00HomeworkProblems2014 Fall Sujit Sengupta

HomeworkThe objective of the Homework assignment is to provide an opportunity to apply or practice the tools and techniques covered in the course and to provide an opportunity to articulate key concepts addressed in the course. The homework is not a test. Any resource (eLecture, web-based,content, study partners, and the Solutions Workbook) may be used to to help answer the problems in each worksheet.

The Homework problems generally correspond to the types of problems you will encounter in the Applications Assignment, which will be made available at the beginning of Unit 11. Consequently, working on the Homework problems will be good practice for the Applications Assignment.

The worksheets in this workbook correspond to the Units in the course. In two cases, there are two worksheets for a Unit (Units 4 & 10). Each worksheet contains several problems keyed to the Unit's Learning Objectives, the Unit's eLecture, and the text content covered in the Unit.

Work through the problems for a Unit. Generally, answers to the problems are to be placed in a specific cell. Typically, the target cells will be "boxed" or highlighted. See cells R3 & R5 on this worksheet for an example. In some cases, graphs & charts for example, a boxed space is provided near the problem's directions.

In most cases, directions for a problem are provided in a cell above problem's workspace. However, as you work through the worksheets, look for the red comment triangle in the upper right-hand corner of worksheet cells that are highlighted in yellow. The comments will reveal specific instructions or guides to solving the problems. See the red comment triangle in the upper right corner of this instruction box. Simply hover the cursor above the cell having a comment, and the comment will be displayed. When finished with the problems for a Unit, submit the entire workbook to the Homework Dropbox for the Unit. To receive credit for the Homework, it should be submitted before the close of the Unit (Tuesday @ midnight) the week that the Unit is open.

Homework items are numbered and highlighted. Some of the problems are displayed far down the worksheets. Be sure to scroll all the way down the highlighted column to find all the problems in each worksheet.

There is a Homework Solutions workbook in the Homework Doc Sharing folder. You may check your homework against the Solutions worksheets, but you should not simply copy the answers. Actually performing the calculations required in the problems will be invaluable practice for the Applications Assignment, which you will receive in Unit 11.

Homework Grading RubricPoints per Unit

0 .10-.25 .26-.50 51-.75 .76-1.0

HomeworkThe objective of the Homework assignment is to provide an opportunity to apply or practice the tools and techniques covered in the course and to provide an opportunity to articulate key concepts addressed in the course. The homework is not a test. Any resource (eLecture, web-based,content, study partners, and the Solutions Workbook) may be used to to help answer the problems in each worksheet.



Work through the problems for a Unit. Generally, answers to the problems are to be placed in a specific cell. Typically, the target cells will be "boxed" or highlighted. See cells R3 & R5 on this worksheet for an example. In some cases, graphs & charts for example, a boxed space is provided near the problem's directions.

In most cases, directions for a problem are provided in a cell above problem's workspace. However, as you work through the worksheets, look for the red comment triangle in the upper right-hand corner of worksheet cells that are highlighted in yellow. The comments will reveal specific instructions or guides to solving the problems. See the red comment triangle in the upper right corner of this instruction box. Simply hover the cursor above the cell having a comment, and the comment will be displayed. When finished with the problems for a Unit, submit the entire workbook to the Homework Dropbox for the Unit. To receive credit for the Homework, it should be submitted before the close of the Unit (Tuesday @ midnight) the week that the Unit is open.

Homework items are numbered and highlighted. Some of the problems are displayed far down the worksheets. Be sure to scroll all the way down the highlighted column to find all the problems in each worksheet.

There is a Homework Solutions workbook in the Homework Doc Sharing folder. You may check your homework against the Solutions worksheets, but you should not simply copy the answers. Actually performing the calculations required in the problems will be invaluable practice for the Applications Assignment, which you will receive in Unit 11.

Homework GradeHomework is 10% of the final course grade. There is a Homework assignment in each of the 12 Units. Homework will be graded according to the rubric below and the mean of the Top 10 Homework grades will be summed to get the Homework contribution to the final grade.

Homework not submitted, submitted after the close of the unit, or submitted homework omits the majority of the problems in the worksheet.

Up to 25% of the problems completed correctly.

26-50% of the problems completed correctly.



4

2

xxx

The objective of the Homework assignment is to provide an opportunity to apply or practice the tools and techniques covered in the course and to provide an opportunity to articulate key concepts addressed in the course. The homework is not a test. Any resource (eLecture, web-based,content, study partners, and the Solutions Workbook) may be used to to help answer the problems in each worksheet.



Work through the problems for a Unit. Generally, answers to the problems are to be placed in a specific cell. R3 & R5 on this worksheet for an example.

In some cases, graphs & charts for example, a boxed space is provided near the problem's directions.

In most cases, directions for a problem are provided in a cell above problem's workspace. However, as you in the upper right-hand corner of worksheet

. The comments will reveal specific instructions or guides to solving the problems. See the red comment triangle in the upper right corner of this instruction box. Simply hover the cursor above the cell having a comment, and the comment will be displayed. When finished with the problems for a Unit, submit the entire workbook to the Homework Dropbox for the Unit. To receive credit for the Homework, it should be submitted before the close of the Unit (Tuesday @ midnight) the week that the

Homework items are numbered and highlighted. Some of the problems are displayed far down the worksheets. Be sure to scroll all the way down the highlighted column to find all the problems in each

There is a Homework Solutions workbook in the Homework Doc Sharing folder. You may check your homework against the Solutions worksheets, but you should not simply copy the answers. Actually performing the calculations required in the problems will be invaluable practice for the Applications

The objective of the Homework assignment is to provide an opportunity to apply or practice the tools and techniques covered in the course and to provide an opportunity to articulate key concepts addressed in the course. The homework is not a test. Any resource (eLecture, web-based,content, study partners, and the Solutions Workbook) may be used to to help answer the problems in each worksheet.



Work through the problems for a Unit. Generally, answers to the problems are to be placed in a specific cell. R3 & R5 on this worksheet for an example.

In some cases, graphs & charts for example, a boxed space is provided near the problem's directions.

In most cases, directions for a problem are provided in a cell above problem's workspace. However, as you in the upper right-hand corner of worksheet

. The comments will reveal specific instructions or guides to solving the problems. See the red comment triangle in the upper right corner of this instruction box. Simply hover the cursor above the cell having a comment, and the comment will be displayed. When finished with the problems for a Unit, submit the entire workbook to the Homework Dropbox for the Unit. To receive credit for the Homework, it should be submitted before the close of the Unit (Tuesday @ midnight) the week that the

Homework items are numbered and highlighted. Some of the problems are displayed far down the worksheets. Be sure to scroll all the way down the highlighted column to find all the problems in each

There is a Homework Solutions workbook in the Homework Doc Sharing folder. You may check your homework against the Solutions worksheets, but you should not simply copy the answers. Actually performing the calculations required in the problems will be invaluable practice for the Applications

Homework is 10% of the final course grade. There is a Homework assignment in each of the 12 Units. Homework will be graded according to the rubric below and the mean of the Top 10 Homework grades will be

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What are data? Provide some examples.

How are data and information different?Data is raw, unformatted and undiffrentiated. Information is the data which has been transformed to have some meaning.

What are the three benefits that a strong information system will bring to an organization?

What is the Productivity Paradox?

What is an extranet? What are some advantages of Extranets?

What is an intranet?

What are the three decision-making levels within an organization and describe the type of information needed at each level.

What is an ERP? Describe.

Business Analytics concerns not only the analysis of data, but also the systems that collect, store, assure data integrity, and manage the data. It is impossible to conduct a "good" analysis if the data to be analyzed is not of high quality--primarily meaning secure and accurate. Answer the questions that follow as you learn about the process of transforming data into information.

Data is the raw inputs to the information system. It can be text files, it can be pictures etc. It can be both qualitative as well as quantitative. Some examples of data are : 1) Text data such as a name - Peter, a place like Califirnia or a thing like Television. 2) Numbers such as a phone number like 469 955 0404, amount of $45. 3) Pictures and symbols like Ω, £, ©, ∏ etc.

A strong information system can benefit some or all the following three benefits 1) Automotive Benefits 2) Informative benefits 3) Strategic benefits.

Investment in IT and Information System does not always increase productivity. In certain cases it has aslo been seen that there is a decline in productivity inspite of heavy investment I IT systems. This is known as the productivity paradox.

Extranets are external networks that allows communication with external companies generally for Business to Business (B2B) Electronic Commerce. Some of the advantages of using Extranets are i) Improved Timeliness and accuracy of information ii) Central management of documents iii) Cross platform in nature as we are not tied to specific vendors iv) Low cost of adoption and iv) No specific user training is required.

An intranet is a network that is internal to an organization. It is used for only internal communication. This network is faster than the internet and is more secure as well.

The three decision making levels within an organization are 1) Executive Level - Here Strategic information is required which is complex, non routine and generally long term. 2) Managerial Level - Here functional information is required that may be semi structured and have a time frame from a few days to a few months. 3) Operational Level - Here transactional information is required that is structured and recurring.

What is SCM? Describe.

What is CRM? Describe.

What are relevant issues related to information accessibility, privacy, and the ethical use?

Describe typical security attacks and ways to defend against them.

ERP or Enterprise Resource Planning software is a complex computer based system that attempts to integrate multiple departments and functions within a company into a single system that serves the needs of all the departments and functions. A properly installed ERP system can have a huge payback if properly installed.

Supply Chain Management is an integrated system that helps a company acquire, produce and deliver a company's products to its customers. The fundamental components of an SCM system are Planning ( strategy for managing the resources needed), Sourcing (acquiring the goods and services needed to make the company's products), Manufacturing ( producing the products), Delivery (getting the product to the customer) and Returning (accepting defective or excess product back from the customer).

CRM refers to Customer Relationship Management. It is the strategy a company uses to learn about the customer's needs and requirement in order to develop a strong relationship with them. An effective CRM strategy can allow a company to increase revenues by providing the specific goods and services wanted by the customer, offering better service to the customer, cross selling, closing deals faster, retaining existing customers and effectively acquiring new customers.

Information accessibility concerns issues in computer litracy ( being fluent with computer - knowing how to use them as a tool ), and ensuring information is universally available. That is, make sure that the divide between the haves and have nots in terms of access to knowledge is minimized. In so far as privacy and ethics are concerned, how do we ensure that our privacy rights as citizens are not violated and that we are not only treated ethically in our interactions with individuals who may have the power of the computer but that we also are ethical stewards of the information that we as individuals may have access to.

Threats to information security can come from both inside and outside the organization. Threats are varied - accidents and natural disasters, employees and consultants, links to outside business contacts, outsiders and a variety of malware. Companies often have to deal with unauthorised access to data and information, theft of computers and storage media and skilled hackers. To defend against companies have to undertake risk assessment and develop measures based on vulnerabilities. In many cases risk can be reduced by simple actions like improved password management, maintaining firewalls, using encryption in sending and receiving data, using auditing software to keep track of computer activity and regularly backing up data.

1 List and define five optical illusions that can effect one's perception of graphed data. 3

2 List and define five components of effective graphing.

3) Chartjunk ( unnecesary visual elements of a chart should be mininmized or eliminated. 4) Use colour appropriate to the items displayed and avoid overly bright colour.5) Use graphics or pictures matched to the data displayed.

# Horizontal Vertical illusion in which two lines of identical length are perceived as differing in length when shown as two lines perpendicular to one another.

# Muller-Lyer illusion in which two lines of equal length are perceived as differing in length when capped with inward facing versus outward facing arrows.

# Poggendorf illusion in which three parallel lines are perceived as two parallel lines when overlaid with an opaque figure.

Delboeuf illusion in which two equally sized circles will appear to differ in size when placed concentrically inside versus outside another circle.

# Ponzo illusion in which two lines of equal length appear to differ in size when placed over parallel lines that seem to converge as they recede into the distance.

1) Graphical Integrity : Numbers should be proportional to the quantities represented, Clear and thorough labeling, show data variation and not design presentation.

2) The data to ink ratio should be maximised, eliminating redundancy and effectively displaying the graphed data.

