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Assignment Task / Description:

Task 1:
(This provides evidence for outcome 2 assessment criteria 2.1, 2.2)

Read the Scenario and then answer the questions given below:

SCENARIO

A branch of a national bank located at a bustling commercial area of the city wishes to improve
its processes for serving customers during the afternoon timings of 12.00 to 1.00pm, which is the
lunch period. The waiting time in minutes is defined as the time the customer enters the line to
when he/she reaches the window of the teller.

Below is the data collected from a sample of 15 customers during this hour.

5.55
3.02
5.13
4.77
2.34
3.54
3.79
4.50
6.10
0.38
5.12

6.46
6.19

Compute and interpret the mean and median.

Mean = 5.55 + 3.02 + 5.13 + 4.77 + 2.34 + 3.54 + 3.79 + 4.50 + 6.10 + 0.38 + 5.12 + 6.46 + 6.19
= 56.89
Mean = 56.89/13 = 4.37
Median = 4.77

The waiting time for the customers is 4.37 minutes on an average and that it can roughly reach
4.77 minutes.

Compute and interpret the five number summary in a business context.

Statistical file:
{5.55, 3.02, 5.13, 4.77, 2.34, 3.54, 3.79, 4.50, 6.10, 0.38, 5.12, 6.46, 6.19}

Minimum = 0.38

Ascending Order: 0.38, 2.34, 3.02, 3.54, 3.79, 4.5, 4.77, 5.12, 5.13, 5.55, 6.1, 6.19, 6.46

Q1 = (n/4+1/2) ^th observation = 13/4 + = 3.75 = 3.02 + (3.54-3.02) = 3.54

Median = 4.77 (middle value)

Q3 = (3n/4 + ) ^th observation = 39/4 + = 10.25 = 5.55 + (6.1-5.55) = 5.5

Maximum = 6.46

(C )

Compute variance, standard deviation and coefficient of variation and interpret in

business context.

Standard deviation =

(Mean)^2 = (4.37)^2 = 19.09

Waiting
Time

Waiting Time Mean

5.55
3.02
5.13
4.77
2.34
3.54
3.79
4.5
6.1

1.1738
-1.3562
0.7538
0.3938
-2.0362
-0.8362
-0.5862
0.1238
1.7238

0.38

-3.9962

5.12
6.46
6.19

0.7438
2.0838
1.8138

(WT mean)2
1.37780644
1.83927844
0.56821444
0.15507844
4.14611044
0.69923044
0.34363044
0.01532644
2.97148644
15.9696144
4
0.55323844
4.34222244
3.28987044

(WT mean) ^ 2 = 36.2711

Standard deviation = (36.2711/13-1) ^ = 1.7386

Variance = 36.2711 / 13-1 = 3.0226

Coefficient of variation = Standard deviation / mean = 1.7386 / 4.37 = 0.397

Is the data skewed? If so explain how? And explain which measure(s) is(are) suitable for the
above purpose.

The mean is 4.37 and Standard deviation is 1.7386

Waiting
Time

Waiting Time Mean

5.55

1.1738

3.02

-1.3562

5.13

0.7538

4.77

0.3938

2.34

-2.0362

3.54

-0.8362

(WT mean)^3
1.61726919
9
2.49442942
0.42832004
5
0.06106989
8.44231007
8
-

3.79

-0.5862

4.5

0.1238

6.1

1.7238

0.38

-3.9962

5.12

0.7438

6.46

2.0838

6.19

1.8138

0.58469649
4
0.20143616
4
0.00189741
3
5.12224832
5
63.8177732
3
0.41149875
2
9.04832312
5.96716700
4

Total Sum of (WT mean) ^3 = -52.8829

Using the above formula for Skewness = -52.8829/ (13-1). 1.7386^3 = -0.8386

Yes, the data is negativaly skewed since the value of skenwness is -0.8386. It can be said that the
left tail is found to be longer. The distribution is found to be left skewed.

One day a customer walks into the branch of the bank during the lunch hour, he asks the branch
manager how long he can expect to wait. The branch manager replies, Almost certainly less than
five minutes. On the basis of your computations above evaluate the accuracy of the branch
managers statement.

Prob(X < 5) = this is called to be a one tailed test due to the following test:

H0: > = 5
H 1: < 5
Standard Deviation mean error = Std. Deviation/N = 1.7386 /3.61 = 0.481
T score = 4.27 5 / 0.481 = -1.51

The critical value at significance level 5% for one tailed test that is equal to -1.51. Since -1.51 is
greater than -1.645, we cannot reject H0.

