MBA 1133 Statistics for Business

Assignment 01
Take Home Assignment 01

Name : W.A.I.S Kasthurirathne

Index No: MBA/RJT/2017/35

Q1. Problem 1

a.)

111175
933870 (1%)
(4%)
2045620
(9%)
Sinhalese

2490320 Sri Lankan Tamil

(11%)
Sri Lankan Moors

Indian Tamil

Other

16654015
(75%)

Figure 1. Population of Sri Lanka by ethnic groups (as at 2016 est.)

According to the 2016 data, Sri Lankan population consists of four major ethnic groups as Sinhalese, Sri
Lankan Tamil, Sri Lankan Moors, Indian Tamil and other groups.

Figure 1 shows that the majority (75%) of the population is Sinhalese. Sri Lankan Tamil, Sri Lankan Moors,
Indian Tamil and other groups are have contributed 11%, 9%, 4.2% and 1% respectively indicated in the
Figure 1.

The Sinhalese are 7 times the population of Sri Lankan Tamils, 8 times the population of Sri Lankan Moors,
18 times the population of Indian Tamils and 150 times the population of other ethnic groups.

It shows that Sri Lankan Tamil and Sri Lankan Moors are having considerably larger portion of Sri Lankan
population compared to Sri Lankan Tamils.
 b.)

10
Millions Male Female
9
8
7
POPOLATION

6
5
4
3
2
1
0
0-14 years 15-24 years 25-54 years 55-64 years 65 years and over

AGE GROUP

Figure2. Age structure of the population by sex (as at 2016 est.)

2.a) 0-14 Age Group 2.c) 25-54 Age Group

2.b) 15-24 Age Group 2.d) 55-64 Age Group

49%
51% 51%
49% 51% 54%
49% 46%

Male Female Male Female Male Female Male Female

2.e) 65 Years and above Age

Figure 2.a, 2.b, 2.c, 2.d and 2.e Age Group
Structure of the Population by Sex (as at
2016 est.)
42%
58%

Male Female
According to the Figure 02, the majority of the Sri Lankan population are between 25-54 age range and
that is 42% of the total population.

The composition of male and female in each age group is indicated in Figure 02 and Figures 02.a to 02.e.
The statistics data of 2016 shows that at birth, the male births are slightly higher than the females and
with the age goes high female composition in the population has increased. This implies that the life
expectancy of females are higher than males.

From the birth to age group of 15-24 years, the male to female ratio has kept almost a constant. So after
25 years, female population of Sri Lanka has overcome the male population and by the age after 65, it
shows a 1.36 ratio between male and female.

So it is evident that the majority of Sri Lankan elders are females and the majority of Sri Lankan youth are
men in the year of 2016.

c.)

0.95
Growth Rate (%)

0.9

0.85

0.8

0.75

0.7
2009
2000

2001

2002

2003

2004

2005

2006

2007

2008

2010

2011

2012

2013

2014
Year
Figure 3. Population growth rate in last 15 years

As shown in the Figure 03, the population growth rate values have been fluctuating up and down over the
past 15 years in Sri Lanka. The maximum recorded growth rate is 0.98% in the year 2007 and the minimum
value recorded is 0.78% in 2006 respectively.

Figure 03 shows a steady reduction of the population growth rate from year 2000 to 2006 and then a
significant. The variation between that two years is the highest rate of change in the growth rate in the
past 15 years and it is a 0.2% difference.

The mean population growth rate for last 15 years is 0.87% and 7 years out of total 15 years have growth
rates below the average growth rate.
d.)

Real GDP growth rate (%)

10 25
Inflation Rate (%)

8
20
Real GDP Growth Rate (%)

Inflation Tare (%)

15
4

2
10

0
5
-2

-4 0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014
Year

Figure 4. Real GDP growth rate and inflation rate in last 15 year

The relation between Real GDP growth rate of a country and the Inflation rate generally has an inversely
proportional relationship. It can be seen in the Figure 4, as when the real GDP growth has fluctuated up
and down, the Inflation rate has been fluctuated down and up.

During the past 15 years, the highest DGP growth rate and the highest inflation rates are 9.1% at 2010
and 22.6% in 2008 respectively.