PartyAffiliation Count

Democrat 1 Pivot Table

Democrat 1 PartyAffiliation Sum of Count

Democrat 1 Democrat 26

Democrat 1 Independent 18

Independent 1 Republican 36Republican 1 Total Result 80

Independent 1 Examples of Bad Chart Types.Republican 1

Independent 1

Republican 1

Independent 1Republican 1

Independent 1Democrat 1Democrat 1

Republican 1Democrat 1Democrat 1Democrat 1 PartyAffiliation Sum of Count

Republican 1 Democrat 26Republican 1 Independent 18

Independent 1 Republican 36Republican 1 Total Result 80Democrat 1

Republican 1Republican 1

Independent 1Republican 1Republican 1Republican 1Republican 1Republican 1

Independent 1Independent 1Republican 1Republican 1 PartyAffiliation Sum of CountDemocrat 1 Democrat 26

Republican 1 Independent 18

Democrat Independent Republican Total Result0

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Sum of Count


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2618

36

80

Total

Sum of Count

DemocratIndependent

RepublicanTotal Result

01020304050607080

Total

Sum of Count

Democrat 1 Republican 36Democrat 1 Total Result 80Democrat 1Democrat 1Democrat 1Democrat 1




Independent 1 PartyAffiliation Sum of CountRepublican 1 Democrat 26

Independent 1 Independent 18Democrat 1 Republican 36Democrat 1 Total Result 80

Republican 1Democrat 1Democrat 1Democrat 1


Independent 1Republican 1Democrat 1


Independent 1Republican 1Republican 1Republican 1Republican 1Republican 1

Independent 1Independent 1Republican 1Republican 1Democrat 1

Republican 1Democrat 1Democrat 1

DemocratIndependent


01020304050607080

Total

Sum of Count


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Sum of Count

4 Compute PartyAffiliation frequency using the COUNTIF function.

26

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36

Examples of Good Chart

PartyAffiliation Sum of CountDemocrat 26

Independent 18

Republican 36

Total Result 80

PartyAffiliation Sum of CountDemocrat 26Independent 18Republican 36Total Result 80

PartyAffiliation Sum of CountDemocrat 26Independent 18


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DemocratIndependent


01020304050607080

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2618

36

80

Political Party Affiliation of college students in a Business Analytics Class

26; 16%

18; 11%

36; 23%

80; 50%


DemocratIndependentRepublicanTotal Result

Democrat

Independent

Republican

Total Result

0 10 20 30 40 50 60 70 80 90

26

18

36

80

Republican 36Total Result 80

DemocratIndependent


01020304050607080

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Democrat

Independent

Republican

Total Result

0 10 20 30 40 50 60 70 80 90

26

18

36

80


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2618

36

80


26; 16%

18; 11%

36; 23%

80; 50%


DemocratIndependentRepublicanTotal Result

Democrat

Independent

Republican

Total Result

0 10 20 30 40 50 60 70 80 90

26

18

36

80

Democrat

Independent

Republican

Total Result

0 10 20 30 40 50 60 70 80 90

26

18

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Compare and contrast variables and values.

Define Qualitative data.

Define Quantitative data.

What is variability in a distribution of data?

Median

Why is the choice you made the better choice.

The median is less sensitive to the extreme values than the mean.

What is bias in a statistical measure?

A variable is a characteristic of interest e.g. gender, age, IQ, whereas a value is a measurement of the variable of interest. For example male and female are values of the variable gender 32, 45,16, 92 and 66 are values of the variable age. In a worksheet a variable is frequently referred to as a "field".

Qualitative data also known as categorical data and Nominal data are lables or names used to identify an attribute or value of a variable. It is a non numerical variable although numbers could be used for the values. For example, telephone number is a qualitative variable although numbers are used to represent the values of the variable. Numerical Operations (for e.g. addition and subtraction) have no meaning when numbers are used to represent values of a qualitative variable.

Quantitative data are numeric values that indicate how much or how many of something. Quantitative data can be discreet (e.g. number on a 5 point rating scale) or contineous (e.g. height or weight). Quantitative variables can be ordinal (rank) where the order of the data is meaningful (e.g. finish position of a 100 meters dash) Interval where interval between the data points are fixed (e.g. a rating scale of 1,2,3,4 and 5) but there is no true zero points or Ratio where the ration between two values is meaningful.

In essence, variability is how the values spread themselves out in a distribution. Some measures of variability are the Range ( the difference between the highest and the lowest valuee) the interquartile range ( the difference between the first and the third quartiles, which encompasses the middle 50% of the observations in a distribution, the Variance ( the average squared deviation of each number in a distribution subtracted from the mean of the distribution) and the Standard Deviation ( the square root of the variance).

In the following distribution of home prices, which is a better measure of central tendency: $210,000, $215,000, $215,000, $220,000, $645,000? Select answer from the Dropdown choice.

A Sample statistic ( Standard Deviation) applied to a population is said to be biased because it will underestimate the population parameter. Therefore it has to be corrected. It is corrected by subtracting 1 from the sample size in the denominator of the statistic.

Days Count8

70 140.00

64 1

99 1 9 Create a frequency distribution of the day values that are grouped. Place in cell G5.

55 1 Days Sum of Count64 1 36-42 389 1 43-49 1

87 1 50-56 765 1 57-63 462 1 64-70 10

38 1 71-77 267 1 78-84 5

70 1 85-91 460 1 92-99 469 1 Total Result 4078 1

39 1

10

75 1 68.2856 1

71 1

11

How many bonds are in

the list?

Compute the mean number

of days to maturity.

Compute the median

number of days to

maturity.

51 1 67.5099 1

68 1

12

95 1 279.4986 1

57 1

13

53 1 16.7247 1 or50 1 16.7255 181 180 198 151 136 163 166 185 179 183 170 1

Calculate the Variance of the

Days to Maturity sample.

Calculate the Standard

Deviation of the Days to

Maturity sample.

Create a frequency distribution of the day values that are grouped. Place in cell G5.

MedianMean

sex org ini indi inf prwe preq prwd prwc prwco icad icim icimo icpa icpy su1 4.92 4.50 5.00 4.75 4.67 5.00 4.56 3.92 4.50 4.86 5.00 5.00 4.50 4.33 4.561 3.67 4.00 3.67 2.00 4.33 4.25 3.22 3.00 3.00 3.43 4.40 4.00 2.50 3.67 2.50

1 3.25 3.00 3.50 2.75 4.33 4.50 2.38 2.33 2.00 3.14 3.80 3.00 3.00 1.33 2.751 3.17 3.00 3.00 2.25 4.00 4.00 3.56 2.92 2.50 2.86 4.20 3.00 3.50 3.00 3.001 3.67 3.50 3.83 2.75 4.00 3.75 3.44 3.25 2.00 2.00 4.80 5.00 2.50 2.00 1.631 3.75 3.50 3.33 3.75 3.33 2.75 3.56 3.00 3.50 3.43 3.80 4.00 4.00 3.00 3.501 4.42 4.00 4.00 3.33 4.67 3.75 3.11 3.50 4.50 4.14 3.60 4.50 3.50 4.33 4.211 3.67 4.00 3.83 3.75 4.00 4.00 3.11 2.75 3.00 3.43 4.00 4.00 4.50 3.33 3.501 4.67 3.50 4.00 2.75 4.00 3.25 3.67 3.91 5.00 3.71 4.20 4.50 4.00 4.33 3.881 3.75 4.00 3.83 4.00 4.00 3.75 3.00 2.25 2.50 3.71 4.60 4.50 5.00 3.33 3.881 4.08 3.00 4.50 3.75 4.00 3.75 2.78 1.92 3.00 3.29 4.80 4.00 4.50 3.33 3.311 3.83 4.00 3.67 2.75 4.00 4.00 3.67 3.08 3.00 3.57 4.60 4.00 2.50 3.00 3.501 4.00 2.50 2.50 3.50 3.33 4.00 2.33 2.17 2.50 3.71 4.80 4.50 2.00 1.33 3.691 4.00 3.50 3.17 3.00 4.00 4.00 3.33 3.42 3.00 2.86 4.60 4.50 4.50 2.67 2.941 2.92 3.00 3.00 3.00 4.00 3.50 2.67 2.44 2.50 3.60 4.00 4.00 3.00 3.67 2.711 3.92 2.50 3.33 3.75 3.67 3.75 2.89 2.33 3.00 2.71 4.60 4.00 3.50 2.00 2.311 3.17 3.00 3.67 2.25 4.00 3.25 3.11 2.92 2.50 3.00 3.40 3.50 3.00 3.67 2.501 4.08 4.50 4.00 3.50 4.00 4.00 3.67 2.92 3.00 3.71 4.60 4.00 2.50 3.67 2.561 3.75 4.00 3.67 3.75 4.00 3.75 2.78 1.92 2.00 3.00 4.20 4.00 3.50 2.33 3.251 3.58 4.00 3.67 3.75 4.33 3.75 2.56 2.67 2.00 3.86 4.60 5.00 3.00 3.00 2.941 3.42 3.50 3.33 3.75 3.67 3.75 2.67 2.58 2.50 3.14 4.60 4.50 3.50 2.67 3.471 4.67 4.00 4.67 4.50 4.33 4.00 2.89 2.00 2.50 3.71 4.80 4.50 4.50 3.33 3.001 4.00 4.00 3.50 3.50 4.33 3.75 2.67 2.92 2.50 3.29 4.20 4.00 3.00 2.67 3.251 4.33 4.00 4.33 4.50 4.00 4.00 3.78 3.17 3.00 3.57 4.20 4.50 4.50 3.67 4.001 3.42 2.50 3.50 2.25 4.67 2.50 2.67 1.67 1.50 2.57 4.40 3.50 3.00 2.33 2.501 2.25 3.00 2.00 2.00 2.33 3.25 3.00 2.25 1.50 2.71 4.60 5.00 3.00 3.00 1.691 4.42 3.50 4.00 4.00 4.00 4.00 3.56 3.00 3.00 4.71 4.80 4.50 4.50 4.00 4.311 4.33 3.50 4.00 3.50 4.67 4.00 3.56 2.92 2.50 3.71 5.00 5.00 2.50 3.67 2.931 4.00 3.50 3.50 3.75 4.00 3.75 3.25 2.58 3.00 3.71 4.00 4.00 3.50 4.00 3.441 3.83 3.00 3.00 2.50 4.33 4.00 3.11 2.75 2.50 3.57 4.60 3.50 3.00 2.33 3.561 2.50 3.50 3.50 3.25 4.00 4.00 3.11 2.25 2.00 3.14 4.20 3.00 3.50 2.67 3.061 4.75 4.50 4.67 4.50 5.00 4.50 4.00 2.42 2.50 4.29 5.00 5.00 4.00 3.67 4.001 3.58 3.50 2.50 2.75 4.00 3.25 2.33 2.58 2.00 2.86 4.00 4.00 3.00 2.67 2.131 4.67 4.50 4.67 4.75 4.67 3.75 3.67 2.92 2.50 4.00 4.40 5.00 4.00 4.00 4.061 4.17 4.00 4.00 4.25 4.33 4.00 2.56 2.50 2.50 4.71 5.00 4.50 3.00 3.00 3.811 2.83 3.50 2.67 3.75 3.67 2.75 1.89 1.92 2.50 2.71 4.40 3.00 3.50 2.67 3.251 2.50 3.00 3.00 2.50 3.33 3.25 2.44 1.83 1.50 2.57 4.60 3.00 3.50 2.00 3.061 4.75 2.50 4.50 4.25 4.00 4.25 4.67 2.58 4.50 4.14 5.00 5.00 5.00 3.67 4.001 3.50 3.00 3.40 3.25 3.67 4.00 2.67 2.42 2.50 2.00 4.80 5.00 4.00 4.00 3.231 2.58 4.00 1.83 3.00 4.33 4.50 2.00 2.25 1.50 2.71 4.80 4.00 4.00 3.33 1.561 4.42 4.00 4.17 3.00 4.33 4.75 3.75 4.17 4.00 3.83 4.80 5.00 3.00 4.33 3.731 4.00 3.50 3.83 3.75 3.67 4.00 3.11 2.67 2.50 3.29 4.20 3.50 4.50 3.33 3.941 3.67 4.00 3.67 4.25 3.33 4.50 2.89 3.08 3.00 3.14 3.80 4.00 1.50 3.33 3.061 4.25 3.50 3.80 4.00 4.00 3.50 3.33 3.42 4.00 3.86 4.20 5.00 4.50 3.67 3.751 3.50 3.50 3.17 2.50 3.67 4.25 3.33 2.33 2.00 3.14 4.40 4.00 4.00 3.00 3.061 3.92 3.00 3.33 3.25 3.33 3.25 3.11 2.50 3.00 3.57 4.40 4.00 4.50 3.67 3.38

