Mathematics - Statistics Stats Assignment

Statistics FOR Business - MNS 601

Special Project

Project Description:

Identify and analyze a real-life, business application of statistics. The “business” can be a for-profit, non-profit, small or large entity. The following are not acceptable topics:

· A specific application/problem discussed in class

· An application that uses descriptive statistics (i.e., graphs, percentages, measures of central tendency or dispersion)

The statistical procedure you choose to illustrate MUST be one that was covered in this course.

Use one of these statistical procedures:

  Hypothesis Testing

1.    Apply hypothesis tests to compare sample means with population means

        Tests of Variance

1.    Compare two population variances

2.    Apply one-way ANOVA procedures

         SimpleLinear Regression

1.   Apply the least squares solution to simple, linear regression problems.

        Chi-Square

1.   Apply Chi-Square analyses in tests of independence.

       TimeSeries & Forecasting

1.   Apply the Ratio-to-Moving-Average Method to measure seasonal variation

2.   Apply trend analysis for a time series

You do not have to collect actual data from a business or apply the statistical procedure/calculate an answer.

To complete your project, copy and paste the form on the second page of this document. Then, fill in all the blanks. You can adjust the size of the answer spaces as necessary – the lines are just there to indicate where the answers go. Do not hand in this instruction page.

Criteria & Administration:

Be concise. Your project submission must not exceed two (2) pages in length (12-point font).

You must write this. Copies of documents/analyses written by someone else will not be accepted.

Submit this project via the course website.

The form provided is in bold font. Do not use bold font for your responses. Using a colored font (other than red) for your responses is preferable.

Hints:

If you need help finding ideas for business applications, read the problems at the end of the relevant sections/chapters of the textbook. These problems usually include a business application/context. And, you can always “Google it.”

If you have difficulty finding an actual business application, you can design and propose one for a specific business.

Statistics FOR Business - MNS 601

Special Project

Name:_________________________________________ Date: ____________

Part A: Description of Business Context

Write a brief summary of the business context (e.g., manufacturing, marketing, finance, etc.) including the name of the company or organization.

________________________________________________________________________

________________________________________________________________________

Part B: Problem/Issue

State the business problem/issue to be addressed using statistics and why this problem/issue is important to the company/organization.

________________________________________________________________________

________________________________________________________________________

Part C: Statistical Procedure

Explain the statistical procedure (NOTE: Focus on ONE statistical procedure only)

1. Independent variable:

a) What is the variable: ___________________________________________

b) How it is measured, i.e. what units or categories are used (e.g., revenue measured in “dollars”; height measured as “short, average, tall”) _______________________________

c) Level of measurement (nominal, ordinal, interval, or ratio): ________________________________________

2. Dependent variable:

a) What is the variable: ___________________________________________

b) How it is measured, i.e. what units or categories are used (e.g., revenue measured in “dollars”; height measured as “short, average, tall”) _______________________________

c) Level of measurement (nominal, ordinal, interval, or ratio): ________________________________________

3. Name of the procedure/formula (e.g., ANOVA, Chi-Square, Hypothesis Test using z formula, Regression Analysis, etc.). NOTE: The procedure/ formula must be one that was covered in the course : __________________________________________________________________

4. Describe the statistical rationale/justification for choosing this procedure/formula: _______________________________________________ __________________________________________________________________

5. Describe how the data are collected by the business/organization: __________________________________________________________________

6. Describe how the data are analyzed (i.e., identify the steps in the statistical procedure) : ______________________________________________________

__________________________________________________________________

Part D: Decision/Interpretation

Explain the type of business decision that the company/organization would make as a result of this statistical analysis. ________________________________

________________________________________________________________________

Statistics FOR Business - MNS 601

Special Project (Example #1)

Name: Student A Date: ____________

Part A: Description of Business Context

Write a brief summary of the business context (e.g., manufacturing, marketing, finance, etc.) including the name of the company or organization.

The economic crisis affected many industries, particularly the automobile manufacturing industry. As gas prices soared and jobs were lost, consumers demanded more fuel-efficient vehicles. The companies that suffered the most were the ones that continued to produce gas-guzzling vehicles such as trucks and SUVs, among these manufacturers was Ford Motor Company (Ford). Ford lost sales quickly during this period and needed a solution soon or risk complete failure like some of its unlucky competitors.

Part B: Problem/Issue

State the business problem/issue to be addressed using statistics and why this problem/issue is important to the company/organization.

An example of Ford’s response to the fuel-efficient vehicle market was the new Focus SE, a model that claims to get 40 MPG. It is important for car manufacturers, such as Ford, to accurately assess MPG in order to maintain the integrity of the company’s product as well as to continue attracting future customers. Therefore, the use of statistics will either validate or invalidate Ford’s claim that the new Focus SE gets 40 MPG.

