MANAGERIAL BUSINESS ANALYTICS

(MGT782)

INDIVIDUAL ASSIGNMENT
1

PREPARED FOR:
AP TS. DR. NORHAYATI BINTI BAHARUN

PREPARED BY:
ALEALIANA BINTI AZMI

(2022265606)
Data summary

Population of the data compromise 274 couples and it listed out their education level ranging
between 1 to 4 where 1 is high school-leaver, 2 is undergrad degree, 3 is master’s degree and 4
is doctorate level. Besides that total salary, value of car and house owned by each of the couple
were also given in the data. The data also provide the level of saving for each couple and Social
Climber (SC) index where it explains the level of concern towards social status being the higher
the number the more their concerned towards social status.

Data analysis 1) Median

➢ Referring to value or quantity lying at midpoint of a frequency distribution of population.
Salary median : Half of the population earn less than 99 and the rest earn more than 99.
2) Mean
➢ Referring to average of a set of data.

Salary average : Average income for each couple in the population is 98.

3) Percentile/Quartile
➢ Percentile refers to a measure at which that percentage of the total values are the same
as or below that measures. Quartile caters the same meaning however in quarterly
order i.e Q1, Q2, Q3, and Q4.

Salary percentile:

P25/Q1: Percentile 25 suggest that 25% of the population earn less than 82.25 compared to the
remaining population.

P50/Q2: Percentile 50 suggest that 50% or half of the population earn less than 99 and it’s the
same definition as median.

P75/Q3: Percentile 75 suggest that 75% of the population earn less than 115 compared to the
top 25% of the population.

4) Standard deviation
➢ Standard deviation refers to how measurement for a group are spread out from the mean.

Salary standard deviation:

The salary standard deviation of the population is 24.95 and the high standard deviationsuggest
that the salary gap are huge in average. In other words, the wealth and income distribution are
not properly distributed among the couples in the population.
 Education level

High school
7.30% Undergrad
29.20% degree
31.02% Master's degree
Doctorate

32.48%

Diagram 1.1 Table 1.1

Diagram 1.1 and Table 1.2 above shows that 89 couples who have master’s degree is the majority
in the population where they represent 33% of the population while high schoolqualified of 20
couples being the least in the population as they only made up of 7% from the whole population.
On the other hand, undergrad degree and doctorate represent 31% and 29% respectively.

Wealth(salary) analysis

To analyse the relationship of level of wealth (salary) towards the value of cars, home and the
saving of the couples, level of wealth need to be divided using percentile to get more relevant
data. Hence Table 1.2 below shows 4 group of couple which has been classified to poor, middle
earner, rich and affluent.

Table 1.2
From Table 1.2, it can be said that the middle earner or the second quartile represent the most in
the population. However being the most in the population does not mean the middle earner have
most salaries combined. In fact all the data above prove otherwise for value of cars, home and
total savings. To get more accurate data for analysis, we need to divide all the data to the number
of couples so it become equally comparable.
 Table 1.3

Level of wealth analysis

Poor Middle earner Rich Affluent
700.00

600.00

500.00

400.00

300.00

200.00

100.00

-
Average salary Average cars Average home average saving

Diagram 1.2
According to Table 1.3 and diagram 1.2, those who possess higher income tend to spend more
on car and home. This can be observed at the bar chat in diagram 1.2 where it shows a steady
incline for average value of cars and average value of home proportionately with the increase in
average salary for each class of wealth.This is a norm as people who have surplus income will
spend their money on more luxury items compared to those who earn less.

However, the average saving shows otherwise where on average, poor people who salary range
at 25-82 invest more on savings like bond, stocks etc. compared to the rest class of wealth.
Affluent group on the other hand have the least investment on savings compared to others.

It’s more likely that those poor group are more cautious with the low salary that they earn hence
invest more on the savings for the future compared to higher earner who are not worried about
savings as their earnings are sufficient for the living and most probably for future ahead.

This can be further analyse by finding the relation between the wealth of the couple with the social
climber index as shown in scattered graph below:
 Relationship between salary and SC index
12

10

6
f(x) = − 0 4.87
x+
4

0
0 50 100 150 200 250 300

Diagram 1.3
The X-axis or horizontal line represents the salary and on and the Y-axis or vertical line represents
the social climber (SC) index of the couples in the population.

The graph clearly demonstrate on the relationship between salary and SC index where those who
earn more tend to have high SC index where on the other words they are more concern about
the social status. This proves a point that SC index of the couples in the population are influence
by the salary they earned.

This also proved the earlier point on why those rich and affluent group spend more on the cars
and home compared to those poor and middle earner group as they want to be seen lavish on
the society’s eyes. It also proves the lower savings for those groups as they spend more on the
cars and homes even though they earn more than the others.

The relationship can be translated to linear equation of y=0.0837x – 3.4753 where it shows the
positive and strong relationship between salary and SC index and any increase of salary (x) will
have impact on the SC index (y).
 Education level analysis

Table 1.4

The data in Table 1.4 shows that most couple have master’s degree compared to other level of
education and high school leaver being the least in the population. It can be assumed that the
country that the population are living in have good education policy and institutions.

From the Table, we can observe that even though the total salary for master’s degree shows that
they earn more than other group education level, the average salary per couple for each education
level shows that the doctorate holder earn 6.2 higher than the master’s degree holder. This was
analysed by dividing the sum of salary with the number of couples in each education level group.

This is clearly demonstrated in the pie chart of Diagram 1.4 below:

High school
19.88% Undergrad degree
28.87%
Master's degree
Doctorate
24.05%
27.21%

Diagram 1.4
The pie chart above explains the average salary for each of the education level group. High school
qualified earn 20% of the total average salary, 24% for undergrad degree, 27% for master’s
degree while doctorate earn 29% of the total salary from the data population. This steady incline
of the analysis shows that the salary has strong correlation with the level of education.
This also proves that those who have higher education have most opportunity with job that cater
high salary compared to those who have lower education level. The data suggest that education
plays a role in determining one’s salary and the hypothesis that can be made here is the higher
the education level of someone, the higher the salary that they will earn.

Table 1.6
The analysis in Table 1.6 shows that those who possessed master’s degree and doctorate have
the lowest average saving compared to the rest of the group and the high school qualified have
the most savings. The reason for this might be due to those who have higher education level tend
to have high taste of living style hence they are more concerned on how people looking at them.
This can be supported by looking at average social climber index per couple in Table 1.5 below.

Table 1.5
Table 1.5 proves that the top two group master’s degree and doctorate have the highest SC index
compared to other group. People with high SC index tend to spend more on the exclusive and
expensive items to distinguish themselves among others hence it justified on the low savings on
Table 1.6.
 CONCLUSION AND RECOMMENDATION

In a nutshell, couples with greater education will have higher and better salaries than others. Higher
education also correlates with a higher social climber index, which translates to increased spending
on vehicles and mansions in order to be perceived as 'high-class' by society. Finally, their spending
habits on luxury automobiles and residences drive them to have fewer savings because their income
surplus has been spent to satisfy their obligation to society.
A higher education level is advantageous since it leads to higher-paying occupations than a lesser
education level. Those with a higher education level, on the other hand, should be more
knowledgeable about financial planning because automobiles and homes will be more expensive.