Statistics and Research Methods for Business Decision Making

Aims at Understand various qualitative and quantitative research methodologies and
techniques, and other general purposes are:

  1. Explain how statistical techniques can solve business problems
  2. Identify and evaluate valid statistical techniques in a given scenario to solve business problems
  3. Explain and justify the results of a statistical analysis in the context of critical reasoning for a business
    problem solving
  4. Apply statistical knowledge to summarize data graphically and statistically, either manually or via a
    computer package
  5. Justify and interpret statistical/analytical scenarios that best fits business solution
    Assignment Structure should be as the following:
    This is an applied assignment. Students have to show that they understand the principles and techniques
    taught in this course. Therefore students are expected to show all the workings, and all problems must be
    completed in the format taught in class, the lecture notes or prescribed text book. Any problems not done
    in the prescribed format will not be marked, regardless of the ultimate correctness of the answer.
    (Note: The questions and the necessary data are provided under “Assignment and Due date” in the
    Blackboard.)
    Instructions:

    When answering questions, wherever required, you should copy/cut and paste the Excel output (e.g.,
    plots, regression output etc.) to show your working/output.
    ubmit your assignment through Safe-Assign in the course website, under the Assignments and due
    You are required to keep an electronic copy of your submitted assignment to re-submit, in case the
    original submission is failed and/or you are asked to resubmit.
    Please check your Holmes email prior to reporting your assignment mark regularly for possible
    communications due to failure in your submission.
    Important Notice:
    All assignments submitted undergo plagiarism checking; if found to have cheated, all involving
    submissions would receive a mark of zero for this assessment item.
    Page 3 of 6
    HI6007 STATISTICS AND RESEARCH METHODS FOR BUSINESS DECISION MAKING
    Please read below information carefully and respond all questions listed.
    Question 1
    The planet may be threatened by climate change due to unsustainable activities, possibly caused by
    burning fossil fuels (petroleum, natural gas and coal) that produce carbon dioxide (CO2). The table
    stored in file CO2 EMISSIONS.XLSX (in the course website) lists the top 15 producers of CO2 (millions
    of metric tonnes) from fossil fuels in 2009 and 2013. Using this data, answer the questions below.
    (4 Marks)
    (a) Use an appropriate graphical technique to compare the amount of CO2 emissions (in
    millions of metric tonnes) in 2009 and 2013, broken down by the producer countries.
    (b) Use an appropriate graphical technique to compare the percentage value of the amount
    of CO2 emissions (in %) in 2009 and 2013, broken down by the producer countries.
    (1 mark)
    (c) Comment your observations in parts (a) and (b). (2 marks)
    Question 2.
    The amount of time (in seconds) needed for assembly-line workers to complete a weld at a car
    assembly plant in Adelaide was recorded for 40 workers. (8 Marks)
    59 60 81 74 68 66 49 76 63 67
    69 35 65 61 43 72 83 65 69 70
    54 61 38 92 72 74 55 63 69 73
    75 47 60 62 68 51 71 73 68 99
    a. Construct a frequency distribution and a relative frequency distribution for the data.
    b. Construct a cumulative frequency distribution and a cumulative relative frequency
    distribution for the data. (2 marks)
    c. Plot a relative frequency histogram for the data. (1 mark)
    d. Construct an ogive for the data. (1 mark)
    e. What proportion of the data is less than 65? (1 mark)
    f. What proportion of the data is more than 75? (1mark)
    Use following class intervals to answer the above questions
    Classes Frequency Relative
    Frequency
    Cumulative
    Frequency
    Cumulative
    Relative
    Frequency

Question 3.
Because inflation reduces the purchasing power of the dollar, investors seek investments that will
provide protection against inflation; that is, investments that will provide higher returns when
inflation is higher. It is frequently stated that ordinary shares provide just such a hedge against
inflation. The annual Australian inflation rate (as measured by percentage changes in the consumer
price index) and the annual All-Ordinaries Index from 1995 to 2015 are stored in file INFLATION.XLSX
(in the course website).
Using EXCEL, answer below questions:
a. Using an appropriate graphical descriptive measure (relevant for time series data) describe the
two variables. (1 mark)
b. Use an appropriate plot to investigate the relationship between RATE OF INFLATION and ALLORDINARIES INDEX. Briefly explain the selection of each variable on the X and Y axes and why?
c. Prepare a numerical summary report about the data on the two variables by including the
summary measures, mean, median, range, variance, standard deviation, and coefficient of
variation, smallest and largest values, and the three quartiles, for each variable.
(3 marks)
d. Calculate the coefficient of correlation (r) between RATE OF
INFLATION and ALL-ORDINARIES INDEX. Then, interpret it. (2 marks)

e. Estimate a simple linear regression model and present the estimated linear equation. Then,
interpret the coefficient estimates of the linear model. (4 marks)
f. Determine the coefficient of determination R2 and interpret it. (2 marks)
g. Test the significance of the relationship at the 5% significance level. (3 marks)
h. What is the value of the standard error of the estimate (se). Then, comment on the fitness of the linear regression model?

Marking criteria
Marking criteria Weighting

  1. CO2 Emission analysis:
    a) Appropriate graphical technique for comparing the values
    b) Appropriate graphical technique for comparing the percentage
    values
    c) Comparing a and b
  2. Analysis of time of assembly:
    a) Appropriate frequency distribution
    b) Appropriate cumulative frequency distribution
    c) Histogram
    d) Ogive
    e) and f) Proportion
  3. Estimation and testing significance level:
    a) Descriptive measure
    b) Scatter plot
    c) Numerical summary report
    d) Correlation coefficient
    e) Estimating regression line
    f) Estimating coefficient of determination
    g) Testing significance
    h) Standard error

Sample Solution

ACED ESSAYS