BUSINESS BUSINESS MATHEMATICS AND MATHEMATICS AND

STATISTICSSTATISTICS

55285528Roll No:-Roll No:- AH-500000 AH-500000

MBA ( Banking & Finance)MBA ( Banking & Finance) 2 2NDND Semester Semester

TOPICTOPIC Estimation and Hypothesis Estimation and Hypothesis Testing Testing ..

By By FAISAL ISLAMFAISAL ISLAM

ToToMr. NAEEM BASHIRMr. NAEEM BASHIR

AcknowledgmentAcknowledgment Apart from the efforts of me, the success Apart from the efforts of me, the success

of this project depend largely on the of this project depend largely on the encouragement and guidelines of many encouragement and guidelines of many others. As well as thank the people who others. As well as thank the people who took the time to participate in this study. took the time to participate in this study.

AbstractAbstract

Important Angles related to the topic Estimation and Hypothesis Testing has been discussed in details.

I chose HBL for particle study. I chose HBL for particle study.

Important Sub TopicsImportant Sub Topics

ContentsContents

IntroductionIntroduction

Data collection methodsData collection methods

Practical study of the organization Practical study of the organization

SWOT analysisSWOT analysis

Conclusion Conclusion

RecommendationRecommendation

ReferencesReferences

IntroductionIntroduction

What is Statistical inferenceWhat is Statistical inference The process of drawing inferences about a The process of drawing inferences about a

population on the basis of sample information is population on the basis of sample information is called statistical inference. Statistical inference called statistical inference. Statistical inference is divided into tow major areas:is divided into tow major areas:

1_ Estimation 1_ Estimation 2_ Hypothesis Testing 2_ Hypothesis Testing

What is What is EstimationEstimation

Estimation is a procedure by which we obtain the Estimation is a procedure by which we obtain the values of unknown parameters using the sample values of unknown parameters using the sample information. information.

The estimation or statistical estimation of population The estimation or statistical estimation of population parameters is divided into two types.parameters is divided into two types.

Point estimationPoint estimation

Interval estimation Interval estimation

Point estimation:Point estimation:

The process of finding a single value from the sample is The process of finding a single value from the sample is called point estimation.called point estimation.

Interval EstimationInterval Estimation: :

Interval estimation is a procedure in which we estimate a Interval estimation is a procedure in which we estimate a range of values within which the population parameter is range of values within which the population parameter is expected to lie with a certain degree of confidence.expected to lie with a certain degree of confidence.

Hypothesis Testing:Hypothesis Testing:

Hypothesis testing is a procedure which enables us to decide on the Hypothesis testing is a procedure which enables us to decide on the basis of information obtained from sample data whether to accept or basis of information obtained from sample data whether to accept or reject an assumption (a statement) about the value of a population reject an assumption (a statement) about the value of a population parameter.parameter.

Null Hypothesis:Null Hypothesis: A null hypothesis is a hypothesis which is to be tested A null hypothesis is a hypothesis which is to be tested

for possible rejection under the assumption that it is for possible rejection under the assumption that it is true. It is denoted by H0. For example, suppose we true. It is denoted by H0. For example, suppose we think that the average age of ICS student is 16 years, think that the average age of ICS student is 16 years, then it is written as:then it is written as:

H0: μ =16 yearsH0: μ =16 years

Alternative Hypothesis:Alternative Hypothesis: An alternative hypothesis is any hypothesis which is An alternative hypothesis is any hypothesis which is

accepted, when the null hypothesis is rejected. It is accepted, when the null hypothesis is rejected. It is denoted by H1 or HA. For example, if our null denoted by H1 or HA. For example, if our null hypothesis is H0: μ = 16 years, then the alternative hypothesis is H0: μ = 16 years, then the alternative hypothesis may be H1: μ ≠ 16 years or H1: μ > 16 hypothesis may be H1: μ ≠ 16 years or H1: μ > 16 years or H1: μ < 16 years.years or H1: μ < 16 years.

