic order quantity =500

Number of orders per year =30

56
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10A FINANCIAL MANAGEMENT PROBLEMS

DATE:18.05.2023 RATE OF INTEREST

Suppose we have availed a loan of Rs.1, 00,000 that is to be paid off in 48

monthlyinstallments of rupees 3,000 each. Find out the rate of interest charged on this loan

AIM:
To find the interest rate on a loan of Rs.1, 00,000 that is to be paid off in 48
monthlyinstallments of rupees 3,000 each.

ALGORITHM:

Step1:
Enter the data for loan amount, loan period, and EMI amount in the MS-Excel.
Step2:
ClickFormula Financial the function argument RATE and select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
The output will be displayed.

OUTPUT:
Particulars Amount
Loan 100000
Compounding Months 48
Installments 3000
Rate of Interest 2%

RESULT:
From OUTPUT,
Rate of Interest = 2%

57
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10B FINANCIAL MANAGEMENT PROBLEMS

DATE:18.05.2023 FUTURE VALUE

You deposit Rs.1,000 each and every month in your bank account. The bank pays
12% annual rate that is compound every month. Find out how much money will be in your
account at the end of 24 months.
AIM:

To find out future value to be in account after 24 months by depositing Rs.1,000 each and
every month in your bank account at 12% annual rate that is compound every month.

ALGORITHM:

Step1:
Enter the particulars Payment per month, months, and Interest rate in the Excel
Step2:
Click Formula Financial the function argument FVand select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
The output will be displayed.
OUTPUT:
Particulars Amount
Payment per Month 1000
period in months 24
Rate of interest(Annual) 12%
Future Value INR 26,973.46

RESULT:
From OUTPUT,
The money will be in your account at the end of 24 months=INR 26,973.46

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10C FINANCIAL MANAGEMENT PROBLEMS

DATE:22.05.2023 PRESENT VALUE

You expect to receive Rs.800/- every month over next 24 months. If the current
discount rate is 12% per annum. What is the present value of these future payments?

AIM:

To find out present value of future payments of 800 rupees every month over next 24 months
at the discount rate 12% per annum.

ALGORITHM:

Step1:
Enter the particulars amount per month, months, and discount rate in the Excel
Step2:
Click Formula Financial the function argument PVand select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
The output will be displayed.

OUTPUT:
Particulars Amount
Amount per month 800
Compounding Months 24
Discount rate(Annum) 12%
PV INR 16,994.71

RESULT:

From OUTPUT,
The present value of these future payments = INR 16,994.71

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10D FINANCIAL MANAGEMENT PROBLEMS

DATE:22.05.2023 NUMBER OF PERIODS

You can afford only Rs.500/- per month. If you are crediting this amount in a bank that pays
an annual interest of 12% compounded monthly. How long will it take for your investment to
accumulate to Rs.50, 000?

AIM:

To find number of months to be taken for the investment of 500 rupees per month to be
accumulated as Rs.50, 000 at an annual interest rate of 12%

ALGORITHM:

Step1:
Enter the particulars amount per month, Future value, and interest rate in the Excel
Step2:
Click Formula Financial the function argument NPER and select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
The output will be displayed.

OUTPUT:

Particulars Amount
Payment per month 500
FV 50000
Discount rate(Annum) 12%
69.6607
Period in Months 2

RESULT:
From OUTPUT,
Number of months to be taken for the investment of 500 rupees per month to be
accumulated as Rs.50,000 = 69.66072

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10E FINANCIAL MANAGEMENT PROBLEMS

DATE:05.06.2023 EMI

Suppose if you want to take a loan of Rs.2, 00,000 at an annual interest rate of 14%. The loan
has to be repaid in 15 years in equal monthly installments. Find out the EMI.

AIM:

To find EMI for the loan of Rs.2, 00,000 at an annual interest rate of 14% that the loan has to
be repaid in 15 years in equal monthly installments.

ALGORITHM:

Step1:
Enter the particulars number of periods, Loan amount, and interest rate in the Excel
Step2:
Click Formula Financial the function argument PMT and select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
The output will be displayed.

