store24 case study

Final Assessment: MAT 210 Introduction to Statistics and Data Analysis

Case: Store24 (A): Managing Employee Retention

Student Name:

Instructions:

· This is an untimed, individual assessment.

· You must submit your work to the appropriate myCourses page by May 1, 2020 at 11:59pm. Late work will not be accepted on this final assessment.

· You do not need to enable Proctorio or enter any “Quiz” on myCourses to take this exam. Simply submit this completed workbook to the myCourses page.

· When calculations are required, paste the Excel output into this workbook. Do not paste screenshots of the outputs. The workbook in its current format is the only submission required. Do not submit pdf version of the workbook. No submissions of excel sheets are needed.

Sarah Jenkins is the new intern hired to assist in the development of a new employee-attraction and retention strategy for the tight New England labor market, since she had received training in data analysis as a part of her business curriculum. The business objective of the company is to increase store level employee retention.

Jenkins uses data from a recent report containing fiscal year 2000 store performance results. The data is stored in the excel sheet Store24 and attached along with. Read the case Store24 (A): Managing Employee Retention carefully and understand the variables under study from exhibit 2 of the case.

Answer the following questions related to the case.

1. Examine the relationship between employee tenure and store level performance.

a. Compute the coefficient of correlation for the relationship between manager tenure (MTenure) and store level performance (Profit).

b. Compute the coefficient of correlation for the relationship between crew tenure (CTenure) and store level performance (Profit).

c. What does this tell us about the relationship between employee tenure and store level performance?

2. Visualize the relationship between tenure and store level performance.

a. Create a scatterplot for the relationship between manager tenure (MTenure) and store level performance (Profit).

b. Create a scatterplot for the relationship between crew tenure (CTenure) and store level performance (Profit).

c. Comment on the scatterplots. What can Sarah say about the relationship between these variables?

3. Create single regression models

a. Find the line of best fit for the relationship between manager tenure (MTenure) and store level performance (Profit). In words, interpret the slope and intercept in the context of the case. What is the p-value for this model?

b. Find the line of best fit for the relationship between crew tenure (CTenure) and store level performance (Profit). In words, interpret the slope and intercept in the context of the case. What is the p-value for this model?

4. Examine the relationship between employee skill and store-level performance.

a. Compute the correlation coefficient for the relationship between manager skill (MgrSkill) and store level performance (Profit).

b. Compute the correlation coefficient for the relationship between crew skill (CrwSkill) and store level performance (Profit).

c. What conclusions can you reach about the relationship between employee skill and store level performance?

5. Visualize the relationship between employee skill and store-level performance.

a. Create a scatterplot for the relationship between the relationship between manager skill (MgrSkill) and store level performance (Profit).

b. Create a scatterplot for the relationship relationship between crew skill (CrwSkill) and store level performance (Profit).

c. Comment on the scatterplots. What can Sarah say about the relationship between these variables?

6. Create a multiple regression model predicting Profit using MTenure, CTenure, MSkill, CSkill. Interpret the slope of each variable in the context of this problem. Comment on the p-value for each variable. Comment on the p-value of the model overall.

7. You receive the following multiple regression models from another analyst who previously worked on the case. The other analyst didn’t analyze the entirety of the data set, but had a good start. Of these choices, decide which is the best fit regression model. Explain which model you chose, why, and interpret in the context of this problem.

8. Build the best fit linear regression model, given the inclusion of the following variables: CrewSkill, MgrSkill, ServQual. Can you improve the model? Show your results below. Interpret them in the context of the case.

9. Mtenure is the average manager tenure during FY-2000 where tenure is defined as the number of months of experience with Store24. The CEO and President of Store24 Bob Gordon explained that his analysis showed that manager tenure in the top ten profitable stores was almost four times the level of manager tenure in the least profitable store.

a. Conduct a t-test comparing Mtenure of the top ten profitable stores and the 10 least profitable store to validate this statement.

b. State which t-test you will use and justify your reasoning.

c. Interpret the outcome and p-value in the context of this case.

10. Bob Gordon explained in his analysis that site location is traditionally considered one of the primary drivers of store success. The variable Res refers to site location. Res is a dummy variable and is coded as located in residential (1) vs. located in industrial area as (0).

a. Construct a pivot table that computes the count of the variable Res.

11. What is the central issue of the case?

12. Identify another statistical analysis that could be testable based on one of the variables involved with the central issue. Explain why that analysis would be useful. Conduct the analysis and discuss the results appropriately.

13. Free response: What is a hypothesis test? Explain the difference between null and alternative hypothesis. Explain the probability and differences between Type I and Type II errors.

14. Free response: For each of the following tests, explain the null and alternative hypothesis:

a. t-test

b. ANOVA

c. Linear regression

d. Multiple regression

15. Free response: What does the p-value represent in the above tests?

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Case Workbook