1 3.33 3.50 3.17 2.75 4.33 4.00 2.56 2.50 3.00 3.29 4.60 4.50 3.00 3.33 2.88

1 3.92 3.50 3.67 3.75 3.67 3.00 3.11 2.83 3.00 2.57 4.60 3.50 4.50 2.67 3.441 3.92 4.00 3.33 3.75 3.33 4.25 3.44 3.00 3.00 4.14 4.60 4.00 4.50 3.67 4.061 3.92 4.00 3.50 3.75 3.33 3.75 3.75 3.33 3.00 3.86 4.80 4.00 4.00 3.00 4.001 4.67 4.00 4.00 3.50 4.67 3.25 3.00 2.33 2.50 3.86 4.60 5.00 4.00 4.00 4.001 4.00 3.50 4.00 4.00 4.00 3.75 3.67 3.08 3.50 3.57 4.40 4.00 2.50 2.67 3.691 3.08 3.50 2.33 1.00 4.00 2.50 2.67 3.08 3.50 2.29 4.80 5.00 3.00 1.67 3.631 3.58 3.50 3.33 3.50 4.00 4.00 3.33 2.67 4.00 2.86 4.40 4.00 4.00 3.00 3.251 4.42 4.00 4.17 4.25 4.00 3.50 3.11 2.75 2.50 3.14 4.40 4.00 4.00 3.33 3.631 4.33 3.50 4.50 3.75 4.67 4.00 3.11 3.08 2.50 2.71 5.00 4.50 3.00 2.33 4.631 4.00 2.00 3.50 3.75 4.67 3.75 3.44 1.92 2.50 3.57 4.80 5.00 3.00 3.00 2.751 3.92 4.00 4.00 3.25 4.33 3.25 3.56 2.92 4.00 3.86 4.60 5.00 3.00 2.33 4.061 4.08 4.00 2.50 2.75 4.33 3.75 2.78 2.58 3.00 3.71 4.80 5.00 3.00 2.67 2.881 3.67 2.00 3.33 3.00 4.00 4.00 2.78 2.91 3.00 3.00 4.40 4.00 4.00 3.33 3.331 3.67 4.00 2.67 2.25 4.00 4.00 3.11 3.00 3.00 3.00 4.00 5.00 4.00 2.33 2.501 2.42 3.00 3.83 2.50 3.00 1.75 2.44 2.08 2.00 1.57 4.00 4.50 2.00 1.00 2.251 3.17 4.00 3.00 2.75 3.67 4.50 2.33 3.08 2.00 1.86 4.80 4.50 4.00 2.67 2.381 3.50 4.00 3.33 1.00 4.00 3.75 2.44 3.08 1.50 2.57 4.20 4.00 1.50 2.00 2.001 4.25 3.50 4.33 4.00 4.00 4.00 3.00 2.75 3.50 3.86 4.40 4.00 3.00 1.67 3.561 2.92 4.00 3.50 4.00 4.33 2.50 2.67 2.83 3.50 3.29 4.60 4.50 4.00 2.67 2.311 3.75 4.00 3.67 3.50 4.00 3.25 2.78 2.67 3.00 3.57 4.40 4.00 3.00 2.00 3.191 3.50 3.50 3.17 3.50 4.00 3.50 2.67 2.67 1.50 2.14 4.40 4.00 2.00 1.67 2.941 3.42 3.50 3.00 2.00 4.00 4.00 3.11 3.17 3.00 2.14 4.00 4.00 3.50 2.00 2.381 4.42 4.00 4.17 4.25 4.00 3.75 4.00 3.83 3.00 4.00 4.40 4.00 4.00 3.00 4.311 3.58 3.50 3.00 3.25 3.67 3.25 3.56 2.83 3.50 3.71 3.60 4.00 4.00 3.00 3.631 3.91 4.50 3.33 3.25 4.00 4.25 2.89 2.50 2.50 3.57 4.80 5.00 3.00 4.33 3.631 4.42 3.00 2.83 3.00 4.00 4.00 2.33 3.08 2.50 3.71 3.80 5.00 4.50 4.00 3.06

1 2.25 2.50 2.00 2.50 3.00 3.25 3.22 2.75 2.00 2.00 2.80 1.50 3.50 4.00 2.751 4.00 4.00 3.33 4.00 4.67 2.75 4.11 2.67 3.50 3.71 4.80 4.50 5.00 3.33 3.441 3.75 4.00 4.00 3.25 4.00 4.25 3.33 3.00 2.50 4.00 4.20 3.00 3.50 4.33 2.19

1 3.25 3.00 3.00 2.75 3.33 3.75 1.44 2.08 1.50 3.29 4.40 4.00 4.50 3.67 2.691 3.92 4.50 3.17 2.00 4.33 4.00 2.89 2.75 4.00 3.43 4.80 4.00 3.50 3.00 3.501 3.08 3.00 3.50 3.25 3.67 4.00 2.44 2.17 1.50 2.83 4.60 4.00 3.50 3.00 2.561 3.33 4.00 3.67 3.75 3.33 3.25 3.50 2.75 4.00 2.57 4.80 4.50 2.00 3.33 3.471 3.83 4.00 4.00 4.00 4.00 4.00 3.89 3.58 4.00 2.86 4.20 4.00 3.00 3.00 3.941 3.83 2.00 2.50 3.25 2.67 3.50 1.33 1.25 1.50 2.43 5.00 4.00 1.00 3.00 2.311 3.67 5.00 3.33 5.00 5.00 3.50 2.89 1.75 1.50 3.57 4.20 5.00 5.00 3.00 3.251 3.75 3.50 3.83 3.00 4.00 3.25 3.22 2.67 2.00 3.57 4.20 4.00 2.50 2.33 3.311 4.00 3.50 3.50 4.25 4.00 4.75 3.00 2.08 1.50 3.43 4.80 5.00 5.00 3.67 2.691 3.17 4.00 2.67 3.00 3.67 4.25 3.78 2.75 3.00 3.00 4.40 3.50 5.00 2.33 3.061 3.67 2.50 3.50 3.25 4.33 3.25 2.11 2.25 2.00 3.14 4.80 5.00 3.50 2.33 2.561 4.42 3.50 3.67 3.00 4.33 4.00 3.89 3.00 4.00 3.71 3.80 5.00 3.50 3.67 3.501 3.08 4.50 4.00 4.00 4.33 4.50 3.11 2.33 1.50 3.00 5.00 4.00 3.50 2.00 3.441 3.67 3.00 3.83 3.50 3.67 4.00 2.56 2.42 2.00 3.43 4.20 2.00 3.00 3.33 2.001 4.67 3.50 4.00 4.00 3.33 4.50 3.67 3.00 3.00 3.57 4.20 4.50 3.50 3.00 3.751 4.33 4.00 4.33 3.50 4.00 3.50 2.67 3.08 4.00 3.43 3.60 4.00 3.50 2.00 3.69

1 4.00 4.00 3.67 4.00 4.33 3.50 2.78 2.33 2.50 3.14 4.80 5.00 3.00 1.67 4.001 3.92 3.00 2.67 2.75 3.50 3.50 2.29 2.90 3.00 2.33 4.60 4.00 4.50 2.33 2.771 3.75 3.50 3.67 3.75 5.00 4.00 3.56 3.33 3.00 3.43 4.40 4.50 3.00 3.33 2.752 4.70 4.00 4.00 2.25 5.00 4.50 3.78 3.38 3.00 3.67 5.00 5.00 3.00 4.00 3.712 2.64 2.50 1.83 2.25 3.67 2.00 2.78 1.58 2.00 2.71 3.80 4.50 3.50 3.33 1.442 4.67 3.50 4.50 4.00 4.00 4.25 3.44 3.92 4.00 3.71 4.20 4.50 4.00 3.67 4.192 3.92 2.50 3.83 4.25 3.67 3.25 4.22 2.33 2.50 3.29 4.80 5.00 3.50 2.33 2.632 3.83 4.00 4.17 3.75 4.00 4.00 3.56 2.67 3.50 4.00 4.40 4.00 2.50 2.67 3.632 3.75 3.50 3.83 3.50 4.00 3.25 3.56 2.75 3.00 4.14 4.60 4.00 3.50 2.67 3.632 3.83 3.50 4.17 4.00 3.67 3.50 3.50 2.58 2.50 4.00 4.20 4.00 4.00 3.67 4.062 4.33 3.50 3.83 4.00 4.33 4.25 4.22 3.08 4.00 3.14 4.60 4.50 4.00 2.33 3.382 2.58 2.50 2.83 1.75 3.33 1.25 1.56 1.50 1.50 1.86 4.60 3.00 3.00 2.00 2.132 2.92 3.00 2.83 2.00 3.00 2.75 2.56 1.92 2.50 3.43 4.20 4.00 2.00 3.00 2.812 3.42 4.00 3.00 3.33 4.00 3.50 3.11 2.42 3.00 3.00 4.60 4.50 3.50 4.00 2.502 3.73 3.50 4.00 4.00 4.00 3.00 3.00 2.75 2.50 3.14 4.00 4.00 3.00 3.00 3.632 4.25 3.00 3.83 3.75 4.33 4.00 2.89 2.92 3.50 3.00 4.00 4.00 3.00 2.33 3.692 4.70 3.00 3.50 4.00 5.00 3.75 4.33 3.67 4.50 3.86 4.80 5.00 3.50 4.33 4.312 3.67 4.00 3.67 4.00 4.00 3.50 3.78 3.27 4.50 2.71 4.20 4.50 4.00 3.33 3.812 4.17 3.00 3.83 3.50 4.33 3.00 3.22 2.50 4.00 3.57 4.20 2.50 4.00 4.33 4.192 3.58 3.50 3.83 1.75 2.67 4.00 1.89 2.25 1.50 2.43 3.80 4.50 1.50 3.67 2.692 2.67 3.00 2.67 2.75 3.67 3.50 3.00 2.33 2.00 3.14 4.80 2.00 4.00 2.33 2.562 4.09 4.00 3.50 5.00 3.67 4.25 2.67 3.08 2.00 3.29 4.60 3.50 2.50 2.67 3.062 2.92 4.00 3.50 4.25 3.00 4.25 3.00 3.08 3.00 2.86 4.60 4.50 3.00 2.67 3.502 3.64 2.50 3.50 3.50 4.00 3.00 2.78 3.08 4.00 3.14 4.00 4.50 2.00 2.33 3.002 4.17 4.00 3.50 2.75 4.67 4.00 2.78 2.92 4.00 3.71 4.60 4.50 3.00 3.00 3.33

sex Gender: 1=Male; 2=Femaleorg The Organizationini Informationindi Directioninf Feedbackprwe Work Environmentpreq Equipment & Suppliesprwd Work Disorganizationprwc Working Conditionsprwco Working Conditions Outcomeicad Advancementicim Impacticimo Impact Outcomeicpa Pay Administrationicpy Pay & Benefitssu Immediate Supervisortr Trainingcptw Compelling Place to Workitl Intention to Leave

tr cptw itl PR 1 Define correlation and describe how it's typically used.4.75 4.80 5.00 5.633.75 3.70 5.00 4.53

3.50 3.50 3.25 4.023.75 3.20 4.00 3.933.75 3.80 4.00 4.063.25 4.00 4.75 4.164.00 4.40 3.00 5.02 2 Calculate the correlation between cptw & itl using the CORREL function.4.00 3.40 4.75 4.35 0.49913.00 4.20 5.00 5.073.00 3.90 5.00 4.403.25 3.80 4.75 4.62 3 Calculate the correlation between cptw & itl using the Correlation analysis tool in Data Analysis found in the Data tab on the Ribbon. Place the results in cell X13.3.75 4.20 4.50 4.49 cptw itl2.75 3.90 4.00 4.19 cptw 13.50 4.00 4.50 4.44 itl 0.4991073069 12.33 3.38 4.00 3.853.00 4.00 3.50 4.333.00 3.30 5.00 3.75 4 What does the term best linear combination mean?4.50 3.50 5.00 4.693.25 3.40 4.00 4.163.00 3.60 4.00 4.283.25 3.50 4.00 4.053.50 3.70 5.00 4.933.00 4.00 5.00 4.403.00 4.30 5.00 4.531.25 3.00 3.00 3.953.00 2.60 2.75 2.97 54.00 4.30 5.00 4.773.75 4.20 5.00 4.733.25 4.00 4.75 4.373.50 3.70 4.75 4.40 63.25 2.60 4.25 3.724.50 4.60 5.00 5.17 Place in the box below.2.50 3.30 3.50 3.944.25 4.60 5.00 4.813.25 4.10 5.00 4.803.00 3.00 4.00 3.811.50 3.00 3.75 3.392.50 4.40 5.00 5.232.00 3.90 3.50 3.88 7 Create a one-way Pivot Table tabulating the frequency of sex. Place in X42.3.25 2.70 3.50 3.843.67 4.30 4.25 4.992.75 3.50 3.50 4.193.00 3.50 4.25 4.003.75 4.30 5.00 4.734.00 3.80 4.00 3.983.50 3.60 5.00 4.23

Correlation, represented by the letter r, is the degree to which two variables behave or covary. Correlations vary from -1.0 to +1.0 , meaning the variables vary inversely, negative correlation, or in the same direction (positive correlation). Two variables can have a zero relationship, i.e. r = 0. Correlations are typically used to predict or forcast values. For example if there is known correlation between two variables, x and y, then knowing a value of x , will allow the prediction of y, with error or course.

