Statistical Analysis and Interpretation for Etisalat Telecom Corporation - Essay Example

? COMPANY FINANCIAL MENT A formal record of a business, person or any entity recorded in a particular financial way is regarded as financial statement. Demographic splits and financial statements take an important position in developing world due to important information that business people acquire from the analysis of demographic splits. The splits allow for the analysis and developed information regarding the position of youth market and the overwhelming occurrence of the grey market across the globe. It is only from the analysis of the demographic splits that information concerning the youth market and details from the grey markets, added to make a genuine report regarding companies’ financial status. The developed or developing world countries are the major victims affected by the dynamics of the demographic splits. The main concerns relating to the identification of the developing and developed countries gets connected from the populace records (Lovie, 2005). The median age, raises the majority of populace in developed countries, whereas median age falls in developing countries therefore affecting the demographic splits of financial busting by a great percentage. Therefore, the median age in developed and developing countries need analyzation with great concern to the dynamics that they create in business financial status particularly the effects of demographic splits that they establish from their populace. Companies must come up with new product portfolios to meet the need of these new growing demographic needs established by the median age both in developed and developing world countries. The new products will establish new markets that meet the customers’ tastes and preferences in the demographic splits. Identification of the new products concerns the median age in the developing and developed world countries. Additionally, companies must develop new methods of marketing messages and the method of packaging. The packaging of Old consumers should be one that is easier to open compared to the packaging of new consumers. Eventually, quick reactions to these changes in the demographics can bring significant growths in different companies that create greater opportunities for expansion and profit development (Lovie, 2005). Independent T-Test Independent T-test using SPSS compares the relation between two groups connected in any way but are on the same progressive, dependant variable. Independent t-test has two variables, the dependent variable and independent variable, manipulated in different ways to come up with variables that determine the independent t-test. Besides, ones data must meet certain assumptions to come up with comprehensive independent t-test results. The assumptions establish valid t-test results using your data. According to Lovie, using an independent t-test, one of the major processes involves checking analyzed data if it actually uses an independent t-test. The main reason for checking is to be sure and appropriate that the independent t-test data passes the required six assumptions required an independent t-test to give valid and reliable results. The six assumptions determine the validity of independent t-test results by adding a little more time to the analysis. It requires checking and using keys in SPSS while performing the analysis as well establishing more ideas and thoughts about your data. When analyzing the data some of these assumptions are violated despite the fact all the six assumptions are valid and used in when analyzing data of the independent t-test. This is mostly common when working with data that is real rather than data found in the textbooks. Using the real world data, allows for the use of data that often shows you how to handle out an independent t-test when everything concerning the anayzation of the data goes in a professional way. In contrast, when the data fails to meet all the assumptions there is still a solution to overcome all this. The six assumptions that are considered in the independent t-test are one the independent variable is calculated at the percentage level or gap. Assumption two self-determining changeable number should comprise of two categorical, independent groups. The third assumption, there should be independence of observations. The independence of observations does not allow for any connections or relationship between observations of each group or among the groups themselves. The third assumption is completely of a learning pattern type than something one can test for during the exercise of data analyses. This is the most important assumption of the independent t-test and the violation of this assumption can create disturbance of the independent t-test data. Statistical test is the only test that can replace independent t-test in this third assumption or using statistical test selector, which has more enhanced content than statistical test. Moreover, the fourth assumption is that there should not be significant outliers. Outliers are the general single data points within the report that do not merge the normal pattern of the data. The outliers sometimes give different impact on the independent t-test and therefore reducing the possibility of giving accurate results. The need of using SPSS to run an independent t-test on ones data is that possible outliers detected easily (Lovie, 2005). Approximately, normally distribution of each independent changeable number is the fifth assumption. The normality of the data tested using the Shapiro-wilk test of normality that easily tests for SPSS. The final assumption is the need of homogeneity of variances. The homogeneity tested using the SPSS assumption of levenes test for the same resemblance of changeable numbers. In conclusion, assumptions one, two and three met before dealing with assumptions four, five and six that mainly uses the SPSS test in performing an independent t-test considering no assumption violated (Lovie, 2005). Conventional correlation analysis Conventional correlation analysis of spearman, allows the manipulation of data in a rank-order to analyses data. It takes into account the assumptions to be satisfied, how to calculate it and report it. Spearman’s correlation analysis can be calculated manually or using a calculator to come up with correlation coefficient in determine business financial calculations like the gross profit and operating profits and net income. The SPSS is also used in these calculations in ranking the data in a particular order that is correlated and analyzed using the spearman’s rules and calculations in a particular order to calculate the gross profit and other financial considerations like the operating profit and net income examined in Etisalat Corporation (Lovie, 2005). In conclusion, the following of these studies in determine the financial information of business gives a clear and well-established financial report. The use of SPSS and t-test formats creates a well known performance of a business with excellent report of the financial status of a particular business. Therefore, it is important for business entities to use the SPSS especially in establishing financial reports that are excellent. Analysis and the relationship