Premium Essay

Submitted By criscel2403

Words 901

Pages 4

Words 901

Pages 4

AJ DAVIS is a department store chain, which has many credit customers and wants to find out more information about these customers. A sample of 50 credit customers is selected with data collected on the following five variables:

1. Location (Rural, Urban, Suburban)

2. Income (in $1,000’s)

3. Size (Household size)

4. Years (the number of years that the customer has lived in the current location)

5. Credit balance (the customers current credit balance on the store’s credit card, in $ Dollars)

Individual variables a. Location Location | Frequency | Relative Frequency | Rural | 13 | 0.26 | Suburban | 15 | 0.3 | Urban | 22 | 0.44 | n= | 50 | 1 |

The table and the pie chart above, show the location of AJ Davis’ customers distributed in 3 areas: rural, suburban and urban. The majority of customers live in urban areas with 44% or 22 out of 50. Suburban areas with 30% or 15 out of 50 of customers are the second and rural areas have the least amount of customers with 26% or 13 out of 50. b. Income Variable Income ($1000) | | | | n=50 | | | | | | | | | | Mean= 43.74 | Std Dev=14.64 | | Q1=30 | Median=42 | | Min=21 | | Q3=55 | Mode=55 | | Max=67 | | Range=46 |

Based on the table and histogram, the range of customer’s income is $46,000, with the highest income at $67,000 and the lowest at $21,000. The mean (average) income of a customer is $43,740. The median income is $43,000. Because the median is less than the mean, distribution is skewed to the right. This means the bigger portion of customers have an income under the rest of customers. However, this difference is not much.

c. Credit balance

Variable Credit balance ($) | | | n=50 | | | | | | | | | | Mean=3970 | | Std Dev=932 | | Q1=3121 | Median=4070 | Min=1864 | | Q3=4742 | Mode=3890 | | Max=5678 | | Range=3814…...

Premium Essay

...Question 1 First year students marks of Managerial Statistics Marks – Managerial examinations 2010 Percentage Achieved | No of students | 0 >20 | 5 | 20 > 40 | 18 | 40 > 60 | 30 | 60 >80 | 20 | 80 > 100 | 4 | Total | 77 | 1 (a) Chart 1: Histogram of the Managerial Statistics marks obtained (b) Percentage Achieved | No of students | Less Cumulative | More cumulative | 0 >20 | 5 | 5 | 77 | 20 > 40 | 18 | 235 | 72 | 40 > 60 | 30 | 53 | 54 | 60 >80 | 20 | 73 | 24 | 80 > 100 | 4 | 77 | 4 | Total | 77 | | | (c) Percentage Achieved | No of students (f) | Mid (x) | fx | Cum <(f) | 0 >20 | 5 | 10 | 50 | 5 | 20 > 40 | 18 | 30 | 540 | 23 | 40 > 60 | 30 | 50 | 1500 | 53 | 60 >80 | 20 | 70 | 1400 | 73 | 80 > 100 | 4 | 90 | 360 | 77 | Total | 77 | | 3850 | | Arithmetic mean = ΣfX/Σf In this case the Arithmetic mean = 3850/77 = 50% average achievement ( mean). (d) Value of the median using grouped data Median = n/2 = Σf/2 = 77/2 = 38.5 The position of the median is : L + I [n/2 – c] F L=40 I = UL –LL = 60-40= 20 n = 77/2 =38.5 c = 23 F= 30 = 40+ 20 [38.5- 23]/30 = 40 +20 [15.5]/30 = 50,3% is the median score for Managerial Statistics. (e) M0 = L+I [ d ] d1+ d2 L = 40......

Words: 1599 - Pages: 7

Premium Essay

...the manager’s speculations. A. The first speculation is that the average mean annual income was less than $50,000. Below is my hypothesis testing: The null hypothesis H0 is that the mean annual income μ is equal to $50,000. H0: μ = $50,000. The alternative hypothesis H1 is that the mean annual income μ is less than $50,000. H1: μ < $50,000. Significance level is 5% or α = 0.05 Since, the population standard deviation is of the project is unknown. Therefore, I will use a t statistic which is t = X-μS/n follows a t distribution with n-1 degrees of freedom. Looking at the t table corresponding to 0.05 probability, the critical value tα =1.6766. Hence the critical region is t < -1.6766. Otherwise, we will reject the null hypothesis, if the p value is less than the significance level. If we substituting the value we get t = 43.74-5014.6396/50 = -3.02 the p value corresponding to t = -3.02 and 49 d.f. is 0.002 which is smaller than the significance level. The value of the test statistic is in the critical region and therefore it is significant. So, i will reject the null hypothesis at 5% level of significance. My p-value is 0.002 which is smaller than the significance level. Hence there are 0.002 chances that such a small value can be observed when the null hypothesis is true. Since, my probability is smaller than the significance level I will reject the null hypothesis at 5% level. Therefore, I conclude that there is enough evidence to support the......

