I have provided my assignments in the first two documents. In the last three documents, I have provided examples of how things should be done
BA 271 Introduction to Business Statistics Chapter 7 Case 7.2 Cases are assigned from the end of chapters that represent real world applications of the statistical concepts discussed in the chapter. You will use Microsoft Excel to perform the statistical procedures. You will also use Microsoft Word to prepare a managerial report that summarizes the key requirements of the case, explains the statistical methods used, discusses the results, and recommends a course of action based on your analysis. The managerial report will be submitted to turnitin.com for originality. Deliverables A managerial report is used in business and industry to report the results of research, studies, investigations, analyses, and other activities in a condensed and concise manor. Sometimes, this is referred to as an executive summary to a much more in-depth report. The report should summarize the purpose and objectives of the study; provide summarized statistical details produced by the analyst; and make recommendations for courses of action based on the analysis results. The conclusions and recommendations will be used to help the executive make decisions that affect the business situation. Managerial report o Use format available in Sample Managerial Report; Section 1 summarizes the case described in the chapter. Include in this section any descriptive statistics and state the purpose and objective of the case. o DO NOT copy the case. o DO NOT refer to the case data file. Section 2 should describe the statistical methods used to analyze the case. Include pivot tables and charts as necessary. Figures and tables should be labeled (Table 1. Descriptive statistics, Figure 1. Frequency distribution, etc.), and properly formatted for clarity. o DO NOT include instructions for using Excel. o DO NOT include the data set in the report. o DO NOT refer to the Excel spreadsheet. Section 3 should provide the conclusions of your analysis and recommendations for future action. Statistics packages such as SAS, SPSS, and MINITAB as well as electronic spreadsheets provide statistical analysis tools for evaluating various types of data. Excel provides many statistical functions along with the Data Analysis ToolPak which, in many cases, will be sufficient for performing statistical analysis. Excel also provides an easy way to develop and format charts and tables which can be copied into any report. Excel Spreadsheet o Use separate sheet for each chart, pivot table, and table created with the Analysis Tool- Pak. o Name each tab with the name of the table or chart. o Format numbers to 3 decimal places. Student Learning Outcomes In completing the assigned cases the student will: Demonstrate the ability to use Microsoft Excel to perform statistical operations using formulas, statistical functions, charts, pivot tables and other analysis tools; Perform interval estimation, hypothesis testing, ANOVA, regression or other statistical method on one or more samples and explain the results; Critically analyze data to make recommendations to decision makers; and Demonstrate understanding of statistical methods and concepts through discussion in the managerial report. Grading A rubric in Blackboard is used to grade each case study: Spreadsheet – Demonstrate ability to use Microsoft Excel to perform statistical analysis. o Use of analysis tools, pivot tables, charts, graphs, formulas and functions. Managerial Report – Demonstrate understanding of statistical methods. o Provide a clear and focused summary of the case along with stated purpose and objectives; o Critically analyze data and explain statistical procedures used along with resultant outcomes; o Make logical recommendations to management supported by statistical analysis; o Use proper punctuation, spelling and grammar. Tables and charts should be properly identified, formatted, and referenced in the document. More Info: Textbook page 263 Data File: No Data File (use the information on page 263 case 7.2) 1. Compute the expected number of college and high school graduates who are employed. 2. Report the probabilities that at least 200 college graduates and at least 100 high school graduates under the age of 25 are employed. 3. Explain how Cindy can use this information to help her business. CASE STUDY 7. 