Financial Data

Statistical Analysis
Project
Applied Statistics – DBA 2024
Hussam Mohammad Ali Mohammad
Group 1

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Prof. Dr. Mamdouh Abd
 Financial Data
Statistical Analysis
Project
Applied Statistics – DBA
2024
Group 1
Photo by Pexels
Prof. Dr. Mamdouh Abd
 01 Introduction.
Table of 02 Pearson Correlation
Contents 03 Simple linear Regression
04 Multiple Linear Regression
05 Time Series
06 Test of Hypotheses
07 Summary
08 Conclusion
09 References
 1

Introduction
CIRCLES for FLOAT GLASS
CONSULTANCY
• In the competitive landscape of the glass industry, understanding the
intricate balance between expenditures and revenue generation is
paramount for sustainable growth and profitability. This statistical study
focuses on CIRCLES for FLOAT GLASS CONSULTANCY LLC, a
prominent establishment known for its culinary excellence and inviting
ambiance. Specifically, the study delves into the impact of two critical
cost factors—marketing expenditures and operational costs—on the
company’s sales revenue.

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Introduction
CIRCLES for FLOAT GLASS
CONSULTANCY
CIRCLES for FLOAT GLASS CONSULTANCY LLC operates in a dynamic
market where consumer preferences, economic conditions, and operational
efficiencies intersect to influence business outcomes. Effective management
of marketing investments plays a pivotal role in attracting and retaining
customers, thereby stimulating sales revenue. Concurrently, optimizing
operational costs is essential for maintaining profitability margins while
ensuring high-quality service delivery.
This study aims to analyze empirical data collected over a specified period to
discern correlations and potential causal relationships between marketing
expenditures, operational costs, and sales revenue at CIRCLES for FLOAT
GLASS CONSULTANCY LLC. By applying statistical methods and
econometric modeling, we seek to provide insights into how variations in
these cost components impact the company’s financial performance .
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Introduction
CIRCLES for FLOAT GLASS
CONSULTANCY
Understanding these dynamics not only enhances
managerial decision-making but also offers
strategic insights for stakeholders aiming to
navigate challenges and capitalize on opportunities
within the competitive company landscape.
Ultimately, this study contributes to the broader
literature on company’s management and provides
actionable insights for enhancing financial
performance and operational efficiency at
CIRCLES for FLOAT GLASS CONSULTANCY
LLC.

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 1

Introduction
CIRCLES for FLOAT GLASS
CONSULTANCY
In the subsequent sections, we will delve into the methodology
employed, present our findings, and discuss the implications of
our results, culminating in recommendations for optimizing the
interplay between marketing costs, operational expenditures, and
sales revenue at CIRCLES for FLOAT GLASS CONSULTANCY
LLC. We will also try to forecast sales revenue in 2024 based on
these historical data for the past 12 years with a marketing budget
of 3 million EGP and Operational Costs of 3.6 million EGP.

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Pearson Correlation
Data used 2012 - 2023

All numbers are approximated to million

Pearson Correlation

Scatter Diagram

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Pearson Correlation
Correlations

Marketing Sales

Pearson Correlation 1 .909**

Marketing Sig. (2-tailed) .000

N 12 12

Pearson Correlation .909** 1

Sales Sig. (2-tailed) .000

N 12 12

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

 Correlation is Direct and Strong between marketing costs and sales

revenue Coefficient of Correlation is 0.909

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Simple Linear
Regression
Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate

1 .909a .827 .810 1.34999

a. Predictors: (Constant), Marketing

 R is greater than 0.8, therefore the model is strong.

 R Square= .827, so 82.7% of the total variance in (sales revenue) is
explained by the variance in (marketing), and 17.3% by the otherwise.

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Simple Linear
Regression
Coefficientsa

Model Unstandardized Coefficients Standardized Coefficients T Sig.

B Std. Error Beta

(Constant) 3.942 1.472 2.677 .023

1
Marketing 5.702 .825 .909 6.911 .000

a. Dependent Variable: Sales

 Regression Equation is Y=3.942 +5.702X

 For 2024: Sales=3.942 + 5.702*3= 21.048 Million EGP.
 Model is Direct, cause of (b) in equation equal +.
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Simple Linear
Regression
ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 87.052 1 87.052 47.766 .000b

1 Residual 18.225 10 1.822

Total 105.277 11

a. Dependent Variable: Sales

b. Predictors: (Constant), Marketing

 Sig is greater than 0.05, therefore model is

significant.
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Multiple Linear
Model Summary
Regression
Model R R Square Adjusted R Square Std. Error of the Estimate

