Q-2 As a controller of budget you are presented with the following data for budget variances (in Rs 000’s) Department A B C D E F G H I J Budgeted (Sales): 1000 850 720 900 777 600 400 300 250 350 Actual (Sales) : 600 400 500 400 666 700 800 900 730 450 Is there any reason that achievements against budgets are slipping? Take α = 0.05 level of significance
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
Q-2 As a controller of budget you are presented with the following data for budget variances
(in Rs 000’s)
Department A B C D E F G H I J
Budgeted (Sales): 1000 850 720 900 777 600 400 300 250 350
Actual (Sales) : 600 400 500 400 666 700 800 900 730 450
Is there any reason that achievements against budgets are slipping? Take α = 0.05 level of significance
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