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Quantitative Methods
Student's Name
Institution
Course Name
Instructor's Name
Date
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Question one:
(a) Calculate the population mean.
𝜇= (∑X)/N
Solution:
Where,
Formula;
𝜇 (mu) = Represents the
population mean.
∑X (sigma x) = Represents the
sum of all values in a
population.
N= Represents the total number
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of individuals or cases in the
population (number of items)
∑X=231.37+252.19+246.18+228.74+25
9.89= 1,218.37
∑X= 1,218.37$
N= 5
𝜇= (∑X)/N;
𝜇= 1218.37/5= 243.67$
Population mean (𝜇) = 243.67$
(b)Calculate variance:
Formula: σ²= ∑(xi- 𝜇) ²/N
Where;
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σ²: Represents population
variance.
xi: Represents individual data
point.
𝜇: Represents Population mean.
N: Represents population size.
∑: is the symbol of sum of.
𝜇=243.67$
N= 5
xi=
231.37,252.19,246.18,228.74,25
9.89
∑(xi- 𝜇) = (231.37-243.67)+
5
(252.19-243.67)+ (246.18-
243.67)+(228.74-243.67)+
(259.89-243.67)
∑ (xi- 𝜇) = (-
12.30)+(8.52)+(2.51)+
(-14.93)+ (16.22)
∑ (xi- 𝜇) ²=
(-12.30)²+ (8.52)²+ (2.51)²+(-
14.93)²+(16.22)²
∑ (xi- 𝜇) ²=
151.29+72.59+6.30+222.94+26
3.09
∑ (xi- 𝜇) ²= 716.21
N= 5
σ²= ∑ (xi- 𝜇) ²/N
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σ²= 716.21/5
Population variance (σ²) =
143.24
(c) Calculate the standard
deviation:
Solution;
Formula: σ = √ [(∑ (xi- 𝜇) ²/N)
σ = Represents Population standard
deviation.
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xi = Represents each value in the
population.
𝜇= Represents mean of all values.
N= Represents the number of
values in the population.
∑= Represents summation.
√= Represents square root.
∑ (xi- 𝜇) = (231.37-243.67)
+(252.19-243.67) +(246.18-
243.67) +(228.74-243.67)
+(259.89-243.67)
∑ (xi- 𝜇) =
(-12.30) + (8.52)+(2.51)+(-
14.93)+(16.22)
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∑ (xi- 𝜇) ²= 151.29+72.59+
6.30+ 222.94+ 263.09
∑ (xi- 𝜇) ²=716.21
N= 5
σ = √ [(∑(xi- 𝜇) ²/N)
σ = √ [(716.21/5)
σ = √ 143.24
Population standard deviation
(σ) = 11.96
(d) Analyze the obtained results
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and make your pertinent
comments.
Initially, we will start by
interpreting the mean 243.67$,
which is the average starting
price of IBM stocks across the
population under study. This is
the "typical" opening price's
core trend. A variance of
143.24, on the other hand,
suggests that the squared
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deviations from the mean are
comparatively considerable.
Although a higher variance
indicates considerable price
fluctuation, perspective is still
gained by comparing it to the
mean and standard deviation.
Standard deviation 11.96 is
interpreted as a measure of the
average departure of prices
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from the mean. With a standard
deviation of about 12 and a
mean of 243.67, the price
fluctuates roughly between
232.09 and 255.69.
Question Two.
This document includes an excel
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spreadsheet with the final score
data. The mean score is 79.45,
which is a respectable score.
With a standard deviation of
3.48, the mean is moderately
spread out. The range of 32.33
indicates that there is a notable
disparity between the top and
worst performers.
Since there is no mode, the
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scores are somewhat dispersed.
Question three.
(a) What is the approximate
distribution of the sample
mean?
σ /√n
6.5/√36
=1.08
(b)What is the population mean
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of the sample mean?
The population mean of the
sample mean is 15.16
(c)Population standard
deviation of the sample
mean?
σx̄= σ /√n
6.5/√36=1.08
Population standard deviation=
1.08
Question four.
Please provide one story from
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either your working experience
or your life experience about an
application of a quantitative
analysis;
An acquaintance of mine who ran a
small bar a few years ago while I was an
undergraduate apparently couldn't figure
out why profits weren't increasing in
spite of a constant flow of customers.
She asked me to help her solve the
problem. We began by gathering four
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weeks' worth of sales data, which
included the number of customers at
various times of the day, the price per
item, the daily expenditure, and the daily
sales volume of each drink. Thus, we
computed the time factor, regression
analysis, break-even analysis, and
descriptive analysis using the data.
We discovered that while beer had
the biggest profit margin, whisky was the
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best-selling beverage. Beer was best
enjoyed during quiet hours, whereas
customers preferred rapid things like
shots at high hours.
Therefore, I suggested: Creating a
"mid-morning combo" and cutting
staffing by one person between 10 and 11
am. In summary, as consumers shown
little price sensitivity, the top two
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specialty beverages' prices were raised by
5%.
