Introduction
KMPG, Deloitte, PWC, and BCG are the big four in the financial world. Deloitte has a market cap of more than $200 billion, followed by KPMG with a market cap of $168.12 billion. Whereas, PWC and BCG have a market cap of $129.97 billion and $17.20 billion respectively. These firms are involved in financial consulting and the following project will compare the preferences of these four companies for a random sample of 30 individuals.
Objective
To compare the four financial consulting companies – Deloitte, BCG, PWC, and KPMG with single-factor ANOVA.
Data Collection
The data for preferences for the four companies was collected through Google form
The sample of 30 individuals was randomly selected with convenience sampling
The data was tabulated in MS Excel.
Single-factor ANOVA was used from the Data Analysis Tool Pack of MS Excel to compare these four different companies.
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ANOVA: Single Factor |
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SUMMARY |
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Groups |
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Count |
Sum |
Average |
Variance |
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7 |
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26 |
211 |
8.12 |
2.59 |
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8 |
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26 |
197 |
7.58 |
2.81 |
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6 |
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26 |
221 |
8.50 |
1.54 |
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7 |
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26 |
218 |
8.38 |
2.97 |
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ANOVA |
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Source of Variation |
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SS |
df |
MS |
F |
P-value |
F crit |
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Between Groups |
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13.18 |
3.00 |
4.39 |
1.77 |
0.16 |
2.70 |
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Within Groups |
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247.65 |
100.00 |
2.48 |
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Total |
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260.84 |
103.00 |
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Data Analysis
Null Hypothesis:
H0 = There is no association between the four financial consultancies
Alternative Hypothesis:
H1 = There is an association between the four financial consultancies
The ANOVA Single factor value for between groups is 13.18 for P-value 0.16. As the P-value calculated is more than P-value tabulated i.e., 0.05, we accept the null hypothesis, which says that there is no association between the 4 financial consulting companies. Also, the F-calculated is lesser than the F-critical value of 2.70, therefore it falls within the region of acceptance and hence, the null hypothesis is accepted.
Therefore, there is no statistically significant association between preferences for Deloitte, KPMG, PWC & BCG financial consultancies.
Conclusion
The single-factor ANOVA for the data on four different financial consultancies shows p-value of 0.16 which is more than the standard p-value = 0.05 at 95% significance levels, therefore we see no association between the selected four companies.