Buss1020 assignment 400 word + table (due in 12 hours)

BUSS1020 Quantitative Business Analysis Semester 2, 2017

Group assignment

This assignment is worth 20% of your total mark.

It must be submitted online on the Canvas course website at the link provided. You must submit the assignment using the TURNITIN link by 5:00 pm on Friday, 3 November, 2017. Late assignments will be penalized at 10% (of the possible marks) for submission after the due time on the due date, plus 10% per day late, including weekends.

The assignment must be done in your allocated groups. Serious penalties may be applied if a student and/or group is found to have engaged in plagiarism, including possibly receiving a mark of zero (0). Further, if a student has not contributed at all to their group’s assignment, they will receive a mark of zero (0).

The assignment will be marked out of 60. Marks allocated for each question are shown below, adding up to 55 marks. Professional and clear presentation is a required and assessed component in this assignment: 5 marks out of 60 are allocated specifically for that component.

A 15 page maximum limit applies to this assignment including all relevant tables and figures. As a guide, assignments should be at least 10 pages, in order to cover the tasks adequately.

Unless otherwise stated, use a 95% confidence level.

BUSS1020 Quantitative Business Analysis Semester 2, 2017

Task Background You have recently taken on work in the business analytics group for a liquor retailer (wines, beers and spirits) in the Sydney area. The management wants to use data analytic methods to understand the sales volume of 4 different drinks. The 4 drinks are from undisclosed brands but we know that there is a spirit, a white wine, a red wine and a beer. The retailer has supplied you with a dataset that records the sales volume for 100 days (indexed from day 1 to day 100). You know that the days recorded are not necessarily consecutive but are representative of 1 year, and you do not know which day of the week each day represents except for weekend days. Management has requested that you perform the following analyses on the provided data set and to prepare a professional report providing your results and discussing their implications for the liquor retailer.

(15 marks) Data summary and visualization Prepare a table to summarise the relevant descriptive statistics to describe the central tendency and variability. You should summarise your results in a table.

Using your table, identify which product has the highest average daily sales and which drink has the highest level of relative variability of daily sales. Which two drinks could be complementary and which two could be substitutes? (Hint: Two items are said to be complementary if when people buy item 1, they also buy item 2. Two items are said to be substitutes if when people buy item 1 they do not buy item 2.)

(15 marks) Hypothesis test The only promotion that the retailer conducted in the past 100 days was a free tasting session. You obtain the records of this particular promotional activity for the white wine. You are interested in knowing whether this promotion activity is effective in increasing the sales of white wine.

Perform a relevant hypothesis test to investigate whether the promotion increases the sales of the white wine. Clearly explain your conclusion and the implications of the test result for the liquor retailer.

BUSS1020 Quantitative Business Analysis Semester 2, 2017

(20 marks) Regression analysis

You plan to build a regression model to investigate what are the important factors that affect the number of customers purchasing drinks. Specifically, what affects the sales volume of each of the 4 drinks and also what affects the total sales volume of the 4 drinks? In addition to each of the sales volumes, you have been provided the daily average temperature (in degrees Celsius) for each of the 100 days and information on which of the days are weekend days.

Why is a regression model suitable for this purpose? In your regression models, which variable(s) should be the dependent variable and which should be the independent variable(s) from the information available to you?

You will need to provide relevant output of your regression analysis based on your proposed models (you may want to summarise that output in tables). Interpret each of the coefficients of your regression (including the intercept) and explain what impact changes in your independent variables have on the sales volumes of the drinks.

Are your regression models reliable in terms of predicting the sales volume of the drinks based on outdoor temperature? Use the output to justify your answer.

Finally, construct a prediction interval for each sales volume and the total sales volume of the 4 drinks on a day when the average daily outdoor temperature is forecast to be 25 degrees Celsius. Interpret your answer correctly.

(5 marks) Conclusion Write a summary (no more than 500 words) for the management of the liquor retailer regarding your analyses and your conclusions.

5 marks for Presentation (Hint: Do not limit yourselves to cuting and pasting from Excel/Statcrunch when presenting your outputs)

End of assignment