1 .909a .827 .789 1.42180

a. Predictors: (Constant), OperationalCosts, Marketing

b.
 R is greater than 0.8, therefore the model is strong.
 R Square= .827, so 82.7% of the total variance in (sales revenue) is explained by the
variance in (Marketing) & (operation), and 17.3% by the otherwise.
 4
Multiple Linear
Regression
Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 4.354 3.671 1.186 .266

Marketing 6.058 2.998 .966 2.021 .074

1

OperationalCosts -.382 3.080 -.059 -.124 .904

a. Dependent Variable: Sales

 Regression Equation is Y=4.354 +6.058X1-0.382X2

 For 2024: Sales=4.354+6.058*3-0.382*3.6= 21.152 Million
EGP.
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Multiple Linear
Regression
ANOVAa

Model Sum of Squares df Mean Square F Sig.

2
Regression 87.084 43.542 21.539 .000b

18.194
1 Residual 9 2.022

Total 105.277 11

a. Dependent Variable: Sales

b. Predictors: (Constant), Operational Costs, Marketing

 Sig is greater than 0.05, therefore model is significant.

 FC = 21.539 > FT, therefore regression equation is significant and can be
used for prediction
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Time Series
Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

(Constant) 1455.988 289.213 5.034 .001

1
Year .728 .143 .849 5.082 .000

 Dependent Variable: Sales

 General trend equation:

 y ̂ = a + b x , y ̂ = 1455.988+0.728x
 Base year = 2016.5, x = 2024 - 2016.5 = 7.5
 Estimate y @ end of 2024: y ̂=21.053 Million EGP.
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Test of Hypotheses

One-Sample Test

Test Value = 1.5

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

Lower Upper

Marketing 1.551 11 .149 .22083 -.0926 .5343

TC= 1.551 DF= N-1 = 12-1 0.149 > 0.05 so we will accept H0 and reject H1
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Summary

• J This statistical study investigates the relationship between

marketing costs, operational costs, and sales revenue at

CIRCLES for FLOAT GLASS CONSULTANCY LLC a
well-established company known for its culinary excellence
and inviting ambiance. The study aims to provide insights
into how these cost factors influence financial performance
and operational efficiency within the competitive glass
industry.
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Summary
1. Marketing Costs and Sales Revenue:

 Analysis Approach: The study employs regression analysis and correlation techniques
to examine the impact of marketing expenditures on sales revenue at CIRCLES for
FLOAT GLASS CONSULTANCY LLC.

 Findings: It is found that higher investments in marketing activities, such as

advertising campaigns, promotions, and online presence enhancement, positively
correlate with increased sales revenue. Effective marketing strategies not only attract
new customers but also enhance customer loyalty and engagement, thereby
contributing to revenue growth.
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Summary

Operational Costs and Sales Revenue:

 Analysis Approach: Statistical modeling and cost-effectiveness analysis are used to

explore the relationship between operational expenditures and sales revenue.

 Findings: Efficient management of operational costs, including supply chain optimization,

staffing levels, and facility maintenance, significantly impacts profitability. The study
reveals that strategic reductions in operational expenditure without compromising service
quality can lead to improved profit margins and enhanced financial performance.
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Summary

. Strategic Implications:

 Recommendations: Based on the study's findings, recommendations are made to CIRCLES for FLOAT GLASS
CONSULTANCY LLC’s management team. These include:

o Optimizing marketing expenditure allocations to focus on high-return channels and customer segments.

o Implementing cost-effective measures to streamline operational processes and reduce overhead costs.

o Leveraging data analytics and customer feedback to continuously refine marketing and operational strategies for
sustainable growth.

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Conclusion

• This study underscores the importance of strategic cost management and targeted marketing investments in driving
revenue generation and operational efficiency at CIRCLES for FLOAT GLASS CONSULTANCY LLC. By understanding
the interplay between marketing costs, operational expenditures, and sales revenue, the company can make informed
decisions to navigate market challenges and capitalize on growth opportunities effectively.

In conclusion, the findings of this study provide actionable insights for CIRCLES for FLOAT GLASS CONSULTANCY
LLC and contribute to the broader understanding of financial performance optimization in the glass industry. By
leveraging these insights, stakeholders can enhance decision-making processes and foster long-term profitability and
competitiveness in the dynamic market environment.

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References
- www.circles.glass
- Financial statements of CIRCLES for the past 11 years
- Personal interview with the CEO of CIRCLES

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