OUTPUT:
Particulars Amount
Present Value(Loan) 200000
period in years 15
Interest rate(Annum) 14%

Payment per month(EMI) (INR 2,663.48)

RESULT:
From OUTPUT,
EMI = INR 2,663.48

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10F FINANCIAL MANAGEMENT PROBLEMS

DATE:05.06.2023 NET PRESENT VALUE

You are expected to get 5 monthly payments of Rs.500, 900, 550, 478, 950 respectively. At
the discount rate of 10% per annum. Find the Net Present Value (NPV).
AIM:

To find NPV for the 5 monthly payments of Rs.500, 900, 550, 478, 950 at the discount rate of
10% per annum

ALGORITHM:

Step1:
Enter the particulars 5 monthly payments in the Excel
Step2:
Click Formula Financial the function argument NPVand select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
The output will be displayed.

OUTPUT:

1st payment 500

2nd payment 900
3rd payment 550
4th payment 478
5th payment 950
Discount rate(annum) 10%
NPV INR3,291.31

RESULT:
From OUTPUT,
NPV= INR 3,291.31

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10G FINANCIAL MANAGEMENT PROBLEMS

DATE:05.06.2023 INTERNAL RATE OF RETURN

Assuming that an initial investment of Rs.1, 00,000. RESULTs in 12 annual cash outflows as
given:13200, 15,000, 13,000, 2,000, 12,400, 16,000, 14,000, 16,450, 17,690, 16,550, 16,500
and 12,200.Find the Internal Rate of Return (IRR).

AIM:
To find IRR for the initial investment and the 12 cash flows given.
ALGORITHM:
Step1:
Enter the particulars initial investment and the 12 cash flows in the Excel
Step2:
Click Formula Financial the function argumentIRRand select the variables
Step3:
Enter all the values in the function arguments and click OK.
 Values: Values must contain at least one positive value and one negative (Initial
Cost) value to calculate the internal rate of return.
Step 4:
The output will be displayed.
OUTPUT:

-
initial investment 100000
1st year cash flow 13200
2nd year cash flow 15000
3rd year cash flow 13000
4th year cash flow 2000
5th year cash flow 12400
6th year cash flow 16000
7th year cash flow 14000
8th year cash flow 16450
9th year cash flow 17690
10th year cash flow 16550
11th year cash flow 16500
12th year cash flow 12200
IRR 8%
RESULT:
From OUTPUT,
IRR = 8%

63
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10H FINANCIAL MANAGEMENT PROBLEMS

DATE:08.06.2023 WEIGHTED AVERAGE COST OF CAPITAL

With the following information’s available for a company, calculate Weighted Average Cost
of capital
Equity Share ----- 25, 00,000
Debenture (12%) ---- 40,00,000
Pref Share (13%) ---- 20,00,000
Retained earnings ---- 10,00,000
The expected dividend for the equity shares are estimates at Rs. 4.50 for the share issued. Rs
10/- the company’s tax rate is 50%.

AIM:
To find the weighted average cost of capital for the given data.
ALGORITHM:

Step1:
Enter the particulars in the Excel
Step2:
Calculate the cost of capital using following formula
Cost of Equity = Dividend for equity/Share value
Cost of Debt(Debenture) = Interest rate*(1-Tax Rate)
Cost of Preference Share = Rate /Share Value
Cost of Retained Earnings = Cost of Equity
Step 3:
Add the amount ofEquityShare,Debenture,Preference Share and Retained Earnings to
find the total
Step 4:
Calculate the weights using following formula
Weight = Amount/Total
Step 5:
Calculate individual Weighted Average Cost of capital using following formula
Weighted Average Cost of capital (WACC) = Cost of Capital * Weight
Step 6:
Add all individual Weighted Average Cost of capital to get Final WACC
Step 7:
The output will be displayed.
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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT

Cost of
Particulars Rate Amount weight WACC
capital
250000 0.26315 0.11842
Equity Share 0.45
0 8 1
400000 0.42105 0.02526
Debenture 12% 0.06
0 3 3
200000 0.21052 0.00273
preference share 13% 0.013
0 6 7
100000 0.10526 0.04736
Retained Earnings 0.45
0 3 8
Dividend for
4.5
equity
Share value 10
Tax rate 50%
950000 0.19378
Total WACC
0 9

RESULT:

From OUTPUT,

Weighted Average Cost of capital (WACC) =0.373938.

65
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 10I FINANCIAL MANAGEMENT PROBLEMS

DATE:08.06.2023 EARNING PER SHARE(EPS)

Calculate EPS from the following information’s made available to you.

