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Rocinante
Mileage36 speed Marengo
Mileage32 speed
Car No. (km/ltr) (km/hr) Car No. (km/ltr) (km/hr) Roccinate Mileage Roccinate
1 21.2 151.9 1 15.04 211.3 Sample size Sample size
2 21.79 147.6 2 15.41 207 Sample standard deviation Sample standard deviation
3 21.87 145.6 3 15.43 206.2 Hypothesized mean Hypothesized mean
4 22.71 136.1 4 15.92 213.4 Sample mean Sample mean
5 22.52 139.7 5 15.2 204.2 Std error of mean Std error of mean
6 21.41 146.1 6 15.22 208.7 Degrees of freedom Degrees of freedom
7 22.71 139.6 7 14.6 200 t-test statistic t-test statistic
8 21.71 143 8 14.41 210.9 p-value p-value
9 19.95 136.4 9 14.79 208.5
10 20.65 146.6 10 14.81 214.2 Marengo Mileage Marengo
11 22.86 139.9 11 15.61 215.8 Sample size Sample size
12 21.12 136.6 12 15.76 215.8 Sample standard deviation Sample standard deviation
13 22.8 148.5 13 14.97 215.2 Hypothesized mean Hypothesized mean
14 20.89 143.4 14 14.71 218.7 Sample mean Sample mean
15 22.49 134.2 15 15.55 208 Std error of mean Std error of mean
16 20.94 140.5 16 15.19 212.2 Degrees of freedom Degrees of freedom
17 20.37 137.8 17 15.36 219.7 t-test statistic t-test statistic
18 22.72 135.1 18 15.93 216.4 p-value p-value
19 20.54 138.8 19 14.54 205.8
20 21.14 132 20 14.76 209
Topspeed

Topspeed
 Roccinante
Sales Price Top Marengo
Sales Price Top
Mileage Mileage
Cars (in 1,000 (in lakh speed Cars (in 1,000 (in lakh speed
(Km/ltr) (Km/ltr)
Rocinante units) rupees)
171.877 6.1 15.8 (Km/hr)
168.2 Marengo 1 units)
20.896 rupees)
42.5 9.3 (Km/hr)
199.4
Rocinante 139.796 6.1 12.1 149.6 Marengo 2 31.048 36 9.7 235.2
Rocinante 178.947 9.9 17 173.4 Marengo 3 29.904 54.7 16.6 240.8
Rocinante 140.022 5.8 11.6 170.6 Marengo 4 28.792 42.7 11.7 232.5
Rocinante 186.476 10 17.2 175 Marengo 5 16.776 44.9 13.7 188.8
Rocinante 192.123 6.5 17.6 173.1 Marengo 6 18.928 35.5 9.6 184.2
Rocinante 175.085 5.5 16 184.6 Marengo 7 22.776 51.3 13.7 207.7
Rocinante 146.882 8.4 13 175.7 Marengo 8 36.824 30.4 12.6 249.5
Rocinante 202.847 6.6 19.3 166.7 Marengo 9 22.216 38.4 16.2 175.8
Rocinante 149.933 8.8 13.3 175.4 Marengo 10 35.456 32.2 9.6 245.6
Rocinante 171.579 9.5 15.8 150.9 Marengo 11 28.576 59.4 11.3 223.3
Rocinante 201.512 9.2 19.2 140.5 Marengo 12 33.648 50.8 13.6 240
Rocinante 142.604 8.1 11.7 150.2 Marengo 13 33.44 57.5 13.5 250
Rocinante 135.158 5.4 11.2 146.2 Marengo 14 34.912 44.6 11.1 247.4
Rocinante 107.322 5.6 7.8 151.2 Marengo 15 24.016 34.6 14.1 192
Rocinante 199.699 6.3 19 143.2 Marengo 16 20.992 56.4 13.4 201.2
Rocinante 202.875 5.8 19.7 178.9 Marengo 17 21.696 41.4 12.8 193.3
Rocinante 204.406 7.7 19.5 168.2 Marengo 18 17.832 53.7 16 202
Rocinante 107.331 7.2 7.5 164.7 Marengo 19 25.624 44.8 12.7 208.9
Rocinante 190.345 8.4 18.1 182.7 Marengo 20 21.92 32.4 13.6 176.9
Rocinante 108.419 8.4 7.9 165.7 Marengo 21 24.792 40.9 11.6 218.2
Rocinante 150.249 5.7 12.6 137 Marengo 22 22.256 44.1 11.4 190
Rocinante 155.882 5.5 12.9 173.9 Marengo 23 15.488 46.6 16.3 176.8
Rocinante 100.98 8.4 7.6 165.1 Marengo 24 21.64 31.4 14.5 178.9
Rocinante 182.679 5.6 16.7 160.1 Marengo 25 23.264 54.7 14.3 192.3
Rocinante 166.752 9.9 15.5 155.6 Marengo 26 19.328 37.9 9.4 184.1
Rocinante 121.561 6.2 9.5 155.4 Marengo 27 27.216 52.9 15.3 240.3
Rocinante 174.256 9.9 16.3 161.9 Marengo 28 23.096 42.7 15 192.1
Rocinante 119.018 6.5 9.1 146.8 Marengo 29 17.824 54.9 13.5 199
Rocinante 169.842 7.1 15.3 149.5 Marengo 30 19.144 44 11.8 181.1
Rocinante 198.311 9.6 19.1 146.5 Marengo 31 21.6 42.2 9.3 181.2
Rocinante 204.875 5.8 19.4 178.9
Rocinante 119.561 6.2 9.4 175.4
Rocinante 203.875 5.9 19.4 175.9
Rocinante 118.561 6.1 9.4 165.4
 Question : A reputed mobile company claims that time taken to charge its phone is 2