When there are multiple predictor (x) variables, combining them in such a way as to maximize the correlation of the combined predictor variables with the dependant (y) variable. When the combination of the predictor variables is graphed against the dependant variable, y, a straight line, the regression line can be drawn through the data points in such a way as to minimize the distance between the plotted points and the line.

Use the TREND function as an ARRAY function to predict an itl value for each of the observations from the variables org to tr. Place the results in the column headed PR (for predicted).

Use the LINEST function to compute a basic regression analysis predicting cptw for the variables icpy to tr. Select the cells in the box below to place the results. Note LINEST is an ARRAY function.

3.00 3.60 5.00 4.37 8 Create a Scatterplot (Scatter Diagram) of itl and the predicted value of itl (PR). Place in the box below.

3.75 3.80 3.50 4.313.75 3.90 3.50 4.393.75 4.30 4.50 4.383.50 4.30 5.00 4.813.50 4.00 4.50 4.573.75 3.70 4.00 4.173.00 3.50 5.00 4.553.75 3.80 3.50 4.474.00 4.30 5.00 4.584.25 3.60 4.50 4.514.00 4.10 4.75 4.901.75 4.20 5.00 4.743.00 3.90 4.50 4.143.00 3.70 4.00 4.313.25 3.00 3.75 3.142.00 3.50 5.00 3.822.50 3.20 3.75 3.873.00 3.90 5.00 4.812.75 2.90 5.00 4.442.75 3.60 4.75 4.503.50 3.70 4.75 3.742.50 3.50 4.50 4.104.00 4.30 5.00 4.622.50 4.00 4.75 4.203.75 4.11 5.00 4.423.25 4.30 5.00 4.27

2.25 2.10 2.50 2.71

9

3.75 4.20 4.50 4.924.00 3.60 5.00 4.40 R

3.25 3.00 3.50 3.654.25 3.50 5.00 5.022.75 3.50 2.75 3.673.00 3.60 3.25 4.274.00 4.10 5.00 4.521.25 3.40 5.00 3.542.50 4.20 5.00 4.383.50 3.50 4.00 4.102.75 3.60 3.50 4.223.00 3.60 5.00 4.193.25 3.50 4.50 4.193.75 4.10 5.00 4.814.00 2.90 4.50 4.123.75 3.00 4.50 4.073.75 4.20 5.00 4.462.75 4.30 3.50 4.77

Insert a Trendline and the regression equation, including R2.

The correlation of the Actual values with the Predicted values is the Multiple Correlation, R, when the Predicted values is the linear combination of two or more variables. Using the CORREL function, verify this by calculating the correlation between itl and PR. Then, square the correlation. You should get the same value for R2 as displayed in the Scatterplot.

R2

3.25 4.20 3.50 4.513.25 3.90 4.75 4.223.00 3.70 4.00 4.603.25 4.86 5.00 5.072.50 2.89 1.25 3.403.50 4.50 5.00 4.843.00 3.60 4.25 4.224.00 3.70 5.00 4.693.25 4.00 4.75 4.522.75 3.80 4.50 4.174.00 4.20 5.00 4.973.00 2.70 3.25 3.304.25 2.90 4.25 3.643.75 3.50 5.00 4.304.00 3.78 4.00 4.073.00 3.90 4.50 4.583.50 4.75 5.00 5.233.50 3.90 5.00 4.592.75 3.70 5.00 4.763.75 3.20 1.75 3.332.75 2.80 2.00 3.812.50 4.00 2.75 4.193.75 3.70 2.50 3.822.75 3.89 5.00 4.343.00 3.80 5.00 5.09

Define correlation and describe how it's typically used.

Calculate the correlation between cptw & itl using the CORREL function.

Calculate the correlation between cptw & itl using the Correlation analysis tool in Data Analysis found in the Data tab on the Ribbon. Place the results in cell X13.

What does the term best linear combination mean?

Create a one-way Pivot Table tabulating the frequency of sex. Place in X42.

Correlation, represented by the letter r, is the degree to which two variables behave or covary. Correlations vary from -1.0 to +1.0 , meaning the variables vary inversely, negative correlation, or in the same direction (positive correlation). Two variables can have a zero relationship, i.e. r = 0. Correlations are typically used to predict or forcast values. For example if there is known correlation between two variables, x and y, then knowing a value of x , will allow the prediction of y, with error or course.

When there are multiple predictor (x) variables, combining them in such a way as to maximize the correlation of the combined predictor variables with the dependant (y) variable. When the combination of the predictor variables is graphed against the dependant variable, y, a straight line, the regression line can be drawn through the data points in such a way as to minimize the distance between the plotted points and the line.

Use the TREND function as an ARRAY function to predict an itl value for each of the observations from the variables org to tr. Place the results in the column headed PR (for predicted).

Use the LINEST function to compute a basic regression analysis predicting cptw for the variables icpy to tr. Select the cells in the box below to place the results. Note LINEST is an ARRAY function.

Create a Scatterplot (Scatter Diagram) of itl and the predicted value of itl (PR). Place in the box below.

Insert a Trendline and the regression equation, including R2.

The correlation of the Actual values with the Predicted values is the Multiple Correlation, R, when the Predicted values is the linear combination of two or more variables. Using the CORREL function, verify this by calculating the correlation between itl and PR. Then, square the correlation. You should get the same value for

Calculate the correlation between cptw & itl using the Correlation analysis tool in Data Analysis found in the Data tab on the Ribbon. Place the results in cell X13.

The correlation of the Actual values with the Predicted values is the Multiple Correlation, R, when the Predicted values is the linear combination of two or more variables. Using the CORREL function, verify this by calculating the correlation between itl and PR. Then, square the correlation. You should get the same value for

RandomNum Gender RaceFemale Black/African AmericanFemale WhiteFemale White 1 Using Pivot Tables create Gender by Race crosstabulation of the data in Columns B & C.Female Black/African American Place the table in cell F7.Female Black/African AmericanFemale WhiteMale WhiteFemale Black/African AmericanMale WhiteFemale WhiteMale WhiteFemale Black/African AmericanMale Black/African AmericanMale WhiteFemale WhiteFemale WhiteFemale WhiteFemale WhiteMale WhiteMale WhiteFemale WhiteMale WhiteFemale WhiteFemale WhiteFemale Black/African AmericanFemale WhiteMale WhiteFemale White

2Female WhiteMale WhiteFemale White http://vassarstats.net/newcs.htmlFemale WhiteFemale White Chi SquareFemale White p-levelFemale White Statistically significant?Male WhiteFemale Black/African AmericanMale WhiteMale Black/African AmericanFemale White

3Female WhiteFemale Black/African AmericanFemale WhiteFemale WhiteMale WhiteMale White Chi Square

The data columns B & C constitute the population of individuals in a retail clerk job in a large company. The data were collected for EEO (Equal Employment Opportunity) reporting purposes. See the comment in cell A1 for instructions.

Is the association between Gender and Race statistically significant? Use one of the statistical calculators located on the web to make this determination.

Assume that you did not have access to the population of data in Column A, but had to select a random sample on which to calculate your association statistic. Assign a random number to the observations, then select the 30 lowest random numbers for your sample. Calculate the association statistics on this sample.

Female White p-levelFemale White Statistically significant?Female White Fisher's Exact ProbabilityFemale WhiteFemale White 4 Create a gender by Race crosstabulation. Place in F54.Female Black/African AmericanFemale WhiteMale Black/African AmericanFemale WhiteFemale WhiteMale WhiteFemale WhiteFemale WhiteFemale White 5 Define the Yule-Simpson effect and show an example of it.Female WhiteFemale WhiteFemale WhiteMale WhiteMale WhiteFemale WhiteFemale WhiteMale WhiteFemale WhiteMale WhiteFemale Black/African AmericanFemale WhiteFemale WhiteFemale WhiteMale WhiteFemale WhiteFemale WhiteMale WhiteFemale WhiteFemale WhiteFemale WhiteFemale WhiteFemale WhiteMale WhiteFemale WhiteFemale Black/African AmericanMale Black/African AmericanFemale WhiteFemale WhiteFemale WhiteFemale WhiteFemale WhiteFemale WhiteFemale White

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Using Pivot Tables create Gender by Race crosstabulation of the data in Columns B & C.

The data columns B & C constitute the population of individuals in a retail clerk job in a large company. The data were collected for EEO (Equal Employment Opportunity) reporting purposes. See the comment in cell A1 for instructions.

Is the association between Gender and Race statistically significant? Use one of the statistical calculators located on the web to make this determination.

Assume that you did not have access to the population of data in Column A, but had to select a random sample on which to calculate your association statistic. Assign a random number to the observations, then select the 30 lowest random numbers for your sample. Calculate the association statistics

Create a gender by Race crosstabulation. Place in F54.

Define the Yule-Simpson effect and show an example of it.

1 What are the characteristics of the normal distribution?

2 What is the unit normal or standard normal distribution?

3 Describe the function NORM.DIST. Provide an example in H28.

4 Describe the function NORM.S.DIST. Provide an example in H41.

# It is symmetrical. # Skewness = 0. # 34.13% of Normal Distribution will fall between the distribution's mean and 1 standard deviation from the mean, both above and below. That is, 68.26% of a normal distribution will be found within the range +1 and -1 of standard deviation from the mean of the distribution. # 95.55% of the distribution fall within the range +2 and -2 standard deviations of the mean. # 99.7% of the distribution fall within the range +3 and -3 standard deviations of the mean.

It is a special case of the normal distribution. It has a mean of 0 and a standard deviation of 1. These two characteristics allow one to know the cumulative area below any value. For example, a unit normal value of one (1), 84.13% of the distribution is below one and 100 - 84.13% = 15.87% is above the unit normal value of one.

The Excel NORM.DIST() calculates the Normal Probability Density Function or the Cumulative Normal Distribution Function for a supplied value of x, and a supplied distribution mean and standard deviation. For example, with a Normal distribution with a mean of 40 and a standard deviation of 20, a value of 60 would yeild a value of .8413 indicating that 84.13% of the distribution will be below that score.

This function is the same as the NORM.DIST function except that it is applied to the standard normal distribution.

5 Describe the function NORM.INV. Provide an example in H50.

6 Describe the function NORM.S.INV. Provide an example in H61.

7 What is a confidence interval and how does it relate to the normal distribution?

8 Calculate a 95% confidence interval for a sample size=30 when the population mean (50) and the population standard deviation (10) are known.53.5846.42

9

54.7045.30

10a What is a controlling factor in the range of the confidence interval?Sample Size

The Excel NORM.INV Function calculates the inverse of the cumulative normal distribution function for a supplied probability, and a supplied distribution mean and standard deviation. A Normally distributed variable is assumed. For example, the distribution value at the 60th percentile i.e. 60% below the score and 40% above the score in a distribution with a mean of 50 and a standard deviation of 10 would be calculated as follows : NORM.INV(.6,50,10) and would yeild a value of 52.53.

The Excel NORM.S.INV calculates the inverse of the standard normal cumulative distribution function for a supplied probability value. The result is a z-score. For example, in the unit or standard normal distribution the z-score at the 60th percentile, i.e. 60% below the score and 40% above the score is .253.

A confidence interval is a range of values that gives a sence of how precisely statistic derived for a sample estimates a population parameter. Typical confidence interval are 95% and 99%. If many samples are drawn from a population and a mean is calculated for a variable in each sample and the sample means are plotted, the distribution of the means will approximate a normal distribution. If a confidence interval, say 95%, is placed around them, 95% of the confidence interval would capture the true population mean.

Calculate a 99% confidence interval for a sample size=30 with mean of 50 and a standard deviation of 10, but the population mean and the population standard deviation are unknown.

