Assignment Cover Sheet

Subject: HI6007 Statistics for Business Decisions

Term: T4/ 2018
Assignment Title: Group Assignment
Student name:
Leung Pui Yi, Mabel
Tam Ching Ngan
Sze Yuen Ming
He Wei, Emma

Student I.D. No.:

HIH1889
HIH1897
HIH1921
HIH1888

Question 1
a. The frequency distribution, cumulative frequency distribution, relative
frequency distribution, cumulative relative frequency distribution and
percentage distribution for the scores of 20 students using a class width of 10

Cumulative
Cumulative Relative Percent
Score Frequency Relative
Frequency Frequency Frequency
Frequency
50-59 3 3 0.15 0.15 15
60-69 2 5 0.1 0.25 10
 70-79 5 10 0.25 0.5 25
80-89 4 14 0.2 0.7 20
90-99 6 20 0.3 1 30
Total 20 - 1 - 100

b. Histogram of the percent frequency distribution of the examination score

Mean 78.75
Standard Error 3.211717855
Median 79.5
Mode 92
Standard Deviation 14.3632389
Sample Variance 206.3026316
Kurtosis -0.891485209
Skewness -0.366109617
Range 47
Minimum 52
Maximum 99
Sum 1575
Count 20

The shape of the distribution:

From the above, it is negatively skewed where Skewness is -0.366109617 and Median is
79.5 which is greater than the Mean 78.75 for the above case.

Question 2
a. The sample size (n) for the problem is ​41.

b.

T-test:
= 0.029 / 0.021
= 1.380952 (with p-value > 0.05 from the t-table)
At ​α /2 =0.05/2 =0.025 and 39 degrees of freedom, the critical values for t from the t-table is
2.021. Since the t-statistic is not larger than the critical value of t, the null hypothesis
cannot be rejected. Therefore, there is no sufficient evidence to conclude that unit price
and supply is related.

F-test: F=MSR/MSE
=(354.689/1) / 7035.262/39
=1.96622 (with p-value = 0.1 from the F-table)
At ​α =0.05, 1 df for the numerator and 49 df for the denominator, the critical value from
T-table is 4.08 approximately. Because of the F-statistic is not grater than the critical value
of F, the null hypothesis cannot be rejected. Therefore, the supply and unit price can’t be
concluded to be related with sufficient evidence.

c. r​2 ​= SSR/SST
= 354.689/354.689+7035.262
= ​0.47996
4.7% of change in supply is explained by the variability.

d. r​xy =
​ sign of b​1​ ( )
=
= 0.219
​Since the slop is positive, unit price increase do does the supply.

e. Supply = 54.076+0.029 x 50
=55.526 (units)

Question 3
Allied Corporation wants to increase the productivity of its line workers. Four
different programs have been suggested to help increase productivity. Twenty
employees, making up a sample, have been randomly assigned to one of four
programs and their output for a day’s work has been recorded. You are given
the results below (data set also provided in accompanying MS Excel file).

a. Construct an Anova table. (3 marks)

b. As the statistical consultant to Allied, what would you advise them? Use a. 05 level
of significance. (3 marks)

H​0 ;​ µ​A​ = µ​B​ = µ​C​ = µ​D

H​A​; at least one mean daily output is different

where ​µ​A​ = mean daily output from A

µ​B​= mean daily output from B

µ​C​ = mean daily output from C

µ​D​ = mean daily output from D

Critical point = 0.05, 3 degrees of freedom for the numerator 16 degrees of freedom
for the denominator, value of F =3.24. F-statistic from the ANOVA table =6.14
is greater than the null hypothesis of equal mean daily output in the four
programs is rejected.
Conclusion : there is an illustrious difference in the mean output in the four
programs.

Question 4
A company has recorded data on the weekly sales for its product (y), the unit price of the
competitor's product (x1), and advertising expenditures (x2). The data resulting from
a random sample of 7 weeks follows. Use Excel's Regression Tool to answer the
following questions (data set also provided in accompanying MS Excel file).
a. What is the estimated regression equation? Show the regression output. (2 marks)
b. Determine whether the model is significant overall. Use α = 0.10. (2 marks)

c. Determine if competitor’s price and advertising is individually significantly related to

sales. Use α = 0.10. (2 marks)
d. Based on your answer to part (c), drop any insignificant independent variable(s) and
re-estimate the model. What is the new estimated regression equation? (2 marks)

e. Interpret the slope coefficient(s) of the model from part (d). (1 marks)
Based on above,

So we can expect that 1 unit increase in competitor's price will bring 41.603 units
increase in weekly sales.