Capital structure:-
10,000 equity shares of 100 each – 10,00,00
14% Debenture - 40,00,000
The expected EBIT of the company is estimated at Rs 15,00,000 per annum. The company is
in the tax bracket of 40%.
AIM:
To find the Earning per share for the given data.
ALGORITHM:
Step1:
Enter the particulars in the Excel
Step2:
Calculate EPS using following procedure and formula
Interest = Interest Rate*Debenture Amount
EBT =EBIT – Interest
Taxes = Tax rate*EBT
EAT = EBT – Taxes
EPS = EAT/No.of Shares
Step 3:
The output will be displayed.
OUTPUT:
Particulars Amount Rate
10,000 equity shares of 100 each 1,000,000
14% Debenture 4000000 14%
EBIT 1500000
Tax Bracket 40%
No of Shares 10000
Calculations of Earning per Share
EBIT 1500000
Less: Interest 560000
EBT 940000
Less:Taxes 376000
EAT 564000
EPS 56.4
RESULT:
From OUTPUT,
Earnings per Share (EPS) =Rs.56.4

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 11
RATIO ANALYSIS
DATE:12.06.2023

The following financial details of Express Company Ltd are available. You are required to
Calculate the following ratios:
Business profitability
Gross profit margin (Gross profit)/Net Sales
Net Profit margin (Net Profit after tax)/(Net Sales)
Return on equity (Net Profit after tax)/(Owner's equity)
Financial Stability
Current Ratio (Current assets)/Current Liabilities
Debt/Equity Ratio (Total assets-Owner's equity)/Owner's equity
Quick Ratio (Current assets less inventory)/(Current Liabilities)
Resource Utilization
Total Asset Turnover (Net Sales)/Total assets
Inventory Turnover (Cost of goods sold)/Inventory
Debt Turnover (Credit Sales)/Debtors
Calculate the above ratios for the Express Company Limited
EXPRESS COMPANY Ltd –Final
Accounts
P&L Account
31st201 31st201
For Year Ended 0 1
Rs.'00 Rs.'00
Rs.'000 Rs.'000
0 0
Sales
Cash 150 180
Credit 330 480 420 600
Less:Cost of goods sold
Opening Inventory 200 195
Purchases 60 80
260 275
Less closing inventory 30 230 10 265
Gross Profit 250 335
Less:Operating Expenses
administrative Expenses 75 70
Financial Expenses 18 20
selling and distribution
55 148 60 150
expenses
Net Profit before tax 102 185
Less:Corporation Tax 25 47

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Net Profit after tax(Earning) 77 138

Balance Sheet
31st201 31st201
As at 0 1
Rs.'00 Rs.'00
Rs.'000 Rs.'000
0 0
Fixed Assets
Building and land 60 90
Equipment 110 170 85 175
Current Assets
Inventory 30 10
Debtors 50 90
Cash 150 230 100 200
400 375
Current liabilities&owner's equity
Creditors 80 55
Dividends 30 42
Overdraft 4 114 20 117
owner's equity 286 258
Total liabilities&owner's equity 400 375

AIM:
To do the ratio analysis for the given data.
ALGORITHM:

Step1:
Enter the particulars in the Excel
Step 2:
Calculate the ratios using following Formula
Business profitability
Gross profit margin (Gross profit)/Net Sales
Net Profit margin (Net Profit after tax)/(Net Sales)
Return on equity (Net Profit after tax)/(Owner's equity)
Financial Stability
Current Ratio (Current assets)/Current Liabilities
Debt/Equity Ratio (Total assets-Owner's equity)/Owner's equity
Quick Ratio (Current assets less inventory)/(Current Liabilities)
Resource Utilization
Total Asset Turnover (Net Sales)/Total assets
Inventory Turnover (Cost of goods sold)/Inventory
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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Debt Turnover (Credit Sales)/Debtors

Step 3:
The OUTPUT will be displayed

OUTPUT:

Ratio Calculation 2010 2011

Business profitability
0.52083
Gross profit margin (Gross profit)/Net Sales 3 0.558333
0.16041
Net Profit margin (Net Profit after tax)/(Net Sales) 7 0.23
0.26923
Return on equity (Net Profit after tax)/(Owner's equity) 1 0.534884
Financial Stability
2.01754
Current Ratio (Current assets)/Current Liabilities 4 1.709402
0.39860
Debt/Equity Ratio (Total assets-Owner's equity)/Owner's equity 1 0.453488
1.75438
Quick Ratio (Current assets less inventory)/(Current Liabilities) 6 1.623932
Resource Utilization
Total Asset Turnover (Net Sales)/Total assets 1.2 1.6
7.66666
Inventory Turnover (Cost of goods sold)/Inventory 7 26.5
Debt Turnover (Credit Sales)/Debtors 6.6 4.666667