11 Define the Central Limit Theorem

12 Explain the rationale for testing the difference between means.

13 Compute a z-test.

Prices $ 45.23 $ 44.12 Sample Mean $ 35.48

$ 36.57 $40.69

$ 43.22 > $40.70 $ 42.94 $ 37.11 0.002 p-value $ 44.05 2.851 z of p-value $ 44.96 $ 42.99 $ 40.23 $ 50.93 $ 36.26 $ 51.91 $ 37.03 $ 40.12 $ 41.59 $ 40.18 $ 61.40

Select sample from a population that is distributed in any way ( skewed, normal, rectangular, bimodal etc) and plot the computed mean. The distribution of the plotted means will approximate the normal distribution.

Via statistical testing one can determine probabilistically wether the means from the two sample come from the same population of the same population. The ability to do this is fundamental to inferential statistics and is used for many practical purposes eg., estimating the effects of drugs, comparing the profit margins of two product lines , testing the difference of two achievement outcomes from two different educational programs etc. The general idea of such testing is to determine if something (say a drug) has no effect (null hypothesis) or has an impact (alternate hypothesis).

Null hypothesis (H0:)

Alternative hypothesis (Ha:)

$ 40.51 $ 40.17 $ 49.93 $ 61.61 $ 36.93 $ 45.39 $ 41.56 $ 40.93 $ 50.49 $ 43.03 $ 40.13 $ 52.97 $ 42.10 $ 30.31 $ 54.16 $ 46.67 $ 43.32 $ 31.88 $ 64.60 $ 45.71 $ 58.27 $ 31.94

14 Compute a t-test comparing the two samples.State 1 State 2 t-Test: Two-Sample Assuming Unequal Variances

283 229254 267328 326 Mean292 309 Variance315 231 Observations336 283 Hypothesized Mean Difference378 344 df314 310 t Stat312 258 P(T<=t) one-tail328 316 t Critical one-tail272 241 P(T<=t) two-tail307 281 t Critical two-tail348 218233 284354 311400 254341 217313 267309 299308 266340 264300 264

316 290268 312259 298276 305271 244362 303340 299339 285300 308333 260

204291242329315246322293

15 What is the decision rule?

16 What is statistical power?

It is the significance level of a statistical test that is specified in advance of an analysis. Typical significance levels , called alpha levels, are .05 and .01. A difference is said to be statistically significant if a computed statistical value exceeds the value that is expected at the significance level.

The power of an hypothesis test is the probability of not making a type II error, that is the probability of rejecting a false null hypothesis. Power varies between 0 and 1 and measures the ability of the hypothesis to detect a false null hypothesis.

0.841344746068543

0.841344746068543

52.533471031358

0.2533471031358

Calculate a 95% confidence interval for a sample size=30 when the population mean (50) and the population standard deviation (10) are known.

10b Compute the upper and lower confidence interval limits for a sample with a mean =50 and a sample standard deviation = 10for the following two sample sizes.

N=30 N=100

Calculate a 99% confidence interval for a sample size=30 with mean of 50 and a standard deviation of 10, but the population mean and the population standard deviation are unknown.

54.70 52.5845.30 47.42

See the following video for an explanation of the Central Limit Theorem.https://www.youtube.com/watch?v=JNm3M9cqWyc

t-Test: Two-Sample Assuming Unequal Variances

Variable 1 Variable 2313.40625 279.625

1380.63608870968 1196.3429487232 40

064

3.952349539233510.0000979222810876012

1.669013025509040.000195844562175203

1.99772963343394

Compute the upper and lower confidence interval limits for a sample with a mean =50 and a sample standard deviation = 10

Upper limitLower limit

See the following video for an explanation of the Central Limit Theorem.

1 What's the difference in directional (one-tailed) and non-directional (two-tailed) hypotheses in statistical tests?

2 Compute a t-test comparing the two samples.State 1 State 2

283 229 p-level254 267 t-value328 326292 309315 231336 283378 344314 310312 258328 316272 241307 281348 218233 284

354 311400 254341 217313 267309 299308 266340 264300 264316 290268 312259 298276 305271 244362 303340 299339 285300 308333 260

204291242329315246322293

3 Discuss the impact of unequal group (sample) sizes on hypothesis tests.

4 Use the Data Analysis t-test tool to compare the mean for Males vs. Females. Male Female4.80 4.86 Specify the null and alternate hypotheses.3.70 2.893.50 4.503.20 3.603.80 3.704.00 4.00

4.40 3.803.40 4.204.20 2.703.90 2.903.80 3.504.20 3.783.90 3.904.00 4.753.38 3.904.00 3.703.30 3.203.50 2.803.40 4.003.60 3.703.50 3.893.70 3.804.004.303.002.604.304.204.003.702.604.603.304.604.103.003.004.403.902.704.303.503.504.303.803.603.603.803.904.304.304.003.703.50

3.804.303.604.104.203.903.703.003.503.203.902.903.603.703.504.304.004.114.302.104.203.603.003.503.503.604.103.404.203.503.603.603.504.102.903.004.204.304.203.903.70

5 What is multiple regression versus single regression?

sex org ini indi inf prwe preq prwd1 4.92 4.50 5.00 4.75 4.67 5.00 4.561 3.67 4.00 3.67 2.00 4.33 4.25 3.221 3.25 3.00 3.50 2.75 4.33 4.50 2.381 3.17 3.00 3.00 2.25 4.00 4.00 3.561 3.67 3.50 3.83 2.75 4.00 3.75 3.441 3.75 3.50 3.33 3.75 3.33 2.75 3.561 4.42 4.00 4.00 3.33 4.67 3.75 3.111 3.67 4.00 3.83 3.75 4.00 4.00 3.111 4.67 3.50 4.00 2.75 4.00 3.25 3.671 3.75 4.00 3.83 4.00 4.00 3.75 3.001 4.08 3.00 4.50 3.75 4.00 3.75 2.781 3.83 4.00 3.67 2.75 4.00 4.00 3.671 4.00 2.50 2.50 3.50 3.33 4.00 2.331 4.00 3.50 3.17 3.00 4.00 4.00 3.331 2.92 3.00 3.00 3.00 4.00 3.50 2.671 3.92 2.50 3.33 3.75 3.67 3.75 2.891 3.17 3.00 3.67 2.25 4.00 3.25 3.111 4.08 4.50 4.00 3.50 4.00 4.00 3.671 3.75 4.00 3.67 3.75 4.00 3.75 2.781 3.58 4.00 3.67 3.75 4.33 3.75 2.561 3.42 3.50 3.33 3.75 3.67 3.75 2.671 4.67 4.00 4.67 4.50 4.33 4.00 2.891 4.00 4.00 3.50 3.50 4.33 3.75 2.671 4.33 4.00 4.33 4.50 4.00 4.00 3.781 3.42 2.50 3.50 2.25 4.67 2.50 2.671 2.25 3.00 2.00 2.00 2.33 3.25 3.001 4.42 3.50 4.00 4.00 4.00 4.00 3.561 4.33 3.50 4.00 3.50 4.67 4.00 3.561 4.00 3.50 3.50 3.75 4.00 3.75 3.251 3.83 3.00 3.00 2.50 4.33 4.00 3.111 2.50 3.50 3.50 3.25 4.00 4.00 3.111 4.75 4.50 4.67 4.50 5.00 4.50 4.001 3.58 3.50 2.50 2.75 4.00 3.25 2.331 4.67 4.50 4.67 4.75 4.67 3.75 3.671 4.17 4.00 4.00 4.25 4.33 4.00 2.56

1 2.83 3.50 2.67 3.75 3.67 2.75 1.891 2.50 3.00 3.00 2.50 3.33 3.25 2.441 4.75 2.50 4.50 4.25 4.00 4.25 4.671 3.50 3.00 3.40 3.25 3.67 4.00 2.671 2.58 4.00 1.83 3.00 4.33 4.50 2.001 4.42 4.00 4.17 3.00 4.33 4.75 3.751 4.00 3.50 3.83 3.75 3.67 4.00 3.111 3.67 4.00 3.67 4.25 3.33 4.50 2.891 4.25 3.50 3.80 4.00 4.00 3.50 3.33

1 3.50 3.50 3.17 2.50 3.67 4.25 3.331 3.92 3.00 3.33 3.25 3.33 3.25 3.111 3.33 3.50 3.17 2.75 4.33 4.00 2.561 3.92 3.50 3.67 3.75 3.67 3.00 3.111 3.92 4.00 3.33 3.75 3.33 4.25 3.441 3.92 4.00 3.50 3.75 3.33 3.75 3.751 4.67 4.00 4.00 3.50 4.67 3.25 3.001 4.00 3.50 4.00 4.00 4.00 3.75 3.671 3.08 3.50 2.33 1.00 4.00 2.50 2.671 3.58 3.50 3.33 3.50 4.00 4.00 3.331 4.42 4.00 4.17 4.25 4.00 3.50 3.111 4.33 3.50 4.50 3.75 4.67 4.00 3.111 4.00 2.00 3.50 3.75 4.67 3.75 3.441 3.92 4.00 4.00 3.25 4.33 3.25 3.561 4.08 4.00 2.50 2.75 4.33 3.75 2.781 3.67 2.00 3.33 3.00 4.00 4.00 2.781 3.67 4.00 2.67 2.25 4.00 4.00 3.111 2.42 3.00 3.83 2.50 3.00 1.75 2.441 3.17 4.00 3.00 2.75 3.67 4.50 2.331 3.50 4.00 3.33 1.00 4.00 3.75 2.441 4.25 3.50 4.33 4.00 4.00 4.00 3.001 2.92 4.00 3.50 4.00 4.33 2.50 2.671 3.75 4.00 3.67 3.50 4.00 3.25 2.781 3.50 3.50 3.17 3.50 4.00 3.50 2.671 3.42 3.50 3.00 2.00 4.00 4.00 3.111 4.42 4.00 4.17 4.25 4.00 3.75 4.001 3.58 3.50 3.00 3.25 3.67 3.25 3.561 3.91 4.50 3.33 3.25 4.00 4.25 2.891 4.42 3.00 2.83 3.00 4.00 4.00 2.331 2.25 2.50 2.00 2.50 3.00 3.25 3.221 4.00 4.00 3.33 4.00 4.67 2.75 4.111 3.75 4.00 4.00 3.25 4.00 4.25 3.331 3.25 3.00 3.00 2.75 3.33 3.75 1.441 3.92 4.50 3.17 2.00 4.33 4.00 2.891 3.08 3.00 3.50 3.25 3.67 4.00 2.441 3.33 4.00 3.67 3.75 3.33 3.25 3.501 3.83 4.00 4.00 4.00 4.00 4.00 3.891 3.83 2.00 2.50 3.25 2.67 3.50 1.331 3.67 5.00 3.33 5.00 5.00 3.50 2.891 3.75 3.50 3.83 3.00 4.00 3.25 3.221 4.00 3.50 3.50 4.25 4.00 4.75 3.001 3.17 4.00 2.67 3.00 3.67 4.25 3.781 3.67 2.50 3.50 3.25 4.33 3.25 2.111 4.42 3.50 3.67 3.00 4.33 4.00 3.891 3.08 4.50 4.00 4.00 4.33 4.50 3.111 3.67 3.00 3.83 3.50 3.67 4.00 2.561 4.67 3.50 4.00 4.00 3.33 4.50 3.671 4.33 4.00 4.33 3.50 4.00 3.50 2.67

1 4.00 4.00 3.67 4.00 4.33 3.50 2.781 3.92 3.00 2.67 2.75 3.50 3.50 2.291 3.75 3.50 3.67 3.75 5.00 4.00 3.562 4.70 4.00 4.00 2.25 5.00 4.50 3.782 2.64 2.50 1.83 2.25 3.67 2.00 2.782 4.67 3.50 4.50 4.00 4.00 4.25 3.442 3.92 2.50 3.83 4.25 3.67 3.25 4.222 3.83 4.00 4.17 3.75 4.00 4.00 3.562 3.75 3.50 3.83 3.50 4.00 3.25 3.562 3.83 3.50 4.17 4.00 3.67 3.50 3.502 4.33 3.50 3.83 4.00 4.33 4.25 4.222 2.58 2.50 2.83 1.75 3.33 1.25 1.562 2.92 3.00 2.83 2.00 3.00 2.75 2.562 3.42 4.00 3.00 3.33 4.00 3.50 3.112 3.73 3.50 4.00 4.00 4.00 3.00 3.002 4.25 3.00 3.83 3.75 4.33 4.00 2.892 4.70 3.00 3.50 4.00 5.00 3.75 4.332 3.67 4.00 3.67 4.00 4.00 3.50 3.782 4.17 3.00 3.83 3.50 4.33 3.00 3.222 3.58 3.50 3.83 1.75 2.67 4.00 1.892 2.67 3.00 2.67 2.75 3.67 3.50 3.002 4.09 4.00 3.50 5.00 3.67 4.25 2.672 2.92 4.00 3.50 4.25 3.00 4.25 3.002 3.64 2.50 3.50 3.50 4.00 3.00 2.782 4.17 4.00 3.50 2.75 4.67 4.00 2.78

sex Gender: 1=Male; 2=Femaleorg The Organizationini Informationindi Directioninf Feedbackprwe Work Environmentpreq Equipment & Suppliesprwd Work Disorganizationprwc Working Conditionsprwco Working Conditions Outcomeicad Advancementicim Impacticimo Impact Outcomeicpa Pay Administrationicpy Pay & Benefitssu Immediate Supervisortr Trainingcptw Compelling Place to Workitl Intention to Leave

