You are a consultant of Ministry of Domestic Trade, Co-operatives and Consumerism

– KPDNKK
(a) Executive summary – main conclusions

1. Primary Purposes of the study:

2. General methodology used:
3. Findings
4. Conclusions and recommendations
(b) Table of contents
(c) Business problem
(d) Analytic problems
(e) Analysis
(f) Conclusions
(g) Implications

Part One (1,000 words)

Task 1:

(a) Visually present data for the prices of Basic Staple basket at different supermarkets.

ANS: to visually present the data for the prices of basic staple basket use scatter diagrams/plots.
(tgk yang mana boleh portray better results)

Example:

Prices at different Supermarkets

100.00
90.00
80.00
70.00
60.00
50.00
40.00
30.00
20.00
10.00
0.00
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1

Giant Tesco Aeon Mydin

(b) Calculate descriptive statistics for the prices of Basic Staple basket at different supermarkets.

Ans: compute Mean,Median, Standard Deviation, Kurtosis, Skewness, CV (coefficient of variation).

Example:
 Descriptive statistics

Giant Tesco Aeon Mydin

mean 83.296 82.1123 84.4736 60.4346

3 7 7

median 82.37 81.52 84.495 60.25

std. deviation 3.731027 2.31545 3.39111 0.61546

4 1 6

kurtosis - 1.18837 - 4.37278

0.098789 4 0.16929 9

skewness 0.826175 0.40489 0.29212 1.51064

3 1

range 13.88 11.15 14.29 3.04

min 77.77 77 77.66 59.61

max 91.65 88.15 91.95 62.65

sum 2498.88 2463.37 2534.21 1813.04

count 30 30 30 30

CV (%) 4.48% 2.82% 4.01% 1.02%

© Comments on the location, shape and variability of those distributions.

Ans:

1. Discuss the variability using mean and median.

2. Discuss the shape using skewness to state left or right skeweness and use kurtosis to discuss
the type of shape of the graph.
3. The standard deviation portrays the spread of the distribution for comparison among
supermarkets.
4. The CV can explain the comparison of the variation among supermarkets. (CV display risk
faced)
5. The range could also explain the price range among supermarkets.

-the rest of the tasks for part 1 are similar to Task 1.

Task 2

(a) Visually present data for the prices of Basic Staple basket across three States among the

supermarkets.

(b) Calculate descriptive statistics for the prices of Basic Staple basket across three States

among the supermarkets.

 (c) Comments on the location, shape and variability of those distributions.

Task 3

(a) Visually present data for the prices of Basic Staple basket Basic Staple basket at different
locations among the supermarkets.
(b) Calculate descriptive statistics for the prices of Basic Staple basket at different locations
among the supermarkets.
(c) Comments on the location, shape and variability of those distributions.

Task 4

(a) Visually present data for the prices of Basic Staple basket of Giant stores in three states.
(b) Calculate descriptive statistics for the prices of Basic Staple basket of Giant stores in three
states.
(c) Comments on the location, shape and variability of those distributions.
Part Two (1,500 words)
a. Demonstrate the use of statistical techniques in Business data
- Use F-test(to determine whether the samples are equal or unequaled variances).

b. Demonstrate how to conduct hypothesis tests about mean, proportions and difference of
means
- Two-sample T-test is used to find out the significant difference of average prices between
two samples.
- For sampling more than two groups, a One-Way ANOVA is used to determine the significant
difference of average prices.

c. Demonstrate the use of computer software to get necessary output

d. Demonstrate the skills of preparation of a managerial report

Task 1.

During the inquiry it was argued that there are differences in supermarket prices at different
locations. How do you test that there is a significant difference of average prices at different
locations for supermarkets? What do you find from your analysis?

i) t-test - used to compare the means of two sample

ii) f-test – used to compare variances of two sample

ANS:.

1. Develop the hypothesis for the F-test.

-F-test is used to test whether the two samples average prices at different location are
having equal variances.

Example:

H 0 :The variance of the prices at Metropolitan are equal¿ the variance of prices at other places

H 1 :The variance of the prices at Metropolitanare not equal¿ the variance of the prices at other places .

F-Test Two-Sample for Variances for prices among Metropolitan and other locations
F-Test Two-Sample for Variances

  Metropolitan Other Places

s - The variances of two sample are equal.
The price between metropolitan’s area
Mean 77.62033 77.538
and other places do have equal
Variance 106.5009 109.5065 variances.

Observations 60 60 2. Develop hypothesis for T-test

df 59 59

F 0.972554

P(F<=f) one-tail 0.457621

F Critical one-tail 0.649369  

 Two sample T-Test is used to compare whether there are significant difference between
Metropolitan area and Other locations.

Example:

H 0 :Thereis a no significant difference of average prices at different locations for supermarkets

H 1 :There is a significant difference of average prices at different locations for supermarkets

t-Test: Two-Sample Assuming Equal Variances

t-Test: Two-Sample Assuming Equal Variances

  Metropolitan Other Places

s

Mean 77.62033 77.538

Variance 106.5009 109.5065

Observations 60 60

Pooled Variance 108.0037

Hypothesized Mean Difference 0

df 118

t Stat 0.043393

P(T<=t) one-tail 0.482731

t Critical one-tail 1.65787

P(T<=t) two-tail 0.965462

t Critical two-tail 1.980272  

- there is no significant price difference among all locations.

The explanation for tasks 2 and 3 is similar to task 1

2. Giant claims that they have a national pricing policy; the policy excludes fresh fruit, vegetables and
regional bakery lines. How do you test whether there is significant difference of average prices of
Giant stores in different locations? What do you find from your analysis?

3. Test the claim that average price of Basic Staple basket in Penang is significantly different
compared to the in Selangor.

4. Two larger supermarket chains, Aeon and Tesco control nearly 70% of the grocery market. During
the inquiry it argued that the larger buying power of those chains makes them cheaper than other
supermarkets. On the other hand, another group argued that there is no significant difference of
grocery prices among supermarkets. Using the data collected, how do you test the claim that there is
no significant difference of the average prices for the Basic Staple basket at different supermarkets?
What do you find from your analysis?

ANS: use one-way Anova since we want to compare more than 2 groups (one-way ANOVA to
determine if the prices are the same across all four supermarkets)

1. Develop hypothesis

Example:

H 0 :Thereis a no significant difference of average prices for the basic staple basket at different supermarkets

H 1 :There is a significant difference of average prices for the basic staple basket at different supermarkets

Summary
Varianc
Groups Count Sum Average e
13.9205
Giant 30 2498.88 83.296 6
82.1123 5.36132
Tesco 30 2463.37 3 9
84.4736 11.4996
Aeon 30 2534.21 7 3
60.4346 0.37879
Mydin 30 1813.04 7 8

ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 11840.99 3 3946.998 506.6697 1.82E-66 2.682809
Within Groups 903.6493 116 7.79008

Total 12744.64 119        

- since the p-value is below 0.05 (p-value = 1.82E-66), the null hypothesis is rejected. There is a
significant difference of average prices for the basic staple basket at different supermarkets.

The explanation for task 5 similar to task 4

5. During the inquiry it was argued that there is a difference in supermarket prices across States due
to the different size of the markets in each State, transportation costs and other costs. How do you
test that there is a significant difference of average prices across three States? What do you find
from your analysis?