Words: 5609 - Pages: 23

Premium Essay

...Week Four Assignment: Ch.8 & Ch.9 Keidra Conner BUS 640 Managerial Economics October 15, 2012 Ch.8 Applied Problem 2 2. At a management luncheon, two managers were overheard arguing about the following statement: “A manager should never hire another worker if the new person causes diminishing returns.” Is this statement correct? If so why? If not, explain why not. Yes, this statement is correct because in some cases hiring new workers can become negative and cause the marginal product to fall. The text states the managers beyond the point of diminishing returns but not to the point of negative marginal product (Thomas & Maurice, 2011, pp. 296-297). Ch.9 Applied Problems 2 & 4 2. The largo Publishing House uses 400 printers and 200 printing presses to produce books. A printer’s wage rate is $20, and the price of a printing press is $5,000. The last printer added 20 books to total output, while the last press added 1,000 books to total output. Is the publishing house making the optimal input choice? Why or Why not? If not, how should the manager of Largo Publishing House adjust input usage? No, the publishing house is not making the optimal input choice because this is not the least-cost combination of inputs. The manager should hire another printer to maximize the output at a lesser cost. This will balance the amount of inputs for maximizing production of the given output. 4. The MorTex Company assembles garments entirely by hand even though a......

Words: 577 - Pages: 3

Premium Essay

...correlation between the two variables. The linear positive slope indicates that an increase in the credit balance correlates with an increase in income. PART B- Hypothesis Testing and Confidence Intervals A.) The average (mean) annual income was above the $45,000 value that was speculated by the manager by $1020.00. I found the average for annual incomes to be 46.02 or $46,020 and the standard deviation to be 13.88 or $13,880 Set up Hypothesis Test * Ho: µ = 45 (I’m keeping in mind that’s thousands) * H1: µ < 45 For α = 0.05 and “<“ in the Ha, I found z = .52, so the “Rejection Region” would be z < .52 * Now I calculate the test statistic * z = (46.02-45)/2.069 = .493 because σx bar = 13.88/sqrt(45) = 2.069 (rounded to the third decimal place) * My calculated test statistic of .493 does fall in the rejection region of z < .52 therefore I would reject the null hypothesis and say there “is sufficient evidence to indicate µ < 45 or $45,000.” The P value is .02 P = x/n which is 46.02 average income/2301 total of all incomes (thousands) 95% confidence intervals- I am 95% confident that the true mean income lies between $42,170 and $49,870. B.) The true population proportion of customers who live in a suburban area is less than 45. * 15 of the 50 surveyed lives in a suburban area, which is 30% or 0.30; this is my point estimate for p. * Thus I would have * Ho: p = 0.45 vs. Ha: p < 0.45 To conduct the large......

Words: 1841 - Pages: 8

Premium Essay

...BMS1024 MANAGERIAL STATISTICS ASSIGNMENT The objective of this assignment is to test your understanding in the lessons learnt in Topics 1 until 10. It is also designed to test and enhance your critical thinking skills. Please follow the respective due date given below. Monday; 29th April 2013 before 5 p.m. to your respective tutor (Week 8) The assignment carries 20% of your coursework marks. Instructions: 1) This is a grouped assignment with a maximum of 4 members from the same lecture section. 2) The printed-out assignment must be submitted latest by the stated deadline. 3) Be sure to include the Assignment Cover Sheet which has been signed by you and your members. A penalty of 10% will apply for each day thereafter unless an extension of time has been granted by your lecturer before the due date. 4) The assignment must be typed written in the Microsoft Work in a report format. Handwritten or soft copy assignment is not acceptable. There is no restriction on the number of pages, font type, font size etc. You may include relevant Excel tables, graphs and charts if necessary. The quality of report presentation should be worthy of submission to your employer or project manager. Some marks will be deducted for submitting a sloppy report. 5) Be reminded that plagiarism is a serious offense. Any assignment that has been plagiarized from the Internet or from the other classmates will receive ZERO marks! 6) Refer to the Excel file to solve the cases. HH 1 BMS1024 ...

