BASHARAT KHAN

MM113116

SECTION 03

MAJU ISLAMABAD

Before using data in our analysis we must have a basic feel of the data with the help of graph and descriptive statistics. Therefore visual depiction and descriptive statistics of the data are presented below.Note: Total Assets: We transformed total assets by taking natural log of it to smoothen out the data. Therefore we will use natural log of total assets instead of just total assets, however we will use just total assets also to check the difference in results. Note: Div%: A company can pay max dividend up to 100% therefore we should delete those values which are above 100%, but again we have no problem because div variable is not a part of any equation.The rest of the data for other variables are ok.Descriptive statistics:The descriptive statistics mean and median shows the central tendency of the data values, std. deviation shows dispersion, maxima and minima shows the highest and lowest data values, skewness sign if positive means more values in the data distribution are positive or the other way round, kurtosis refers to the weight of the tails of the data distribution, Jargue Bera tests data normality. If JB test is significant means data is normal.

Break the graph shows a that one data value is missing therefore we can see a breakup.