MIS770 - Regional Business Confidence: Assignment 2 Analysis

This assignment is a memorandum analyzing regional business confidence based on a sample of 150 businesses. The report examines employment figures across different sectors, the presence of growth strategies, and their impact on employee numbers. Statistical analysis includes confidence intervals for the proportion of businesses with growth strategies and comparisons of employee numbers between firms with and without such strategies. Further analysis covers the average age of managers, the likelihood of new business openings, and the required sample sizes for specific confidence levels. The report concludes with insights relevant to business objectives, offering data-driven recommendations based on the collected data and analysis performed.

Running head: ASSIGNMENT 2 – REGIONAL BUSINESS CONFIDENCE: MEMORANDUM
Assignment 2 – Regional Business Confidence: Memorandum
Name of Student
Name of University
Student ID

ASSIGNMENT 2 – REGIONAL BUSINESS CONFIDENCE: MEMORANDUM 1
To: Ballarat City Council
From: Nick Black
Subject: Further analysis of Business confidence and expectation
Dear Sir/Madam,
For the purpose of the analysis of the status of regional business as specified in your
correspondence to myself, I have taken into account a sample of 150 businesses selected randomly
out of all the businesses. The following insights have been found by inferring about the sum of all
businesses from this representative set of businesses.
1.
There are a total of 517 people employed by you in the region for the 150 businesses I have
chosen. 47 of them are in “Accommodation and food services”, 178 are in the “Business and
professional services”, 66 are in the “Government, education and community services”, 60 are in
“Manufacturing, transport and storage”, 15 are in the “Primary Industries”, 65 are employed in
“Retail trade”, 34 of your workers are in the “Service trades, electricity, gas, construction and
wholesale trade” and the remaining 52 are in other services.
2.
Considering 150 businesses out of all the currently operating in the region, it is apparent that
107 have some growth strategies in place and 43 have none whatsoever. Based on this information,
it can be inferred with 95 percent surety that the proportion of businesses with a growth strategy in
place out of all the businesses is between 64.10 percent and 78.57 percent.
3.
a. Out of all the existing and functioning businesses in the region, for the 150 businesses that were
chosen randomly, 107 were found to be having a growth strategy in place and 43 had no
strategy for growth. Based on this information, it could be inferred with 95 percent surety that
there is not enough evidence to believe that the proportion of businesses in the region with a
growth strategy in place is less than 76 percent. Therefore there is not enough reasonable proof
to believe that the revenue generated in the region would be severely impacted.
b. For the set of 150 randomly selected businesses in the region, it was seen that the average
number of employees in the 107 firms with a growth strategy is about 35 and the average
number of employees in the 43 firms with a growth strategy is about 19. Thus estimated number
of employees in a typical firm with a growth strategy is 35 and that in a business without a
growth strategy is 19.
It can be said with 95 percent surety that the average number of employees in a firm with
a growth strategy in place is significantly greater than that of a business without one. It has been
estimated that the number of employees in a firm with a strategy can be between 36.6 and 32.88
and that this estimate may have a chance of error being at most 5 percent, that is, the number of
people may be anywhere between 37 and 32. The estimate for a business with no strategy is
however between 21.14 and 15.46 and that this estimate may have a chance of error being at
most 5 percent, that is, the number of people may be anywhere between 22 and 15.

ASSIGNMENT 2 – REGIONAL BUSINESS CONFIDENCE: MEMORANDUM 2
Hence it can be said that a business with greater than at least 32 employees is more likely
to have a growth strategy and hence more likely to be successful.
4.
The average age of the manager in the 150 businesses under consideration is 48.27. Based on
this, there is not enough statistical evidence to suggest that the average age of the managers when
considering all the businesses is less than 50 years of age. It can be said with a surety of 95 percent
that the age of managers for the local businesses does not deviate from the expected age of managers
in Australia that is it is not less than 50.
5.
a. Given that, an average of 10 business ventures opens each year, the likelihood of more than 15
businesses opening next year is 4.87 percent.
b. The likelihood of the number of businesses opening will be less than or equal to 5 businesses is
6.71 percent, based on the premise that an average of 10 business open each year in the region.
6.
a. The average number of people employed by the local businesses is 3.4 per business for the
representative sample of 15 businesses. Then for the average number of employees in each business
to be within 4, a sample of size 48 businesses would be required having maintained the degree of
allowable error that is allowed for the estimate to be at most 5 percent.
b.
Assuming that the percentage of businesses which has a growth strategy to be implemented in
place, in the region, is to be kept within 2 percent, the sample size that will be necessary is 21, such
that the allowable error in the estimate is kept to at most 5 percent.
All of the above insights have been based on empirical evidence drawn from the
representative sample of businesses in the region, as per your queries in the previous mail. I am
happy to be able to provide you with the necessary insights relevant to your business objectives.
Sincerely,
Nick Black