Quantitative techniques in Business

From a reliable database select a company, within the FTSE 100.

Source cue: Company website, FAME, OSIRIS, Google Finance, Morning Star, Yahoo, Annualreports.com finance web pages.

1 (one) company on the FTSE 100 Stock Exchange, in the Manufacturing, Banking Sector and/or Retail Industry.

Present 5 years data on key aspects of the company performance including Sales/Turnover, Gross Profit, Operating Profit and Long term liabilities,

(Net) Profit after Tax.

Forecast additional 5 years of each of the account balances.

Justify the selection of the company chosen, following the format of a report, with cover page, title page, table of contents, introduction and

chapter (sections) meeting each requirement of the assignment.

2.1
Using Turnover, Net Profit as X and Y respectively, across the 5 years, find the Pearson Coefficient of Correlation. Plot the scatter diagram graphs

of relationship between these two across the years

2.2
Comment on the relationship between Long term liabilities and Net profits, as ascertained from the analysis of this company’s 5 year financial data.

2.3
Descriptive statistics of Mean and Standard Deviation for Gross Profit, Operating Profits, Long term liabilities, plotted on graphs and  presented in

the  main section with commentaries on observations,

Compared against the historic and forecast years.

Use Turnover as Y, find correlation equation with
Gross Profit, Operating Profits, Long term liabilities, Net-Profit as X1, X2, X3, X4, in the equation.

y = a + b1(x1) + b2(x2) + b3(x3) + b4(x4)

Perform correlation analysis between the Net profits of 5 years, and Average Market prices of the shares for each of the years.

Analyze the forecast years in the light of the results from correlation and provide reasoned arguments on the future market share prices. Insights

could be presented including potential future dividends.
Write your report using the following contents:

1.0    Introduction
[The objective of the report; finding the correlation and relationships between specific  indicators of the Gross Profit and Net Profit of five

years, using correlation and regression analysis. Justify the company selected.

2.0 Factors influencing the FTSE company:
[An overview of the sector, and company, historical factors, and business environment.  Use any preliminary literature to support your work, with

references.

3.0     Data Analysis and Findings:
[Descriptive statistics and regression and correlation analysis including commentaries and interpretations]

4.0    Conclusion and recommendation (s):
Provide a suitable conclusion and recommendation that of key factors noting the relationships between data, historical performance and future

outlook, using the forecast data.