7 Recompute the multiple regression using the independent variables with a p-value <= .05 in the full regression model. Place the results in J339.org prwc icimo su cptw4.92 3.92 5.00 4.56 4.803.67 3.00 4.00 2.50 3.703.25 2.33 3.00 2.75 3.503.17 2.92 3.00 3.00 3.203.67 3.25 5.00 1.63 3.803.75 3.00 4.00 3.50 4.004.42 3.50 4.50 4.21 4.403.67 2.75 4.00 3.50 3.404.67 3.91 4.50 3.88 4.203.75 2.25 4.50 3.88 3.904.08 1.92 4.00 3.31 3.803.83 3.08 4.00 3.50 4.204.00 2.17 4.50 3.69 3.904.00 3.42 4.50 2.94 4.002.92 2.44 4.00 2.71 3.383.92 2.33 4.00 2.31 4.003.17 2.92 3.50 2.50 3.304.08 2.92 4.00 2.56 3.503.75 1.92 4.00 3.25 3.403.58 2.67 5.00 2.94 3.603.42 2.58 4.50 3.47 3.504.67 2.00 4.50 3.00 3.704.00 2.92 4.00 3.25 4.004.33 3.17 4.50 4.00 4.303.42 1.67 3.50 2.50 3.002.25 2.25 5.00 1.69 2.604.42 3.00 4.50 4.31 4.304.33 2.92 5.00 2.93 4.204.00 2.58 4.00 3.44 4.003.83 2.75 3.50 3.56 3.702.50 2.25 3.00 3.06 2.604.75 2.42 5.00 4.00 4.603.58 2.58 4.00 2.13 3.304.67 2.92 5.00 4.06 4.604.17 2.50 4.50 3.81 4.102.83 1.92 3.00 3.25 3.002.50 1.83 3.00 3.06 3.004.75 2.58 5.00 4.00 4.403.50 2.42 5.00 3.23 3.902.58 2.25 4.00 1.56 2.704.42 4.17 5.00 3.73 4.304.00 2.67 3.50 3.94 3.503.67 3.08 4.00 3.06 3.504.25 3.42 5.00 3.75 4.303.50 2.33 4.00 3.06 3.803.92 2.50 4.00 3.38 3.60

3.33 2.50 4.50 2.88 3.603.92 2.83 3.50 3.44 3.803.92 3.00 4.00 4.06 3.903.92 3.33 4.00 4.00 4.304.67 2.33 5.00 4.00 4.304.00 3.08 4.00 3.69 4.003.08 3.08 5.00 3.63 3.703.58 2.67 4.00 3.25 3.504.42 2.75 4.00 3.63 3.804.33 3.08 4.50 4.63 4.304.00 1.92 5.00 2.75 3.603.92 2.92 5.00 4.06 4.104.08 2.58 5.00 2.88 4.203.67 2.91 4.00 3.33 3.903.67 3.00 5.00 2.50 3.702.42 2.08 4.50 2.25 3.003.17 3.08 4.50 2.38 3.503.50 3.08 4.00 2.00 3.204.25 2.75 4.00 3.56 3.902.92 2.83 4.50 2.31 2.903.75 2.67 4.00 3.19 3.603.50 2.67 4.00 2.94 3.703.42 3.17 4.00 2.38 3.504.42 3.83 4.00 4.31 4.303.58 2.83 4.00 3.63 4.003.91 2.50 5.00 3.63 4.114.42 3.08 5.00 3.06 4.302.25 2.75 1.50 2.75 2.104.00 2.67 4.50 3.44 4.203.75 3.00 3.00 2.19 3.603.25 2.08 4.00 2.69 3.003.92 2.75 4.00 3.50 3.503.08 2.17 4.00 2.56 3.503.33 2.75 4.50 3.47 3.603.83 3.58 4.00 3.94 4.103.83 1.25 4.00 2.31 3.403.67 1.75 5.00 3.25 4.203.75 2.67 4.00 3.31 3.504.00 2.08 5.00 2.69 3.603.17 2.75 3.50 3.06 3.603.67 2.25 5.00 2.56 3.504.42 3.00 5.00 3.50 4.103.08 2.33 4.00 3.44 2.903.67 2.42 2.00 2.00 3.004.67 3.00 4.50 3.75 4.204.33 3.08 4.00 3.69 4.304.00 2.33 5.00 4.00 4.203.92 2.90 4.00 2.77 3.90

3.75 3.33 4.50 2.75 3.704.70 3.38 5.00 3.71 4.862.64 1.58 4.50 1.44 2.894.67 3.92 4.50 4.19 4.503.92 2.33 5.00 2.63 3.603.83 2.67 4.00 3.63 3.703.75 2.75 4.00 3.63 4.003.83 2.58 4.00 4.06 3.804.33 3.08 4.50 3.38 4.202.58 1.50 3.00 2.13 2.702.92 1.92 4.00 2.81 2.903.42 2.42 4.50 2.50 3.503.73 2.75 4.00 3.63 3.784.25 2.92 4.00 3.69 3.904.70 3.67 5.00 4.31 4.753.67 3.27 4.50 3.81 3.904.17 2.50 2.50 4.19 3.703.58 2.25 4.50 2.69 3.202.67 2.33 2.00 2.56 2.804.09 3.08 3.50 3.06 4.002.92 3.08 4.50 3.50 3.703.64 3.08 4.50 3.00 3.894.17 2.92 4.50 3.33 3.80

What's the difference in directional (one-tailed) and non-directional (two-tailed) hypotheses in statistical tests?

prwc prwco icad icim icimo icpa icpy3.92 4.50 4.86 5.00 5.00 4.50 4.333.00 3.00 3.43 4.40 4.00 2.50 3.672.33 2.00 3.14 3.80 3.00 3.00 1.332.92 2.50 2.86 4.20 3.00 3.50 3.003.25 2.00 2.00 4.80 5.00 2.50 2.003.00 3.50 3.43 3.80 4.00 4.00 3.003.50 4.50 4.14 3.60 4.50 3.50 4.332.75 3.00 3.43 4.00 4.00 4.50 3.333.91 5.00 3.71 4.20 4.50 4.00 4.332.25 2.50 3.71 4.60 4.50 5.00 3.331.92 3.00 3.29 4.80 4.00 4.50 3.333.08 3.00 3.57 4.60 4.00 2.50 3.002.17 2.50 3.71 4.80 4.50 2.00 1.333.42 3.00 2.86 4.60 4.50 4.50 2.672.44 2.50 3.60 4.00 4.00 3.00 3.672.33 3.00 2.71 4.60 4.00 3.50 2.002.92 2.50 3.00 3.40 3.50 3.00 3.672.92 3.00 3.71 4.60 4.00 2.50 3.671.92 2.00 3.00 4.20 4.00 3.50 2.332.67 2.00 3.86 4.60 5.00 3.00 3.002.58 2.50 3.14 4.60 4.50 3.50 2.672.00 2.50 3.71 4.80 4.50 4.50 3.332.92 2.50 3.29 4.20 4.00 3.00 2.673.17 3.00 3.57 4.20 4.50 4.50 3.671.67 1.50 2.57 4.40 3.50 3.00 2.332.25 1.50 2.71 4.60 5.00 3.00 3.003.00 3.00 4.71 4.80 4.50 4.50 4.002.92 2.50 3.71 5.00 5.00 2.50 3.672.58 3.00 3.71 4.00 4.00 3.50 4.002.75 2.50 3.57 4.60 3.50 3.00 2.332.25 2.00 3.14 4.20 3.00 3.50 2.672.42 2.50 4.29 5.00 5.00 4.00 3.672.58 2.00 2.86 4.00 4.00 3.00 2.672.92 2.50 4.00 4.40 5.00 4.00 4.002.50 2.50 4.71 5.00 4.50 3.00 3.00

1.92 2.50 2.71 4.40 3.00 3.50 2.671.83 1.50 2.57 4.60 3.00 3.50 2.002.58 4.50 4.14 5.00 5.00 5.00 3.672.42 2.50 2.00 4.80 5.00 4.00 4.002.25 1.50 2.71 4.80 4.00 4.00 3.334.17 4.00 3.83 4.80 5.00 3.00 4.332.67 2.50 3.29 4.20 3.50 4.50 3.333.08 3.00 3.14 3.80 4.00 1.50 3.333.42 4.00 3.86 4.20 5.00 4.50 3.67

2.33 2.00 3.14 4.40 4.00 4.00 3.002.50 3.00 3.57 4.40 4.00 4.50 3.672.50 3.00 3.29 4.60 4.50 3.00 3.332.83 3.00 2.57 4.60 3.50 4.50 2.673.00 3.00 4.14 4.60 4.00 4.50 3.673.33 3.00 3.86 4.80 4.00 4.00 3.002.33 2.50 3.86 4.60 5.00 4.00 4.003.08 3.50 3.57 4.40 4.00 2.50 2.673.08 3.50 2.29 4.80 5.00 3.00 1.672.67 4.00 2.86 4.40 4.00 4.00 3.002.75 2.50 3.14 4.40 4.00 4.00 3.333.08 2.50 2.71 5.00 4.50 3.00 2.331.92 2.50 3.57 4.80 5.00 3.00 3.002.92 4.00 3.86 4.60 5.00 3.00 2.332.58 3.00 3.71 4.80 5.00 3.00 2.672.91 3.00 3.00 4.40 4.00 4.00 3.333.00 3.00 3.00 4.00 5.00 4.00 2.332.08 2.00 1.57 4.00 4.50 2.00 1.003.08 2.00 1.86 4.80 4.50 4.00 2.673.08 1.50 2.57 4.20 4.00 1.50 2.002.75 3.50 3.86 4.40 4.00 3.00 1.672.83 3.50 3.29 4.60 4.50 4.00 2.672.67 3.00 3.57 4.40 4.00 3.00 2.002.67 1.50 2.14 4.40 4.00 2.00 1.673.17 3.00 2.14 4.00 4.00 3.50 2.003.83 3.00 4.00 4.40 4.00 4.00 3.002.83 3.50 3.71 3.60 4.00 4.00 3.002.50 2.50 3.57 4.80 5.00 3.00 4.333.08 2.50 3.71 3.80 5.00 4.50 4.002.75 2.00 2.00 2.80 1.50 3.50 4.002.67 3.50 3.71 4.80 4.50 5.00 3.333.00 2.50 4.00 4.20 3.00 3.50 4.332.08 1.50 3.29 4.40 4.00 4.50 3.672.75 4.00 3.43 4.80 4.00 3.50 3.002.17 1.50 2.83 4.60 4.00 3.50 3.002.75 4.00 2.57 4.80 4.50 2.00 3.333.58 4.00 2.86 4.20 4.00 3.00 3.001.25 1.50 2.43 5.00 4.00 1.00 3.001.75 1.50 3.57 4.20 5.00 5.00 3.002.67 2.00 3.57 4.20 4.00 2.50 2.332.08 1.50 3.43 4.80 5.00 5.00 3.672.75 3.00 3.00 4.40 3.50 5.00 2.332.25 2.00 3.14 4.80 5.00 3.50 2.333.00 4.00 3.71 3.80 5.00 3.50 3.672.33 1.50 3.00 5.00 4.00 3.50 2.002.42 2.00 3.43 4.20 2.00 3.00 3.333.00 3.00 3.57 4.20 4.50 3.50 3.003.08 4.00 3.43 3.60 4.00 3.50 2.00