RESULT:
From OUTPUT

Ratio 2010 2011

Business profitability
0.55833
Gross profit margin 0.520833 3
Net Profit margin 0.160417 0.23
0.53488
Return on equity 0.269231 4
Financial Stability
1.70940
Current Ratio 2.017544 2
0.45348
Debt/Equity Ratio 0.398601 8
1.62393
Quick Ratio 1.754386 2
Resource Utilization
Total Asset Turnover 1.2 1.6
Inventory Turnover 8.666667 27.5
Debt Turnover 6.6 4.66666

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DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

70
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 12
RISK ANALYSIS
DATE:12.06.2023

Calculate the risk involved in investments in each company and on the basis of your
calculations state investments in which company is better.

RATE OF RETURN (%)

YEAR COMPANY1 COMPANY2
1990 0.022 0.011
1991 -0.035 0.011
1992 0.116 0.042
1993 -0.021 0.071
1994 -0.021 -0.038
1995 -0.131 -0.029
1996 -0.088 -0.091
1997 0.014 0.311
1998 0.014 0.339
1999 -0.058 0.136
2000 0.055 0.304
2001 0.101 -0.043
2002 -0.044 -0.129
2003 -0.053 0.221
2004 0.217 0.084
2005 -0.055 -0.054
2006 -0.025 0.287
2007 -0.034 0.156
2008 -0.016 -0.096
2009 0.023 0.135

AIM:

To analyze the risk involved in the investments in company1 and company2 and identify
which investment is riskier.

ALGORITHM:

Step1:
Enter the particulars in the Excel
Step 2:
Go to DataData AnalysisDescriptive statistics
Step 3:
Enter the input range

71
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 4:
Select an OUTPUT range.
Step 5:
Click on summary statistics to display the RESULTs.
Step 6:
Standard Deviation, Sample Variance, Range and Coefficient of Variation are the
required statistics for comparison.
Step 7:
The OUTPUT will be displayed

OUTPUT:

Company 1 Company 2
Mean -0.00095 Mean 0.0814
0.01742207 0.03320973
Standard Error 8 Standard Error 2
Median -0.021 Median 0.0565
Mode -0.021 Mode 0.011
Standard 0.07791390 Standard 0.14851843
Deviation 3 Deviation 8
Sample 0.00607057 Sample 0.02205772
Variance 6 Variance 6
2.22137990
Kurtosis 6 Kurtosis -1.06491431
0.43082626
Skewness 1.1977494 Skewness 3
Range 0.348 Range 0.468
Minimum -0.131 Minimum -0.129
Maximum 0.217 Maximum 0.339
Sum -0.019 Sum 1.628
Count 20 Count 20

RESULT:

Thus the risk involved in the investments in company1 and company2 are identified
and analyzed and it is found that Company 2 is riskier.

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DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

73
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 13A

SENSITIVITY ANALYSIS - ONE-VARIABLE
DATE:15.06.2023

Find sensitivity of interest rate on EMI

A B
1 Loan amount 3000000
2 Interest rate p. a 8.00%
3 Loan period (months) 180
4 Equal monthly installments (EMI) Rs. 28,669.56
AIM:
To find sensitivity of interest rate on EMI using MS-Excel.

ALGORITHM

Step1:
Enter the data for loan amount, interest rate p.a. and loan period in the MS Excel.
Step2:
Enter the formula for Equal monthly installments (EMI)
Step3:
To analyze the sensitivity of interest rate on EMI, enter the various interest rate in
columns(from 7.50%, 7.60%, -------------8.50%).
Step4:
Enter the EMI amount using formula function.
Step5:
Select the interest rate column and EMI column
Step6:
Select data from menu bar, click what if analysis options,
Step7:
Click Data table, a window will pop up
Step 8:
Keep the cursor in the column input cell and select interest rate, and click Ok.
Step 9: The EMI for various interest rate will appear.
Step 10:
The OUTPUT will be displayed

74
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

OUTPUT:

EMI
Interest rate Rs. 28,669.56
7.50% 27810.3708
7.60% 27981.12305
7.70% 28152.42024
7.80% 28324.26047
7.90% 28496.64188
8.00% 28669.56253
8.10% 28843.02051
8.20% 29017.01389
8.30% 29191.5407
8.40% 29366.59897
8.50% 29542.18674

RESULT:

The sensitivity of interest rate on EMI is obtained.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 13B

SENSITIVITY ANALYSIS - TWO-VARIABLE
DATE:15.06.2023

Find sensitivity of price and unit cost on profit

A B
1 ABC Business Amount
2 Quantity 11000.00
3 Price 3.00
4 Demand 33000.00
5 Revenue 99000.00
6 Unit Cost 0.20
7 Fixed Cost 30000.00
8 Variable Cost 6600.00
9 Profit 62400.00

AIM:
To find sensitivity of price and unit cost on profit using MS-Excel

ALGORITHM

Step1:
Enter the data for quantity, Price in the MS-Excel.
Step2:
Calculate the revenue value with formula
calculate revenue = Demand*Price
Step3:
Enter the values for Unit cost, calculate variable cost = Demand*Unit cost
Step4:
Calculate profit with formula
Profit = Revenue- (fixed cost + variable cost)
Step5:
To analyze the sensitivity of price and unit cost on profit, select the cell and enter the
profit valuewith formula
Step6:
Enter various price values starting from 1.00, 1.25, 1.50, --------------, 4.50, vertically
and enter unit cost value from 0.10 to 0.50 horizontally
Step7: Select cells
76
 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step8:
Click data from menu bar, click what if analysis options,
Step9:
Click Data table, a window will pop up
Step 10:
Keep the cursor in the row input cell and select unit cost value, then keep the cursor
in column input cell and select price value. Then click ok.
Step 11:
The profit value for various price and unit cost will appear.
Step 12:
The OUTPUT will be displayed

OUTPUT:
UNIT COST
0.10 0.15 0.20 0.25 0.30 0.35 0.40 0.45 0.50
1.0 - - - - - - - - -
0 20100.00 20650.00 21200.00 21750.00 22300.00 22850.00 23400.00 23950.00 24500.00
1.2 - - - - - - - - -
5 14187.50 14875.00 15562.50 16250.00 16937.50 17625.00 18312.50 19000.00 19687.50
1.5 - - - - -
0 -6900.00 -7725.00 -8550.00 -9375.00 10200.00 11025.00 11850.00 12675.00 13500.00
1.7
5 1762.50 800.00 -162.50 -1125.00 -2087.50 -3050.00 -4012.50 -4975.00 -5937.50
2.0
0 11800.00 10700.00 9600.00 8500.00 7400.00 6300.00 5200.00 4100.00 3000.00
2.2
5 23212.50 21975.00 20737.50 19500.00 18262.50 17025.00 15787.50 14550.00 13312.50
2.5
0 36000.00 34625.00 33250.00 31875.00 30500.00 29125.00 27750.00 26375.00 25000.00
PRICE

2.7
5 50162.50 48650.00 47137.50 45625.00 44112.50 42600.00 41087.50 39575.00 38062.50
3.0
0 65700.00 64050.00 62400.00 60750.00 59100.00 57450.00 55800.00 54150.00 52500.00
3.2
5 82612.50 80825.00 79037.50 77250.00 75462.50 73675.00 71887.50 70100.00 68312.50
3.5 100900.0
0 0 98975.00 97050.00 95125.00 93200.00 91275.00 89350.00 87425.00 85500.00
3.7 120562.5 118500.0 116437.5 114375.0 112312.5 110250.0 108187.5 106125.0 104062.5
5 0 0 0 0 0 0 0 0 0
4.0 141600.0 139400.0 137200.0 135000.0 132800.0 130600.0 128400.0 126200.0 124000.0
0 0 0 0 0 0 0 0 0 0
4.2 164012.5 161675.0 159337.5 157000.0 154662.5 152325.0 149987.5 147650.0 145312.5
5 0 0 0 0 0 0 0 0 0
4.5 187800.0 185325.0 182850.0 180375.0 177900.0 175425.0 172950.0 170475.0 168000.0
0 0 0 0 0 0 0 0 0 0

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

RESULT:

The sensitivity of price and unit cost on profit volume is obtained.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 14
INVESTMENT APPRAISAL
DATE:19.06.2023

