GROUP ASSIGNMENT (15 PTS)

<ALYF 602: STATISTICAL ANALYSIS FOR MANAGEMENT>

Attempt the following questions in detail

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 TWO:

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? Explain your answer.

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?

(b) Compute SSxx, SSyy, and SSxy.

(c) Find the least squares regression line by choosing appropriate dependent and
independent variables based on your answer in part 1above.

(d)Interpret the meaning of the values of a and b calculated in part 3 above

(e) Plot the scatter diagram and the regression line.

(f) Calculate r and r2 and explain what they mean.

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

(h) Compute the standard deviation of errors

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.

(b) A light bulb selected from a production line is defective if, out of 400 bulbs
already tested, eight were defective.

(c) A new-born baby is male.

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;

(b) At least 3 units will be sold;

(c) At least 1 unit will be sold?

Submit your assignment on or before 2ND February, 2023