COURSE: MASTERS OF BUSINESS ADMINISTRATION (MBA)

SUBJECT: STATISTICAL ANALYSIS FOR MANAGEMENT

(ALYF602)

LECTURER: DR. ADILU M. SALIM

GROUP MEMBERS:

NAME REG NUMBER

1. SABAHI KHERI HAMZA 223030112
2. HAJI F. IDDI
3. SADRU MABULA 223010119
Question 1 (A):

Statistical analysis is a scientific tool that helps collect and analyze large amounts
of data to identify common patterns and trends to convert them into meaningful information. In
simple words, statistical analysis is a data analysis tool that helps draw meaningful conclusions
from raw and unstructured data. The conclusions are drawn using statistical analysis facilitating
decision-making and helping businesses make future predictions on the basis of past trends.

Selection of appropriate statistical method is very important step in analysis of different

data. A wrong selection of the statistical method not only creates some serious problem during
the interpretation of the findings but also affects the conclusion of the study. In statistics, for
each specific situation, statistical methods are available to analysis and interpretation of the data.
To select the appropriate statistical method, one need to know the assumption and conditions of
the statistical methods, so that proper statistical method can be selected for data analysis. Other
than knowledge of the statistical methods, another very important aspect is nature and type of the
data collected and objective of the study because as per objective, corresponding statistical
methods are selected which are suitable on given data.

The following are the important factors that needs to be considered in choosing the
method of analysis;

Accuracy; this is one of the factors that need to be considered when selecting method of
analysis. In this case we are looking on how close does the experiment agrees with the time value
or expected results.

Precision; When a sample is analyzed several times, the individual results are rarely the
same. Instead, the results are randomly scattered. Precision is a measure of this variability. The
closer the agreement between individual analyses, the more precise the results.

Sensitivity; The ability to demonstrate that two samples have different amounts of
analyte is an essential part of many analyses. A method’s sensitivity is a measure of its ability to
establish that such differences are significant. Sensitivity is often confused with a method’s
detection limit, which is the smallest amount of analyte that we can determine with confidence.

Specificity and Selectivity; An analytical method is specific if its signal depends only on
the analyte.4 Although specificity is the ideal, few analytical methods are completely free from
the influence of interfering species.

Scale of Operations; Another way to narrow the choice of methods is to consider three
potential limitations: the amount of sample available for the analysis, the expected concentration
of analyte in the samples, and the minimum amount of analyte that produces a measurable signal.
Collectively, these limitations define the analytical method’s scale of operations.

Time and Cost; we can compare analytical methods with respect to the time to complete
an analysis, and the cost per sample.

Lastly, those are some of the important factors which needs to be considered in the process of
choosing method of analysis.

Qn 1 (B):

The study can be interpreted as a first step in the survey. However, the results of this study
should be treated with caution due to the small sample size and the lack of details regarding the
the population and their needs
Future survey study could further examine the differences in population characteristics between
population and their needs. It could also contribute to a deeper understanding of the audile
measurements suitable for social measurements.
Question 2:

The combination of the manager concerning the predicting of sales of umbrella as

focusing the daily maximum temperature. According to the variable (X2), the manager can use
since he selects it, but the performance may result in weak. This is because, the number of
customers may account insufficient as the factor to make him reach the target of ($000s) or can
have low profit. Normally the number is varied, it sometimes raises and then down
accordingly. Also, through the number of customers we cannot assume that umbrella is their
targeted need. So, it is not easy to evaluate if they are willing to buy or not.

Due to the variable (X3), which is Friendliness of staffs. This variable does not have
high percentage on its performance. Being friendly to his staffs is not a strong reason for sales
of his umbrella. The staffs could sometimes have no interest; they have no plan on that
purchasing and the like.

In case of variable (X4), the manager’s walking in the shop floor, can be interpreted by
other customer as the one who is in roaming. It is variable that has no much contribution on
predicting sale of umbrella.

Therefore, variable (X1) gives more contribution on predicting sales of umbrella. The
daily maximum temperature will actually make customers to buy umbrellas. This comes from
the weathering conditions which can harm everyone physically, economically and socially.
Many impacts can happen since the temperature is maximized. thus, the store of manager,
could be inadequate due to the fluctuation of buyers.
Question 3 A.

Based on theory and intuition, we expect the insurance premium to depend on driving
experience. Consequently, the insurance premium is a dependent variable and driving experience
is an independent variable in the regression model. A new driver is considered a high risk by the
insurance companies, and he or she has to pay a higher premium for auto insurance. On average,
the insurance premium is expected to decrease with an increase in the years of driving
experience. Therefore, we expect a negative relationship between these two variables. In other
words, both the population correlation coefficient ρ and the population regression slope B are
expected to be negative.

B.

Experience x Premium y xy x2 y2
5 64 320 25 4096
2 87 174 4 7569
12 50 600 144 2500
9 71 639 81 5041
15 44 660 225 1936
6 56 336 36 3136
25 42 1050 625 1764
16 60 960 256 3600
Σx = 90 Σy = 474 Σxy = 4739 Σx2 = 1396 Σy2 = 29,642

The values of x and y are;

The values of SSxy, SSxx, and SSyy are computed as follows:

C. To find the regression line, we calculate a and b as follows:

Thus, our estimated regression line ŷ = a + bx is

D. The value of a = 76.6605 gives the value of ŷ for x = 0; that is, it gives the monthly auto
insurance premium for a driver with no driving experience. However, as mentioned earlier in this
chapter, we should not attach much importance to this statement because the sample contains
drivers with only two or more years of experience. The value of b gives the change in ŷ due to a
change of one unit in x. Thus, b = −1.5476 indicates that, on average, for every extra year of
driving experience, the monthly auto insurance premium decreases by $1.55. Note that when b is
negative, y decreases as x increases.

E. Below figure shows the scatter diagram and the regression line for the data on eight auto
drivers. Note that the regression line slopes downward from left to right. This result is
consistent with the negative relationship we anticipated between driving experience and
insurance premium.
 Scatter diagram and the regression line.

F. The values of r and r2 are computed as follows:

The value of r = −.77 indicates that the driving experience and the monthly auto insurance
premium are negatively related. The (linear) relationship is strong but not very strong. The
value of r2 = .59 states that 59% of the total variation in insurance premiums is explained by
years of driving experience and 41% is not. The low value of r2 indicates that there may be
many other important variables that contribute to the determination of auto insurance
premiums. For example, the premium is expected to depend on the driving record of a driver
and the type and
age of the car.

G. Using the estimated regression line, we find the predicted value of y for x = 10 is

Thus, we expect the monthly auto insurance premium of a driver with 10 years of driving
experience to be $61.18.

H. Standard Deviation of errors is

Question 4:

A. The answer can be determined by dividing the number of clerical workers by the total
number of people that work for the company.

Probability = 120 clerical workers / 350 total workers

= 0.3429

B. Using classical probability

P(Event) = No of Events / Number of sample space

= 8/400

= 0.02

C. Equal chance of happening between Male and Female baby to be born

Probability is: 0.5

Question 5:

A. Probability that 4 or 5 units will be sold

P (4 or 5) = P(4) + P(5)
= 0.15 + 0.10
Probability of 4 or 5 units to be sold is 0.25

B. Probability of at least 3 units will be sold

P (At least 3 units) = P(3) + P(4) + P(5)
= 0.35 + 0.15 + 0.10
Probability of at least 3 units to be sold = 0.6

C. Probability of at least 1 unit will be sold

P (at least 1 unit will be sold) = 1 – P (None Unit will be sold)
= 1 – 0.05
Probability of at least 1 unit will be sold = 0.95