Small Wonders Ltd is a small manufacturer of microcomputers. The Board of Directors ofthe
firm is faced with the problem of evaluating four proposals and deciding which, if any, of the
alternatives are acceptable. The table shows the expected cash flows of the project
andavailable capital (Rs.’000s) over the next four years. Cash inflows are shown in positive
and cash outflows are shown in negative and cost of capital is assumed as 15% per annum.
Proposal Year 1 Year 2 Year 3 Year 4
1 -60 0 40 70
2 -50 -30 50 100
3 -40 -80 100 90
4 0 -35 110 -50
Capital available for each year 100 100 50 50

You are requested to compute the proportion of investment in each project that will maximize
the NPV for Small Wonders Ltd.
AIM:

To compute the proportion of investment in each project that will maximize the NPV for
Small Wonders Ltd

ALGORITHM:

Step 1:
Enter the data of cash flows and cost of capital in MS Excel
Step 2:
Calculate the NPV for each proposal
Click Formula Financial the function argument NPV and select the variables
Step3:
Enter all the values in the function arguments and click OK.
Step 4:
Calculate the total of all NPVs
Step 5:
Calculate Amount to be invested in proposals for each proposal and each year using
following formula
Amount to be invested in proposal in each year = (NPV of the Proposal/Total NPV)
*Capital available for that year
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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 6:
Calculate the total amount for each proposal
Step 7:
Calculate the total of the capital
Step 8:
Calculate the Proportion using following formula
Proportion = Total amount for each proposal/Total capital
Step 10:
The OUTPUT will be displayed

OUTPUT
Capital available
100 100 50 50 Total Capital 300
for each year
Proposal Year 1 Year 2 Year 3 Year 4 NPV
1 -60 0 40 70 $14.15
2 -50 -30 50 100 $23.89
3 -40 -80 100 90 $21.94
4 0 -35 110 -50 $17.27
Cost of capital 15%
Total NPV $77.25

Amount to be invested in proposals

Proposal Total Proportion
Year 1 Year 2 Year 3 Year 4
1 18.31707 18.31707 9.158533 9.158533 54.95119582 18.32%
2 30.92474 30.92474 15.46237 15.46237 92.77420549 30.92%
3 28.39617 28.39617 14.19808 14.19808 85.18850904 28.40%
4 22.36203 22.36203 11.18101 11.18101 67.08608965 22.36%

RESULT:

The proportion of investment in each project that will maximize the NPV for Small
Wonders Ltd was obtained.

Proposal Proportion

1 18.32%
2 30.92%
3 28.40%
4 22.36%

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 15
PORTFOLIO MANAGEMENT
DATE:19.06.2023

Eby Abraham has recently inherited some money which he would like to invest in stock. Eby
already holds stock in company A, and over the past ten years he has received an average
annual return of 7.48% on his investment. He would like to increase this and hence informed
his investment banker that an annual return of at least 12% is his desired objective. The
bank’s funds investment manager has forwarded details given below of two suitable
companies B and C, whose stock performances meet Edby’s requirements.
Company/Year 1 2 3 4 5 6 7 8 9 10
Company A 8.5 15.3 11.5 -1.6 -3.6 8.4 6.8 11.9 6.1 11.5
Company B 6.7 9.2 11.3 17.7 7.4 13 19.5 15.1 19.4 15.2
Company C 15.1 27.8 38.6 -12 -5.6 12.7 -2.1 12.8 36.8 22.7
AIM:
To conduct a portfolio analysis to take the of investment decision with the objective of at
least 12% annual return

ALGORITHM:

Step 1:
Enter the data in the MS Excel.
Step 2:
Calculate the Average of all the returns given using function.
Step 3:
Calculate the STANDARD DEVIATION which explains the risk factor of the returns using
function.
Step 4:
Write the average in percentage in return column and standard deviationsin percentage in risk
column
Step 5:
Calculate Sharpe Ratio by using following Formula
Sharpe Ratio = Return/Risk
Step 6:
Assign equal weights to all the assets such that the sum of the weights are equal to 100%
Step 7:
Calculate the Expected Return by the following procedure
MMULT (TRANSPOSE (SELECT THE WEIGHT CELLS), SELECT THE MEAN OF THE
RETURNS), then press SHIFT+CTRL+ENTER.