2.33 2.50 3.14 4.80 5.00 3.00 1.672.90 3.00 2.33 4.60 4.00 4.50 2.333.33 3.00 3.43 4.40 4.50 3.00 3.333.38 3.00 3.67 5.00 5.00 3.00 4.001.58 2.00 2.71 3.80 4.50 3.50 3.333.92 4.00 3.71 4.20 4.50 4.00 3.672.33 2.50 3.29 4.80 5.00 3.50 2.332.67 3.50 4.00 4.40 4.00 2.50 2.672.75 3.00 4.14 4.60 4.00 3.50 2.672.58 2.50 4.00 4.20 4.00 4.00 3.673.08 4.00 3.14 4.60 4.50 4.00 2.331.50 1.50 1.86 4.60 3.00 3.00 2.001.92 2.50 3.43 4.20 4.00 2.00 3.002.42 3.00 3.00 4.60 4.50 3.50 4.002.75 2.50 3.14 4.00 4.00 3.00 3.002.92 3.50 3.00 4.00 4.00 3.00 2.333.67 4.50 3.86 4.80 5.00 3.50 4.333.27 4.50 2.71 4.20 4.50 4.00 3.332.50 4.00 3.57 4.20 2.50 4.00 4.332.25 1.50 2.43 3.80 4.50 1.50 3.672.33 2.00 3.14 4.80 2.00 4.00 2.333.08 2.00 3.29 4.60 3.50 2.50 2.673.08 3.00 2.86 4.60 4.50 3.00 2.673.08 4.00 3.14 4.00 4.50 2.00 2.332.92 4.00 3.71 4.60 4.50 3.00 3.00

Recompute the multiple regression using the independent variables with a p-value <= .05 in the full regression model. Place the results in J339.

su tr cptw itl 6.004.56 4.75 4.80 5.002.50 3.75 3.70 5.002.75 3.50 3.50 3.253.00 3.75 3.20 4.001.63 3.75 3.80 4.003.50 3.25 4.00 4.754.21 4.00 4.40 3.003.50 4.00 3.40 4.753.88 3.00 4.20 5.003.88 3.00 3.90 5.003.31 3.25 3.80 4.753.50 3.75 4.20 4.503.69 2.75 3.90 4.002.94 3.50 4.00 4.502.71 2.33 3.38 4.002.31 3.00 4.00 3.502.50 3.00 3.30 5.002.56 4.50 3.50 5.003.25 3.25 3.40 4.002.94 3.00 3.60 4.003.47 3.25 3.50 4.003.00 3.50 3.70 5.003.25 3.00 4.00 5.004.00 3.00 4.30 5.002.50 1.25 3.00 3.001.69 3.00 2.60 2.754.31 4.00 4.30 5.002.93 3.75 4.20 5.003.44 3.25 4.00 4.753.56 3.50 3.70 4.753.06 3.25 2.60 4.254.00 4.50 4.60 5.002.13 2.50 3.30 3.504.06 4.25 4.60 5.003.81 3.25 4.10 5.00

3.25 3.00 3.00 4.003.06 1.50 3.00 3.754.00 2.50 4.40 5.003.23 2.00 3.90 3.501.56 3.25 2.70 3.503.73 3.67 4.30 4.253.94 2.75 3.50 3.503.06 3.00 3.50 4.253.75 3.75 4.30 5.00

Using the Data Analysis Regression tool compute a multiple regression using all the variables org to tr to predict cptw. Place results in V198.After the analysis is complete go to cell B337 for further instructions.

3.06 4.00 3.80 4.003.38 3.50 3.60 5.002.88 3.00 3.60 5.003.44 3.75 3.80 3.504.06 3.75 3.90 3.504.00 3.75 4.30 4.504.00 3.50 4.30 5.003.69 3.50 4.00 4.503.63 3.75 3.70 4.003.25 3.00 3.50 5.003.63 3.75 3.80 3.504.63 4.00 4.30 5.002.75 4.25 3.60 4.504.06 4.00 4.10 4.752.88 1.75 4.20 5.003.33 3.00 3.90 4.502.50 3.00 3.70 4.002.25 3.25 3.00 3.752.38 2.00 3.50 5.002.00 2.50 3.20 3.753.56 3.00 3.90 5.002.31 2.75 2.90 5.003.19 2.75 3.60 4.752.94 3.50 3.70 4.752.38 2.50 3.50 4.504.31 4.00 4.30 5.003.63 2.50 4.00 4.753.63 3.75 4.11 5.003.06 3.25 4.30 5.002.75 2.25 2.10 2.503.44 3.75 4.20 4.502.19 4.00 3.60 5.002.69 3.25 3.00 3.503.50 4.25 3.50 5.002.56 2.75 3.50 2.753.47 3.00 3.60 3.253.94 4.00 4.10 5.002.31 1.25 3.40 5.003.25 2.50 4.20 5.003.31 3.50 3.50 4.002.69 2.75 3.60 3.503.06 3.00 3.60 5.002.56 3.25 3.50 4.503.50 3.75 4.10 5.003.44 4.00 2.90 4.502.00 3.75 3.00 4.503.75 3.75 4.20 5.003.69 2.75 4.30 3.50

4.00 3.25 4.20 3.502.77 3.25 3.90 4.752.75 3.00 3.70 4.003.71 3.25 4.86 5.001.44 2.50 2.89 1.254.19 3.50 4.50 5.002.63 3.00 3.60 4.253.63 4.00 3.70 5.003.63 3.25 4.00 4.754.06 2.75 3.80 4.503.38 4.00 4.20 5.002.13 3.00 2.70 3.252.81 4.25 2.90 4.252.50 3.75 3.50 5.003.63 4.00 3.78 4.003.69 3.00 3.90 4.504.31 3.50 4.75 5.003.81 3.50 3.90 5.004.19 2.75 3.70 5.002.69 3.75 3.20 1.752.56 2.75 2.80 2.003.06 2.50 4.00 2.753.50 3.75 3.70 2.503.00 2.75 3.89 5.003.33 3.00 3.80 5.00

Using the Data Analysis Regression tool compute a multiple regression using all the variables org to tr to predict cptw. Place results in V198.B337 for further instructions.

1 What are the purposes of accounting?

2 How is the income statement typically used?

3 What is the relationship between the General Journal, the General Ledger and the Income Statement and the Balance Sheet?

4 How is accrual accounting used to manage financial analysis?

Accounting has two basic purposes. Management Accounting is inward looking providing information to decision makers inside the company. Financial Accounting also provides information to decision makers, but it also has an outside focus, providing information in a standardized way to investors, creditors and governments.

The income statement sows the flow of money in an organization and and the relationship of revenues to expenses over a time period. It is the starting point for the analysis of a business. There is no single way to structure an income statement. Income statements can be tailored to meet the needs of a company's management. Income statements commonly divide income into two categories. Operating income, which the day to day generation of income and non-operating income, which represents assets that may have been financed, tax impacts and extraordinary occurences ( e.g. one time sale of an asset).

Individual transactions are recorded chronologically as debits and credits in the General Journal. These transactions are accumulated into specific accounts in the General Ledger. The data from the General Ledger are used to construct the Income Statement and Balance Sheet.

5 Contrast the Traditional and Contribution approaches to organizing income statements.

6

Cash 25450Inventory 18000Accounts Receivable 16000Prepaid Expenses 1000Other Current Assets 0Equipment (less depreciation) 36000Leasehold Improvements (less depr) 17250Other Fixed Assets 0Accounts Payable 10000Notes Payable 0Line of Credit Payable 1500Taxes Payable 2000Other Current Liabilities 0Long Term Debt 23350Other Long Term Liabilities 0Owner's Capital Contribution 50000Less Owners Draw 20500Retained Earnings 47350

Arrange the following data for the ABC Company into a balance sheet. Begin the Balance Sheet in cell H72.

7 How is a current asset cash balance determined? Demonstrate with the cash worksheet below by calculating the daily balance from the beginning to the end of the month.

Date Explanation Debit 11/30/11 Closing balance, November

12/1/11 Purchase medical insurance policy12/1/11 Purchase of office supplies12/4/11 Cash Receipts $ 4,690 12/4/11 Check for returns to supplier $ 91 12/7/11 Cash Receipts $ 1,006

12/11/11 Cash Receipts $ 8,207 12/14/11 Cash Receipts $ 9,592 12/14/11 Purchase of books from Neal Publishing12/14/11 Purchase of books from Lenny Distributing12/18/11 Cash Receipts $ 4,663 12/18/11 Accounts Receivable payment fo $ 17,951 12/21/11 Cash Receipts $ 5,514 12/23/11 Cash Receipts $ 3,791 12/27/11 Telephone bill, November12/27/11 Cash Receipts $ 9,050 12/27/11 Purchase of books from Neal Publishing12/29/11 Salary check, Rodgers12/29/11 Salary check, Rouse12/29/11 Salary check, Tafoya12/29/11 Advertising bill, November12/30/11 Cash Receipts $ 6,841

8 How is a current asset accounts receivable balance determined? Demonstrate with the data below by calculating the daily balance from the beginning to the end of the month.

Date Accounts Receivable: Explanat Debit

11/30/11 Closing balance, November12/1/11 Credit sales $ 1,127 12/1/11 Credit sales $ 1,258 12/4/11 Credit sales $ 497 12/4/11 Credit sales $ 288 12/7/11 Credit sales $ 187

12/11/11 Credit sales $ 977 12/14/11 Credit sales $ 1,236 12/14/11 Credit sales $ 454 12/14/11 Credit sales $ 855

12/18/1112/21/11 Credit sales $ 882 12/23/11 Credit sales $ 789 12/27/11 Credit sales $ 1,337 12/27/11 Credit sales $ 392 12/27/11 Credit sales $ 856 12/29/11 Credit sales $ 1,291 12/29/11 Credit sales $ 1,418 12/29/11 Credit sales $ 390 12/29/11 Credit sales $ 1,337 12/30/11 Credit sales $ 1,277

9 How are prepaid expenses handled on a balance sheet? Calculate the Current Balance for the data below.

Asset Account Medical Insurance

Date Explanation Debit 12/1/2011 Purchase of medical policy $ 6,864

12/31/2011 Expiration of one month coverage

Balance

How are costs and revenues matched?

10What is the impact on net income?

Payment from service bureau, 11/11 charges

For the following data, how would the recording of expenses differ if Office Supplies were allocated over 12 months and the Personal Computer were depreciated (expense) over 3 years?

Income Statement1/31/2010 Marble Designs, Inc.

BeforeSales

Expenses

Salary $3,500Office lease $900Telephone $96

Office supplies $2,000Purchase: Computer $1,950

Total Expenses

Net Income

11 How do cash and working capital differ?

12 Calculate working capital for the data below.

Income Statement$40,209

RevenuesSales $10,000Less Cost of Goods Sold

Beginning Inventory $0Purchases $2,000

Ending inventory $1,500 $500

Gross profit $9,500

Operating ExpensesSalaries $3,500Office Lease $900Telephone $96Office supplies $167Depreciation, Computer $54

Net income $4,783

13

Income Statement1/31/2011

RevenuesSales $90,000

Beginning inventory $1,500Purchases $25,000

Ending inventory $2,000Less Cost of Goods Sold $24,500

Gross profit $65,500

Operating ExpensesSalaries $42,000Office Lease $10,800Telephone $1,151Office supplies $2,000Depreciation, Computers $1,037

Gain on sale of office $5,000

Net income $13,512

14Considering the above income statement and balance sheet:What was the value of the materials in inventory at the beginning of the period?

15 How much additional inventory was purchased during the year?

16 How much inventory was used during the year?

17 Calculate the working capital for both month end periods.

An analysis of cash flow can help determine how a company uses its cash assets. Is it used to acquire assets, meet liabilities, retire debt etc. The starting point of a cash flow analysis is a review of the income statement and balance sheet.

18 What was the cash on hand at the end of Jan 2011?

What is the relationship between the General Journal, the General Ledger and the Income Statement and the Balance Sheet?

Accounting has two basic purposes. Management Accounting is inward looking providing information to decision makers inside the company. Financial Accounting also provides information to decision makers, but it also has an outside focus, providing information in a standardized way to investors,

The income statement sows the flow of money in an organization and and the relationship of revenues to expenses over a time period. It is the starting point for the analysis of a business. There is no single way to structure an income statement. Income statements can be tailored to meet the needs of a company's management. Income statements commonly divide income into two categories. Operating income, which the day to day generation of income and non-operating income, which represents assets that may have been financed, tax impacts and extraordinary occurences ( e.g. one time sale of an asset).

