Project 1 (12 points), due date Wednesday October 13th

Topic: Variance, Correlation and Covariance

Data: Data is provided by an excel file named “Cereal”

Description: We are given a data with 5 variables. We are trying to predict Preferred
Breakfast based on information on Age Category, Gender, Martial Status and Lifestyle.

Project Requirements:

We need to analyze data on Variance:

- Calculate Mean, Variance and Standard Deviation of all 5 variables. Analyze the
results.
- Define and calculate correlation matrix on 5 variables. Analyze results. Your
analysis should include the level of dependence between variables. Keep in mind
that you have dependent and independent variables in the data.
- Define and calculate cross-product deviations and covariance matrix on 5
variables. Analyze the result
- Based on you analyses in previous bullet points, what would you suggest, which
variable is a good predictor and which is not. If variable is not a good predictor,
how do you think it can be improved? Or should it be dismissed?

Statistical software packages can be used to provide summaries and/or visual presentations.
Such as: Excel, Minitab, SPSS, SAS, etc. Or can be done by hand, with mathematical
calculations.

To get full credit:

Student must provide 2 sets of files:

- Word document, that has graphs and statistician summaries necessary to analyze
the data. Word document needs to have Introduction (describing the task and
hand, goals of the project); Variance Analysis (statistical analysis of mean,
deviation, standard deviation, variance, correlation and covariance on each
variable), Conclusion (short summaries of what we have learned from the analysis
of each variable and a conclusion, which variable is important, with is not etc.);
- Save files. You need to provide results of software packages used (save files). File
should include entered variables, with appropriate names and descriptions. Note:
If one chooses to do it by hand, needs to provide photos of calculations.