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Step8:
To calculate the STANDARD DEVIATION of the portfolio, covariance should be calculated
by the following procedure,
Data Data Analysis  Covariance OK enter the input and OUTPUTrangeOK
Step 9:
To calculate the STANDARD DEVIATION the following procedure should be used,

SQRT (MMULT (MMULT (TRANSPOSE (SELECT THE WEIGHT CELLS), SELECT

COVARIANCE MATRIX), SELECT THE WEIGHT CELL), then press
SHIFT+CTRL+ENTER
Step 10:
Sharp Ratio is calculated by dividing Expected return by Standard Deviation.
Step11:
Using solver we have to optimize the portfolio selection with the objective of
 MAX return with MIN risk.
 MIN risk with MAX return.
 Max sharp ratio. (Higher sharp ratio higher is portfolio selection)
Step12:
Click Solver
 Set the objective ( select the Expected return value)
 Choose maximize button
 Set the changing values as weights.
 Add the subject to constraints.
Step 13:
Click solve and give ok
Step 14:
The output will be displayed
OUTPUT:

Year Company A Company B Company C

1 8.50% 6.70% 15.10%
2 15.30% 9.20% 27.80%
3 11.50% 11.30% 38.60%
4 -1.60% 17.70% -12%
5 -3.60% 7.40% -5.60%
6 8.40% 13% 12.70%
7 6.80% 19.50% -2.10%
8 11.90% 15.10% 12.80%
9 6.10% 19.40% 36.80%
10 11.50% 15.20% 22.70%
Average 0.0748 0.1345 0.1468
Standard Deviation 0.060 0.047 0.174

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CoVariance

Company A Company B Company C

Company A 0.00322476 -0.0001873 0.00669136
Company B -0.0001873 0.00200905 -0.000588
Company C 0.00669136 -0.000588 0.02710216

Sharpe Ratio

Return Risk Sharpe Ratio

Company A 7.48% 6.0% 1.25
company B 13.45% 4.7% 2.85
company C 14.68% 17.4% 0.85

Max Return with Min Risk

Equal Weight
Company A 33.333% 0.000%
company B 33.333% 0.000%
company C 33.333% 100.000%
total weight 100.00% 100.00%
Expected Return 11.87% 14.68%
Risk Value 7.01% 16.46%
Expected Return/Risk value(Sharpe Ratio) 1.69 0.89

RESULT:

From the output of portfolio analysis, Eby Abraham will go for investment in Company C
that will give 14.68% return.

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Ex. No. – 16
REVENUE MANAGEMENT
DATE:22.06.2023

ABC Company made an EPS of Rs.20. Confirm the above with the following data.
• Sale of Rs. 15,00000,
• Expenses Rs. 10, 00000,
• Fixed expenses Rs.2,00000,
• Interest Rs.20,000 (10% of the fixed expenses )
• Tax 84,000 (30%)
• Number of shares 10000.
As the Sales manager of the firm, you need to know what would be the effect of Sales on
EATand EPS. What would be your target for the Sales force so that the investors could earn
an EPS of Rs.30. Also find out what will be the effect of cost cutting measures that would
result in 5% and 10% reduction in the expenses respectively.
AIM:
To find out the effect of sale on EAT and EPS and also find out the effect of cost cutting
measures.

ALGORITHM:

Step 1:
Enter the data in the MS Excel
Step 2:
Calculate EPS
Step 3:
Copy the EPS calculation result column and paste it in the next 3 columns
For Changing EPS
Step 4:
Data whatif analysisselect Goal Seek
Step 5:
select set cells as EPS cell and change value as 30 and by changing cell as Sales
Step 6:
The output will be displayed
For Reduction in Expenses
Step 7:
Data whatif analysisselect Scenario Manger

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 DATA ANALYSIS AND BUSINESS MODELLING (BA4212)

Step 8:
Enter the scenario name and changing cell and give ok
Step 9:
Enter the changing value and click show
Step 10:
The output will be displayed.

OUTPUT:

EPS 5% reduction in 10% reduction in

Calculation of EPS
=30 Expenses Expenses
950000 900000

150000 160400
Sales 1500000 1500000
0 0
100000 100000
Expenses 950000 900000
0 0
Fixed Expenses 200000 200000 200000 200000
EBIT 300000 404000 350000 400000
Interest 20000 20000 20000 20000
EBT 280000 384000 330000 380000
Tax 84000 84000 84000 84000
EAT 196000 300000 246000 296000
Number of
10000 10000 10000 10000
shares
EPS 20 30 25 30

RESULT:

The changes for the different scenarios were displayed in the output table.

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