This unit requires application of a thorough understanding of the sources of financial data and statistical methods and techniques for analysis. It is a base unit on which other skills required for work in the financial services industry can be built. It may be applied in all sectors of the industry.

ELEMENT

PERFORMANCE CRITERIA

1. Apply statistical methods to work

1.1. Appropriate statistical methods that apply to financial services work are evaluated and chosen to suit the required work outcome

1.2. Suitable tools and techniques for statistical analysis are known and used effectively

2. Source and interpret statistical data

2.1. Internal and external data and information sources are identified and accessed to source relevant current data

2.2. Data are validated in accordance with industry statistical standards

2.3. Data summaries and trends are used to verify currency and utility

2.4. Sampling techniques and diagrammatic, graphical and tabular information are correctly interpreted and used for the required purpose

3. Analyse data using appropriate techniques and tools

3.1. Organisational requirements and priorities are reflected in the analysis of statistical data

3.2. Analysis and descriptive tools and techniques are used to meet the required outcomes with any data errors corrected

3.3. Reports of analysis are produced on time and in the appropriate detail and format including use of diagrammatic, graphical and tabular information

4. Record statistical data analysis results and records

4.1. Records of data and statistical analysis are validated to ensure accuracy and consistency with industry and organisational standards

4.2. Records are filed and stored for easy retrieval while meeting all security requirements

Required skills

communication skills to:

determine and confirm research requirements, using questioning and active listening as required

liaise with others, share information, listen and understand

use language and concepts appropriate to cultural differences

literacy skills for drafting technical documentation

highly developed numeracy and IT skills for:

using statistical formulas

accessing and using appropriate software such as word processors, spreadsheets and databases

using internet information

problem solving skills to identify any issues that have the potential to impact on the research and analysis process or outcome and to develop options to resolve these issues when they arise

organisational skills, including the ability to plan and sequence work

Required knowledge

mathematical underpinnings of statistical methods

the range of statistical ratios and analysis tools relevant to the financial services industry

sources of relevant information available

types of graphs, charts, diagrams and tables used in statistical modelling and reporting

statistical standards

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

apply knowledge of statistical methods used in the financial services industry

source and access statistical and other data and produce and interpret statistics

use financial data tools and calculations to produce accurate and informative statistical reports from data

record and store data for retrieval.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables

statistical modelling software

a range of financial services industry statistical data.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations/scenarios

evaluating samples of work.

Guidance information for assessment

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Statistical methods may include:

econometric modelling:

linear and nonlinear regression

multivariate analysis

time series analysis

trend analysis

moving average analysis

weighted moving averages

cash flow forecasting.

Tools and techniques for statistical analysis may include:

liquidity ratios:

current ratio

quick ratio

working capital ratio

profitability ratios:

return on assets (ROA)

return on equity (ROE)

return on investment (ROI)

profit margin by assets turnover ratio

gross margin ratio

net profit margin ratio

average stockholders' equity

activity analysis ratios:

asset turnover ratio

accounts receivable turnover ratio

inventory turnover ratio

capital structure analysis ratios:

debt to equity ratio

interest coverage ratio

capital market analysis ratios:

price earnings (PE) ratio

market to book ratio

dividend yield ratio

dividend payout ratio.

Data and information sources can include but are not limited to:

Reserve Bank of Australia

Australian Taxation Office (ATO)

Australian Bureau of Statistics (ABS)

National Statistical Service (NSS)

Australian Securities and Investments Commission (ASIC)

Australian Prudential Regulation Authority (APRA)

industry association data and information

organisational data and information (public record)

international government and organisation data and information.

Statistical standards can include:

definitions

statistical units

classifications

coding processes

questionnaire modules

output categories

Sampling techniques can include:

surveys

descriptive statistics

inferential statistics

trends over time

statistical associations

variability.

Diagrammatic, graphical and tabular information includes:

graphs:

line

bar

pie

scatter plot

histogram

pictograph

cosmograph

diagrams:

tree

flowcharts

network

cluster

Venn

tables:

XY

column

one or two grouped

contingency.

Analysis tools and techniques include:

mean

median

mode

standard deviation

standard error

relative standard error.

Data errors can include:

incorrect data

mismatched data sets

sampling variation

incorrect measurements

transcription errors.

Unit sector

Industry capability

This unit contains employability skills.