Words: 839 - Pages: 4

Premium Essay

...Applied Business Statistics FINAL Examination 1. The t distribution A) assumes the population is normally distributed. B) approaches the normal distribution as the sample size increases. C) has more area in the tails than does the normal distribution. D) All of the above. 2. Suppose a 95% confidence interval for μ turns out to be (1,000, 2,100). Give a definition of what it means to be "95% confident" in an inference. A) In repeated sampling, the population parameter would fall in the given interval 95% of the time. B) In repeated sampling, 95% of the intervals constructed would contain the population mean. C) 95% of the observations in the entire population fall in the given interval. D) 95% of the observations in the sample fall in the given interval. 3. In the construction of confidence intervals, if all other quantities are unchanged, an increase in the sample size will lead to a wider interval. A) narrower B) wider C) less significant D) biased 4. An economist is interested in studying the incomes of consumers in a particular region. The population standard deviation is known to be $1,000. A random sample of 50 individuals resulted in an average income of $15,000. What is the upper end point in a 99% confidence interval for the average income? A) $15,052 B) $15,141 See worksheet C) $15,330 D) $15,364 5. A prison official wants to estimate the proportion of cases of recidivism....

Words: 2510 - Pages: 11

Premium Essay

...111-111-1112 E-Mail: pelican@pelican.com Web: pelican1.com Managerial Report Group 9 Aroloye, Tinuade Knudson, Jason 02/05/12 +Pelican Stores Managerial Report 2 Introduction Based on a sample of 100 customers for Pelican Stores Net sales for the period, find below detailed sales analysis. Credit Card Payments As shown in table 1 below, it appears Proprietary card is the method of payment mostly used by customers followed by Master card, Visa, Discover and American Express. Method of Payment American Express Discover MasterCard Proprietary Card Visa Grand Total Frequency 2 4 14 70 10 100 Table 1. Relative Frequency 0.02 0.04 0.14 0.7 0.1 1 Demographics Breakdown Grouping customers on the basis of marital status and gender as shown on Table 2, it seems that Pelican stores have more married customers than single customers. Of those married customers, the majority of them are female. It appears the relevant frequency for married females and everyone else is 80% and 20% respectively. Also it seems married customers spend more money on purchases at the store more than single customers, average spend by married and singles appears to be $78.03 and $75.35 respectively (Table 6 on page 5). Pie Chart of Genders with Marital Status 4% 3% Married Female 13% Married Male Single Female 80% Single Male +Pelican Stores Managerial Report 3 Data on Regular Customer Table 3 is a descriptive statistics for net sales by regular and promotion customers. It......

Words: 753 - Pages: 4

Premium Essay

...SCIENCE – is an orderly arrangement of knowledge and fact based on careful observation and experimentation. MATHEMATICS - a branch of science dealing with finding plausible solution to certain irregular condition known as problem with the use of some quantitative techniques. STATISTICS – branch of science dealing with the collection, presentation, analysis, and interpretation of data with the use of some mathematical tools to arrive at a valid and reliable conclusion and/or generalization. System: methods Procedures Processes Steps STATISTICS SAMPLE AND SAMPLE SIZE DISTRIBUTION Samples are preferred and/or recommended to be used in a research understanding for 3 essential reasons: Money, effort and time (MET) Slovin’s Formula - a practical statistical method used to determine the so called “ideal” sample size (n) ____N____ N = 1 + N(e)2 Two Most Commonly Used e’s 1. 0.01 = medical health related fields 2. 0.05 = allied fields This applies that the researcher is 95% confident or sure that whatever data generated from the sample(s) are true and are applicable to the population from where the sample(s) was drawn A sample can be a population; a population can be a sample, depending on the point of reference! Exercise: N = 1000 e = .05 ____N____ N = 1 + N(e)2 = 1000 ...

Words: 1502 - Pages: 7

Premium Essay

...Keller Graduate School of Management Applied Managerial Statistics (GM533) Course Project Case Study: Grocery Bags data gathered and written by ME Applied Managerial Statistics GM533 Instructor: XX I. Executive Summary For this research I decided to develop my own case study and collect all the data myself. The data file named “Grocery Bag Study” (separate attachment), contains observations on 33 sample groups with a variation of 8 different characteristics (see table below). These characteristics include ethnicity, number of adults and minors in household, the number of bags collected weekly, the number of bags they recycle or reuse, the use of reusable fabric shopping bags, how many they throw away and the sex of the adults in the household. The totals for the bags are shown in the table below (Table A.1). For the sake of this study, I am going to combine the paper and plastic together because I want my dependent variable to be the number of bags recycled each week. I want to determine if the independent variables affect the recycle rate and which ones affect it the most, which can be eliminated and what my conclusions will be. II. Calculations This file was used to prepare a report on the influence of various options on grocery bags collected each week and to relay how this information could be used to determine the recycle rates (y). Statistical analysis by Hypothesis Testing and Multiple Regression Analysis was performed on the collection of grocery...