The average real GDP growth rate of past 15 years is 5.7 % and the average inflation rate is 9.2. The highest
rate of change of real GDP growth rate has occurred is 7.1%, between years 2000 and 2001. The highest
rate of change of the inflation rate is 19.6%, between 2008 and 2009.
Q2. Problem 2

Table 01: Measures of Central tendency, Variability and Shape

Parameter Investment A Investment B

Mean 4.43 4.41
Median 4.6 4.25
Mode 4.6 4.2

Skewedness Positively Skewed Negatively Skewed

Sample Range 3.5 1.5

Sample Standard Deviation 0.986 0.472
Sample Variance 0.971 0.223
Coefficient of Variance 22% 11%

Normal Approximation of Investment A Normal Approximation of Investment B

-3 -1 1 3 -3 -1 1 3

Figure 5.1 Normal Approximation of Investment A Figure 5.2 Normal Approximation of Investment B

In comparison between the Investment option A and Investment option B, Investment A has higher mean,
mode and median values (central tendency parameters) than the Investment B. Which indecates the
Investment A has higher returns that the Investment B.

Also the Investment A has a shape of positively skewedness, while Investment B has a negatively
skewdness. But when it compares the variance of two distributions, the Variance of Investment A is very
high than the Variance of Investment B.

Which imples the returns of Investment of A tends to vary a lot while Investment B has comparatively
steady return. Also the Coefficient of Varience of Investment A is twice as it is of Investment B.

So it is recommended to select the Investment B due to lack of variance and steadyness of returns (low
risk).
Q3. Problem 3

Table 02. Monthly Household Income Analysis

Parameter Sector Province District

Mean (of Means) 47,193 40,722 39,767
Median (of Medians) 29,376 28,900 28,205

Sample Standard Deviation 16,687.76 9,065.87 10,677.04

Sample Variance 278,481,307.67 82,190,017.00 113,999,176.56
Coefficient of Variance 35% 22% 27%

Carl-Pearson Coefficient 3.20 3.91 3.25

Skewedness Positively Skewed Positively Skewed Positively Skewed

Urban
80,000

60,000

40,000 Mean

20,000 Median

0 Figure 06.1 Monthly Household

Income – Sector Distribution

Estate Rural

Western
70,000
60,000 Mean
Sabaragamuwa Central
50,000
Median
40,000
30,000
20,000
Uva 10,000 Southern
0

North Central Nothern

Figure 06.2 Monthly Household

North Western Eastern Income – Provincial Distribution
 Colombo
Kegalle80,000 Gampaha Mean
Ratnapura Kalutara
70,000
Median
Moneragala 60,000 Kandy
50,000
Badulla Matale
40,000
30,000
Polonnaruwa Nuwara Eliya
20,000
10,000
Anuradhapura Galle
0

Puttalam Matara

Kurunegala Hambantota

Trincomalee Jaffna

Ampara Mannar
Batticaloa Vavunia
Kilinochchi Mullaitivu Figure 06.3 Monthly Household
Income – District Distribution

Figures 06.1, 2 and 3 shows the diversification of monthly household income of Sri Lankan families in
different categories.

According to the Table 02, categorizing the house hold incomes under three divisions has resulted
differently according to the Facility distribution in Sr Lanka and Demography.

The sector divion of house hold income shows a very high varience and diversity as it has only divided the
total population in to three sections. The Coefficient of Variance vales implies Sector cateorization (COV
= 35%) has the highest variation in income, District Categorization (COV = 27%) has the second highest
variation of income and the Provincial categortiation (COV = 22%) has the lowest variation. This indiacates
that the Sri Lankan demographical income distribution has diversified differently.

As highlights, in Provincial Categorization, Western Province has an outstanding variation between mean
household income value and in District Categorization Colombo District shows same kind of ot standing
variation.

