Cover Page

BUS1BAN Major Assignment

Teacher’s Name

Workshop Details

(Time, day, room)

Students ID Number Students Name Student contribution* Students Signature

(%)
e.g. 50% means the
student will receive 50%
of the marks awarded

*All group members are to exert an equal amount of effort on all questions of the assignment.
Students should not divide sections. If a student has contributed to only some sections, the
contribution of the student should be equal to the marks it carries. A student with less than 100%
contribution will receive marks proportional to their contribution.

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An insight into student demand for smartphones
at La Trobe University.

Executive Summary
This report reflects the consumer behaviour towards consumption of smartphones as per
the price range of the phone, spending and usage, earnings and other traits that affects the
consumers buying decision.

I. Introduction: (10% marks)

The purpose of this assignment is to conduct a research on La Trobe Students to study their
behaviour towards the use of different Smart phones Brand and notify how the change in
price of one brand would affects the sales of the other, also the effects can be translated
towards the capturing of market or will it remain Indifferent. For the purpose of these
research, we have used different Statistical Methodology such as Descriptive Statistics,
Statistical Inference and Graphical representation of the results.

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II. Data Analysis (75 marks):

This section must answer the following specific questions.

Section A: Basic Analysis (25 marks)

1. Gender Proportion: (4 marks)

A. What proportion of the students in your sample are male and what proportion are
female? Report your results in the following table. (1 mark)

Gender Sample proportion

Female 88/175
Male 87/175

B. Use an appropriate chart to graphically display information in the table above. (2 marks)

Total

Female
87 88
Male

C. Explanation. (1 mark)
As per the random sampling carried out in excel sheet, the result of the sample turns out to be in
the exact same proportion of the gender i.e. ½.(Anderson et al., 2014)

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2. Average Monthly Bill: (6 marks)

A. What is the average monthly bill of students by gender in your sample? Report your
results in the following table. (2 marks)

Female Male
Average Monthly Bill ($) 70.40805 61.04586

B. Use an appropriate chart to graphically display information in the table above. (2 marks)

Average Monthly Bill

70.41
72.00
70.00
68.00
66.00
61.05
64.00
62.00
60.00
58.00
56.00
Male Female

C. Compare the average monthly bill of females and males. (2 marks)

According to our resultant sample, it can be deduced that the male on an average spend less
on their phone as compared to females. The difference between their average monthly bill is
$9. (Siegel, 2016)

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3. Earnings and money spent on mobile phone: (8 marks)

A. What is the average monthly earning of students by gender in your sample? Report your
results in the following table. (1 mark)

Female Male
Average Monthly Earnings ($) 1277.423 1263.522

B. Is there any relationship between earning and money spent on mobile usage? Use
an appropriate chart to illustrate your answer. (1 mark)

RELATIONSHIP BETWEEN EARNING AND SPENDING

6000

5000

4000
MONTHLY EARNING

3000

2000

1000

0
0 100 200 300 400 500 600
MONTHLY SPENDING

It can be seen that spending have tiny correlation and the data in the scattered diagram shows
that majority of the people spends less than $200 irrespective of their earnings.(Anderson et
al., 2014)

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 C. Provide the following statistical measures to test the relationship between earning and
money spent on mobile usage. (2 marks)

Female Male
Covariance 20982.29 -4844.68
Coefficient of Correlation 0.392164 -0.08941
Coefficient of Determination 0.611141737 0.298771799
Y-intercept 46.79608692 67.82473705
Slope 0.018226102 -0.005365064
Least Squares Line 0.03981 0.029064

D. What do the statistics in part [C] tell you about the relationship between earning and
money spent on mobile usage for males and females? Explain your results. (4 marks)

From the above results it can be deduced that the Female spending pattern is positively correlated
with coefficient of correlation of 0.39 showing a positive but weak with earnings. Coefficient of
Determination shows the variation in the correlation of 61%. Y Intercept shows the amount that
females would eventually be spending in case of no earning i.e. $46 with the rate of change of
0.018 but Least Square Regression Line shows a very close proximity in the data as it tends not to
remain scattered.(Bain, 2017)

For Males it can be said that, the spending and earning are inversely related, with the significance
of correlation coefficient is very small of -0.089 indicating almost no correlation in the two
variables. Coefficient of Determination of value almost 30% shows the variability of the data
indicating that males tend to have similar way of spending as compared to earnings.

