Table of Contents

Unit 2.6........................................................................................................................................................................................ 3
t-test......................................................................................................................................................................................... 3
Unit 4.1........................................................................................................................................................................................ 4
Unit 3.1........................................................................................................................................................................................ 6
Chi-Square Test................................................................................................................................................................... 6
Q8.............................................................................................................................................................................................. 6
Q9(A)....................................................................................................................................................................................... 6
Q9(B)....................................................................................................................................................................................... 7
Q9(C)....................................................................................................................................................................................... 7
Unit 6............................................................................................................................................................................................ 9
Factor Analysis.................................................................................................................................................................... 9
Unit 7.2..................................................................................................................................................................................... 10
Cluster Analysis................................................................................................................................................................ 10
Unit 7.3..................................................................................................................................................................................... 10
Cluster Analysis................................................................................................................................................................ 10
Appendix.................................................................................................................................................................................. 11
Unit 2.6

t-test

Hypothesis:
Null Hypothesis: µ <= 5.0
Alternate Hypothesis: µ >5.0

One-sample t-test / Upper-tailed test:

95% confidence interval on the mean:

Difference 2.458
t (Observed value) 18.065
t (Critical value) 1.649
DF 401
p-value (one-tailed) < 0.0001
alpha 0.05

Test interpretation:
H0: The mean is equal to 5.
Ha: The mean is greater than 5.

As the computed p-value is lower than the significance level alpha=0.05, one should reject the null
hypothesis H0, and accept the alternative hypothesis Ha.

Since, p-value is low, null must go. Alternate hypothesis is accepted i.e. evaluations of AT&T on
selection of phones exceed 5.0.
Unit 4.1

1. Given the R2, 37% of the variability of the dependent variable ATT_Wireless_Q7F is
explained by the 10 explanatory variables.
Basis on the data, the model is weak. One cannot accurately predict the results of this
model. (R2 should generally be more than 70%)
2. Given the p-value of the F statistic computed in the ANOVA table, and given the significance
level of 5%, the information brought by the explanatory variables is significantly better than
what a basic mean would bring.

Hypothesis:
Null: No data are relevant
Alternate: At least one data is relevant.

Since, p-value i.e. <0.0001 is less than α i.e. 0.05 in ANOVA, Alternate is accepted & regression
can be done.

Analysis of variance (ATT_Wireless_Q7F):

Source DF Sum of Mean F Pr > F
squares squares
Model 10 1181.384 118.138 23.177 < 0.0001
Error 391 1993.054 5.097
Corrected Total 401 3174.438      
Computed against model Y=Mean(Y)

Business Model:
ATT_Wireless_Q7F = 1.05930713973433+0.214622636735755*ATT_Wireless_Q7A-
0.104143334811654*ATT_Wireless_Q7B-4.58252657272167E-
02*ATT_Wireless_Q7C+1.84230390928694E-
03*ATT_Wireless_Q7D+0.216030538908404*ATT_Wireless_Q7E+6.89027494980456E-
04*ATT_Wireless_Q7G+3.18662542716654E-02*ATT_Wireless_Q7H+9.31238493102746E-
02*ATT_Wireless_Q7I+4.87900565636644E-
02*ATT_Wireless_Q7J+0.35634643612968*ATT_Wireless_Q7K
 3. As per Regression Analysis –
Source Value Standar t Pr > |t| Lower Upper
d error bound bound
(95% (95%
) )
Intercept 1.059 0.524 2.022 0.044 0.029 2.089
Cingular's coverage are meets your needs 0.215 0.046 4.692 < 0.0001 0.125 0.305
Consumer is able to make or receive calls -0.104 0.051 -2.051 0.041 -0.204 -0.004
where he/she lives and travels
Consumer gets few dropped calls -0.046 0.043 -1.074 0.283 -0.130 0.038
Voice Quality of the calls is very good 0.002 0.056 0.033 0.974 -0.109 0.113
Cingular has favorable contract 0.216 0.053 4.042 < 0.0001 0.111 0.321
requirements
Cingular has selection of phones that meet 0.001 0.047 0.015 0.988 -0.091 0.092
consumers' needs
Cingular has error-free billing statement 0.032 0.055 0.581 0.562 -0.076 0.140
Cingular provides high-quality customer 0.093 0.054 1.736 0.083 -0.012 0.199
service
Cingular has conveniently-located stores 0.049 0.057 0.853 0.394 -0.064 0.161
Cingular has lower prices 0.356 0.051 6.988 < 0.0001 0.256 0.457

Since the above 3 variables have small p-values i.e. <0.0001, Cingular's coverage are meets
your needs (ATT_Wireless_Q7A), Cingular has favorable contract requirements
(ATT_Wireless_Q7E), Cingular has lower prices (ATT_Wireless_Q7K) are relevant for Cingular
has calling plans that meet consumers' needs(ATT_Wireless_Q7F).
Unit 3.1
Chi-Square Test 

