Discuss the below:
Q1. Analyze the SalePerf2 and write a new managerial report.
BACKGROUND
Sales Time MktPoten Adver MktShare Change Accts WkLoad
3669.88 43.10 74065.11 4582.88 2.51 0.34 74.86 15.05
3473.95 108.13 58117.30 5539.78 5.51 0.15 107.32 19.97
2295.10 13.82 21118.49 2950.38 10.91 -0.72 96.75 17.34
4675.56 186.18 68521.27 2243.07 8.27 0.17 195.12 13.40
6125.96 161.79 57805.11 7747.08 9.15 0.50 180.44 17.64
2134.94 8.94 37806.94 402.44 5.51 0.15 104.88 16.22
5031.66 365.04 50935.26 3140.62 8.54 0.55 256.10 18.80
3367.45 220.32 35602.08 2086.16 7.07 -0.49 126.83 19.86
6519.45 127.64 46176.77 8846.25 12.54 1.24 203.25 17.42
4876.37 105.69 42053.24 5673.11 8.85 0.31 119.51 21.41
2468.27 57.72 36829.71 2761.76 5.38 0.37 116.26 16.32
2533.31 23.58 33612.67 1991.85 5.43 -0.65 142.28 14.51
2408.11 13.82 21412.79 1971.52 8.48 0.64 89.43 19.35
2337.38 13.82 20416.87 1737.38 7.80 1.01 84.55 20.02
4586.95 86.99 36272.00 10694.20 10.34 0.11 119.51 15.26
2729.24 165.85 23093.26 8618.61 5.15 0.04 80.49 15.87
3289.40 116.26 26878.59 7747.89 6.64 0.68 136.58 7.81
2800.78 42.28 39571.96 4565.81 5.45 0.66 78.86 16.00
3264.20 52.84 51866.15 6022.70 6.31 -0.10 136.58 17.44
3453.62 165.04 58749.82 3721.10 6.35 -0.03 138.21 17.98
1741.45 10.57 23990.82 860.97 7.37 -1.63 75.61 20.99
2035.75 13.82 25694.86 3571.51 8.39 -0.43 102.44 21.66
1578.00 8.13 23736.35 2845.50 5.15 0.04 76.42 21.46
4167.44 58.54 34314.29 5060.11 12.88 0.22 136.58 24.78
2799.97 21.14 22809.53 3552.00 9.14 -0.74 88.62 24.96
Sales: Yearly sales of the company's product in the representative's sales territory (00)
Time: Number of months the representative has been employed by the company
MktPoten: Sales of the company's product and competing products in the sales territory (00)
Adver: Dollar advertising expenditure in the territory
MktShare: Weighted average of the company's market share in the territory for the previous four years
Change: Change in the company's market share in the territory over the previous four years
Accts: Number of accounts handled by the representative
WkLoad: Average workload per account, measured by using a weighting based on the sizes of the orders by the accounts and other workload-related criteria
Note: Sales and MktPoten are measured in hundreds of units of the product sold, i.e., for the first sales figure is 366,988 units.
ASSIGNMENT
The sales manager of your company wishes to evaluate the performance of the company's sales representatives. Each sales representative is solely responsible for one sales territory. You and the manager believe that sales performance substantially depends on the above collected data. The manager has asked you to analyze this data to identify "good" and "bad" sales representatives. Questionable representatives whose performance is substantially lower will get special training aimed at improving their sales techniques.
Analyze this data, i.e., calculate descriptive statistics--mean, standard deviation, and so on, and create tables and graphs. WARNING: Before starting, develop a "game plan" to analysis the data, i.e., ask yourself what is the goal of your analysis. The managerial report should summarizing the results of your analysis. The report should only contain the key statistical information, in non-technical terms. Try to include tables, figures, graphs as part of the report. AND talk to the graphs/figures/tables-i.e., what is in them that's so important?? Use bullets!! Include the other frequency distributions, descriptive statistics not in the report in an appendix. Further guidelines to writing the report are on the last page.
Q2. Marketing strategists would like to predict consumer response to new products and their accompanying promotional schemes. Consequently, studies that examine the differences between buyers and nonbuyers of a product are of interest. One classic study conducted was aimed at characterizing the purchasers and nonpurchasers of Crest toothpaste. The researchers demonstrated that both the mean household size (number of persons) and mean household income were significantly larger for purchasers than for nonpurchasers. A similar study utilized random sample size of 20 and yielded the age of the householder primarily responsible for buying toothpaste as shown in Excel worksheet Crest.
a. What assumptions are necessary in order to test if there is a difference in the mean age of purchasers and nonpurchasers?
b. Making those assumptions in part a., perform the appropriate test(s) to see if there is or there is not sufficient evidence to conclude there is a difference in the mean age of purchasers and nonpurchasers? Use α = 0.10.
Q3. Suppose a stock market investor is interested in determining whether there is a significance difference in the P/E (price to earnings) ratio for companies from one year to the next. In an effort to study this question, the investor randomly samples nine companies and records the P/E ratios for each of these companies at the end of 2003 and at the end of 2004, as shown in the table below and in Excel worksheet PEratios. Perform the appropriate test(s) to determine whether there is a significance difference in the P/E ratios for companies from one year to the next. Use α = 0.01.
Company 2003 P/E Ratio 2004 P/E Ratio
1 8.9 12.7
2 38.1 45.4
3 43.0 10.0
4 34.0 27.2
5 34.5 22.8
6 15.2 24.1
7 20.3 32.3
8 19.9 40.1
9 61.9 106.5
Q4. The goal is to determine whether a worker's confidence in a major corporation depends on the worker's job satisfaction. A random sample of 314 employees of a major corporation was selected and the Confidence (Great Deal, Some, Hardly Any) and Job Satisfaction (High, Moderate, Low, None) of each recorded. The number of employees in each Confidence-Satisfaction combination is given below.
Confidence Job Satisfaction
High Moderate Low None
Great Deal 26 15 2 1
Some 95 73 16 5
Hardly Any 34 28 10 9
Perform the χ2 test of independence, state, in words, H0 and H1. Using a 0.05 level significance, state whether you do not reject or reject your hypothesis. Also, not only state your conclusion, i.e., reject or do not reject H0, but also state in "non-technical" terms your conclusion.
1. A paragraph giving a brief summary of the where the data can from and describing the problem situation--give the who, what, and where. A brief overview of the managerial problem as you see it, what are the decision alternatives, and by what criteria are the alternatives to be evaluated?
2. Overall descriptive statistics. Summarize the important variables in the survey in non-technical terms.
3. Probing. Then, dig deeper into the data and present significant findings -- use non-technical terms. State your results clearly and concisely -- use bullets. The reader should be able to understand what you write without referring to the computer printout (printouts should be in the appendix)-- use tables and graphs and reference them, e.g., in Table 1.... Talk to your figures and tables--what's important in them--don't let the reader have to analyze what your presenting.
The memo should read like a story or a visit to a museum, i.e., we are visiting the Museum of American History and we are looking at the American Revolution. You discussion/tables/figures are like going from scene to scene--i.e., what is important about this scene--battle at Valley Forge. You are the guide of the tour. Lead the reader through your visit.
4. Your recommendation(s) to the decision-maker. Giving your findings provide recommendations-- what action can be taken from your results or recommendations to improve your results.