Sample Time (min) Dummy

1 32 0
2 32 0
3 31
4 33
5 32
6 28
7 31
8 26
9 27
10 28
11 31
12 31
13 29
14 29
15 29
16 27
17 33
18 30
19 29
20 28
21 28
22 31
23 28
24 27
25 26
26 30
27 26
28 31
29 28

H0 true H0 false
Rej Ho Type 1(alpha, los) Correct
Fail to Reject Ho Correct Type 2
pany claims that time taken to charge its phone is 25 min. Test the claim at 5% los.

Method 1
Step 1the null and Alternate
State
Hypothesis H0: Mean time= 25 min
Ho:=, Ha not equal to I H0 >=,Ha< I Ho<=, Ha> Ha: Mean time ≠ 25 min

Step 2
Level of significance 5% level of significance

Step 3 Hypothesis test

Decide test to be used (z/t ) Sample size (n)
Calculate test statistics Sample standard deviation
Calculate p values Hypothesized mean
http://courses.atlas.illinois.edu/spring2016/STAT/STAT200/pt.html Sample mean
Std error of mean (SE)
n<30,t Degrees of freedom
n>30-z t-test statistic
p-value

Step 4 Interpretation
Rule (level of significance-5%)
If p≤.05, Reject Ho p(0.000)<alpha(0.05), Reject null hypothesis
if p>.05, Fail to reject Ho

Step 5 H0: Mean time= 25 min

Types of Error Interpretation
Type 1 Rej H0 when H0 is true Mean time is 25, but we rejected
Type 2 Fail to rej Ho when H0 is false Mean time is not 25min, but we fail to reject(accep

Business decision?
Alpha Type 1 Recheck our claim
Type 2 Launch
 m at 5% los.

Test Type of tail

pop stdev
is known z test
not known t test Ha: Mean time ≠ 25 min
n<30 test Ha: Mean time > 25 min
n>30 z test Ha: Mean time < 25 min

t test
29
2.13 stdev.s
25
29.34 average
0.39 standard dev/sqrt of sample size
28 n-1
11.0057 (sample mean-hypo mean)/s.e.
0.000 *0.000
0.0000000000101600

Reject null hypothesis

we rejected
min, but we fail to reject(accepted)
two tail
right tail
left tail

t-Test: Two-Sample Assuming Unequal Variances

Time (min) Dummy

Mean 29.34483 0
Variance 4.519704 0
Observations 29 2
Hypothesized Mean Diff 25
df 28
t Stat 11.00567
P(T<=t) one-tail 5.57E-12
t Critical one-tail 1.701131
P(T<=t) two-tail 0.0000
t Critical two-tail 2.048407
 The following data records the sales of mobile at a branded store. Other were recorded to map with sales. Frame the re
Sales=B0 + B1*Price+B2*Advertising+B3*Sales promotion (Y=B0+B1X1+B2X2+B3X3)