Level of Significance:Level of Significance:

The probability of making a type-I error is The probability of making a type-I error is called level of significance. It is denoted called level of significance. It is denoted byby

Level of Confidence:Level of Confidence:

The probability of accepting a true null The probability of accepting a true null hypothesis is called level of confidence. It hypothesis is called level of confidence. It is denoted by 1 -is denoted by 1 -

=P (Type-I error) =P (Reject H0/H0 is true)

1- = p (Accept H0/H0 is true)

DataData collectioncollection

1.1. Books Books

2.2. InternetInternet

Practical Study of Practical Study of OrganizationOrganization

““HBLHBL””

History of HABIB BANK LIMITEDHistory of HABIB BANK LIMITED

HBL is a leading bank in Pakistan operating more HBL is a leading bank in Pakistan operating more than than 1466 1466 branches in Pakistan providing various branches in Pakistan providing various banking servicesbanking services

HBL have a deposit base of Rs.437098 Million and HBL have a deposit base of Rs.437098 Million and total assets over Rs.696712 Million. Incorporated in total assets over Rs.696712 Million. Incorporated in 1942. In 1974, HBL was nationalized along with all 1942. In 1974, HBL was nationalized along with all other private sector banks. The Bank has a other private sector banks. The Bank has a customer base of approximately 4 million, a customer base of approximately 4 million, a nationwide distribution network of over 1,466 nationwide distribution network of over 1,466 branches and over 550 ATMs in the market. branches and over 550 ATMs in the market.

Vision & MissionVision & Mission

Enabling people to advance with Enabling people to advance with confidence and successconfidence and success . .

Their mission is Their mission is to make their customers to make their customers prosper, their staff excel and create value prosper, their staff excel and create value for shareholdersfor shareholders

SWOT analysisSWOT analysis

strengths strengths HBL has long-term vision, which plays a HBL has long-term vision, which plays a

very important role in organization’s very important role in organization’s success success

First bank to privatize, which has, now First bank to privatize, which has, now become the leader in market with largest become the leader in market with largest on line ATM network in the country on line ATM network in the country

24 hours cash access through ATM 24 hours cash access through ATM

WeaknessesWeaknesses

Lack of professionalism in the branch Lack of professionalism in the branch employees mostly. employees mostly.

Experienced but old staff, are not aware Experienced but old staff, are not aware of using modern technologies/ of using modern technologies/ equipmentsequipments

        OpportunitiesOpportunities

Due to largest ATM network, HBL can Due to largest ATM network, HBL can expand its 24 hours cash facilities to the expand its 24 hours cash facilities to the far off cities of the growing market far off cities of the growing market demanddemand

Stronger position to recover bad debtsStronger position to recover bad debts Focus on small business, export/ import Focus on small business, export/ import

sectorsector

ThreatsThreats

Increasing foreign banks in the country Increasing foreign banks in the country Consolidation in the banking sector Consolidation in the banking sector

resulting in increased competition resulting in increased competition Inconsistency in government policies Inconsistency in government policies

regarding to business and economic regarding to business and economic sectorsector

ConclusionConclusion

HBL is clearly the first choice of everyone who HBL is clearly the first choice of everyone who believes in qualitative approach of banking and believes in qualitative approach of banking and environment of highly responsible peopleenvironment of highly responsible people

HBL has more customers as compare to other HBL has more customers as compare to other banks, if they given proper attention to every banks, if they given proper attention to every customer then in few years it will be the leading customer then in few years it will be the leading bank of the country (asset point of view)bank of the country (asset point of view)

RecommendationsRecommendations

Workers need more computer training Workers need more computer training There should be authority in every region There should be authority in every region

which ensures efficient flow of which ensures efficient flow of communication and its understanding.communication and its understanding.

ATM network needs to be updated more ATM network needs to be updated more to handle transfers, deposits, bill to handle transfers, deposits, bill payments and print statements. This will payments and print statements. This will free up a lot staff timefree up a lot staff time

ReferencesReferences

http://en.wikipedia.org/wiki/Statistical_hypothesis_testing

http://amcy5.com

http://google.com/pk

www.stanford.eduwww.stanford.edu