DEPARTMENT OF BUSINESS ADMINISTRATION

MASTER OF BUSINESS ADMINISTRATION (MBA)

COURSE CODE: ALYF 602

COURSE TITLE: STATISTICAL ANALYSIS FOR MANAGEMENT

INSTRACTOR NAME: DR. ADILU MUSSA

ASSIGNMENT TYPE: GROUP ASSIGNMENT

SUBMISSION DATE: 02ND FEBRUARY 2023

GROUP MEMBERS;
SULEIMAN S. SALUM
ISSA H. HAMAD
IMAMU M. VUAI
KADHYA KHALFAN MASOUD
QUESTION ONE

(a) Describe briefly how you would decide on a method for analyzing
statistical data. What would you consider the most important factors in
choosing the method of analysis?

(b) Suppose you have been given a report by a consultant. A survey was conducted
of the clients of your program. The results of the survey suggest that prior
assumptions about the population and their needs are very different from those that
have been held by the agency for years. What actions do you recommend be
taken as a result of the study?
QUESTION. NO 2

A retail manager wants to predict sales of umbrellas (Y) (in $000s). The manager
uses a combination of the following variables: daily maximum temperature (X1),
number of customers in the shopping centre where the store is located (X2),
friendliness of staff (X3), and whether or not the manager is walking the shop floor
(X4). Which of these variables is most likely to be the strongest predictor of
umbrella sales for this retail store?
SOLUTION

a) X1
b) X2
c) X3
d) X4
e) All of these variables would have little effect on sales

The combination of the manager concerning the predicting of sales of umbrella as

focusing the daily maximum temperature. According to the variable (b), the
manager can use since he selects it, but the performance may result in weak. This
is because, the number of customers may accounted insufficient as the factor to
make him reach the target of ($000s) or can have low profit. Normally the number
is varied, it sometimes raise and then down accordingly. Again, the number of
customer cannot be assumed that umbrella is their targeted need. So it is not easy
to evaluate if they are willing to buy or not.

Due to the variable (c), which is Friendliness of staffs (X 3). This variable does not
have high percentage on its performance. Being friendly to his staffs is not a strong
reason for sales of his umbrella. The staffs could sometimes have no interest; they
have no plan on that purchasing and the like.

In case of variable (d) which is (X4), the manager’s walking in the shop floor, can
be interpreted by other customer as the one who is in roving. It is variable that has
no much contribution on predicting sale of umbrella.

About variable ( a ) which is ( X1), this variable may enforce and giving high
contribution on predicting sales of umbrella. The daily maximum temperature will
actually make customers to buy umbrellas. This comes from the weathering
conditions by which can harm everyone physically, economically and socially.
Many impacts can happen since the temperature is maximized. thus, the store of
manager, could be inadequate due to the fluctuation of buyers. so from this
context, the manager obviously will be on touch to his target.
QUESTION THREE

A random sample of eight drivers insured with a company and having similar auto
insurance policies was selected. The following table lists their driving experiences
(in years) and monthly auto insurance premiums.

Driving Experience Monthly Auto

(years) Insurance Premium
5 64

2 87

12 50

9 71

15 44

6 56

25 42
16 60

(a) Does the insurance premium depend on the driving experience or does
the driving experience depend on the insurance premium? Do you expect
a positive or a negative relationship between these two variables?

ANS.

A negative relationship because Insurance premium is expected to decrease with an

increase in the year of experience.
 Y X XY X2 Y2
64 5 320 25 4096
87 2 174 4 7569
50 12 600 144 2500
71 9 639 81 5041
44 15 660 225 1936
56 6 336 36 3136
42 25 1050 625 1764
60 16 960 256 3600
SUM 474 90 4,739 1,396 29,642

Insurance premium depends upon driving experience, when the driving experience
increases the insurance premium decreases hence its negative relationship.

(b) Compute SSxx, SSyy, and SSxy.