2 According to a report, college graduates in 2010 were likely to face better job prospects than 2009 graduates (The New York Times, May 24, 2010). Many employers who might have been pessimistic at the start of the 2009–2010 academic year were making more offers than expected. Despite the improvement in job prospects, the Bureau of Labor Statistics reported that the current jobless rate for college graduates under age 25 was still 8%. For high school graduates under age 25 who did not enroll in college, the current jobless rate was 24.5%. Cindy Chan works in the sales department of a trendy apparel company and has recently been relocated to a small town in Iowa. She finds that there are a total of 220 college graduates and 140 high school graduates under age 25 who live in this town. Cindy wants to gauge the demand for her products by the number of youths in this town who are employed. In a report, use the above information to: 1. Compute the expected number of college and high school graduates who are employed. 2. Report the probabilities that at least 200 college graduates and at least 100 high school graduates under age 25 are employed. CASE STUDY 3.2 Five years after graduating from college, Lucia Li feels that she is finally ready to invest some of her earnings. She has eliminated her credit card debt and has established an emergency fund. Her parents have been pleased with the performance of their mutual fund investments with Janus Capital Group. She has narrowed her search down to two mutual funds: The Janus Balanced Fund: This “core” fund consists of stocks and bonds and its goal is diversification. It has historically produced solid long-term returns through different market cycles. The Janus Overseas Fund: This fund invests in overseas companies based on their individual merits instead of their geography or industry sector. The following table reports the annual returns (in percent) of these two funds over the past 10 years. Data for Case Study 3.2 Returns (in percent) for Janus Funds Year Janus Balanced Fund Janus Overseas Fund Year Janus Balanced Fund Janus Overseas Fund 2000 –2.16 –18.57 2005 7.75 32.39 2001 –5.04 –23.11 2006 10.56 47.21 2002 –6.56 –23.89 2007 10.15 27.76 2003 13.74 36.79 2008 –15.22 –52.75 2004 8.71 18.58 2009 24.28 78.12 Source: www.finance.yahoo.com. In a report, use the sample information to: 1. Calculate measures of central location to describe the similarities and the differences in these two funds’ returns. 2. Calculate measures of dispersion to assess the risk of each fund. 3. Calculate and interpret measures of correlation between the two funds. The purpose of this case is to choose one of funds to which Lucia Li wants to invest her earnings. The measures of central tendency are mean, median and mode. Median is considered as the best measure of central tendency when data is skewed. Here both mean and median return for Janus Overseas Fund is more when compared with Janus Balanced Fund. Mean return for Janus Overseas Fund and Janus Balanced Fund is 12.25 and 4.62 respectively. Median return for Janus Overseas Fund and Janus Balanced Fund is 23.17 and 8.23 respectively. When observing the median, the return on Janus overseas fund is more than that of the balanced fund. Measures of dispersion are standard deviation, variance, range and IQR. Variance measures dispersion in squared units and standard deviation measures dispersion in true units. The low value of standard deviation and variance implies that mean is reliable which is observed for Janus Balanced Fund. The high value of standard deviation and variance implies that mean is reliable which is observed for Janus Overseas Fund. Compared to Balanced Fund, the Overseas Fund has a higher average return. However the Overseas Fund has a higher standard deviation and coefficient of variation, indicating higher risk and dispersion relatively to Balanced Fund. The coefficient of correlation between the two funds is 0.98. Correlation coefficient clearly suggests that the return of Janus Balanced Fund has always moved in the same direction to Janus Overseas Fund indicating a strong positive correlation of the balanced and overseas return. Janus_Funds YearJanus Balanced FundJanus Overseas Fund 2000-2.16-18.57 2001-5.04-23.11 2002-6.56-23.89 200313.7436.79 20048.7118.58 20057.7532.39 200610.5647.21 200710.1527.76 2008-15.22-52.75 200924.2878.12 Descriptive Statistics Janus Balanced FundJanus Overseas Fund Mean4.621Mean12.253 Standard Error3.6817590753Standard Error12.7282800662 Median8.23Median23.17 ModeERROR:#N/AModeERROR:#N/A Standard Deviation11.6427444741Standard Deviation40.2503557058 Sample Variance135.5534988889Sample Variance1620.0911344444 Kurtosis-0.297705805Kurtosis-0.7695917869 Skewness-0.1397918226Skewness-0.0851629045 Range39.5Range130.87 Minimum-15.22Minimum-52.75 Maximum24.28Maximum78.12 Sum46.21Sum122.53 Count10Count10 Measures of Central Tendency measures of central tendency Janus Balanced FundJanus Overseas Fund mean4.6212.25 median8.2323.17 modeERROR:#N/AERROR:#N/A skew-0.140-0.085 Measures of dispersion measures of dispersion Janus Balanced FundJanus Overseas Fund sd11.6440.25 var135.551620.09 range39.50130.87 IQR14.7857.67 Correlation Coefficient correlation coefficient r = 0.9829 Sheet1