The shape of all distributions are Positively Skewed shape in all three distributions, which also implies a
diversity in the household income levels in all three categories.
 Urban
60,000 Mean

40,000 Median

20,000

0 Figure 06.4 Monthly Household

Expenditure – Sector Distribution

Estate Rural

Western Mean
60,000
Median
Sabaragamuwa 50,000 Central
40,000
30,000
20,000
Uva 10,000 Southern
0

North Central Nothern Figure 06.5 Monthly Household

Expenditure – Province Distribution

North Western Eastern

Colombo Mean
Kegalle
70,000 Gampaha
Ratnapura Kalutara Median
60,000
Moneragala Kandy
50,000
Badulla 40,000 Matale
30,000
Polonnaruwa 20,000 Nuwara Eliya

10,000
Anuradhapura Galle
0

Puttalam Matara

Kurunegala Hambantota

Trincomalee Jaffna

Ampara Mannar
Figure 06.6 Monthly Household
Batticaloa Vavunia Expenditure – District Distribution
Kilinochchi Mullaitivu
 Table 03. Monthly Household Expenditure Analysis

Parameter Sector Province District

Mean (of Means) 42,194 36,890 36,710
Median (of Medians) 29,010 27,217 27,749

Sample Standard Deviation 13,349.71 9,010.11 9,894.07

Sample Variance 178,214,775.33 81,182,020.44 97,892,524.04
Coefficient of Variance 32% 24% 27%

Carl-Pearson Coefficient 2.96 3.22 2.72

Skewedness Positively Skewed Positively Skewed Positively Skewed

Here also Figures 06.4, 5 and 6 shows the diversification of monthly household expenditure of Sri Lankan
families in different categories.

According to the Table 03, categorizing the house hold expenditure under three divisions has resulted
differently according to the Facility distribution in Sr Lanka and Demography.

Similar to the income analysis, the sector divion of house hold expenditure shows a very high varience
and diversity as it has only divided the total population in to three sections. The Coefficient of Variance
vales implies Sector cateorization (COV = 32%) has the highest variation in expenditure, District
Categorization (COV = 27%) has the second highest variation of expenditure and the Province
categortiation (COV = 24%) has the lowest variation. This indiacates that the Sri Lankan demographical
expenditure distribution has diversified differently same as the Income.

As highlights, in Provincial Categorization, Western Province has an outstanding variation between mean
household expenditure value and in District Categorization Colombo District shows same kind of ot
standing variation very similar to income analysis.

The shape of all distributions are Positively Skewed shape in all three distributions, which also implies a
diversity in the household expenditure levels in all three categories.

This two analysis of income and expenditure shows an interesting analogy. It shows that higher the
income, lower the expenditure, as a presentage of income in every category. Also in some cases, mean
expenditure is higher than mean income. It suggests that the regardless of the income, people atleast
have to fulfill their basic needs.

Furthermore, the following Figure 7 shows the expendure/income ratio of house holds in Sri Lanka in
above three categories. It shows generally the highest expenditure/income ratios has recorded in the
lowest income segments in each category of Sector, Provice and District. As examples, Estate in Sector
category, Eastern in Province categiry and Batticaloa in District Category can be shown.
 Sector Expenditure/Income Ratio
1.00 0.97
Expenditure/Income

0.95 0.92
0.90
0.84
0.85
0.80
0.75
Urban Rural Estate

Province Expenditure/Income Ratio

1.20 1.01 1.01
0.97
Expenditure/Income

0.91 0.87 0.88 0.93

1.00 0.81 0.80
0.80
0.60
0.40
0.20
0.00
Eastern

North Central

Uva
North Western
Western

Central

Nothern

Sabaragamuwa
Southern

District Expenditure/Income Ratio

1.40

1.16
1.20 1.12
1.08
1.03 1.02 1.01
0.98 0.96 0.96 0.98 0.98 0.98 0.96
1.00 0.890.880.90 0.90 0.90 0.90
0.87 0.84
0.81 0.82
0.80 0.69
0.65
0.60

0.40

0.20

0.00
Batticaloa
Kalutara
Kandy

Galle
Colombo
Gampaha

Ampara

Moneragala
Hambantota

Kurunegala

Badulla
Jaffna
Mannar

Kegalle
Kilinochchi

Ratnapura
Matale

Anuradhapura
Matara

Polonnaruwa
Trincomalee
Mullaitivu
Nuwara Eliya

Vavunia

Puttalam