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4. Market share of mobile phone brand: (7 marks)

A. Complete the following cross classification tables (1 + 1 marks)

Cross classification table by frequency

Brand
Apple Samsung LG Do not Other Basic
use smart mobile
mobile phone phone
phone Total
Male 58 16 2 1 8 2 87
Gender
Female 72 10 0 0 6 0 88
Total 130 26 2 1 14 2 175

Cross classification table by total relative frequency

Brand
Apple Samsung LG Do not Other Basic
use smart mobile
mobile phone phone
phone Total
Male 58/175 16/175 2/175 1/175 8/175 2/175 87/175
Gender
Female 72/175 2/35 0 0 6/175 0 88/175
Total 26/35 26/175 2/175 1/175 2/25 2/175 1

B. Use an appropriate chart to graphically display the information above. (2 marks)

Cross Classification Frequency Chart

200
180
160
140
120
100
80
60
40
20
0
Apple Samsung LG Do not use Other smart Basic
mobile phone mobile
phone phone
Brand Total

Gender Male Gender Female Total

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 Cross Classification Relative Frequency Chart
4/5
7/10
3/5
1/2
2/5
3/10
1/5
1/10
0
Apple Samsung LG Do not use Other smart Basic mobile
mobile phone phone phone

Male Female

C. Is there any difference in the market share of each mobile phone brand by gender?
(3 marks)
It can be concluded from the result that as compared to females, males uses other
smartphone too proportion of males that uses Samsung and other phone is higher than
females. Also, higher proportion of females tend to use Apple’s phone than any other
smartphone. (Anderson et al., 2014)

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 Section B: Intermediate Market Analysis (25 marks)

5. Relationship between the earning of students and choice of mobile phone: (9 marks)

A. Calculate the average income of students by brand. Report your results in the following
tables. (1 mark)

Frequency
Brand
Apple Samsung LG Do not Other Basic
use smart mobile
mobile phone phone
phone Total
Average 1238.96 1573.08 1050 1035.50 1250 1200 1270.07
income ($)

B. Use an appropriate chart to graphically display the information above and summarise the
results. (1 mark)

Average income ($)

Total

1270.07

Basic mobile phone 1200

Other smart phone 1250

Do not use mobile phone 1035.5

Brand

LG 1050

Samsung 1573.08

Apple 1238.96

0 200 400 600 800 1000 1200 1400 1600 1800

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 C. Divide income into three categories at your discretion (low, middle and high) and complete
the following tables. (1 + 1 marks)

Cross classification table by frequency

Brand
Apple Samsung LG Do not Other Basic
use smart mobile
mobile phone phone
phone Total
High 45 10 1 0 6 0 62
Income
Medium 46 5 1 1 5 2 60
Level ($)
Low 39 11 0 0 3 0 53
Total 130 26 2 1 14 2 175

Cross classification table by total relative frequency

Brand
Apple Samsung LG Do not Other Basic
use smart mobile
mobile phone phone
phone Total
High 0.2571 0.0571 0.0057 0.0000 0.0343 0.0000 0.3543
Income
Medium 0.2629 0.0286 0.0057 0.0057 0.0286 0.0114 0.3429
Level ($)
Low 0.2229 0.0629 0.0000 0.0000 0.0171 0.0000 0.3029
Total 0.7429 0.1486 0.0114 0.0057 0.0800 0.0114 1.0000

D. Employ an appropriate graph to compare the distribution of brand selection across the
income groups. (2 marks)

Cross Classification by Frequency

Basic mobile phone

Other smart phone

Do not use mobile phone

LG

Samsung

Apple

0 20 40 60 80 100 120 140

High Medium Low

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 Cross Classification by Relative Frequency

Basic mobile phone

Other smart phone

Do not use mobile phone

LG

Samsung

Apple

0.0000 0.0500 0.1000 0.1500 0.2000 0.2500 0.3000

Low Medium High

E. Provide an explanation on relationship between income and the choice of mobile phone. Is
there a relationship? (3 marks)

Higher proportion of the sample tends to use Apple’s phone irrespective of their Income
group classification, Indicating a huge market share of Apple’s smartphone.(Bain, 2017)

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6. The effect of price on preference [Samsung versus Apple]: (10 marks)