Words: 3720 - Pages: 15

Premium Essay

...giving researchers obvious ideas of the issues they may encounter while doing the investigation and the enhancements of concepts. Overall, the exploration of research will advance the research project. Exploring research is also important because some of the information researchers receive is so ambiguous that exploration is a necessity. In the exploratory stage of the research, researchers should achieve the following: 1) Increase your understanding of the management dilemma by observing the way others address these situations; 2) Enhance the research question by collecting background information on your specific issue; 3) Find and collect data to articulate investigative questions; 4) Identify resources to ask questions that may be applied as measurement questions, and 5) Gather records of likely participants that could be used in sample design. Literature search; an evaluation of books, articles in journals, or professional writing, that may pertain to your management dilemma, is usually the first phase in exploratory research. The examining of secondary sources can be extremely tricky and difficult for researchers. Researchers must shift from management questions to research questions, so they use internal and external secondary resources. There are five types of Internal Sources comprised of; 1) management documents; 2) Financial documents and databases; 3) Human resources documents and databases; operations documents, and 4) Databases and, marketing documents......

Words: 537 - Pages: 3

Free Essay

...GM533 Applied Managerial Statistics Course Project Ebenezer Newman and Mark Cherry * NE (Northeast) 1: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New York, Pennsylvania, New Jersey 0: Others * MW (Midwest) 1: Wisconsin, Michigan, Illinois, Indiana, Ohio, Missouri, North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa 0: Others * WEST (West) 1: Idaho, Montana, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico, Alaska, Washington, Oregon, California, Hawaii 0: Others * Region 3 (South) Delaware, Maryland, District of Columbia, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, Kentucky, Tennessee, Mississippi, Alabama, Oklahoma, Texas, Arkansas, Louisiana Scatter plots Get the scatter plots for each variable against the crime rate VIF From the result we see that there is no Multicorinality Predictor Coef SE Coef T P VIF Constant -340 1101 -0.31 0.759 NEAST -304.9 508.9 -0.60 0.553 3.307 MID-WEST -164.5 475.2 -0.35 0.731 3.564 WEST 351.6 588.9 0.60 0.554 5.773 PINCOME -0.01055 0.07966 -0.13 0.895 4.154 DROPOUT 70.66 26.61 2.66 0.011 2.975 PUBAID -76.43 86.78 -0.88 0.384 2.305 DENSITY -1.6666 0.9109 -1.83 0.075 3.760 KIDS 0.851 1.801 0.47 0.639 3.959 PRECIP 7.69 13.85 0.56 0.582 3.328 UNEMPLOY -93.30 ...

Words: 1030 - Pages: 5

Premium Essay

... MATH533: Applied Managerial Statistics Course project – part A I. Introduction. AJ DAVIS is a department store chain, which has many credit customers and wants to find out more information about these customers. A sample of 50 credit customers is selected with data collected on the following five variables: 1. Location (Rural, Urban, Suburban) 2. Income (in $1,000’s) 3. Size (Household size) 4. Years (the number of years that the customer has lived in the current location) 5. Credit balance (the customers current credit balance on the store’s credit card, in $) II. Individual variables. 1. Location Tally for Discrete Variables: Location Location Count Percent Rural 13 26.00 Suburban 15 30.00 Urban 22 44.00 N= 50 [pic] Interpretation: Look at the table and the pie chart above, we can see the location of AJ Davis’ customers is distributed in 3 areas: rural, urban and suburban. The majority of customer live in urban areas with 44%. Suburban areas with 30% of customers are the second and rural areas have the least amount of customers with 26%. 2. Income. Descriptive Statistics: Income ($1000) Total Variable Count Mean StDev Minimum Q1 Median Q3 Maximum Income ($1000) 50 43.74 14.64 21.00 30.00 43.00 55.00 67.00 Variable Range Income ($1000) 46.00 [pic] Interpretation: Based on the table and histogram, we have some comments as follow. The range of......

