Statistics for Managerial Decisions Assignment 2 - Analysis and Report

This statistics assignment focuses on applying statistical methods to managerial decisions, encompassing various aspects of data analysis and probability. The solution begins with an analysis of ASX companies, including stem and leaf plots, and frequency histograms. It then delves into calculating descriptive statistics such as mean, quartiles, standard deviation, and coefficient of variation. The assignment further explores probability calculations related to student disciplines and ATAR scores, along with the application of Poisson and normal distributions to analyze weekly rainfall data. Finally, it includes hypothesis testing using normality plots and confidence intervals to assess statistical significance across different variables, providing detailed interpretations of the results and relevant references.

Statistics For Managerial Decisions
Assignment 2
[Pick the date]
Student Name

Question 1
ASX Companies
1. Crown Resorts Limited
2. Tabcorp Holdings Limited
(a) The quarterly opening values for the ASX companies
 For the above values, the stem and leaf pot
1

(b) The combined graph as relative frequency histogram for CWN and frequency polygon for
TAH
0 to less
than 2 2 < 4 4 < 6 6 < 8 8 < 10 10 < 12 12 < 14 14 < 16 16 < 18
0
5
10
15
20
25
30
35
Relative frequency histogram and Frequency
Polygon
Opening Quarterly Price)
Relative frequency
2

(c) The name of five ASX listed companies and their respective market capitalization for the
year 2016 is shown below:
Village Roadshow
Tatts Group
Star Entertainment Group
Aristocrat Leisure
Tasracing
0 1 2 3 4 5 6
Bar Chart : Market Capitalization 2016
Market Capitalization(Billion Australian Dollars)
Company NAME
(d) As per the data available from the Australia,, Crown Resorts seems to be a hold or buy
but definitely not a sell.
3

Source: http://markets.theaustralian.com.au/shares/CWN/crown-resorts-limited
However, on account of the takeover planned by the company over the Tatts group, TAH have
been upgrades and hence most of the big brokerage houses are bullish on this counter
Source: http://www.theaustralian.com.au/business/companies/tabcorp-market-valuation-boosted-
by-tatts-takeover-approval/news-story/26e07dac51dd9e46dd2c5625c9b6bc95
My views are also aligned in favour to investing in TAH on account of the merger gains.
However, one needs to be cautious on the reaping of synergies so that profitability can swell and
share price can appreciate.
Question 2
Given set of data
(a) Computation of mean, first quartile and third quartile and mean (Hillier, 2006)
4

5

6

7

Result
(b) Computation of standard deviation, range and coefficient of variation (Hillier, 2006)
8

Result
9

(c) Box and whisker pot
CBA NAB ANZ WBC
-0.50
0.50
1.50
2.50
3.50
4.50
5.50
Box - Whisker Plot: Annual dividend
(d) There has been criticism of the lending practices followed by banks in Australia which
has caught the eye of APRA and hence in view of this increase in credit risk, APRA has
decided to bring in extra capital cushion by making changes in the Tier 1 capital
requirement which has been increased by 100 basis points. This would in turn have an
adverse impact on the interest margins of the banks.
Question 3
(a)After considering the proportion of the respective offers made for given grades, it would be
fair to conclude that best student for most popular discipline is “Engineering and Related
Technologies.” Proportion of students in “Engineering and Related Technologies” is given
as 30%.
(b) Probability needs to be computed for the case where a randomly selected Australian
student is studying in discipline “Society and Culture” with an ATAR score of 80 or less than
8.
10

Favourable outcomes (ATAR score 80 or less than 80) = = (2814+ 2807+3806+5030 ¿=14,457
Total number of expected outcomes = 221060
Value of probability = Favourable outcomes/ Total number of expected outcomes
= 14457/221060 = 0.0654
(c)After considering the proportion of the respective offers made for given grades, it would be
fair to conclude that “Education” discipline is representing highest proportion of the students
along with the lowest ATAR grades. Proportion of students in “Education” is given as
7.30%.
(d) “Health” is the discipline which possess majority of the Australian student from “NO
ATAR / Non – Yr 12” background. The main reasons for this may be due to the inclination
that such students would have towards physical health as there focus is not towards
education. As a result, it is natural for these students to make attempts to build career in the
same field as their interest.
Question 4
(a) Total weeks = 52 weeks
1st week has started = 4th January 2016
The below highlighted table represents amount of rainfall on each week and the mean value and
standard deviation
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