QUANTITATIVE METHODS FOR MANAGERS

MAXIMUM MARKS: 40

1. Using the Excel file Sales transaction find the following 15 Marks

a. Identify the levels of measurement for each variables

b. Construct a cross tabulation to find the number of transactions by product and region, total amount of revenue by region, and total revenue by region and product.

c. Calculate the descriptive statistics and infer.

d. Find the average sales by source (web or e-mail). Do you think this information, could be useful in advertising? Explain how and why or why not.

e. Find the proportion of customers who used PayPal and the proportion of customers who used credit cards. Also find the proportion that purchased a book and the proportion that purchased a DVD.

f. Summarize your findings a present a brief report

2. An employee of a vending concession firm at the Subiaco Oval needs to choose between two options. He can work behind a hamburger counter and receive a fixed sumof $100 per game. Alternatively, he can walk around the stands selling beer and snacks on a commissionbasis. On this secondoption, the employee can expect to earn $180 on a goodday, $100 on an average day and $70 on a poorday. The probabilities of a good, average and poor day are 0.30, 0.40 and 0.30 respectively.

(a) What would be the expected earningsand the standard deviation in earnings for the employee under the commission option?

(b)Which job should he take and why? 5 marks

3. Suppose it is known that the distribution of purchase amounts by customers entering a popular retail store is approximately normal with mean $75 and standard deviation $20.

a. What is the probability that a randomly selected customer spends less than $85 at this store?

b. What is the probability that a randomly selected customer spends between $65 and $85 at this store?

c. What is the probability that a randomly selected customer spends more than $45 at this store?

d. Find the dollar amount such that 80% of all customers spend at least this amount.

e. Find two dollar amounts, equidistant from the mean, such that 90% of all customer purchases are between these values. 10 marks

4. Using the Excel Home Market Value

a. Identify if there is any outlier in square feet and Market Value

b. Draw a scatter plot and infer about correlation

c. Identify the dependent and independent variable(s)

d. Fit a simple linear regression ( Market value on Square feet)

e. Predict the market value for 1450 square feet

f. Calculate coefficient of determination and comment 10 marks