Group Assignment
FACULTY
OF HIGHER EDUCATION
HI6007
Group Assignment
MS Excel must be used for performing calculation/graphical
presentation as required in this assignment
Question 1 8 marks
Missy Walters owns a mailorder business
specializing in clothing, linens, and furniture for children. She is
considering offering her customers a discount on shipping charges for furniture
based on the dollaramount of the furniture order. Before Missy decides the
discount policy, she needs a better understanding of the dollaramount
distribution of the furniture orders she receives.
Missy had an assistant randomly select 50 recent
orders that included furniture. The assistant recorded the value, to the
nearest dollar, of the furniture portion of each order. The data collected is
listed below (data set also provided in accompanying MS Excel file).
136

281

226

123

178

445

231

389

196

175

211

162

212

241

182

290

434

167

246

338

194

242

368

258

323

196

183

209

198

212

277

348

173

409

264

237

490

222

472

248

231

154

166

214

311

141

159

362

189

260

a. Prepare
a frequency distribution, relative frequency distribution, and percent
frequency distribution for the data set using a
class width of $50. (3 marks)
b. Construct
a histogram showing the percent frequency distribution of the furniture order values in the
sample. Comment on the shape of the distribution.(3
marks)
c. Given the
shape of the distribution in part b, what measure of location would be most appropriate for this
data set? (2
marks)
Question 2 6 marks
Shown below is a portion of a computer output
for a regression analysis relating Y (demand) and X (unit price).
ANOVA




df

SS

Regression

1

5048.818

Residual

46

3132.661

Total

47

8181.479


Coefficients

Standard
Error

Intercept

80.390

3.102

X

2.137

0.248

a. Determine
whether or not demand and unit price are related. Use α = 0.05.
(2 marks)
b. Compute
the coefficient of determination and fully interpret its meaning.
Be very
specific. (2
marks)
c. Compute
the coefficient of correlation and explain the relationship between
demand and unit price. (2 marks)
Question 3 6 marks
The following are the results from a completely
randomized design consisting of 3 treatments.

Sum of

Degrees
of

Mean


Source of Variation

Squares

Freedom

Square

F

Between Treatments

390.58




Within Treatments (Error)

158.40




Total

548.98

23



Using α = .05, test to see if there is a significant
difference among the means of the three populations. The sample sizes for the
three treatments are equal.
Question 4 10 marks
In order to determine whether or not the number
of mobile phones sold per day (y) is related to price (x_{1} in
$1,000), and the number of advertising spots (x_{2}), data were
gathered for 7 days. Part of the Excel output is shown below.
ANOVA








df

SS

MS

F



Regression


40.700





Residual


1.016






Coefficients

Standard
Error





Intercept

0.8051






x1

0.4977

0.4617





x2

0.4733

0.0387





a.
Develop an estimated regression equation relating y to x_{1}
and x_{2}.

(2 marks)

b. At α = 0.05, test to determine if the estimated
equation developed in Part a represents a significant relationship between all
the independent variables and the dependent variable.
(2 marks)
c. At α =
0.05, test to see if β1 and β2 is significantly different from zero. (2 marks)
d. Interpret slope coefficient for X2. (2
marks)
e. If the company charges $20,000 for each phone
and uses 10 advertising spots, how
many mobile phones would you expect them to sell
in a day? (2 marks)
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