This document provides an overview of the internship experience of Waqas Ilyas at the MCB Bank Limited in Pakistan. It discusses his work in various bank departments over 5 weeks, including account opening, cash, credit, clearing, and remittances. It also provides background on MCB Bank, describing its history, operations, business strategy, and financial performance. Contingency table analysis and its use for understanding relationships between categorical variables is introduced. Key terms like statistics, business statistics, and chi-square are defined.

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ALLAMA IQBAL OPEN UNIVERSITY
Course BUSINESS MATHEMATICS
& STATISTICS
Code (8532)
Semester Spring, 2015
Level MBA Marketing (3½ Years)
Tutor Sir Sohail Javaid
Name waQas ilYas
Roll # BA 582702
Assignment # 02
Topic =
Contingency table analysis and its
benefit for organization.

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ACKNOWLEDGEMENT
All gratitude and thanks to almighty “ALLAH” the gracious, the
most merciful and beneficent who gave me courage to
undertake and complete this task. I am very much obliged to
my ever caring and loving parents whose prayers have enabled
to reach this stage.
I am grateful to almighty ALLAH who made me able to
complete the work presented in this report. It is due to HIS
unending mercy that this work moved towards success.
I am highly indebted to my course instructor for providing me
an opportunity to learn about the “which is vital ingredient” of
MBA program. I am very grateful to my teacher (Sir Sohail
Javaid) for providing me guideline for the completion of this
report.

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I feel great pride and pleasure on the accomplishment of this
report.
ABSTRACT
This report is the Practical part of the most vital practice of our
MBA-Marketing program. The sole objective of my activity is to
familiarize with the practical manipulation of business
organization. This report has been written to know how big
organizations like Muslim Commercial Bank manage their
teams to achieve their common goals.
In the first phase of the report there is the general introduction
about the company and then different terms have been
explained, then the mission, values, different services and
different strategies of the organization have been explained. In
the next part, SWOT analysis of the firm have been done by the
help of which it is identified that what are the strong areas of
the company and where it lacks so that it can improve, and
then in the end most important my experience while visiting in
the MCB.

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DEDICATION
This report is dedicated to the greatest man in the
world that shows us the right path. Who is the
great patron of the mankind that is Holy Prophet
Hazrat Muhammad (PBUH).
I would also like to dedicate this small effort of
extract to my Parents and Teachers. They have
always been a shining star to look upon, to give
light and to show me the directions whenever I am

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lost. May Allah give them more strength and long
life to guide me forever. Ameen!
Table of Contents
Introduction of Topic 06
Practical Review of Company 10
Vision Statement 16
Mission Statement 16
Application of Topic 17
SWOT Analysis 18
Conclusion 19
Recommendations 19

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Introduction of Topic:
Contingency table analysis and its
benefit for organization
Statistics
“The practice or science of collecting and analysing numerical data
in large quantities, especiallyfor the purpose of inferringproportions in a
whole from those in a representative sample.”.
Business statistics
“Business statistics is the science of good decision making in the
face of uncertainty and is used in many disciplines such as financial
analysis, econometrics, auditing, production and operations including
services improvement, and marketing research.”
Chi-Square

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“A statistical method assessingthe goodness of fit between a set
of observed values and those expected theoretically”.
Chi-Square Statistics
The Chi-Square Distribution
If the null hypothesis is true then the sampling distribution of the
Chi-Square statistics can be closely approximately by continues curve
known as a Ch-Square distribution. The Chi-Square distribution is a
probability distribution. Therefore the total area under the curve in each
chi-squaredistribution is 1.0 so many differentchi-square distributionare
possible that is not practical to construct a table that illustrates the area
under the curve for all possible value of the area. There is a different chi-
square distribution for each different number of degrees of freedom.
Determining the Degree of Freedom

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Contingency Table Analysis
Contingencytable analysis is a common method of analyzingthe
association between two categorical variables. Consider a categorical
variable that has r possible response categories and another categorical
variable with c possible categories. In this case, there are r × c possible
combinations of responses for these two variables. The r × c cross
tabulation or contingencytable has r rows and c columns consistingof r
× c cells containingthe observed counts (frequencies) for each of the r ×
c combinations. This type of analysis is calleda contingencytable
analysis and is usuallyaccomplishedusinga chi-square statistic that
compares the observed counts with those that wouldbe expected if
there were no association between the two variables.
Appropriate Applications of Contingency Table Analysis
The followingare examples of situations in which a chi-square
contingencytable analysis wouldbe appropriate.
 A study compares types of crime and whether the criminal is a
drinker or abstainer.
 An analysis is undertaken to determine whether there is a gender
preference between candidates runningfor state governor.

