Ain shams University – Faculty of Business

DBA
Applied Statistics
(Financial Data Statistical Analysis Project)

Name: Hossam Mohammad Ali Mohammad

Group: 1

Assignment Number: Final Project

Prof. Dr. Mamdouh Abd Al-Alim

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 Ain shams University – Faculty of Business
DBA
Applied Statistics
(Financial Data Statistical Analysis Project)

Group: 1

Assignment Number: Final Project

Prof. Dr. Mamdouh Abd Al-Alim

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 Statistical Analysis
of
CIRCLES’S Financial Data

Introduction
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.

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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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.

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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 Data used 2012 - 2023

All numbers are approximated to million

Pearson Correlation

Scatter Diagram

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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 Linear Regression

Model Summary

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

.909a
1 .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.
Coefficientsa

Model Unstandardized Coefficients Standardized t Sig.

Coefficients

B Std. Error Beta

3.942
(Constant) 1.472 2.677 .023
1
5.702
Marketing .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 +.

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 87.052 1 87.052 47.766 .000b

18.225
1 Residual 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.

• FC = 47.776 > FT, therefore regression equation is significant and can be used for
prediction
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 Multiple Linear Regression

Model Summary

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

1 .909a .827 .789 1.42180

a. Predictors: (Constant), OperationalCosts, 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) & (operation), and 17.3% by the
otherwise.

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

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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.

ANOVAa

Model Sum of Squares df Mean Square F Sig.

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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), OperationalCosts, Marketing

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

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 • FC = 21.539 > FT, therefore regression equation is significant and can be used for
prediction

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

a. Dependent Variable: Sales

ANOVAa

Model Sum of Squares df Mean Square F Sig.

Regression 75.891 1 75.891 25.825 .000b

1 Residual 29.386 10 2.939

Total 105.277 11

a. Dependent Variable: Sales

b. Predictors: (Constant), Year

Model Summary

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

1 .849a .721 .693 1.71424

a. Predictors: (Constant), Year

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 Test of Hypothesis

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

Summary
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.

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.

2. 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.

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 • 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.

3. 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.

4. 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,
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stakeholders can enhance decision-making processes and foster long-term profitability and
competitiveness in the dynamic market environment.

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