Sunday, 28 August 2011


Business Analytics to me before attending the lecture was about doing data analysis to meet certain objectives of the organization. Well, it was about that, but the application of the subject became clearer. The SPSS software shows how much this software can do to simplify the business analysis function. After a couple of analysis exercise that were done in class, the application of the software was made clear. There were a number of tools that we used today to do the data analysis like the chi-square test, frequency check which is a part of the descriptive analysis. One of the analysis tools used is called the cross tab. It is a bivariate analysis tool which gives the relationship between two variables, thus throwing some light on the cause and effect relationship. This is a tool which can be used by banks to analyse the default in the loan repayment by the borrowers of a bank. Say, if a bank has 10 branches in a city. The amount of default at each branch can be checked with the frequency function. The branch where the maximum amount of default has happened can be analysed further. The reason for high level of default can be multiple, like the amount of loan given being higher than the borrower’s capability to borrow or because of faulty loan collection mechanism. Therefore at branch level, further analysis can be done using the cross tab tool. It can be seen as to which customers are defaulting, retail or corporate. If the retail customers are defaulting more, we can establish a relationship between the income levels of the defaulting customers and the amount of loans granted to them using the same function. There can be a possibility that the loans granted to these customers can be higher as compared to their repayment capability. The loan granted to the customers of all the branches with the same income level can be checked. If the loan granted to such customers at the particular branch analysed is more than its repayment capacity, we can know that the fault is with the branch management for inflating the loan size.
Therefore, this analysis tool can be used in varied fields to meet different business objectives.
Sakshi Tripathi (13101)
Group: Finance6

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