A. iPhone and Samsung are two important players in the smartphone market who
compete against each other. Samsung’s phones are generally sold cheaper than
Apple’s smartphones. Complete the following table using the survey data responses
(2 marks)

Discount offered Proportion of customers who said they will buy the
on Samsung latest Samsung Galaxy instead of the latest iPhone if
Galaxy the Galaxy was discounted.
x y
0% 23%
5% 28%
10% 31%
15% 29%
20% 31%
25% 37%
30% 39%
35% 41%
40% 48%
45% 51%
50% 56%

B. Using Excel, produce a scatter plot to summarize the relationship between potential market
share and proposed discount offered by Samsung on its latest Galaxy vis-à-vis the latest
iPhone. (2 marks)

Price Preference
60% 56%
51%
48%
50%
Proportion of Customer

39% 41%
37%
40%
31% 31%
28% 29%
30% 23%

20%

10%

0%
0% 10% 20% 30% 40% 50% 60%
Discount Rate

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C. Complete the following table then interpret the statistics. (4 marks)

Statistic
Covariance 0.01694
Coefficient of Correlation 0.97570
Coefficient of Determination 0.95199
Y-intercept 0.22311
Slope 0.61610
Least Squares Line 1.25358

The correlation is strongly positive between the discount rates and people preference to use
it, with the normal rate of change but a Least Square Line indicates the data to be spread with
the offered discount rates.(“Correlation - Statistical Techniques, Rating Scales, Correlation
Coefficients, and More - Creative Research Systems,” n.d.)

D. Using your answer to [A], [B] and [C], does Samsung’s market share, relative to Apple,
increase or decrease with the discount offered by Samsung? Which customers are more loyal
to their brand? (2 marks)

It can be clearly stated that majority of the people i.e. 56% wants to get Samsung
smartphones at 50% Discount and the correlation is positively strong between the discount
rates and people preference to use it, with the normal rate of change but a Least Square Line
indicates the data to be spread with the offered discount rates.(“Statistics Notation,” n.d.)

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7. The effect of price on preference & gender[Samsung versus Apple]: (6 marks)

Compare the discount and market-share relationship in question 6 across gender.

A. Complete the following table using the survey data responses (2 marks)

Discount offered Proportion of customers who said they will buy

on Samsung the latest Samsung Galaxy instead of the latest
Galaxy iPhone if the Galaxy was discounted
Females Males
x yF yM
0% 17% 30%
5% 25% 31%
10% 23% 39%
15% 24% 33%
20% 28% 34%
25% 32% 43%
30% 32% 47%
35% 33% 49%
40% 41% 55%
45% 44% 57%
50% 50% 62%

B. Using Excel, produce a scatter plot to summarize the relationship between potential market
share of males and females, and proposed discount offered by Samsung on its latest Galaxy
vis-à-vis the latest iPhone. (1 mark)

Price Preference Gender Bais

70%
Proportion of Consumer

60%
50%
40%
30%
20%
10%
0%
0% 10% 20% 30% 40% 50% 60%
Discount Rate

yF yM Linear (yF) Linear (yM)

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C. Complete the following table and note any differences between the statistics for females and
males. (2 marks)

Statistic
Females Males
Covariance 0.01585 0.01785
Coefficient of Correlation 0.963441281 0.959483301
Coefficient of Determination 0.928219102 0.920608206
Y-intercept 0.173181818 0.274090909
Slope 0.576363636 0.649090909
Least Squares Line 1.071168831 1.432207792

D. Using your answer to [A], [B] and [C], does Samsung’s market share, relative to Apple, increase
or decrease across gender, with the discount offered by Samsung? Is there a difference in
brand loyalty for females and males? (1 mark)

Females shows more brand loyalty towards Apple than males and so does the Least Square
Regression line states. Variability between males can be noted to be higher than in females.
Though both gender have strong positive correlation with discount offers and their preference
towards smartphones.(Bojadziev, 2007)

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 Section C: Advance scenarios (25 marks)
8. Confidence intervals: (7 marks)

Suppose, you randomly selected a student from the 2017 BUS1BAN class.

a. How likely is it that the student will be a female and how likely is it that the
student will be a male? (1 mark)

Female Male
Sample proportion (𝑝̂ ) 0.502857143 0.497142857

Provide 95% interval estimates for each gender, show the confidence intervals graphically, and
interpret your results.