Part C: Statistical Procedure

Explain the statistical procedure (NOTE: Focus on ONE statistical procedure only)

1. Independent variable:

a) What is the variable: Type of Car

b) How it is measured (e.g., revenue measured in “dollars”; height measured as “short, average, tall”) Car make and model

c) Level of measurement (nominal, ordinal, interval, or ratio): Nominal

2. Dependent variable:

a) What is the variable: Mileage (MPG)

b) How it is measured (e.g., revenue measured in “dollars”; height measured as “short, average, tall”) Miles per gallon (MPG)

c) Level of measurement (nominal, ordinal, interval, or ratio): Ratio

3. Name of the procedure/formula (e.g., ANOVA, Chi-Square, Hypothesis Test using z formula, Regression Analysis, etc.). NOTE: The procedure/ formula must be one that was covered in the course : Hypothesis test (One sample t test)

4. Describe the statistical rationale/justification for choosing this procedure/formula: Need to test the hypothesis that the population mean for the Ford Focus SE is 40 MPG. A t-test is appropriate here because the following assumptions for a t-test are met in this problem, specifically the standard deviation of the population is unknown and the dependent variable is at the interval or ratio level of measurement.

5. Describe how the data are collected by the business/organization: Ford test-drove a random sample of Ford Focus SE cars and calculated the MPG for each vehicle.

6. Describe how the data are analyzed (i.e., how the statistical procedure is performed): The null and alternative hypotheses are defined (H0: u = 40 MPG, H1: u ≠ 40 MPG); an alpha level is set; the mean MPG for the sample of cars is calculated; the calculated t value is determined using the formula t = (sample mean – population mean) ÷ (s / √ n); the calculated t value is compared to the critical t values (found in the t-table); if t calculated < t critical H0 is accepted and if t calculated > t critical H0 is rejected.

Part D: Decision/Interpretation

Explain the type of business decision that the company/organization would make as a result of this statistical analysis. If H0 is accepted, Ford can confidently market the Ford Focus SE as having a mileage rating of 40 MPG. If H0 is rejected, Ford would not be able to advertise the Ford Focus SE as having a mileage rating of 40 MPG and may decide to perform additional quality tests on the model to identify any deficiencies.

Statistics FOR Business - MNS 601

Special Project

Project Description:

Identify and analyze a real-life, business application of statistics. The “business” can be a for-profit, non-profit, small or large entity. The following are not acceptable topics:

· A specific application/problem discussed in class

· An application that uses descriptive statistics (i.e., graphs, percentages, measures of central tendency or dispersion)

The statistical procedure you choose to illustrate MUST be one that was covered in this course.

Use one of these statistical procedures:

  Hypothesis Testing

1.    Apply hypothesis tests to compare sample means with population means

        Tests of Variance

1.    Compare two population variances

2.    Apply one-way ANOVA procedures

         SimpleLinear Regression

1.   Apply the least squares solution to simple, linear regression problems.

        Chi-Square

1.   Apply Chi-Square analyses in tests of independence.

       TimeSeries & Forecasting

1.   Apply the Ratio-to-Moving-Average Method to measure seasonal variation

2.   Apply trend analysis for a time series

You do not have to collect actual data from a business or apply the statistical procedure/calculate an answer.

To complete your project, copy and paste the form on the second page of this document. Then, fill in all the blanks. You can adjust the size of the answer spaces as necessary – the lines are just there to indicate where the answers go. Do not hand in this instruction page.

Criteria & Administration:

Be concise. Your project submission must not exceed two (2) pages in length (12-point font).

You must write this. Copies of documents/analyses written by someone else will not be accepted.

Submit this project via the course website.

The form provided is in bold font. Do not use bold font for your responses. Using a colored font (other than red) for your responses is preferable.

Hints:

If you need help finding ideas for business applications, read the problems at the end of the relevant sections/chapters of the textbook. These problems usually include a business application/context. And, you can always “Google it.”

If you have difficulty finding an actual business application, you can design and propose one for a specific business.

Statistics FOR Business - MNS 601

Special Project

Name:_________________________________________ Date: ____________

Part A: Description of Business Context

Write a brief summary of the business context (e.g., manufacturing, marketing, finance, etc.) including the name of the company or organization.

________________________________________________________________________

________________________________________________________________________

Part B: Problem/Issue

State the business problem/issue to be addressed using statistics and why this problem/issue is important to the company/organization.

________________________________________________________________________

________________________________________________________________________

Part C: Statistical Procedure

Explain the statistical procedure (NOTE: Focus on ONE statistical procedure only)

1. Independent variable:

a) What is the variable: ___________________________________________

b) How it is measured, i.e. what units or categories are used (e.g., revenue measured in “dollars”; height measured as “short, average, tall”) _______________________________

c) Level of measurement (nominal, ordinal, interval, or ratio): ________________________________________

2. Dependent variable:

a) What is the variable: ___________________________________________

b) How it is measured, i.e. what units or categories are used (e.g., revenue measured in “dollars”; height measured as “short, average, tall”) _______________________________

c) Level of measurement (nominal, ordinal, interval, or ratio): ________________________________________

3. Name of the procedure/formula (e.g., ANOVA, Chi-Square, Hypothesis Test using z formula, Regression Analysis, etc.). NOTE: The procedure/ formula must be one that was covered in the course : __________________________________________________________________

4. Describe the statistical rationale/justification for choosing this procedure/formula: _______________________________________________ __________________________________________________________________

5. Describe how the data are collected by the business/organization: __________________________________________________________________

6. Describe how the data are analyzed (i.e., identify the steps in the statistical procedure) : ______________________________________________________

__________________________________________________________________

Part D: Decision/Interpretation

Explain the type of business decision that the company/organization would make as a result of this statistical analysis. ________________________________

________________________________________________________________________