Santos, Luciene Reinee V.

ASEAN- UP MAKE UP PAPER

Company: Robinsons Land Corporation

Robinsons Land Corporation (RLC) is the real estate arm of JG Summit. It operates and
manages Robinsons malls, properties, hotels, and offices. For the sake of statistical
application, I will mainly focus on Robinsons properties. There are five sectors under RLC
properties namely Robinsons Luxuria, Robinsons Residences, Robinsons Communities, and
Robinsons Homes. Each sector caters to a different market. Robinsons Luxuria provides
uniquely luxurious living spaces through its projects located in iconic locations such as
Mactan, Ortigas and Makati. Robinsons Residences targets families with an emphasis on
comfort and convenience. Condominiums under this division are situated in prime locations
and offers relevant services and amenities to its unit owners such as restaurants and
shopping malls. Robinsons Communities are perfect for starting families as the
condominiums under this division are more affordable compared to Robinsons Residences.
Most of the projects under this division are strategically close to business and commercial
areas of Metro Manila— Makati, Ortigas, and Bonifacio Global Center (BGC). Lastly,
Robinsons Homes offers a relaxed setting away from fast-paced city life without
compromising the benefits of a convenient location. Projects under this division cater to
start-up growing families aspiring their own first home or upgrade to a better neighborhood.
Majority of the projects are town houses situated in a community or neighborhood.

Being in the real estate industry, billions of peso are on the line; hence, corporations make
use of financial ratios and utilize statistics. RLC may have used descriptive and inferential
statistics to determine the average sales or check their profitable condominiums. Descriptive
statistics describe the basic features of a population and how the data is organized. This may
have allowed RLC to determine the characteristics of the data and make sense of it. Like for
instance, RLC was able to sell Php 1 billion worth of properties in the month of January—Php
400 million from Luxuria division, Php 300 million from Residences division, Php 200 million
from Communities division, and Php 100 million from Homes division.

For the month of January

Division Sales (PHP) % Total Sales

Luxuria 400 million 40%

Residences 300 million 30%

Communities 200 million 20%

Homes 100 million 10%

Total 1 billion 100%

With this data, a description would be majority of the property sales came from Luxuria
division at 40% of the sample. The analyst may now determine the factors that contributed
to this sales percentage. Data may show that Residences division sold more units than
Luxuria division; however, due to the high unit value of Luxuria condominiums, they have
more peso sales than the Residences division. Come December, the analyst may use
measures of central tendency to measure the mean, median, and the mode as this will show
the general trends of the year. This can be used to check profitable months and can explain
reasons for low or high months. Measures of spread such as standard deviation, range, and
frequency distribution can also be used to show how similar or different a set of values are
and how they relate to each other. These statistical methods can all be used in planning for
the coming year’s strategies as a story can already be painted from the data.

With RLC’s annual sales and various SKUs, inferential statistics is the preferred method for
analyzing sales data as complex mathematical computations are used to infer trends about
a large population. This is to determine the relationships between variables in a sample
population and then use the information to make predictions about how the variables relate
to the general population. Two main classifications of inferential statistics are confidence
interval and hypothesis testing. According to Corporate Finance Institute, confidence
interval is calculated from the statistics of an observed data that may contain the actual
value of an unknown population parameter while hypothesis testing occurs when
researchers analyze a sample of a population and then use that information to make a claim
about the large population where the sample belongs to.

For example, RLC properties would like further increase the sales of their Residences division
as this division has a higher profit margin. The average cost of a 1-bedroom property is 4
million pesos. RLC asked 5,000 participants if a 1-bedroom property amounting to more than
4 million pesos is still acceptable. The following data was used to determine the significance
of this statistical test.

Ho: x= 4,000,000
Null and Alternative hypothesis
Ha: x > 4,000,000

Sample size 5,000

Hypothesized Mean 4,000,000

Sample mean 4,510,000

Population Standard Deviation 310,000

Significance Level 0.05

Critical Value 1.64

The standard deviation and samp mean was derived from the following table:
 Sales Sales Month Average (in (x-mean)^2
Month
(in millions) (in units) millions) (in millions)

Jan 200 40 5.00 0.24

Feb 300 70 4.29 0.05

Mar 200 45 4.44 0.00

Apr 100 20 5.00 0.24

May 152 35 4.34 0.03

Jun 200 45 4.44 0.00

Jul 452 100 4.52 0.00

Aug 400 90 4.44 0.00

Sep 100 20 5.00 0.24

Oct 252 60 4.20 0.10

Nov 300 69 4.35 0.03

Dec 400 98 4.08 0.18

Mean 254.67 57.67 4.51 0.09

Standard Deviation 0.31

* Above data is hypothetical

This corresponds to a right-tailed test, for which a z-test for one mean, with known
population standard deviation will be used. Based on the information provided, the
significance level is α=.05, and the critical value for a right-tailed test is 1.64. The rejection
region for this right-tailed test is{z:z>1.64}.

The z-statistic is computed as follows:

Since it is observed that the z statistic is less than the critical region it is then concluded
that the null hypothesis is not rejected or the null hypothesis remains true which is Php
4,000,000 for one- bedroom property is just the right amount. If RLC goes beyond this
amount then customers may opt not to purchase the property.

Statistics play a vital role and tool in RLC and other industries. May it be descriptive or
inferential, these can be utilized not only by RLC but also other corporations.