Design A
DV(Y) IDV(X) Steps for regression
Sales(Y) Price Advertising SP 1. Identify IDV and DV
96 4 4 2.8 2. Use data analysis tool pack to run regression
90 2 2.4 2.2 3. Check overall significance of f test (or p value)
95 5.2 3 2.4 - if p≤.05, reject Ho, means at least one beta is significant
92 5 2.5 1.6
- So go to next table
4. Check p values for individual independent variables
95 4 3.5 2 5. Identify variables with p≤.05 i.e.significant.
94 5 3 2 6. Use the intercept, significant beta values and variable names to create reg
94 4 3 1.6 equation.
94 3 3.4 1.2 7. We have final regression equation
99 5.2 4.2 2
93 4 2.9 1.2
95 2.7 3.1 1.2
98 6 3 2.2
97 4 3.8 2.4 Q4a Beta Coefficients
94 4.4 2.5 2 Intercept 80.9978132367907
92 2.4 3 1.2 Price 1.05002930340297
Advertising 3.00246202078216
Sales promotion -0.104658454003478

Q4b Regression Equation

A Sales=80.99+1.05*Price+3.002*adv
Pencil=10
cost=5 Q4c Calculate Sales for bottle with data from table for design A
sell=10 A
profit? Sales
tip:
Q5 Calculate Profit in selling bottlesfor design A
Profit= Sales*(Price-Cost)
Profit for design A

Q6 Which design should we invest?

????? Design A
Design A Design B Q7 Calculate the impact on sales if price is increased by 10 rs. Compare sales for tw
Price 100 70 Design A
Adv 5 6 Regression EquationSales=80.99+1.05*price+3.002*adv
SP 2 3 old sales=
Cost 60 50 new sales=
new price 110 80 Change=
new-old
Which design is impacted more?

Q8 Rerun the regression using only significant variables and compare the adjusted
 Parameter All variables
R Square
Adjusted R Square

Explain reason for change

Adjusted R square increases

adding variable Adj R increase- if added variable is sign
remove Adj R-increases- if removed var is insign
 to map with sales. Frame the regression equation.

Regression

Step1 : Identify IDV and DV mathematical relationship/ equa

n Dependent Variable (Y) Y=B0+B1*X1+b2*X2
e) Independent Variable (X) y-depenedent variable
significant X1,X2-IDV
ariables
Sugar level =B0+B1*No of sweets
d variable names to create regression DV

P value Significance?

B
Sales= 2+0.17*price+0.24*sales promotion

or design A
B

Profit for design B

ed by 10 rs. Compare sales for two different designs

Design B
Reg. Equation Sales= 2+0.17*price+0.24*sales promotion
old sales=
new sales=
Change=

A????

ables and compare the adjusted r square

Significant variables

Adjusted R square decreases

Adj R decreases- if added var is insig
Adj R decreases - if removed var is sig
 Bivariate (Simple linear regression) 2 variables(Sales=8+7Incentive)
Multivariate (multiple regression) More than 2variable, MLR

matical relationship/ equation between 2 or more variables

B1*X1+b2*X2
nedent variable B0- intercept
B1and b2- regression coefficient

evel =B0+B1*No of sweets I eat

IDV

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.89958981 correlation
R Square 0.80926182 indicates the amount of variance explained by regresion equation
Adjusted R Squa 0.75724232 fitted r square
Standard Error 1.16098369
Observations 15

ANOVA Analysis of variance

df SS MS F
Regression 3 62.9066190388 20.96887301 15.5568926843977
Residual 11 14.8267142945 1.347883118
Total 14 77.7333333333

Coefficients Standard Error t Stat P-value

Intercept 80.9978132 2.05497006497 39.41556844 0.0000
Price 1.0500293 0.29770183446 3.527117343 0.0047
Advertising 3.00246202 0.60940706717 4.926857896 0.0005
SP -0.10465845 0.69175944529 -0.15129313 0.8825
t>1.96 ,sign p<.05, significant

Sales=80.99+1.05*Price+3.002*adv
 (Sales=6+4.02*Incentive+3*advertising+2* sales promotion

ned by regresion equation

ANOVA
H0: Regresion is not significant
Ha: regression is significant
Significance F p value p<.05
0.000284909 p>.05
p<.05, regression is possible Reject Ho, Regression is significant
Fail to reject ho, regression is not significant

p<.05, significant
sign ????? always use intercept
sign
sign
not sign