Statistics for Business Decisions Assignment

Statistics For Business Decisions
Statistics for Business Decision Assignment
Student’s Name
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Statistics For Business Decisions
Question Three
Data: Record of Outputs of Four Program test by Allied Corporation
Program A Program B Program C Program D
150 150 185 175
130 120 220 150
120 135 190 120
180 160 180 130
145 110 175 175
a. ANOVA Table test the difference between mean output of the four programs
It was constructed using Microsoft Excel.
Anova: Single Factor
SUMMARY
Groups Count Sum Average Variance
Program A 5 725 145 525
Program B 5 675 135 425
Program C 5 950 190 312.5
Program D 5 750 150 637.5
ANOVA
Source of Variation SS df MS F P-value F crit
Between Groups 8750 3 2916.666667 6.14035
1
0.0055
7
3.23887
2
Within Groups 7600 16 475
Total 16350 19

Statistics For Business Decisions
b. Advice to Allied Corporation
P-value, 0.00557 is less than 0.05, implying that there's significant difference between mean
outputs of different Programs (Ruppert, 2014). These differences make the comparison of the
output of the four Programs simple and easier. Also, from table of summary, it clear that means
of output of the programs are different. Therefore Allied can select the program with higher
mean output which is associated with small Variance. Small Variance is an indicator of low
variation (risk) of the outputs. Allied should choose Program C, as its mean output is the highest
and has the smallest variance among the four programs
Question Four
Data: A company record of weekly Sales for its product ( Y ) the unit price of the
competitor's product (X1), and advertising expenditures ( X2)
Week Sales of Product Y Price of Competitor Product
X1
Advertising Expenditures
X2
1 20 0.33 5
2 14 0.25 2
3 22 0.44 7
4 21 0.4 9
5 16 0.35 4
6 19 0.39 8
7 15 0.29 9