DFI4005

Quantitative Methods for Accounting and

Finance

Coursework

Date for Submission: Please refer to the timetable on ilearn

(The submission portal on ilearn will close at 14:00 UK time

on the date of submission)

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including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
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Assignment Brief

As part of the formal assessment for the programme you are required to submit a
Quantitative Methods for Accounting and Finance assignment. Please refer to
your Student Handbook for full details of the programme assessment scheme and
general information on preparing and submitting assignments.

Learning Outcomes:

After completing the module, you should be able to:

1. Formulate, manipulate and solve simple equations and represent relationships using
linear and non-linear models as well as use compound interest and discounting
techniques to calculate future values and present values.
2. Calculate and interpret measures of central tendency and dispersion using
spreadsheet functions as appropriate as well as understand basic probability theory,
and apply discrete and continuous probability distributions.
3. Apply sampling theory to estimation, and to parametric and nonparametric hypothesis
testing.

4. Explore the association between two variables through the use of variance, covariance
and correlation analysis and perform simple regression analysis.

In addition, students will also be able to demonstrate the following Graduate Attributes:

GA (1) Digitally Literate: Identify and apply digital tools and/or services and self-assess
digital capabilities. Identify and use appropriate digital applications for given purposes
and tasks.

GA (2) Contextually Innovative: solve given and clearly defined problems, use specified
and innovative approaches, analyse, evaluate, and reflect on the approaches and
solutions.

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materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
All learning outcomes must be met to pass the module.

Guidance

Your assignment should include: a title page containing your student number, the
module name, the submission deadline and the exact word count of your submitted
document; the appendices if relevant; and a reference list in AU Harvard system(s).
You should address all the elements of the assignment task listed below. Please
note that tutors will use the assessment criteria set out below in assessing your work.

You must not include your name in your submission because Arden University
operates anonymous marking, which means that markers should not be aware of the
identity of the student. However, please do not forget to include your STU number.
Maximum word count: 2500 words

Please refer to the full word count policy which can be found in the Student Policies
section here: Arden University | Regulatory Framework

Please note the following:

Students are required to indicate the exact word count on the title page of the
assessment.

The word count includes everything in the main body of the assessment (including in
text citations and references). The word count excludes numerical data in tables,
figures, diagrams, footnotes, reference list and appendices. ALL other printed
words ARE included in the word count.

Please note that exceeding the word count by over 10% will result in a 10-percentage
point deduction.

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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Assignment Task

Report 1: International bank

The manager of a city-centre branch of an international bank commissioned a customer

satisfaction survey. The survey investigated three areas of customer satisfaction:
experience waiting for service at the desk, experience being served at the desk, and
experience of self-service facilities at the branch. Within each of these categories,
respondents were asked to give ratings on several aspects of the bank’s service. These
ratings were then summed to give an overall satisfaction rating in each of the three areas
of service. The summed ratings were scaled to lie between 0 and 100, with 0 representing
extreme dissatisfaction and 100 representing extreme satisfaction. The accompanying
data file ‘Bank’ contains the 0–100 ratings for the three areas of service, together with
particulars of respondents’ gender and whether (or not) they would recommend the bank
to other people (a simple Yes/No response was required to this question).

Prepare a report comprising the following:

a. Use descriptive statistics to summarize each of the five variables in the data file (the
three service ratings, customer gender and customer recommendation). Comment
briefly on your findings. [12 marks]
b. Calculate confidence interval estimates of the mean service rating for the population of
customers of the branch, for each of the three service areas. Give an interpretation of
each interval estimate. [10 marks]
c. Calculate confidence interval estimates of the proportion of the branch’s customers who
would recommend the bank, and of the proportion of the branch’s customers who are
female. Give an interpretation of each interval estimate. [7 marks]
d. Suppose the branch manager required an estimate of the percentage of branch
customers who would recommend the branch within a margin of error of 3 percentage
points. Using a 90% confidence level, how large should the sample size be? [6 marks]

(875 words)
(35 marks)
(LOs: 1, 2, 3)

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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
Report 2: Sales forecasting for new toy

A large toy-store chain is considering the launch of a new toy, currently code-named
‘Noel25’, in time for Christmas 2025. The question the company faces is deciding how
many units to order from its manufacturers to meet anticipated sales demand. If too few
are ordered, sales will be lost (a ‘stock-out’). If too many are ordered, losses will be
incurred because of low prices realised in post-Christmas clearance sales.