between the IT outsourcing and profitability The researchers of information systems and other scientific reports have tried to relate performances of companies with the outsourcing of IT. These studies have proved that companies may benefit from IT investments. While researchers have identified that investments in IT can have an impact on the performance of the company, others have also identified that investment in IT can also have an impact on profitability. IT supports the reduction of costs by an improved way of sharing information and also develops new operational strategies. Today, companies have a number of strategies in limiting the expenses and increase revenue are also brought forward. This study involved the t-tests by use of variables that relate to the hypotheses. This method was used because the data did not meet all the needs of an OLS regression analysis and the normal regression analysis and the normal statistics of regression could hardly be run on the data. The study has applied a t-test sample for testing if the outsourcing of IT had an impact on the performance results in the company. A one sample t-test identifies the difference between the hypothesized value and the sample mean. The test value has to be used to conduct the sample t-test. The questionnaire that was used to collect information for Etisalat that was used in the study was done on a 5 point Likert scale. This was coded as follows: 1-strongly agree, 2-agree, 3-disagree, 4- strongly agree and 5-don’t know. Therefore, a t-test analysis had to be chosen based on this scale. I selected test value 3(disagree) as my test value for conducting one t-test. Since the t-tests depend on examination of the mean differences, this means that when a statement scores a mean that is less than or above 3, the dissimilarities are tested for significance. For the explanation of if the dissimilarities in mean differ from the test value, 3, the researchers applied a significance level. These confidence levels could be 90, 95 or 99 percent. When these results are interpreted on a confidence level of 90 percent, it implies that the researcher is 90 percent sure that there is a significant difference. Most researchers prefer a confidence level of 95 percent. Therefore, the interpretation of the t-tests in this paper is at a confidence level of 95 percent. The confidence level is also referred to as the p-value. Therefore, the p-values that will be evaluated are those that are 5 percent (0.05) or less to say that there is statistical significance and there is a relationship between the independent and dependent variables. 0.05 Or 5 percent is the difference between 100 percent and 95 percent. The t-test sample for operational performance and IT outsourcing The first hypothesis testing was that outsourcing of the IT in this company brought a better operational performance. The results indicated that the mean difference was approximately 0.35338 higher than 3. This dissimilarity was not the same as the test value 3 because the p value is not equal to 0.005 (the p value is 0.000). This means that the null hypothesis is rejected. The second statement that says that Etisalat experienced an improvement in its services in the past three years also indicates that the mean difference is 0.64662 and shows a statistics significance from the test value. This means that the null hypothesis is rejected. Therefore, this implies that the IT outsourcing had a major effect on the service quality of Etisalat. This means that the IT outsourcing strategy has brought an improvement in the last three years. IT outsourcing and the operational performance The second hypothesis was to test the associated profitability and outsourcing of the company. The results in the tables below indicates that the mean was considerably dissimilar from the from the test value of 3 since the p value is less than 0.05 for both questions that have been posed to the respondents in all the three groups that have been reviewed. This means that the null hypothesis will be rejected. Therefore, this implies that the outsourcing of the IT had a major effect on the profitability of the company. Therefore, if there is more outsourcing, the profitability of the organization will improve by decrease costs and increased profitability. Analysis and the relationship between the IT outsourcing and sustainability The third hypothesis that was tested was the correlation between the sustainability and outsourcing. Just like in the initial table, the tests and interpretations both depend on the test value 3. The results indicated that the mean was considerably dissimilar from the test value 3 because the p value is less than 0.05 for all the questions that are asked in the three groups. Therefore, the null hypothesis is rejected. Therefore, this implies that the IT outsourcing had a critical impact on the sustainability of the organization. This means that if more outsourcing is done, the sustainability of the company will be improved. Sustainability and profitability Sustainability is the ability to manage resources and use them in a manner that it can be useful to the future generation regardless of its use presently. On the other hand, profitability is the ability of making sales and benefiting from it by making profits. Therefore, the ability of sustainability and profitability merging and operating in the same way establishes a clear and well-developed market place of a company. Additionally, sustainability and profitability increasingly emerge as the main concern of entrepreneurs’ and small business’ enterprises because of the advantages’ that it holds to business and ability of effective management of business enterprises’ and overall management. The market place of a company rises as the sales and management of resources are fully utilized due to the ability of full sustainability of resources and therefore increasingly large profits to the company as a whole. Sustainability and profitability also depends on the social entrepreneurship of a company in order to raise the market place position of a company. It mainly focuses on the economic status of the company and its objectives put forward by the entrepreneurs’ to make the companies market place rise high and manage the resources for sustainability and profitability reasons. The environmental problems of a company are managed by the effective use of resources and therefore encouraging sustainability and automatically maximizing on the profits of the company due to effective use of its resources. Besides, the overwhelming ability of the increasing benefits associated with sustainability, the new comers in the business field suffer the concept of sustainable maturity and general profitability to raise the market place of a company. The main reason of new comers suffering is due to the limited knowledge that they have concerning sustainability and profitability in raising the market place of a company in general. In conclusion, it is important to have information concerning sustainability and profitability in its broad form to ensure the market place of a company is at high status and level. Reference Lovie, P. “Spearman, Charles Edward”. Encyclopedia of statistics in behavioral science.(2005), DOI: 1002/0470013192 Read More