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 Reviewers want to know whether worker dropout rates are
differentfor participants in two differentjob-trainingprograms.
 A marketing research companywants to know whether there is a
difference in response rates among small, medium, and large
companies that were sent a questionnaire.
Design Considerations for a Contingency Table Analysis
Two Sampling Strategies
Two separate sampling strategies lead to the chi-square
contingency table analysis discussed here.
Test of Independence
A single random sample of observations is selected from the
population of interest, and the data are categorized on the basis of the
two variables of interest. For example, in the marketing research, this
samplingstrategy wouldindicate that a single randomsample is selected,
and each selected sample is categorizedby size (small, medium, or large).
Test for Homogeneity
Separate random samples are taken from each of two or more
populations to determine whether the responses related to a single
categorical variable are consistent across populations. In the marketing
research, this sampling strategy would consider there to be three
populations of companies (based on size), and select a sample from each
of these populations. Then test to determine whether the response rates
differ or not.
The two-way table is set up the same way regardless of the
samplingstrategy, and the chi-square test is conducted in exactly the

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same way. The only real difference in the analysis is in the statement of
the hypotheses and conclusions.
Expected Cell Size Considerations
The validity of the chi-square testdepends on both the sample size
and the number of cells. Several rules of thumb have been suggested to
indicate whether the chi-square approximation is satisfactory. One such
rule suggestedby Cochran (1954) says that the approximation is adequate
if no expected cell frequencies are less than one and no more than 20%
are less than five.
Combining Categories
Because of the expected cell frequency criterion in the second
sampling strategy, it may be necessary to combine similar categories to
lessen the number of categories in your table or to examine the data by
subcategories.
Practical study

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MCB Bank Limited (formerlyMuslim Commercial Bank) previouslynamed
as a (Mansoor Co-operative Bank) was incorporatedby the Adamjee
Group on July9, 1947, under the Indian Companies Act, VII of 1913 as a
limited company. The bank was establishedto provide banking facilities
to the business community of South Asia. The bank was nationalizedin
1974 during the government of Zulfikar Ali Bhutto. This was the first
bank to be privatizedin 1991 and the bank was purchasedby a
consortiumof Pakistani corporate groups led by NishatGroup. As of
June 2008, the Nishat Group owns a majority stake in the bank. The
presidentof the bank is Imran Maqbool. The group has a presence in
business sectors of the country such as banking, textile, cement and
insurance.
Profitability
MCB is Pakistan's fourth largest bank by assets havingan asset base of
USD 7 billion as at quarter 1, 2012, and the largest by market
capitalization havinga market capitalizationrecordedat USD 1.2 billion
at year end 2011 which was comparativelylower than USD 1.8 billion the
year before, mainlyon account
of lower market value. The bank has a customer base of approximately4
million and a nationwide distribution networkof 1,190 branches
including22 Islamic bankingbranches (December 31, 2011) within
Pakistan and eight branches
outside the country (December 31, 2011 includingthe Karachi Export
ProcessingZone Branch), and over 650 ATMs in 110 cities, in a market
with a population of over 190 million. In 2011, MCB reported a profit
after tax of PKR 19.4 billion (appx.USD 205 million) and generateda
return on average equity of 26.23% and a return on assets of 3.18%
(2010: 3.13%) The bank's asset qualityis
strong with a gross NPL ratio of 8.64%. MCB has 1165 branches
(December 31, 2011) includinglocal branches, and business
establishments in SriLanka and Bahrain includingnewlyestablishedRep.
Office in Dubai, UAE. The bank has also formed a private company in
Hong Kong (fully ownedsubsidiaryof MCB) in partnershipwith Standard
CharteredBank, handlingtrade transactions of select countries in the

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Asia-Pacific region. To further strengthen its financial services base, MCB
incorporatedan asset managementcompany in year 2005 known as
MCB Asset ManagementCompany. MCB has also incorporateda leasing
company in Azerbaijan in 2009. Fully owned subsidiaries of MCB are:
Muslim Commercial Financial Services (Private) Limited,
MNET Services (Private) Limited,
MCB Trade Services Limited,
MCB Asset Management CompanyLimited,
MCB leasing (Closed Joint Stock Company).
Business strategy
The bank has also establishedan Islamic Bankingunit to offer Shariah
compliantproducts and services, with dedicatedIslamic banking
branches in six cities. The Wholesale BankingGroupcaters to the top tier
of local and multinational companies. The Retail BankingGroup focuses
on tradingand middle market segment primarilyfor buildingrisk assets
and trade related business. MCB caters to the financingof foreign and
local trade, funds transfer and other seasonal requirements. The Bank
has renovated a large number of branches and staff has been trainedfor
meeting the requirements of SMEs and other retail customers. An SME
FinancingDivision has been set up to provide customizedfinancing
solutions. The group also focuses on the development of consumer asset
products for satisfying the needs of the customers. MCB has a significant
share of consumer financingbusiness with its House and Car Financing
schemes. The runningfinancingfacilityagainstthe mortgage of property
is also expectedto go a long way in increasingthe quality consumer
credit portfolioof the bank. Other areas such as Bancassurance set
newer records as well by crossing the Rupees 1 billion benchmarkin
2011. Islamic Bankingoutperformedin terms of improved profitability
and volumes with introduction of additional 11 products and expansion
with 8 new branches in 2011 and Privilege Banking, an elite setup, is a
benchmarkin the industry. They have nine branches across major cities.