The company’s sales analyst predicts an expected demand of 25,000 units with a 0.95
probability that demand will be between 15,000 units and 35,000 units. The four members
of the management team have suggested order quantities for Noel25 of 20,000; 24,000;
27,000; and 32,000 units. The manufacturing and distribution cost is £20 per unit. The
company expects to sell Noel25 before Christmas for £30 per unit. After the Christmas
period, the company will sell surplus inventory for £10 per unit.

Prepare a report that addresses the following:

a. Using the sales analyst’s predictions, calculate the mean and standard deviation of a
normal distribution that will approximate the probability distribution for demand.
[5 marks]

b. Calculate the probability of a stock-out for the order quantity suggested by each
member of the management team. [5 marks]

c. Calculate the projected profit for the order quantities suggested by the members of the
management team under three scenarios: worst case, sales = 15,000 units; most
likely case, sales = 25,000 units; best case, sales = 35,000 units. [10 marks]

d. Suppose the payment to the manufacturer is made at the end of July 2025. Assume
half the Christmas sales revenue is received at the end of November, half at the end
of December, and the after-Christmas sales revenue is received at the end of January
2025. Assume 32,000 units are ordered, and Christmas sales match the sales

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materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
 analyst’s expected demand figure. What is the projected profit at July 2024 prices if a
discount rate of 0.25% per month is applied to the revenues? [10 marks]

(750 words )
(30 marks )
(LOs: 1, 2, 3)
Report 3: Digital camera prices
A consumer affairs organisation (CAO) tested different point-and-shoot digital cameras.
Based upon factors such as the number of megapixels, weight (grams), image quality,
and ease of use, the CAO constructed an overall score for each camera tested. The
overall score ranges from 0 to 100, with higher scores indicating better overall test results.

Selecting a camera with many options can be a difficult process, and price is a key issue
for most consumers. But by spending more, will a consumer really get a superior camera?

The accompanying Excel file ‘Cameras’ shows the brand, recommended retail price (£),
number of megapixels, weight (grams), and the overall score for 13 Canon and 15 Nikon
subcompact cameras that were tested by the CAO.

Prepare a report that covers the following areas:

a. Using overall score as the dependent (response) variable, construct three scatter
diagrams, one using price as the independent (explanatory) variable, one using the
number of megapixels as the independent (explanatory) variable, and one using
camera weight as the independent (explanatory) variable. [6 marks]

b. Based on your plots from (a), comment briefly on the apparent relationship between
overall score and each of the independent variables. Which of the three independent
variables appears to be the best predictor of overall score (justify your answer)?
[8 marks]

c. Calculate an estimated simple linear regression equation that could be used to predict
the overall score given the price of the camera, and 95% confidence intervals for the
slope and intercept parameters of the equation. Interpret the slope coefficient of your
estimated equation and its associated confidence interval. [10 marks]

d. Calculate and interpret the R-squared value of the estimated equation in (c). [3 marks]

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materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
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e. Suppose you examine only the data for the Canon cameras. Based on these data,
discuss the appropriateness of using a simple linear regression of overall score on
price to estimate overall score. [8 marks]

(875 words)
(35 marks)
(LOs: 1, 2, 3, 4)

End of questions

Formative Feedback

You have the opportunity to submit a draft of your assignment to receive formative
feedback.

The feedback is designed to help you develop areas of your work and it helps you
develop your skills as an independent learner.

If you are a distance learning student, you should submit your work, by email, to your
tutor, no later than 2 weeks before the actual submission deadline. If you are a blended
learning student, your tutor will give you a deadline for formative feedback and further
details.

Formative feedback will not be given to work submitted after the above date or the date
specified by your tutor - if a blended learning student.

Referencing Guidance

You MUST underpin your analysis and evaluation of the key issues with appropriate
and wide ranging academic research and ensure this is referenced using the AU
Harvard system(s).

Follow this link to find the referencing guides for your subject: Arden Library

Submission Guidance

Assignments submitted late will not be accepted and will be marked as a 0%

fail.