Task 2:
(This provides evidence for outcome 2 assessment criteria 2.3, 2.4 & outcome 4.1, 4.3)

A large family-held department store selling furniture and flooring, including carpets wants to
evaluate its profitability on the sale of carpets. Given below is the data on sales (in units) and
selling and distribution expenses (in hundreds) of the company for a ten month period:

Month
Jan
Feb
Mar
Apr

May
Jun
Jul
Aug
Sep
Oct
Sales in

units
50
50
55
60
62
65
68
60
60
50
Selling &

Distbn Exp
11
13
14
16
16
15
15
14
13
13

Make a Scatter Diagram from the above data to know if there is any correlation between the two
variables detailed in the table above.

Scatter Diagram
1800
1600
1400
1200
1000
Selling and Distribution Expenses

800
600
400
200
0
45

50

55

60

65

70

Sales in Units

Calculate the Coefficient of Correlation.

In order to find out the Coefficient of Correlation, we need to find out the following:

XY

XX

YY

50

11

550

2500

121

50

13

650

2500

169

55

14

770

3025

196

60

16

960

3600

256

62

16

992

3844

256

Total

65

15

975

4225

225

68

15

1020

4624

225

60

14

840

3600

196

60

13

780

3600

169

50

13

650

2500

169

580

140

8187

34018

1982

r = 10 x 8187 580 x 140 / [(10 x 34018 580^2) x (10 x 1982 140 ^2)] ^1/2 = 0.7347

(C ) State your interpretations based on your analysis in (A) and (B) above and answer whether
you think that there is a correlation between sales and selling & distribution expenses of the
company? Is it positive or negative? Is it high or low? Give adequate explanations for your
answer.

In accordance with the correlation coefficient, there is a strong uphill positive linear relationship
between the sales and selling and distribution expenses. However, the scatter plot provides
fluctuations in the relationship between the two.

Find the ratio of selling & distribution expenses to sales given the ten month period sales as below, also
compute the average percentage of selling & distribution expenses to sales for the period.

Month
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Sales in

units
12500
14000
25000
20000

35000
38000
42000
36000
32000
28000

The ratio can be found by dividing Expenses with Sales. It is calculated as below:

x
y
1250
1100
0
1400
1300
0
2500
1400
0
2000
1600
0
3500
1600
0
3800
1500
0
4200
1500
0
3600
1400
0
3200
1300
0
2800
1300
0

Ratio
0.088
0.0928
57
0.056
0.08
0.0457
14
0.0394
74
0.0357
14
0.0388
89
0.0406
25
0.0464
29

Here x is sales and y denotes expenses. The average of the ratio is 0.05637 and if we write it in % form, it is

found to be 6% on an average.

Task 3:
(This provides evidence for outcome 4 assessment criteria 4.2)

For a small cookie shop, you need to analyse a simple cookie-baking project. The recipe provides the
complete statement of work, for which the work breakdown structure can is given in the table below. The
resources available for this project are two cooks and one oven with limited capacity; the raw materials are
the ingredients to be used in preparing the cookie dough. The activities (as in the table below) take a total of
80 minutes of resource time. Because some activities can run parallel, the cooks should complete the project
in less than 80 minutes.

For example, once the oven is turned on, it heats itself, freeing the cooks to perform other activities. After the
dough is mixed, both batches of cookies can be shaped; the shaping of the second batch does not have to wait
until the first batch is complete. If both cooks are available, they can divide the dough in half and each cook
can shape one batch in the same four-minute period. However, if the second cook is not available at this time,
the project is not delayed because shaping of the second batch need not be completed until the first batch
exits the oven.

Table: List of Project Activities (CPM)

Description of Activity
Duration (minutes)

Immediate Predecessor(s)
A Preheat oven
15 minutes
B Assemble, measure
8 minutes
-

ingredients

C Mix dough
2 minutes
B
D. Shape first batch
4 minutes
C
E. Bake first batch
12 minutes
A, D
F. Cool first batch
10 minutes
E
G. Shape second batch
4 minutes
C
H. Bake second batch
12 minutes
E, G
I. Cool second batch
10 minutes
H
J. Store cookies
3 minutes
F, I
Total Time
80 minutes

You are required to prepare a project plan using a network diagram for an above cookie baking

project given the set of activities and determine the critical path.

The network diagram for the above cookie baking project is illustrated below:

Paths Duration:
A-E-F-J = 15 + 12 +10 +3 = 40
A-E-H-I-J = 15+ 12 + 12 + 10 + 3 = 52
B-C-D-E-F-J = 8 + 2 +4 + 12 +10 +3 = 39
B-C-D-E-H-I-J = 8 + 2 + 4 +12 +12 +10 + 3 = 51
B-C-G-H-I-J = 8 + 2 + 4 + 12 +10 + 3 = 39

The critical path is A-E-H-I-J because it is the longest one.