DATA ANALYTICS FOR DECISION MAKING
Assignment Max. Marks : 20
You can use the statistical software ( Excel, SPSS, Minitab, MATLAB, R,….) to solve the
assignment.
1. A management consulting company presents a three-day seminar on project
management to various clients. The seminar is basically the same each time it is
given. However, sometimes it is presented to high-level managers, sometimes to
midlevel managers and sometimes to low-level managers. The seminar facilitators
believe evaluations of the seminar may vary with audience. The following data are
some randomly selected evaluation scores from different levels of managers who
attended the seminar. The ratings are on a scale of 1 to 10, where 10 is the highest
rating.
High Level Midlevel Low Level
7 8 5
7 9 6
8 8 5
7 10 7
9 9 4
10 8
8
1. Formulate the null hypothesis that tests for the difference in evaluations between the
different levels of managers.
2. Compute the average evaluations for each managerial level, as well as the overall
average.
3. Compute the overall, between-group and within-group variations in evaluations.
Which one is the variance due to treatment and which one is the variance due to error?
Explain.
4. Develop the test-statistic for your testing of the hypothesis in question 1, and
characterize its distribution. Intuitively explain what type of values will lead to the
rejection of the null hypothesis and why.
5. From the data above, create an ANOVA table, and test the null hypothesis at 5% level
of significance.
6. Suppose you were given data on only two levels of managers, Midlevel and Low
Level. What other hypothesis test could you conduct? Why did that test not apply in
this 3-category data? 7 marks
2. An insurance company advertises in the press a special pension plan for self-
employed persons. The advertisement includes a coupon which enables interested
persons to complete and return to the company. The company then posts to the
enquiry’s information about the pension plan. If there is no response from the
enquiries to the initial information, a second information pack is sent to the enquiries.
If there is still no response, a telephone call is made to the enquiries. Enquiries are
divided by the company into three categories: takes on a plan, shows interest in plan,
not interested. The company analysed a sample of 200 respondents to the initial
advertisement i.e. those who returned the coupon. The following data was obtained.
Responds to Responds to Telephone
call made
I mailing II mailing
Takes out plan 36 24 30
Shows interest 18 16 16
Not interested 6 20 34
Test at 5% significance level whether there is any association between response and interest
in the pension plan. Use appropriate statistical test. 5 marks
3. A poll was conducted by the marketing department of a video game company to
determine the popularity of a new game that was targeted to be launched in three
months. Telephone interviews with 1,500 young adults were conducted which
revealed that 49% said they would purchase the new game. The margin of error was
±3 percentage points.
a) What is the needed sample size to obtain a 95% confidence interval estimate of
the percentage of the targeted young adults who will purchase the new game by
allowing the same level of margin of error?
b) What is the needed sample size to obtain a 90% confidence interval estimate of
the percentage of the targeted young adults who will purchase the new game by allowing
the same level of margin of error? 3 Marks
4. Data indicates that the time to download check$mart’s home page is normally
distributed with mean 7 seconds and standard deviation of 2 seconds.
a. what is the probability that the download time will be more than 9 seconds
b. what is the probability that the download time will be between 7 and 9 seconds
c. what is the probability that the download time is under 7second or over 9
seconds
d. what is the probability that the download time will be between 5 and 9 seconds
e. what is the probability that the download time is less than 3.5 seconds
f. How much time ( in seconds) will elapse before 10% of the download are
complete.
g. What are the Upper Limit and Lower limit of X , located symmetrically
around the mean, which include 95% of the download times 5
marks
All the best
