ASSIGNMENT 01 FRONT SHEET

Qualification BTEC Level 5 HND Diploma in Business

Unit number and title Unit 31: Statistics for management

Submission date 6/6/2021 Date received (1st Submission)

Re-submission date Date received (2nd Submission)

Student Name Nguyen Thai Bao Student ID GBH200086

Class No. GBH0908 Assessor Name Do Thu Trang

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I certify that the assignment submission is entirely my own work and I fully understand the consequences of plagiarism.
I understand that making a false declaration is a form of malpractice.
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Nguyen Thai Bao

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Contents
Introduction ........................................................................................................................................ 5

The nature and process of business and economic data............................................................ 5

Definition of data, knowledge and information ............................................................................. 5
Data ................................................................................................................................................5
Information ....................................................................................................................................5
Knowledge .....................................................................................................................................5
Application ........................................................................................................................................ 6

Evaluate data using methods analysis ........................................................................................... 7

Descriptive approach ....................................................................................................................... 7
Confirmatory factor analysis (CFA) ................................................................................................ 9
Exploratory data analysis (EDA) ................................................................................................... 10

Conclusion ......................................................................................................................................... 12

References ......................................................................................................................................... 12

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Introduction
It is evident that society cannot be properly administered on the basis of hunches or trial and error,
and that much depends on the right interpretation of numerical data in business and economics.
Data-driven decisions will outperform those based on intuition or gut feelings. Statistics may be used
to solve all of these problems. Essentially, statistics is a scientific methodology to analyze numerical
data in order to maximize its interpretation, comprehension, and usage. This indicates that statistics
aids in the transformation of data into information; that is, data that has been evaluated,
comprehended, and is helpful to the recipient. The study will rely on a document including
information and data gathered in Vietnam between November 2014 and April 2016. This document
is part of the World Bank's Enterprise Survey (ES) program, which aims to develop an investment
climate, create jobs, and achieve long-term growth. ES is also used to create an enterprise data sheet,
which allows for the tracking of changes in the business environment over time, as well as measuring
the impact of reforms. The report includes the nature of economic and business data, different
methods of collecting data and the advantages and disadvantages of those approaches; as well as
the application using data from the document from the World Bank’s Enterprise Survey program.

The nature and process of business and economic data

Definition of data, knowledge and information
Data
The concept of data as it is used in the curriculum is usually referred to as 'raw' data – a collection of
useless text, numbers, and symbols. Data must thus be processed or contextualized before it may be
meaningful (Boisot & Canals, 2004).

Information
Information is the outcome of data processing, which is commonly done by a computer. Data is
meaningless on its own. When it is understood, it only takes on meaning and becomes information.
Data is made up of basic facts and numbers. When the data is processed into context-specific sets, it
gives information. This yields facts, allowing the processed data to be utilized in context and have
meaning (Boisot & Canals, 2004).

Knowledge
Knowledge is defined as what a person understands. This is known as their knowledge base. As a
person gains experience or learns new things, their knowledge base expands. Understanding what
information is based on one's experience and knowledge basis is required for knowledge. With

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knowledge, data may be interpreted. Knowledge in computing is also what a computer knows
through the usage of a knowledge base built of rules and facts, as demonstrated in knowledge-based
systems, modeling, and simulation software (Boisot & Canals, 2004).

Application

Count of Distribution Distribution of firms by regions

Regions
regions of firms

Red River Delta 125 28.74% 16.78%

28.74%

North Central Area &

110 25.29%
Central Coastal Area 29.20%

25.29%
South East 127 29.20%

Red River Delta

Mekong River Delta 73 16.78%
North Central Area & Central Coastal Area
South East
Grand Total 435 100.00% Mekong River Delta

Figure 1. Distribution of firms by regions

To begin, the data is expressed numerically: 28.74%, 25.29%, 29.20%, and 16.78%.
Following that is the information, which is shown as follows: The blue component represents the
proportion for distribution of firms operating in Red River Delta at 28.74%; at 25.29 %, the orange
region indicates the distribution of enterprises operating in the North Central Area and Central
Coastal Area.; the gray section reflects the fraction of enterprises operating in the South East, which
is 29.20%; and at 16.78 %, the yellow area reflects the share of enterprises operating in the Mekong
River Delta.. The percentages of the Red River Delta, North Central Area & Central Coastal Area, South
East, and Mekong River Delta add up to 100%.
Finally, the knowledge that can be seen from the information above is that all enterprises have
penetratively decided to expand their operations to regions that own promising features. As
illustrated in the pie chart above, the distribution of businesses around the country is quite
consistent. The Red River Delta, the North Central and Central Coast, and the Southeast all have

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thriving economies that attract both domestic and foreign investment. The facilities system is fairly
developed, with roads, railways, maritime, and aviation traffic axis system connecting locations
across the nation.
As a result, enterprises in the Food, garment and non-metallic sectors are concentrated in the three
regions: North Central Area & Central Coastal Area, Red River Delta. However, because having the
main source of daily use water as salt water, thus suffering from salinization and floods, low
intellectuals and slow-developing economy, the Mekong River Delta has a tiny number of
enterprises. These skills are critical for firms trying to expand in the future. Non-metallic product
firms, for example, should invest more in regions that has fast-changing economy such as the Red
River Delta, Southeast, and elsewhere rather than drilling in the Mekong Delta.

