Forecasting Sales Revenue for Anita Limited in 2021

Student Number: (enter on the line below)
Student Name: (enter on the line below)
HI6007
STATISTICS FOR BUSINESS DECISIONS
FINAL
TRIMESTER 1, 2021
Assessment Weight: 50 total marks
Instructions:
 All questions must be answered by using the answer boxes provided in this paper.
 Completed answers must be submitted to Blackboard by the published due date
and time.
Submission instructions are at the end of this paper.
Purpose:
This assessment consists of six (6) questions and is designed to assess your level of
knowledge of the key topics covered in this unit
HI6007 Final T1 2021

Question 1 ( 7
marks)
a. Holmes institute Students evaluation of the course they follow, askes following questions
from students. Identify the type of data and measurement scale for each with relevant
justifications.
i. How many interactive tutorials did you attend in this semester?
ii. What was your group assignment grade (HD, D, C, P, F)?
iii. Rate the lecturer (very effective, effective, not too effective and not at all effective)
iv. Which campus you are registered in (Melbourne, Sydney, Brisbane or Gold coast)
(2 marks)
ANSWER: ** Answer box will enlarge as you type
I
The data undertaken here is the quantitative data because the answer provided to this will be in
form of numbers only. Hence, this involves the use of the ordinal scale and due to the numbers this
scale has been used.
Ii
Here the type of data being used is the qualitative and the measurement scale is the nominal scale
only. This is particularly because of the reason that it only involves the qualitative data.
Iii
This the ordinal type of data and the measurement scale used in this is the ordinal scale and the
reason behind this use is that this can be ordered in some sequence like the very effective, effective,
not too effective and not at all effective
Iv
This come under the nominal type of data and uses the nominal scale of measurement. This is
particularly being selected because of the reason that this is a qualitative data and it is undertaken
under the qualitative type of data.
b. An investor recorded the following annual returns of one of his investments. You are
required to calculate and comment on;
i. Mean return.
ii. Variance and standard deviation of the return.
iii. Geometric return.
Year 2016 2017 2018 2019 2020
Return 15% 17% 19% 10% -5%
(5 marks)
ANSWER: ** Answer box will enlarge as you type
I
The mean return= total of the return divided by the total number of returns.
= 56/ 5
= 11.2%
Ii
Variance= 0.007456
Standard deviation= 0.086348
Iii
Geometric mean= 0.148362
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Question 2 (11 marks)
Nature lovers’ association of Australia, launched a campaign to encourage paper less communication
and/or recycling of used papers to save the trees to reduce global warming. Hence, many small
businesses have scaled up their business such as new forms of online document exchanges and
collecting used papers and cardboards from households and companies.
Abita Recycling Ltd is one such company which is operates in Melbourne. The financial analysist of
the company has estimated that the firm would make a profit if the mean weekly collection of
papers and cardboards from each household exceeded 1KG. To examine the feasibility of a recycling
plant, a random sample of 100 households was selected and sample mean and standard deviations
are 1.1KG and 0.35KG respectively.
Following the 6-step process of hypothesis testing, you are required to examine do this information
provide sufficient evidence at 99% confidence to allow the analyst to conclude that a recycling plant
would be profitable?
ANSWER:
Step 1- setting up the hypothesis
H0- there is no significant relation between feasibility of recycling and mean and standard deviation
H1- there is significant relation between feasibility of recycling and mean and standard deviation
H1= μ>1.1 H0= μ< 1.1
Step 2 is to set the level of significance which in present case if 99 % of 0.01
Step 3 involves calculation of test statistics by the formula
The step 4 involves the comparison of the test statistics and the critical value and marking it on the
graph
Further the step 5 is to state the conclusion fir formally and then less formally.
Question 3 (11 marks)
Edex limited is a renowned agricultural chemical manufacturer in Australia. They conduct many
research and development in the field of Agri and Horticulture. Company wanted to examine the
effect of temperature on farming of their selected range of products.
Company has produced following results based on their data gathering.
15° C 35 24 36 39 32
25° C 30 31 34 23 27
35° C 23 28 28 30 31
You are required to answer following questions;
a. State the null and alternative hypothesis for single factor ANOVA to test for any significant
difference in the perception among three groups. (1 marks)
ANSWER:
H0- there is no significant effect of temperature over farming of the selected range of products.
H1- there is significant effect of temperature over farming of the selected range of products.
b. State the decision rule at 5% significance level. (2 marks)
ANSWER:
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The decision rule of 5 % significance level states that in case the significance value is more than 5 %
or 0.05 then the null hypothesis will be selected. On the other hand, in case if the significance value
will be less than 0.05 then the alternate hypothesis will be selected rejecting the alternate
hypothesis.
c. Calculate the test statistic. (6 marks)
ANSWER:
ANOVA
Source of
Variation SS df MS F P-value F crit
Between Groups
76.1333
3 2
38.0666
7
1.91289
8
0.19006
2
3.88529
4
Within Groups 238.8 12 19.9
Total
314.933
3 14
d. Based on the calculated test statistics, decide whether there are any significant differences
between the yield based on the given temperature levels. (2 marks)
ANSWER:
With the above evaluation of the data it is clear that the significance value id 0.19 which is
greater which means that there is no significant effects of the temperature over the selected
range of the products.
Note: No excel ANOVA output allowed in question3. Students need to show all the steps in
calculations.
Question 4 (7 marks)
Melbourne Uni Lodge has decided to provide cup of cold or hot drinks for their tenants to attract
them after the Covid pandemic. They have determined that mean number of cups of drinks per day
is 2.00 with the standard deviation of 0.6. There will be 125 new tenants in the upcoming months.
What is the probability that the new tenants will consume more than 240 cups of drinks per day?
ANSWER:
Z= x-μ (mean) / Standard deviation
= (125 – 2) / 0.6
= 205
Question 5 (7 marks)
Yummy Lunch Restaurant needs to decide the most profitable location for their business expansion.
Marketing manager plans to use a multiple regression model to achieve their target. His model
considers yearly revenue as the dependent variable. He found that number of people within 2KM
(People), Mean household income(income), no of competitors and price as explanatory variables of
company yearly revenue.
The following is the descriptive statistics and regression output from Excel.
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