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Account opening department
In my first two weeks I'll work in the accountopening departments. It is
important department of the bank because all the workingof the bank
base on accountand the bank accountshows the deposit of the bank if
any person workingwith the bank or the organizationthen first step is
the accountopening and my work is in the department is to open the
new accountfor a valuable customer and I learnedthat there is few
many document which is use in the opening of new account. There are
many type of accounts the MCB bank (Ltd) is offered to its customer in
which include Currentaccount, Savingaccount, (PLS) Profit and loss
account, BBA (Basic BankingAccount), KBA(Khushali BachatAccount)
these have different specificationof the customer which will gave benefit
of him. For accountopening the minimum amount requiredis 1000 Rs.
The document which is used in the opening a new accountis as under.
The most important in accountopeningis SS Card signature because we
grudge it may which customer withdraw the money is original customer
or not, and other step is KYC Form in this form we collectall secret
information like clientFather and mother name, income of the business,
his email address, postal Address, and content number. The last one is
CNIC requiredof KIN for those person who have a blood relation of
clientlike father, mother, brother, sister, in this there is no requiredfor
friendor other person NIC only for those who have a blood relation of
the client.
Cash department
Duringmy internshipI spent my 3rd week in the cash department and
cash department is totally deals with the cash whether the cash comes in
the bank or out from the bank during the learningin the cash
department I learn the all the activities which is perform in the cash
department .in the cash department there is various sub department
accordingto the categories which are performingby the different
persons in the department in the cash department there are four to five

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counters in which include During my learningprocess I learnedthat first
of all issue the token to the customer and then in the receipt counter
receive the cash and maintainedthe accountand then if a customer have
a check then the cheque is verifies by the verificationperson and then
the casher makes the payment againstthe cheque and also transfer the
money online and maintainedthe all activities which is casher duties i.e.
give the cash to the valuable customer and the bill and the fees receive
counter receive the bill payment and the fees and maintain all the
activities related to bill and fees collection. This is the most important
department of the bank I leanedwhile working in this department that
there is all about maintains of the cash in this department in the staff
work very carefullymake sure there is no mistake and in the closingat
eveningboth the sides of the cash accountis balancedor equal then the
banks makes the profit.
Credit department
My 4th week during my internshipin the credit department the credit
department is the one of the most important department of the bank.
The credit department is works with maintain the loan and credit and
also issue the creditafter necessaryverification andthe securityand the
guarantee to the desire limit and there is the rule and the regulation to
issue the creditand loan to the customers. Credit department of MCB
bank (Ltd) deals with differenttype of runningfinance andthe type of
loan is as under. If the individual wants to take the loan from the bank
then there is the limits of the loan which provided by the bank to any
person or the organization. I leanedthat for the purpose of loan giving
by the bank there is few many document and the guarantee requiredby
the bank accordingto the loan type the requirements is as under.
Cleaning department
My 5th week is all about the clearingdepartment. I learnedthe work and
the function which is performed in the clearing department. This
department the important department of the bank. There are two types

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of clearinggoingin the bank Inward clearingandthe Outwardclearing
.we can say that the clearing is clear those Cheque which cannot be cash
at the cash counter of the bank . The representative of the respective
bank collect all the Cheque and the instrumentwhich drawn on there
and settle the accountand doing the clearingfunction this assembly of
the representative of the bank is called Clearinghouse NIFT perform the
clearingon the behalf of the commercial banks in all the cities
throughoutthe country.
Inward clearing
The instrument and the settlement or the claim by the other banks or the
other branches of MCB on our Branch of MCB bank in which include the
cheque draft and etc, are drawn by the other bank customer or by the
MCB bank branches in clearingin the inwardclearingprocess there is
few thing include which is mentioned as under
Outward clearing
The local clearing, a bundle cover is arrangedmanner the branch code
stamp, total amount and number of instruments. This amount should
match the one that is kept in the ClearingRegister. The cheques or the
instrumentwith bundle cover and outline are packed in NIFT bag. Before
putting these items in the bag, a plastic seal number is requiredand
should be written on the bundle cover and the same seal should be used
to close the NIFT bag. This is to ensure additional safety as when the seal
is opened, it is nonreplicable. If the seal number on the bag and on the
bundle cover does not match, it is a suggestion that the bag has been
tamper with. Strict action can be taken by NIFT and the Bank
consequently.
Remittances Department
My last week is about workingin the remittances department. It is very