i. Females (1.5 marks)

Female
0.7

0.6 0.565025751
0.502857143
0.5 0.440688534

0.4

0.3

0.2

0.1

0
0 0.5 1 1.5 2 2.5 3 3.5 4

ii. Males. (1.5 marks)

Male
0.7

0.6 0.559311466
0.497142857
0.5 0.434974249

0.4

0.3

0.2

0.1

0
0 0.5 1 1.5 2 2.5 3 3.5 4

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 b. How likely is it that the student will be using a smartphone? Provide a
99% interval estimate, show the confidence interval graphically and interpret
your results. (3 marks)

Smart phone users

Sample proportion 0.98285714

Smart Phone User

1.03
1.02
1.005683806
1.01
1
0.99 0.982857143
0.98
0.97
0.960030479
0.96
0.95
0.94
0 0.5 1 1.5 2 2.5 3 3.5 4

9. Confidence intervals (part 2): (8 marks)

A. What is the average monthly earnings of male and female students at La Trobe? (1
mark)

Female Male
Average Monthly
1291.101 1263.522
Earnings ($)

B. Provide 95% interval estimates for each gender, show the confidence intervals graphically,
and interpret your answer.

i. Females (3.5 marks)

Females
1800
1600 1479.234713
1400 1291.101494
1102.968275
1200
1000
800
600
400
200
0
0 0.5 1 1.5 2 2.5 3 3.5 4

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 ii. Males. (3.5 marks)

Males
1800
1600 1431.098112
1400 1263.521839
1200 1095.945566

1000
800
600
400
200
0
0 0.5 1 1.5 2 2.5 3 3.5 4

10. Hypothesis Testing: (10 marks)

A US market survey shows that the market share of iPhone is more than 40% of the US
market. Is this true for La Trobe students as well? Use your sample data to test this claim
at 1%, 5% and 10% levels of significance and interpret your answers.

Clearly label and follow the 5 steps of hypothesis testing procedure as outlined on the
formula sheet. (10 marks)

1. Ho = 𝑝̅ ≥ 0.40

2. H1 = 𝑝̅ ≠ 0.40

3. 𝛼 = 0.01 , 0.05, 0.10

CI 𝛼 = 0.01 𝛼 = 0.05 𝛼 = 0.10
𝑝− 𝑝̅ Upper
4. Test : 𝓏 = 0.820 0.797 0.785
√𝑛
𝑝𝑞 Interval
𝑝̅ 0.743 0.743 0.743
Lower
0.666 0.689 0.701
Interval

5. Conclusion
We do not reject Ho because the result with three different alphas lies in the
confidence Interval and shows that the Market share of Apple in La Trobe students
tends to remain equal or greater than US market share of Apple.

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III. Summary and discussion (15 marks):

The overall purpose after conducting a research was quite clearly gave a hint that Apple has strong
hold in US market as the sample shows a very strong relationship to prefer Apple phone over any
other smartphone/phone whether be it done on Gender biases, earning status, or any other traits
but the only thing that attracts people is the discount offers on other phones.

The sampling method done for selecting our sample was random sampling and it can be easily said
that it can represent its population, although there might be some variability in the results but that
can be ignored in case because the sample satisfies the hypothesis testing of Sample Proportion under
3 different significance level.

Although the data for the analysis was not much hard to interpret, but the last question of the
questionnaire needs to be reconstructed and certainly record the answers in quantitative form. For
other variable under consideration types of brands and option of smart phone should needs to be
revamped.

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 Reference List

Anderson, D., Sweeney, D., Williams, T., 2014. Modern business statistics with Microsoft Excel. Nelson
Education.

Bain, L., 2017. Statistical analysis of reliability and life-testing models: theory and methods. Routledge.
Bojadziev, G., 2007. Fuzzy logic for business, finance, and management. World Scientific.

Correlation - Statistical Techniques, Rating Scales, Correlation Coefficients, and More - Creative
Research Systems [WWW Document], n.d. URL
https://www.surveysystem.com/correlation.htm (accessed 5.8.18).

Siegel, A., 2016. Practical business statistics. Academic Press.

Statistics Notation [WWW Document], n.d. URL http://stattrek.com/statistics/notation.aspx
(accessed 5.8.18).

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