Statistical methods for

Decision Making
Assignment 01

Sandeep Polisetty

FT243037

Section3
Q-2- Chapter 1. Supplementary Exercises, page-22.

i How many variables are in this data set?

A: 6

ii How many elements are in this data set?

A: 10

iii What type of measurement scale is used for each of the variables?

o Tablet: Nominal Scale

o Cost: Continuous
o Operating System: Nominal Scale
o Display Size: Continuous
o Battery Life: Continuous
o CPU Manufacturer: Nominal Scale

Q-10- Chapter 2. Topic: Online Hotel Ratings, page-42

a) Construct a Frequency Distribution

Ratings Frequency
Very Good 252
Excellent 187
Average 107
Poor 62
Terrible 41

b. % Frequency Distribution:

Ratings %Frequency
Very Good 38.8%
Excellent 28.8%
Average 16.4%
Poor 9.5%
Terrible 6.3%
 c. Bar chart representing the percent frequency distribution:

b) Comment on how guests rate their stay at the Sheraton Anaheim Hotel.

A: According to the above graph and data set, majority of the customers have rated the hotel
stay as ‘Very Good’

c) Suppose that results for 1679 guests who stayed at the timber hotel provided the following
frequency distribution. Compare the ratings for the Timber Hotel with the results obtained for
the Lakeview Lodge.

A: The number of elements of The Timber Hotel = 1679

Majority of the reviews of customers were Excellent = 807

Percentage of people who have reviewed it as ‘Excellent’ = 48.06 %

The number of elements of The Lakeview Hotel = 649
Majority of the reviews of customers that were Excellent = 252

% People Reviewed for Excellent = 38.82 %

The Highest % Rating of Lakeview is ‘Very Good’ and for the Timber Hotel is ‘Excellent’ We
can conclude that the stay of Timber hotel is better than that of the Lakeview Lodge.

Q-23,page-55

a. Largest positive YTD % change:

Country Index YTD % Change

Japan Nikkei 31.4
b. Frequency Distribution:

YTD Frequency
(-20, -15) 1
(-15, -10) 1
(-10, -05) 3
(-05, 0) 3
(0, 5) 4
(5, 10) 6
(10, 15) 7
(15, 20) 3
(20, 25) 1
(25, 30) 0
(30, 35) 1
(35, 40) 0

c. Histogram:

The data is skewed to the right hand side.

Q-33- Chapter.2, Topic: Values of World Bank’s Most Valuable Banks, page-63

a) Prepare a crosstabulation of the data on Industry(rows) and Brand Value ($ billions).

Use classes of 0-10, 10-20, 20-30, 30-40, 40-50 and 50-60 for Brand Value ($ billions)

Industry Interval
(0, 10) (10, 20) (20, 30) (30, 40) (40, 50) (50, 60)
Automotive 10 4 1 0 0 0
and Luxury
Consumer 7 5 0 0 0 0
Packaged
Goods
Financial 11 3 0 0 0 0
Services
Other 14 10 0 2 0 0
Technology 7 4 0 1 1 2

b. Frequency Distribution on Industry:

Industry Frequency
Other 26
Technology 15
Automotive and Luxury 15
Financial Services 14
Consumer Packaged Goods 12

c. Frequency Distribution on Brand Value ($ billions):

Brand Value ($ billions) Frequency

(0, 10) 49
(10, 20) 26
(30, 40) 3
(50, 60) 2
(40, 50) 1
(20, 30) 1
 d. Dfg
e. Dfg

Q-9- Chapter.3, page-119

a. Mean amount spent on advertising:
Mean: 2.5745
b. Median amount spent on advertising:
Median: 2.2645
c. First Quartile: 2.06
Third Quartile: 2.6475

Q-17, Chapter 3, page-121

Q-32, Chapter 3, page-129
a. Mean:
1) Mean advertising spent on Automotive Sector: 1960.05
2) Mean advertising spent on Department Store: 1960.05
b. Standard Deviation:
1) Standard Deviation of Automotive Sector: 481.648
2) Standard Deviation of Department Store: 155.055
c. Range:
1) Range of Automotive Sector: 2303
2) Range of Department Store: 563
d. Inter Quartile:
1) Inter Quartile range of Automotive Sector: 496.5
2) Inter Quartile range of Department Store: 197.5
e. Dfg

Q-37, Chapter 3, page-135

Mean = 30,
Standard Deviation = 5,
Chebyshev’s Theorem = 1 – 1/z^2 where z = (mean – lower)/std

a. Percentage of the data within the range of 20 to 40: At least 75% of the data is within the range of 20 to 40.
b. Percentage of the data within the range of 15 to 45: At least 88.88% of the data is within the range of 15 to
45.
c. Percentage of the data within the range of 22 to 38: At least 60.93% of the data is within the range of 22 to
38.
d. Percentage of the data within the range of 18 to 42: At least 82.63% of the data is within the range of 18 to
42.
e. Percentage of the data within the range of 12 to 48: At least 92.28% of the data is within the range of 12 to
48.

Q-53, Chapter 3, page-141 (Answer part d using the box-plot criteria)

a. Median: 13.9
b. Percentage of the top ranked 50 companies with greater than S&P return are 20 out of 50 companies: (20 /
50) * 100 = 40%
c. Five number summary of the data:
Min = -13.9
 First Quartile = 4.45
Second Quartile = 13.9
Third Quartile = 29.425
Max = 117.1
d. IQR = Q3 – Q1 = (29.425 – 4.45) = 24.975
Lower Bound = Q1 - 1.5 * IQR = 4.45 – 1.5(24.975) = -33.0125
Upper Bound = Q3 + 1.5 * IQR = 29.435 + 1.5(24.975) = 66.8975
Any number beyond the lower bound and upper bound are determined to be outliers. There are three
numbers that are beyond this region. They are 84.5, 116.6, 117.1

e.
 Case problem-1 (Pelican Stores), page-160

Descriptive Statistics on net sales

The descriptive statistics, namely, Mean, Standard deviation, quartiles, minima and maxima are as
follows:

Descriptive Statistics on net sales by various classifications of customers

The two classifications being ‘Promotional’ and ‘Regular’, the following are the descriptive statistics:

Descriptive Statistics concerning the relationship between net sales and age

With an age interval of 2, the sales have been distributed and the descriptive statistics of the same have
been obtained