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important department in the currentscenario in this department the
bank deals with transfer money and differenttype of fund and also
receive fund from abroadform the Pakistani community and others as
well which is calledremittances The MCB bank transfer differenttype of
fund through the different services in which the sum is mentioned below.
Western Union
Duringmy work in this department I deals with the customer which
transfer their money through the western union. Through the use of the
western union one can get money from all cities in the Pakistan from
western union branches or any bank or post office or the money
changer. When person sent the money, the concernedcompanyor bank
give the PIN number to the person against the name of the person and
the cell number who receivedthe money through western union. When
the receiver go to bank for receiver of money the bank takes the PIN
number and the original CNIC copy from the receive and give him
money.
Telegraphic transfer (TT)
Telegraphic transfer is that after fillingthe application formthe
concernedofficer fills the telegraphic transfer form after that it is sent to
the requiredbank and then the concernedbank makes the payment
immediately to the customer and after that the voucher sent to the bank
by the mail.
Demand draft (DD)
Demand draft is like an instrument as issue on the will of the customer
because avoid the extra burden of the currencyandit is payable on the
demand when the customer want it its issue by the one branch of the
bank a payable by another branch of the same bank.

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Vision of the Foundation
To be the leadingfinancial services provider, partneringwith our
customers for a more prosperous and secure future
Mission of the Foundation
We are a team of committed professionals, providinginnovative and
efficientfinancialsolutions to create and nurture long-termrelationships
with our customers. In doing so, we ensure that our shareholders can
invest with confidence in us.

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Review of theoretical and practical
situation with respect to topic
Followingresearch groups are activelyworking in the department of
statistics:
 Statistical inference
 Bio Statistics
 Industrial statistics
 Time series analysis and forecasting
 Econometric models
 Probability distribution
Statistics Society
The statistic society was establishedin 1987 to solve the problems of
students and to encourage academic andco-curricular activities at the
department. The society arranges seminars on different topics by
eminent professionals on a regular basis.
Statistics Laboratory
The department has set up its own well equippedcomputer lab divided
into two sections. Latest statistical packages like SPSS, MATHEMATICA,
E-VIEWS, STATA, MINITAB AND R-language etc. are available in the
laboratory.

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Future Prospects
A Higher Degree in the subject of statistics in the need of the day.
Degree Holder can join departments in the public and private sectors
like Education, Provincial andFederal Bureau of Statistics, State Bank of
Pakistan, Agriculture Census and the National Database Registration
Authority (NADRA), medical colleges and hospital as bio-statisticians,
marketing research organizations etc.
SWOT Analysis
Strength
 Integrated approach with tax deduction from all sources of income
at one rate.
 Resolution of Agency and moral hazardproblems by developing
provincial governments/local budgeting, accountingandauditing
frameworks.
 Avoidance of deduction through withholdingtax as it distorts
horizontal tax equity.
Weaknesses
 Contingencyapproach suffers from inadequatelyof literature.
 Determination of situation in which managerial action is to be
taken involves analysis of a large number of variables with
multifarious dimensions.
 Contingencyapproach beingcomplex, presents problems in
testing the percepts of the theory.
 Contingencyapproach is basicallyreactive in nature.

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Threats
 If well managed the provincial/local govt. bond market can be
developed independentof national bond market.
 Regulatory, supervisory, legal and tax frameworkshould
correspond to the regulations pertainingto corporate bond market
as provincial/local govt.
Opportunities
 Clearlydefineddual personalityof Repos in Legal, Fiscal and
Accountingsystems for establishmentof effective Repo market.
 Avoidance of Tax incentive on financial instruments to stimulate
saving as they distort prices and lead to inefficientresource
allocation.
 Benefits of private sector bond market are enormous as the
issuance to debt securityof private sector to contribute towards
economic development through more efficientre-allocation of
capital.
Conclusion & Recommendations
The chi-square test of significance is useful as a tool to determine
whether or not it is worth the researcher's effortto interpreta contingency
table. A significantresultof this test means that the cells of a contingency
table should be interpreted. A non-significant test means that no effects
were discoveredandchance couldexplain the observed differences in the
cells.
 To improve management of Government cash flows to maintain
better liquidity management by the central bank
 Same tax treatments for federal/provincial/local/corporate bonds.
 Issuance of securities for both monetary and fiscal policy.

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 To define and adhere to the principles of broad market access and
transparency in Government funding operations.
 To define clear objectives and debt management strategy that
involves market finance and introduction of risk management
objectives
 To identify how technology can be used to create new channels for
securities distribution.