The Australian Industry Council (AIC) is an organization of Australian business associations. The role of AIC is to represent the interests of business and to identify the concerns of its members and then plans united actions. In this way business policies are developed and the concerns of business are represented to government (if applicable). This year, many of its business members are very concerned that inflation can strongly affect to industry, and profit is varied across industries. The Board of Directors of AIC demands a report from you (as a Director of Industry Policy unit) on this matter.
To prepare analyses for the report, you determine to look at the past 50 years and concentrate on 5 industry sectors which are Consumer Staples, Energy, Heath Care, Information Technology, and Materials. For each industry, data on industry profit and inflation figures are collected from the Australian Bureau of Statistics (ABS) and from the Reserve Bank of Australia (RBA). Figures on annual inflation are based on the date of releasing industry profit.
Column A: Profit Before Income Tax
- To report the profit before income tax figures (in $millions) of each firms in their industry sectors
Column B: Industry Sectors
- To indicate the industry sector which the firm belongs to. There are five industry sectors
- 1 – Consumer Staples
- 2 – Energy
- 3 – Health Care
- 4 – Information Technology
- 5 – Materials
Column C: Inflation
- To indicate the period of inflation
- 1 – the period having annual inflation equal or greater than 3%
- 2 – the period having annual inflation less than 3%
Present a report of your findings (by answering the questions below) as the Director of Industry Policy unit to the Board of Directors of AIC. In your report, answer the following questions.
- Is there any evidence to show that the periods of inflation and industry sectors are dependent to each other?
- Is there evidence to indicate that profits are different among the 5 industry sectors?
- Is there any evidence to suggest that Information Technology sector has lower profit before income tax than Energy sector?