Q8

Hypothesis:
Null: Age & Consumer is able to make or receive calls where he/she lives and travels are
independent
Alternate: Age & Consumer is able to make or receive calls where he/she lives and travels are
dependent

Test of independence between the rows and the columns (Monte Carlo method / Number of
simulations = 5000):
Chi-square (Observed value) 32.247
Critical value 43.909
DF 3
p-value 0.359
alpha 0.05

Test interpretation:
H0: The rows and the columns of the table are independent.
Ha: There is a link between the rows and the columns of the
table.
As the computed p-value is greater than the significance level alpha=0.05, one cannot reject the null
hypothesis H0.
Since p-value is greater than α, alternate is false i.e. Age & Consumer is able to make or receive
calls where he/she lives and travels are independent.

Q9(A)

Hypothesis:
Null: No. of adults in household & Consumer is able to make or receive calls where he/she lives and
travels are independent
Alternate: No. of adults in household & Consumer is able to make or receive calls where he/she
lives and travels are dependent

Test of independence between the rows and the columns (Monte Carlo method / Number of
simulations = 5000):
Chi-square (Observed value) 32.455
Critical value 30.902
 DF 2
p-value 0.034
alpha 0.05

Test interpretation:
H0: The rows and the columns of the table are independent.
Ha: There is a link between the rows and the columns of the table.

As the computed p-value is lower than the significance level alpha=0.05, one should reject the null
hypothesis H0, and accept the alternative hypothesis Ha.

Since p-value is lesser than α, alternate is true i.e. No. of adults in household & Consumer is
able to make or receive calls where he/she lives and travels are independent.

Q9(B)

Hypothesis:
Null: No. of teenagers in household & Consumer is able to make or receive calls where he/she lives
and travels are independent
Alternate: No. of teenagers in household & Consumer is able to make or receive calls where he/she
lives and travels are dependent

Test of independence between the rows and the columns (Monte Carlo method / Number
of simulations = 5000):
Chi-square (Observed value) 12.358
Critical value 31.309
DF 2
p-value 0.906
alpha 0.05

Test interpretation:
H0: The rows and the columns of the table are independent.
Ha: There is a link between the rows and the columns of the table.
As the computed p-value is greater than the significance level alpha=0.05, one cannot reject the null
hypothesis H0.
Since p-value is greater than α, alternate is false i.e. No. of teenagers in household & Consumer
is able to make or receive calls where he/she lives and travels are dependent.

Q9(C)

Hypothesis:
Null: No. of children in household & Consumer is able to make or receive calls where he/she lives
and travels are independent
Alternate: No. of children in household & Consumer is able to make or receive calls where he/she
lives and travels are dependent
 Test of independence between the rows and the columns (Monte Carlo method / Number of
simulations = 5000):
Chi-square (Observed value) 16.907
Critical value 31.339
DF 2
p-value 0.663
alpha 0.05

Test interpretation:
H0: The rows and the columns of the table are independent.
Ha: There is a link between the rows and the columns of the table.
As the computed p-value is greater than the significance level alpha=0.05, one cannot
reject the null hypothesis H0.
Since p-value is greater than α, alternate is false i.e. No. of children in household & Consumer is
able to make or receive calls where he/she lives and travels are dependent.
Unit 6

Factor Analysis
Factor analysis is a method of data reduction. It does this by seeking underlying unobservable
(latent) variables that are reflected in the observed variables (manifest variables).

Eigenvalues:
  F1 F2 F3 F4 F5 F6
Eigenvalue 3.515 1.019 0.355 0.160 0.101 0.029
Variability (%) 31.953 9.262 3.224 1.454 0.921 0.262
Cumulative % 31.953 41.215 44.439 45.893 46.814 47.077

Since only Factor 1 & 2 have Eigenvalues above 1, evaluations of AT&T on all the attributes can
be represented using these two Factors.
Unit 7.2
Cluster Analysis

Evolution of variances:
Variance\Classes 3 4 5
Within-class 60.376 54.008 51.409
Between-classes 26.322 32.689 35.288
Total 86.697 86.697 86.697

Since 5 Clusters have minimum within-class variance and maximum between classes variance,
it is recommended to have 5 clusters.

Unit 7.3
Cluster Analysis

Evolution of variances:
Variance\Classes 2 3 4 5
Within-class 0.995 0.708 0.515 0.401
Between-classes 0.579 0.866 1.058 1.172
Total 1.573 1.573 1.573 1.573

Since 5 Clusters have minimum within-class variance and maximum between classes variance,
it is recommended to have 5 clusters.
Appendix

Att_Recoded.xls