Week 6 - Group Assignment

Descriptive Statistics

Andrew Rice

QNT/561

1/16/2017

Dr. Heidi Carty

Descriptive Statistics Interpretation

By not charging for luggage, more passengers would check their luggage and allow hired baggage handlers to handle their bags. This will save overall time and allow for a more precise schedule, and in return save money for the airline.

The total cost of flight delays is $585,252.23 per hour on average to a large airline like Dyeus. (George 2012) With Airlines running an average of 17 minutes behind schedule per day according to the FAA. (Garrick 2007) Our goal with the sampling was to identify 30 times with a few of our competitors and determine how much money could be saved based on the 30 samples. After taking 30 samples, we have the data, as well as the descriptive statistics that goes with the data.

Flight Delay Times in Hours	Total Cost
0.25	146313.1
0.36	210690.8
1.654	968007.2
0.012	7023.0
0.0365	21361.7
0.41	239953.4
0.023	13460.8
0.23	134608.0
0.21	122903.0
0.15	87787.8
1.36	795943.0
0.036	21069.1
0.236	138119.5
0.23	134608.0
0.13	76082.8
0.003	1755.8
0.23	134608.0
0.45	263363.5
1.63	953961.1
0.26	152165.6
1.95	1141241.8
0.56	327741.2
2.13	1246587.2
1.56	912993.5
0.23	134608.0
0.65	380413.9
2	1170504.5
0.15	87787.8
0.56	327741.2
0.8954	524034.8

Descriptive Analysis of Total Cost
Mean	362581.3141
Standard Error	72522.21979
Median	149239.3187
Mode	134608.0129
Standard Deviation	397220.557
Sample Variance	1.57784E+11
Kurtosis	-0.093977551
Skewness	1.175434673
Range	1244831.493
Minimum	1755.75669
Maximum	1246587.25
Sum	10877439.42
Count	30
Largest(1)	1246587.25
Smallest(1)	1755.75669
Confidence Level(95.0%)	148324.5936

The second item that our sample wanted to look at was the total amount of bags on a specific plane and how long it took to unload the plane. Going back to the first variable, it was determined that quickly expediting the loading and unloading of the airplane; there would be a saving of funds that went along with that.

We wanted to see if a baggage fee made a difference in the time it took to unload and load each plane. It was determined that baggage fee is charging airlines take an average of 6.9 seconds per bag. Our second survey looked at the how long it took to unload each plane using the 6.9-second benchmark. By lowering the total time it takes to unload the plane, we will, in turn, be able to save a lot of money. The first set of data showed the cost of delays with airlines. The second set of data is a two piece showing first the amount of bags and time to unload for the airlines that do charge for a baggage fee. The second part of the data will look at what it took Dyeus airlines to unload ten planes with their no luggage fee and having the baggage handlers expedite the baggage versus the passengers.

Flight	# Bags	Time for Unload
1	652	4498.8
2	486	3353.4
3	695	4795.5
4	589	4064.1
5	745	5140.5
6	658	4540.2
7	523	3608.7
8	852	5878.8
9	954	6582.6
10	563	3884.7

Competitors
Mean	4634.73
Standard Error	320.3067731
Median	4519.5
Mode	#N/A
Standard Deviation	1012.898953
Sample Variance	1025964.289
Kurtosis	0.032445637
Skewness	0.755747003
Range	3229.2
Minimum	3353.4
Maximum	6582.6
Sum	46347.3
Count	10
Largest(1)	6582.6
Smallest(1)	3353.4
Confidence Level(95.0%)	724.5842611

Dyeus Airline Numbers for baggage time were recorded using our airline's baggage counts. Our data shows that our average bag took 4.2 seconds to unload from our planes. The average we came out with was lower than the time of the baggage fee airlines. The second set of data looks at the numbers from a 4.2 second standard versus the first 6.9 seconds that it took our competitors.

Flight	# Bags	Time for Unload
1	652	2738.4
2	486	2041.2
3	695	2919
4	589	2473.8
5	745	3129
6	658	2763.6
7	523	2196.6
8	852	3578.4
9	954	4006.8
10	563	2364.6

Dyeus Airlines
Mean	2821.14
Standard Error	194.9693402
Median	2751
Mode	#N/A
Standard Deviation	616.5471888
Sample Variance	380130.436
Kurtosis	0.032445637
Skewness	0.755747003
Range	1965.6
Minimum	2041.2
Maximum	4006.8
Sum	28211.4
Count	10
Largest(1)	4006.8
Smallest(1)	2041.2
Confidence Level(95.0%)	441.0512894

In this report, I have been able to look at a few variables and analyze the descriptive statistics involved in our business decision to not charge customers for excess baggage. Our business has a two variable idea of the loading and unloading of a plane will take a shorter time, and in turn saving Dyeus Airlines money towards off schedule expenses. The cause of fewer delays will be majority of the baggage being handled by professional baggage handlers. The effect of fewer delays will be substantial savings and in turn charging our customers less overhead. With lower prices, Dyeus Airlines will be able to get more customers and be able to corner some of the markets with our low prices.

References

Garrick Blalock, Vrinda Kadiyali, Daniel H. Simon, The Impact of Post-9/11 Airport Security Measures on the Demand for Air Travel, The Journal of Law and Economics, 2007, 50, 4, 731

George W. Douglas and James C. Miller III, Quality Competition, Industry Equilibrium, and Efficiency in the Price-Constrained Airline Market The American Economic Review, Vol. 64, No. 4 (Sep., 2012), pp. 657-669

Ying Wang, Francis Kofi Andoh-Baidoo, Jun Sun, Security investment in aviation industry: a longitudinal analysis, Industrial Management & Data Systems, 2014, 114, 2, 276