ANS.
SSxx = ∑x2 -1/n (∑x)2
= 1,396-1/8(8100)
= 1,396-1,012.5
=383.5

SSyy = ∑y2 -1/n (∑y)2

= 29,642 – 1/8 (224,676)
= 29,642-28,084.5
= 1,557.5

SSxy = ∑xy -1/n (∑x ∑y)

= 4,739 – 1/8 (42,660)
= 4,739 – 5,332.5
= -593.5

(c) Find the least squares regression line by choosing appropriate dependent and
independent variables based on your answer in part 1 above.
ANS
 Least square regression line
Least square = sxy/sxx
=-1/496
= -0.002 Negative slope since β2LO
(d) (d)Interpret the meaning of the values of a and b calculated in part 3 above.

ANS.

The value a and b are constant parameters, because the value of a and b computed
to minimize the differences between actual value of Y and the corresponding
estimates (Y’) based on the known value of X.

(e) Plot the scatter diagram and the regression

line. ANS.

Scatter diagram and the regression

SCATTERED DIAGRAM
100
87
90
80
71
70 64
60
60 56
50
Y AXIS

50 44 42
40

30

20

10

0 0 5 10 15 20 25 30
X AXIS
(f) Calculate r and r2 and explain what they mean.

ANS.

R= Sxy
= √sxx sxy
= -1/√(496)(4678)

= -1/√2,320,288

= -1/1,523.249159

r = -6.56

This show the weak negative linear relationship is among variables then

r2 = (-6.56)2 *100

= 4303.36

(g)Predict the monthly auto insurance premium for a driver with 10 years
of driving experience.

ANS.

Monthly auto insurance premium for a driver with 10 years of driving experience
is 31 according to the scatter diagram of the regression line.

(h) Compute the standard deviation of

errors ANS.

SE x = S/√n

First we have to find the mean of the given data.

Mean = 5+2+12+9+15+6+25+16
8
= 90
 8
= 11.25
Now, the standard deviation can be calculated as:

S = Summation of difference between each value of given data and the mean
value divide by number of value.

Hence,
S = √(5-11.25)2+(2-11.25)2+(12-11.25)2+(9-11.25)2+(15-11.25)2+(6-11.25)2+(25-11.25)2+(16-11.25)2
8
√383.4825
8
19.58
8
Therefore, s is 2.448
QUESTION FOUR

Determine the probability of each of the following events occurring. State the
approach to probability which you used and any assumptions which you needed to
make.

(a) A person selected from the payroll of a company is a clerical worker given
that there are 350 people on the payroll of whom 120 are clerical workers.

ANS.

Probability = 120 clerical workers

350 clerical workers
= 0.3429

Mathematically

Using empirical probability approach

Total worker = 350

Clerical worker = 120

E = clerical worker, S = total worker

n (E) = 120, n(S) = 350

P(P) = n(E)
n(S)
= 120
350
= 0.3429
Therefore, P = 0.3429

(b) A light bulb selected from a production line is defective if, out of 400 bulbs
already tested, eight were defective.
ANS.
Assumption : All bulb have equal chance of being selected add all bulb have been
tested.

Approach method: Using classical probability approach.

P(E) = n(Events)
n (Sample space)
= 8/400
= 0.02
Therefore, Probability is 0.02

(c) A new-born baby is male.

ANS.

Probability = 0.5

Assumption: Equal chance of happening between male and female child.

QUESTION FIVE

The following table shows an estimated probability distribution for the sales of a
new product in its first week:

Number of units sold 0 1 2 3 4 5

Probability 0.05 0.15 0.20 0.35 0.15 0.10

What is the probability that in the first week:

(a) Four or five units will be sold;

ANS.

The probability of four of five units will be sold

P (x=4, x=5)

= 4*0.15 + 5*0.1

= 0.6 + 0.5

= 1.1

(b) At least 3 units will be sold;

ANS.

The probability that at least 3 units will be sold

P(X ≥ 3) = 3*0.35 + 4*0.15 +5*0.1

= 1.05 + 0.6 + 0.5

= 2.15

Therefore, the probability that at least 3 units will be sold is 2.15

(c) At least 1 unit will be sold?

 ANS

The probability that at least 1 unit will be sold.

P (x ≥ 1)

= 1*0.15 + 2*0.2 + 3*0.35 + 4*0.15 + 5*0.10

= 0.15 + 0.4 + 1.05 + 0.6 + 0.5

= 2.7

Therefore the probability that at least 1 unit will be sold is 2.7