Evaluate data using methods analysis

Descriptive approach
Descriptive research is used to characterize the characteristics of a population or phenomenon under
study. It does not resolve the questions of how/when/why the traits evolved. It instead replies to the
"what" question. Explanatory research is frequently conducted after descriptive research. The
description is employed in the computation of frequencies, averages, and other statistical statistics.
Prior to generating a descriptive research, it is usually best to conduct a survey enquiry. The purpose
of qualitative research is typically to describe, and researchers may then analyze why the
observations occur and what the results mean (van der Voordt, 2002).
There are several advantages to descriptive research. For starters, because the sample size is
generally large, descriptive research saves time for researchers. Second, descriptive statistics can
help comprehend and analyze data more quickly. Measures of central points and dispersion, for
example, enable researchers and commentators to determine whether data converge on the average
value and are broadly scattered in the specifics of the variables. Third, this type of study helps the
researcher to learn about the features of the population by combining quantitative and qualitative
data. Case research is an approach that is regarded to be good for getting more generalized
information since it develops new relevant hypotheses during the investigation. Using a case study
to explain persons, events, and organizations helps the researcher to gain a full understanding of the
unit's behavior and pattern (van der Voordt, 2002).

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On the other hand, this technique also comes with an amount of disadvantages. One of the
descriptive analysis's major shortcomings is the respondents' lack of confidentiality and honesty.
Responders are not always truthful and do not always provide the proper response for a variety of
reasons. If the study questionnaire is not thoroughly and deliberately constructed, errors in the
overall research result may result. It is also usual for researchers to choose just material that supports
their study hypothesis and ignore other parts of the data that contradict the idea. This might lead to
bias and mistakes in research. Another downgrade of this type of this method is only the link and
association between two variables are shown by a descriptive correlational study. It simply defines
how closely two variables and qualities are connected to one another. Even if there is a very high and
substantial correlation between variables, this does not always imply causation or influence of one
variable on another (van der Voordt, 2002).

Descriptive Table
Mean 246.5150115
Median 52
Mode 20
Standard Deviation 841.0077621
Variance 707294.0559
Min 5
Max 9000
Range 8995
Count 433
Figure 2. Descriptive statistic
According to descriptive statistics theory: Mean is the average value of the variables represented in
the data, Mode is the most common or most prevalent in data sets; Median is the line drawn
between the big and small half of a variable. Standard deviation is the average variance of the
variables in the data set; the greater the standard deviation, the greater the variability in the data
set, and Variance quantifies how far apart a group of numbers is from its mean value. Range is the
distance between data points with the highest and lowest values. Finally, Minimum is the data that
has the smallest value and Maximum is the data that has the biggest value.

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The average number of persons in the descriptive table above with the visible number of employee
variable is 247, the median is 52 employees, and the most common number of workers is 20.
Furthermore, the standard variance in the number of employees in various regions is around 841,
indicating that there is a lot of variety and the variance is about 707294 people. This shows that about
68% of 433 surveyed companies have from 5 to about 1,110 employees.
Finally, the lowest number of employees is 5, while the greatest is 9000. The number of persons in
the range between the minimum and maximum may be calculated as 8995. It can be seen that in
this region, there is a company that has the least number of employees (5 people), while there is
another company that has the greatest number of workers (9000 people). This shows that the range
of companies’ sizes is considerably huge.

Confirmatory factor analysis (CFA)

Confirmatory factor analysis is a type of factor analysis that is most typically employed in social
research. It is used to determine whether construct measurements are compatible with a
researcher's knowledge of the nature of the construct (or factor). As a result, the goal of confirmatory
factor analysis is to see if the data fits a postulated measurement model. The majority of advances
in confirmatory factor analysis are the consequence of advances in general covariance structure
analysis. Additional computer programs, some of which allow model specification by sketching a path
diagram; a slew of omnibus fit indices that address the chi-square test's well-documented
shortcomings; and estimation procedures that do not impose the data demands associated with
maximum likelihood estimation are among these. Advances in confirmatory factor analysis generally
express themselves as answers to specific research difficulties. Examples include tests of interaction
effects using latent variables, latent growth curve models, and state-trait models (Hoyle, 2000).
The capacity to evaluate and detect the effects of factors and measures is the fundamental benefit
of the confirmatory methodology. In reality, confirmatory data analysis is frequently employed in the
construction of scales to analyze the structural potential of tests, and when applied appropriately,
the essential processes may produce reliable data. It also helps researchers reach educated
conclusions or evaluate prior theories before developing them for further investigation (Hoyle, 2000).
Aside from its advantages, the confirmatory approach has significant drawbacks. The key constraint
is their pattern, which is heavily influenced by correlations between random or overrepresented
objects or by the smaller picture of some things, resulting in a variation in the number and substance

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of the trials. Another disadvantage of the methodology is that large samples are more reliable,
especially for a large number of variables (Hoyle, 2000).