Your assessment can be submitted as a single Word (MS Word) or PDF file, or, as
multiple files.

If you chose to submit multiple files, you must name each document as the question/part
you are answering along with your student number ie Q1 Section A STUXXXX. If you
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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning
materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
wish to overwrite your submission or one of your submissions, you must ensure
that your new submission is named exactly the same as the previous in order for
the system to overwrite it.

You must ensure that the submitted assignment is all your own work and that all
sources used are correctly attributed. Penalties apply to assignments which show
evidence of academic unfair practice. (See the Student Handbook which is available
on the A-Z key information on iLearn.)

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materials or this publication may be reproduced, shared (including in private social media groups), stored in a retrieval system or transmitted in any form or means,
including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about
the use and distribution of programme materials please see the Arden Student Terms and Conditions.
 Assessment Criteria (Learning objectives covered – all.
Level 4 is the first stage on the student journey into undergraduate study. At Level 4 students will be developing their knowledge
and understanding of the discipline and will be expected to demonstrate some of those skills and competences.
Student are expected to express their ideas clearly and to structure and develop academic arguments in their work.
Students will begin to apply the theory which underpins the subject and will start to explore how this relates to other areas
of their learning and any ethical considerations as appropriate. Students will begin to develop self-awareness of their own
academic and professional development.
Grade Mark Generic Assessment Criteria
Bands
First 80%+ Outstanding performance which demonstrates the ability to analyse the subject area and to confidently apply theory whilst
(1) showing awareness of any relevant ethical considerations. The work shows an outstanding level of competence and confidence in
managing appropriate sources and materials, initiative and excellent academic writing skills and professional skills (where
appropriate). The work shows originality of thought.
70-79% Excellent performance which demonstrates the ability to analyse the subject and apply theory whilst showing some awareness
of any relevant ethical considerations. The work shows a high level of competence in managing sources and materials, initiative
and excellent academic writing skills and professional skills (where appropriate). The work shows originality of thought.
Upper 60-69% Very good performance which demonstrates the ability to analyse the subject and apply some theory.
second The work shows a very good level of competence in managing sources and materials and some initiative. Academic writing skills
(2:1) are very good, and expression remains accurate overall. Very good professional skills (where appropriate). The work shows some
original thought.
Lower 50-59% A good performance which begins to analyse the subject and apply some underpinning theory. The work shows a sound level of
second competence in managing basic sources and materials. Academic writing skills are good, and expression remains accurate overall
(2:2) although the piece may lack structure. Good professional skills (where appropriate). The work lacks some original thought.
Third 40-49% Satisfactory level of performance in which there are some omissions in understanding the subject, its underpinning theory, and
(3) ethical considerations. The work shows a satisfactory use of sources and materials. Academic writing skills are limited and there
are some errors in expression and the work may lack structure overall. There are some difficulties in developing professional skills
(where appropriate). The work lacks original thought and is largely imitative.
Marginal 30-39% Limited performance in which there are omissions in understanding the subject, its underpinning theory, and ethical
Fail considerations. The work shows a limited use of sources and materials. Academic writing skills are weak and there are errors in

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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning materials or this publication may be reproduced, shared (including in private social media groups), stored
in a retrieval system or transmitted in any form or means, including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about the use and distribution of programme materials
please see the Arden Student Terms and Conditions.
 expression and the work may lack structure overall. There are difficulties in developing professional skills (where appropriate).
The work lacks original thought and is largely imitative.
Clear fail 29% and A poor performance in which there are substantial gaps in knowledge and understanding, underpinning theory and ethical
Below considerations. The work shows little evidence in the use of appropriate sources and materials. Academic writing skills are very
weak and there are numerous errors in expression. The work lacks structure overall. Professional skills (where appropriate) are
not developed. The work is imitative.

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Arden University © reserves all rights of copyright and all other intellectual property rights in the learning materials and this publication. No part of any of the learning materials or this publication may be reproduced, shared (including in private social media groups), stored
in a retrieval system or transmitted in any form or means, including without limitation electronic, mechanical, photocopying, recording or otherwise, without the prior written consent of Arden University. To find out more about the use and distribution of programme materials
please see the Arden Student Terms and Conditions.