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    Assignment Submission Form: (Please Start Writing Your Assignment Below)

    Uploaded by

    Amit Mishra
    [1] The document is an assignment submission form for a course on statistical methods for management decisions submitted by Amit Mishra. [2] It includes the student and course details, ISB honor code which the student agrees to abide by, and the student's responses to 6 questions regarding the relationship between store size and monthly sales for CCD stores. [3] The student finds a strong positive correlation between store size and monthly sales, predicts monthly sales for different store sizes using the linear regression model, and analyzes the correlation between different variables.

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    Assignment Submission Form: (Please Start Writing Your Assignment Below)

    Uploaded by

    Amit Mishra
    51 views4 pages
    [1] The document is an assignment submission form for a course on statistical methods for management decisions submitted by Amit Mishra. [2] It includes the student and course details, ISB honor code which the student agrees to abide by, and the student's responses to 6 questions regarding the relationship between store size and monthly sales for CCD stores. [3] The student finds a strong positive correlation between store size and monthly sales, predicts monthly sales for different store sizes using the linear regression model, and analyzes the correlation between different variables.

    Original Description:

    Statistics assignment 2

    Original Title

    Statistics Assignment 3

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    [1] The document is an assignment submission form for a course on statistical methods for management decisions submitted by Amit Mishra. [2] It includes the student and course details, ISB honor code which the student agrees to abide by, and the student's responses to 6 questions regarding the relationship between store size and monthly sales for CCD stores. [3] The student finds a strong positive correlation between store size and monthly sales, predicts monthly sales for different store sizes using the linear regression model, and analyzes the correlation between different variables.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    51 views4 pages

    Assignment Submission Form: (Please Start Writing Your Assignment Below)

    Uploaded by

    Amit Mishra
    [1] The document is an assignment submission form for a course on statistical methods for management decisions submitted by Amit Mishra. [2] It includes the student and course details, ISB honor code which the student agrees to abide by, and the student's responses to 6 questions regarding the relationship between store size and monthly sales for CCD stores. [3] The student finds a strong positive correlation between store size and monthly sales, predicts monthly sales for different store sizes using the linear regression model, and analyzes the correlation between different variables.

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    ASSIGNMENT SUBMISSION FORM

    Course Name: Statistical Methods for Management Decisions


    Assignment Title: Assignment 3 (CCD)
    Submitted by: Amit Mishra, Section-F

    Student Name PG ID
    Amit Mishra 62210088

    ISB Honour Code

    • I will represent myself in a truthful manner.


    • I will not fabricate or plagiarize any information regarding the curriculum.
    • I will not seek, receive, or obtain an unfair advantage over other students.
    • I will not be party to any violation of the ISB Honour Code.
    • I will personally uphold and abide, in theory and practice, the values, purpose and rules of
    the ISB Honour Code.
    • I will report all violations of the ISB Honour Code by members of the ISB community.
    • I will respect the rights and property of all in the ISB community.
    • I will abide by all the rules and regulations that are prescribed by ISB.

    (Please start writing your assignment below)


    Question: 1)

    (i) Form: The association between store size and


    monthly sales can be described with a linear
    equation.
    (ii) Direction: Positive value of correlation ‘r’
    indicates a positive association/direction.
    (iii) Strength: Does the association appear to be
    strong, moderately strong, or weak? A high
    enough value of ‘r’ indicates that there is a
    strong relationship between the store size and
    the monthly sales.

    Question: 2)

    Managerial interpretation:

    1. The R2 value is 0.65 which means the model explains about 65% of the variation in our
    dependent variable.
    2. There is a strong correlation, which does not necessarily mean that there is causation of one
    factor because of the other but there is a relation (positive) between the two. However,
    because the size of the store intuitively causes greater brand image and footfall, the bigger
    size of the store most probably is the cause of higher monthly sales.
    3. The root mean square error is low which means that the error is not significant in reference
    to our fit line. Also, the data is normally distributed.
    4. The p-value of the data is low, which means that we can safely reject our null hypothesis
    (there is no causality between the two variables).
    5. Covariance is very high which means that the variables are very strongly correlated.

    Question: 3)

    We can do a hypothesis test to verify our claim.


    Null Hypothesis: Ho = the sales are not based
    on store size.
    Test: P-value is way less than alpha even at 99%
    confidence, so it is safe to assume that the
    monthly sales are based on store size
    Question: 4)

    The retail industry wisdom of Rs 500 per month per sq. ft is not applicable to CCD because the upper
    limit of 95% of the confidence interval is 498.64 which is still less than 500.

    Question: 5)

    Predicted Monthly sales (INR) = 32249.334 + 311.0897*Store Size (in Sq. Ft.)

    For Store size = 200 sq. ft: Monthly sales (INR) = 32249.334 + 311.0897*200 = 94467.274

    Similarly, for: 500 sq. ft: Monthly sales (INR) = 32249.334 + 311.0897*500 = 187794.184
    Question: 6

    1) The correlation value between


    the store size and monthly sales is
    0.8101, indicating a strong
    relationship between the two
    variables.

    2) The correlation value between


    the monthly sales and predicted
    monthly salary is 0.8101 which is
    not surprising because the
    predicated monthly salary is the
    outcome of the fit line.

    3) There is a weak correlation


    between monthly sales and
    residuals monthly sales.

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