Relationship between f2 and d16

180
160
Hours operating/week

140
120
100
f2 (Hours
80 operating/week)
60 Linear (f2 (Hours
40 operating/week))
20
0
0 100 200 300 400
Inventory

Figure 3. Confirmatory analysis

According to the numbers above, the most companies spend 40 and 80 hours operating, while the
highest hours of operation are between 160 and 180 hours. Furthermore, few businesses work fewer
than 40 hours a week. Thus, many organizations labor 80 to 140 hours each week. The standard day
of inventory number, like inventory days are lower than 100 days. Moreover, the inventory is kept
for a period of 350 days. It can be seen that the trend line is a downward line, the higher is f2, the
lower is d16 and vice versa, means that the more active hours are taken, the less days of inventory
there are. This shows that the relationship between f2 and d16 is a negative relationship.

Exploratory data analysis (EDA)

In statistics, exploratory data analysis is a way of evaluating data sets in order to summarize their key
features, which is frequently done using statistical graphics and other data visualization approaches.
A statistical model may or may not be utilized, but the primary goal of EDA is to explore what the
data can tell us beyond the formal modeling or hypothesis testing work. John Tukey championed
exploratory data analysis to encourage statisticians to investigate the data and maybe create
hypotheses that may lead to future data gathering and experiments. The fundamental goal of
exploratory analysis is to look for distributions, outliers, and abnormalities in the data in order to lead
particular testing of your hypothesis. It also gives tools for developing hypotheses by visualizing and
comprehending data, typically through graphical representation (Hoaglin, et al., 1983).

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Exploratory analysis is a flexible and adjustable type of analysis. Second, data from the exploratory
study might be utilized to provide the framework for future research. As a result of greater topic
competency, more research problems are addressed, and the effectiveness of study findings is
significantly enhanced. It also assists in choosing the optimal technique for achieving a researcher's
objectives. Furthermore, because it detects and forecasts study outcomes, this analytical
methodology is useful in research and may save time and money (Hoaglin, et al., 1983).
The exploratory technique, however, has certain downsides since research results generate
information, and how that information is received might be deceiving, and there are no clear
outcomes. Furthermore, because this methodology usually utilizes a costly and underrepresented
number of samples for the target population, it is ineffective for making practical decisions (Hoaglin,
et al., 1983).

Relationship between f2 and d16

180
160
Hours operating/week

140
120
100
f2 (Hours
80 operating/week)
60 Linear (f2 (Hours
40 operating/week))
20
0
0 100 200 300 400
Inventory

Figure 4. Exploratory analysis

According to the figure above, the number of operational hours of the firms is primarily concentrated
in the range of 40 to 80 hours. The number of days of inventory is normally between 0 and less than
100, which is the typical and effective number of inventory days in business. It is obvious that these
businesses follow standard business hours (40-80 hours). According to the graph, there are
some businesses that have more than 140 hours of operation, yet inventory days are still more than
100 days, if not more than 350 days. This means that those companies need to develop their
productivity and their skills in order to minimize both operating hours and days of inventory.

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Conclusion
The contents of data, information, and knowledge have been explained through definitions in the
preceding report, as well as instances for practical application. Furthermore, the paper
demonstrated three distinct analytical methodologies, including descriptive statistics, a
confirmatory approach, and an exploratory strategy. The examples of these three ways have
demonstrated the linkages and correlations between variables, assisting in the recognition of
findings and providing advice for companies based on the three techniques of analysis.

References
Boisot, M., & Canals, A. (2004). Data, information and knowledge: have we got it. Journal of
Evolutionary Economics, 2(2), 50-62.
BPP. (2010). Marketing Principles - Business essentials: supporting HND/HNC and Foundation
Degrees. London: BP Learning Media.
Hoaglin, D. C., Mosteller, F., & Tukey, J. W. (1983). Understanding Robust and Exploratory Data
Analysis. New York: Wiley Classics Library.
Hoyle, R. H. (2000). Confirmatory Factor Analysis. Handbook of applied multivariate statistics and
mathematical modeling, 465 - 497.
Kotler. (2012). Principles of Marketing, 14th edition. New York: Prentice Hall.
Kotler, P., Armstrong, G., Wong, V., & Saunders, J. (2008). Principles of Marketing - Fifth European
Edition. Essex: Prentice Hall.
van der Voordt, J. (2002). Ways to study - Descriptive research. In T. de Jong, & J. van der Voordt
(Eds.), Ways to study architectural, urban and technical design (p. 367). Delft: Delft
University Press.

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