- The Marketing Manager at ABC retailer is interested in whether customers who have seen the company’s newspaper advertisements spend more in the company’s shops. She collected data from 350 customers about whether or not they had seen the newspaper advertisements, whether they had made a purchase, and if so, how much they spent. The data is provided in the Question 1 worksheet of the “Assignment 2 Data.xls” file. In column A, customers who have seen the advertisement are indicated by a 1 and customers who have not seen the advertisement are indicated by a 0. In column B, customers who make a purchase are indicated by a 1 and customers who have not made a purchase are indicated by a 0. In column C, for those customers who have made a purchase, the amount spent in dollars is recorded.
- [5 Marks] Are customers who see the advertisement more likely to make a purchase than customers who do not see the advertisement? How sure can you be of this result? Be sure to report the results of all statistical analyses you have performed.
- [5 Marks] Of those customers who make a purchase, do those who see the advertisement spend more than those who do not see the advertisement? How sure can you be of this result? Be sure to report the results of all statistical analyses you have performed.
- [10 Marks] The District Manager at the Big D donut shop chain is considering opening a new location. He knows that the new shop will only be profitable if the number of people walking by the location is at least 400 per day. He observes the location for 60 days and records the number of passers-by. The data for each day is provided on the Question 2 worksheet in the “Assignment 2 Data.xls” file. Is there sufficient evidence to conclude that the new location would be profitable? How sure can you be of this result? Be sure to report the results of all statistical analyses you have performed.
- The Human Resources department at JG Company is testing a new training program for sales staff. 124 sales representatives were given the new training while 85 sales representatives were not. Data on each rep’s sales figures were collected for the month before the training program was implemented and the month after the training program was implemented. The data is provided in the Question 3 worksheet in the “Assignment 2 Data.xls” file. In column A, representatives who were provided with the new training are indicated by a 1 and representatives who were not provided with the training are indicated by a 0. In column B, each representative’s sales figures for the month before the training was implemented are listed in dollars. In column C, each representative’s sales figures for the month after the training was implemented are listed in dollars.
- [5 Marks] Prior to the implementation of the new training, can you conclude that there is a difference in sales figures between the reps who were going to receive the training and the reps who were not going to receive the training? How sure can you be of this result? Be sure to report the results of all statistical analyses you have performed.
- [5 Marks] Can you conclude that the new training increases a rep’s sales? How sure can you be of this result? Be sure to report the results of all statistical analyses you have performed.
- A local realtor is trying to construct a model that will predict the selling price of homes in a particular neighbourhood. She collects data on 70 homes which have recently been sold and records the selling price in dollars, the lot size in square feet, the floor space in the house in square feet, the number of bedrooms, the number of bathrooms, the number of trees present on the lot, whether or not the lot is on a street corner (1 indicates it is on a street corner and 0 indicates that it is not), a whether the house has a 2 car garage (1 indicates that the house has a 2 car garage and 0 indicates that it does not). The data is provided in the Question 4 worksheet in the “Assignment 2.xls” data file.
- [5 Marks] Construct an appropriate model to estimate the selling price of a home and report the results. How well does your model estimate the selling price? How do you know?
- [5 Marks] How much is an extra bedroom worth (if anything)?
- [5 Marks] How much is an extra bathroom worth (if anything)?
- [5 Marks] How much is a tree worth (if anything? How much is a corner lot worth (if anything)? How much is a two car garage worth (if anything)?