Words: 965 - Pages: 4

Premium Essay

...MKTG 630-1502b-02: Applied Managerial Marketing Colorado Technical University The two pricing strategies that M&M need to take in consideration are Penetration Pricing and skimming strategy. Our book for this class outlines four strategies that are essentially used in the business, which are skimming, economy, penetration, and premium pricing strategies (Definition of Pricing, 2015). Organizations may diversify the four mentioned strategies, or may include even more strategies that are found through researching, such as the high and low strategy, marginal cost pricing, and market oriented pricing. Price may maximize revenue and profits, or may backup existing market from new competitors (Definition of Pricing, 2015). However, for this assignment I’ve chosen the before mentioned strategies, penetration & skimming as I’ve compared and analyzed M&M’s benefits in comparison to the cost associated with gaining them. Penetration pricing is set preciously short in order to gain market share swiftly. After a new service is launched, there is an understanding that prices increase after the period of promotion and also after there are achievements of market share objectives (Definition of Pricing, 2015). With penetration pricing, there is a goal of customers’ attraction from setting prices low. Skimming strategy’s idea is to recuperate maximum money upon services attract more competition that will decrease profits for the organization (Applied Managerial). Skimming is......

Words: 783 - Pages: 4

Free Essay

...Course Project Part II: Bertram Proprietary Credit Scoring Model Jordan Spence Student ID: D01326483 In partial fulfillment of the requirements for MATH 533 – Applied Managerial Statistics Keller Graduate School of Management Dr. Gerard L. Kiely June 24, 2015 PROJECT PART II: Bertram Proprietary Credit Scoring Model The preliminary analysis carried out in Part I of our project has shown that the data is consistent and reliable, with no missing values. The next step is to construct preliminary and final models. A. Create indicator (dummy) variables for the qualitative variables Own/Rent and Location using Minitab. First, label columns for the new indicator variables: Own, Rent, Urban, Suburban, Rural. Pull down the Calc menu in Minitab and select “Make Indicator Variables”. In the box labeled “Indicator Variables for … “ put the variable for which indicators are desired. Minitab will automatically code the values of Own/Rent and create two new variables named “Own” and “Rent”. Repeat this process for the variable Location. See screenshot below for new indicator variables: [pic] B. Develop a preliminary model and display its output in your paper. Describe its statistical characteristics and state your conclusions. Identify which variables you will keep and those you will drop. Be sure to explain why you made your choices. Be......

Words: 795 - Pages: 4

Free Essay

...SQ_FT BEDS 1162 1210 1294 1384 1400 1416 1664 1664 1680 1707 1730 1752 1829 1950 1973 1996 2381 816 838 912 912 912 1008 1008 1008 1118 1120 1238 1242 1250 1278 1296 1296 1316 1320 1320 1332 1355 1372 1379 1392 1418 1431 1434 1452 1490 1490 1516 1518 1548 1606 1608 BATHS 3 3 3 3 3 3 3 3 3 3 4 3 3 5 4 4 3 3 4 4 4 4 5 5 4 4 3 3 4 4 3 4 3 3 3 3 3 3 3 3 3 4 3 3 3 3 3 3 3 3 4 5 2 2 2 2 3 2 3 2 3 2 2 3 2 3 3 2 3 2 2 2 2 2 2 2 3 3 2 2 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 3 2 2 2 2 2 3 3 3 HEAT 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 STYLE 0 0 0 0 2 0 0 0 2 0 0 0 0 0 0 0 2 1 1 1 1 1 1 1 1 1 1 0 1 1 1 0 0 1 0 2 0 1 0 2 0 1 0 2 0 1 1 0 1 2 1 1 GARAGE BASEMENT AGE 1 0 1 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 1 1 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 1 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 2 1 3 1 FIRE 8 6 13 5 1 8 11 9 7 13 15 18 10 13 13 13 17 19 11 19 16 18 17 17 19 16 11 12 12 17 11 17 17 8 11 13 14 7 9 8 8 14 7 12 4 13 10 10 22 8 13 13 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 0 0 1 1 1 0 1 1 1 1 1 0 1 1 0 1 1 1 1 0 1 0 1 1 1 1 1 1 1 1 1 0 1 1 1 1627 1634 1652 1664 1664 1707 1725 1764 1765 1792 1794 1818 1823 1833 1840 1865 1881 1935 1977 1984 1984 1998 2004 2035 2040 2049 2060 2064 2072 2096 2096 2099 2108 2124 2130 2148 2150 2167 2170 2198 2212 2232 2262 2264 2264 2282 2298 2317 2353 2362 2375 2380 2505 3 3 4 3 4 3 4 4 3 4 4 4 4 3 3 3 4 3......

Words: 1934 - Pages: 8