Individual transactions are recorded chronologically as debits and credits in the General Journal. These transactions are accumulated into specific accounts in the General Ledger. The data from the General Ledger are used to construct the Income Statement and Balance Sheet.

into a balance sheet. Begin the Balance Sheet in cell H72.

How is a current asset cash balance determined? Demonstrate with the cash worksheet below by calculating the daily balance from the beginning to the end of the month.

Credit Balance $ 29,344

$ 6,864 $ 3,194

$ 6,023 $ 8,474

$ 1,835

$ 6,440 $ 2,950 $ 2,761 $ 4,377 $ 3,116

How is a current asset accounts receivable balance determined? Demonstrate with the data below by calculating the daily balance from the beginning to the end of the month.

Credit Balance

$ 17,951

How are prepaid expenses handled on a balance sheet? Calculate the Current Balance for the data below.

Credit

$ 1,144

if Office Supplies were allocated over 12 months and the Personal Computer were depreciated (expense) over 3 years?

Before After$10,000

$8,446

$1,554

Changes to Balance Sheet, 1/1 - 1/31Assets

$40,179 $40,209Cash $9,000 $2,554Accounts Receivable $8,000Inventory $1,500Office Supplies $1,833Computer $1,950Accumulated depreciation -$54

$9,000 $15,783

Liabilities and Owner's Equity

Notes payable $2,000Jean Marble, equity $9,000 $13,783

$9,000 $15,783

Working capital -->

Changes to Balance Sheet, 1/31/10 - 1/31/11Assets

1/31/2010 1/31/2011

Cash $2,554 $17,783Accounts Receivable $8,000 $5,500Inventory $1,500 $2,000Office Supplies $1,833 $1,833Computer $1,950 $1,950Computer $2,320Accumulated depreciation -$54 -$1,091

$15,783 $30,295


Notes payable $2,000 $3,000Jean Martin, equity $13,783 $27,295

$15,783 $427,884

Working capital

How is a current asset cash balance determined? Demonstrate with the cash worksheet below by calculating the daily balance from the beginning to the end of the month.

How is a current asset accounts receivable balance determined? Demonstrate with the data below by calculating the daily balance from the beginning to the end of the month.

if Office Supplies were allocated over 12 months and the Personal Computer were depreciated (expense) over 3 years?

10a. Impact on net income: Percent increase/decrease?

Income Statement Changes to Balance Sheet, 1/1 - 1/31$40,209 Assets

RevenuesSales $10,000 CashLess Cost of Goods Sold Accounts Receivable

Beginning Inventory $0 InventoryPurchases $2,000 Office Supplies

Ending inventory $1,500 $500 ComputerAccumulated depreciation

Gross profit $9,500

Operating ExpensesSalaries $3,500 Liabilities and Owner's EquityOffice Lease $900Telephone $96 Notes payableOffice supplies $167 Jean Marble, equityDepreciation, Computer $54

Net income $4,783

Working capital

Changes to Balance Sheet, 1/1 - 1/31Assets

$40,179 $40,209$9,000 $2,554

Accounts Receivable $8,000$1,500$1,833$1,950

Accumulated depreciation -$54

$9,000 $15,783


$2,000$9,000 $13,783

$9,000 $15,783

$9,000 $11,887

1 What is statement analysis?

2

3 The following is a balance sheet displaying two year's data on a company. Common-size the report. Place results in the columns headed Common-sized.Calculate the Dollar Change and the Percent Change from 2012 to 2013. Place results in the Dollar Chg & Pct Chg columns.

Common-sized2013 2012 2013 2012

ASSETS

Non-current assets

260,000 240,000

Goodwill 60,000 60,000

Intangible assets 120,000 100,000

440,000 400,000

Current assets

Inventories 24,000 20,000

Trade receivables 50,000 60,000

Cash and cash equivalents 16,000 20,000

90,000 100,000

TOTAL ASSETS 530,000 500,000

EQUITY AND LIABILITIES

Equity

Share capital 200,000 200,000

What does it mean to common-size a report?

Property, plant & equipment

Retained earnings 100,000 80,000

Revaluation reserve 30,000 20,000

Total equity 330,000 300,000

Non-current liabilities

Long term borrowings 70,000 100,000

Current liabilities

Trade and other payables 70,000 50,000

Short-term borrowings 20,000 16,000

30,000 30,000

Current tax payable 10,000 4,000

Total current liabilities 130,000 100,000

Total liabilities 200,000 200,000

530,000 500,000

4 What is Variance Analysis?

5 The following shows budget figures and actual figures (profit & expense) for a month. Compute the percentages and variances indicated. Follow the instructions in the comment boxes.

Budget Actual VarianceJan Jan Jan

Gross profit 42,589 32,845Salaries 20,000 27,520Payroll taxes 5,040 6,935Lease 1,000 1,000Phone 500 562Supplies 300 142Insurance 500 500Total OpEx 27,340 36,659EBITDA: Actual 15,249 -3,814EBITDA: Plan

Gross profitSalariesPayroll taxesLeasePhone

Current portion of long-term borrowings

TOTAL EQUITY AND LIABILITIES

Process aimed at computing variance between actual and budgeted or targeted levels of performance, and identification of their causes.

http://www.businessdictionary.com/definition/variance-analysis.html

SuppliesInsuranceTotal OpExEBITDA

6 Considering the variance figures in the above analysis, what expense seem most problematic?Salary

7 The following table shows the headcount and profit & expense data for a department in a company.Compute the per-employee (common-sized) figures for the profit and expense items.

Jan Feb Mar Apr May JunHeadcount 5 5 5 5 3 3Gross profit 32,845 46,208 21,710 12,607 18,938 18,268Salaries 27,520 22,701 25,984 22,618 16,761 16,783Payroll taxes 6,935 5,721 6,548 5,700 4,224 4,229Lease 1,000 1,000 1,000 1,000 1,000 1,000Phone 562 737 608 678 486 259Supplies 142 263 132 299 106 158Insurance 500 500 500 500 500 500Total OpEx 36,659 30,922 34,772 30,795 23,077 22,929EBITDA: Actual -3,814 15,286 -13,062 -18,188 -4,139 -4,661EBITDA: Plan 15,249 26,425 11,506 -8,996 -3,698 -2,997

Gross profitSalariesPayroll taxesLeasePhoneSuppliesInsuranceTotal OpExEBITDA: ActualEBITDA: Plan

8 What is ratio analysis?

9 Describe issues related to interpreting industry averages and trends and to comparing ratios within industries.

10

11 What is a profitability ratio? How are they interpreted?

Compare horizontal and vertical analysis.

12 In analyzing a company's profitability, which ratios are commonly used?

13 Define financial leverage and list commonly used leverage ratios.

14 What is liquidity and what are the commonly used liquidity ratios?

15 Compute the Earnings per Share for the following:Net Income $ 658,964

2,000 EPS

16 Compute the Gross Profit Margin for the following:Sales $ 2,984,077 Cost of Sales $ 1,523,477 Gross Profit Margin

Shares of common stock outstanding

17 Compute the Net Profit Margin for the following:Net Income $ 458,964 Sales $ 2,925,707 Net profit margin

18 Compute the Return on Assets for the following:EBIT $ 310,838 Total Assets $ 3,612,824 Return on Assets

19 Compute the Return on Equity for the following:EBIT $ 310,838 Total Equity $ 2,123,456 Return on Equity

20 Compute the Debt Ratio for the following:Total Liabilities $ 1,645,225 Total Assets $ 3,922,889 Debt Ratio

21 Compute the Equity Ratio for the following:Stockholders' Equity $ 2,999,425 Total Assets $ 4,665,668 Equity Ratio

22 Compute the Times Interest Earned ratio for the following:EBIT $ 645,001 Interest $ 28,792 Times Interest Earned

23 Compute the Current Ratio on the following:Current Assets $ 1,400,815 Current Liabilities $ 693,849 Current Ratio

24 Compute the Quick Ratio on the following:Current Assets $ 1,400,815 Inventory $ 666,748 Current Liabilities $ 693,849

Quick Ratio

The following is a balance sheet displaying two year's data on a company. Common-size the report. Place results in the columns headed Common-sized.Calculate the Dollar Change and the Percent Change from 2012 to 2013. Place results in the Dollar Chg & Pct Chg columns.

Dollar Chg Pct Chg

Process aimed at computing variance between actual and budgeted or targeted levels of performance, and identification of

The following table shows the headcount and profit & expense data for a department in a company.

Describe issues related to interpreting industry averages and trends and to comparing ratios within industries.

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2Using the two most recent years shown create a two-year percentage of sales forecast for the items shown in the income statement.Use the 2-year percentage of sales forecast to develop a pro forma budget for the following year. Assume a 6% sales increase over the previous year.Develop a quarterly sales budget for the following year.

Income Statement for the year ended: 2012 2013 2014Sales $ 498,541 $ 367,450 $ 389,864 Cost of Goods Sold Inventory, 1/1 $ 116,081 $ 85,919 $ 112,969 Purchases $ 115,372 $ 147,970 $ 187,540 Available for sale $ 231,453 $ 233,889 $ 300,509 Inventory, 12/31 $ 85,919 $ 112,969 $ 129,125

Cost of goods sold $ 145,534 $ 120,920 $ 171,384 Gross profit $ 353,007 $ 246,530 $ 218,480

ExpensesAdvertising $ 6,166 $ 5,915 $ 6,770 Office lease $ 8,750 $ 9,110 $ 9,544

Insurance $ 3,906 $ 3,754 $ 4,010 Office supplies $ 2,110 $ 2,680 $ 3,862

Salaries $ 62,378 $ 72,924 $ 94,347 Communications $ 3,708 $ 5,507 $ 7,014

Travel $ 1,070 $ 6,310 $ 8,733 Depreciation $ 4,192 $ 4,192 $ 4,192

Operating expenses $ 92,280 $ 110,392 $ 138,472 Operating income $ 260,727 $ 136,138 $ 80,008 Taxes $ 65,182 $ 34,035 $ 20,002 Net income $ 195,545 $ 102,104 $ 60,006

3 Sensitivity analysis measures the impact of changes. What would be percentage effect on net profit be of a 2% price increase of the COGS purchases)

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What is a pro forma financial statement?

Define the term forecasting.

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6 The following are weekly sales volume figures. Compute a three week moving average. Round the average to the nearest whole number.Use the TREND function as an ARRAY function to predict weekly sales for the time series and to predict sales for weeks 16-18. Round to the nearest whole number.

Week Sales volume Moving Avg1 7482 6603 8144 6935 5726 3747 2978 4189 451

10 82511 77012 79213 77014 66015 704161718

7 Differentiate linear and nonlinear relationships.

8Next, create a second Scatter Diagram using the same data points. Insert a 3rd order polynomial trend line. Does this trend line fit the data better?

Define baseline data.

Considering the sales volume data in the previous problem, plot Weeks by Sales volume in a Scatter Diagram. Insert a linear trend line including R2. Does a straight line fit the data well?

Using the two most recent years shown create a two-year percentage of sales forecast for the items shown in the income statement.Use the 2-year percentage of sales forecast to develop a pro forma budget for the following year. Assume a 6% sales increase over the previous year.

Percentage of Sales Sales Budget2-year average 2015 Projection Q1 Q2

Sensitivity analysis measures the impact of changes. What would be percentage effect on net profit be of a 2% price increase of the COGS purchases)

The following are weekly sales volume figures. Compute a three week moving average. Round the average to the nearest whole number.Use the TREND function as an ARRAY function to predict weekly sales for the time series and to predict sales for weeks 16-18. Round to the nearest whole number.

Next, create a second Scatter Diagram using the same data points. Insert a 3rd order polynomial trend line. Does this trend line fit the data better?Considering the sales volume data in the previous problem, plot Weeks by Sales volume in a Scatter Diagram. Insert a linear trend line including R2. Does a straight line fit the data well?

Sales BudgetQ3 Q4

1 Describe the key components of developing an effective business case.

2 The following represent key elements in developing a business case and show how Excel can be used in the development process.

Year: 1 2 3 4 5New E-Reader: Sales Forecast

($Millions)Total sales, New E-Reader $8 $14 $18 $28

Cost of Goods Sold @ 50% of sales $4 $7 $9 $14 Incremental Gross Profit, New E-Reader $4 $7 $9 $14

In this case the relevant benefit of the new product is the incremental profit.incremental value $4 $7 $9 $14 $0

The relevant cost factors should be identified and estimated over the timeframe of the case.3 Relevant costs:

Lost value, Current Product $6.00 $6.00 $6.00 $6.00 Advertising $2.00 $1.00 $0.50 $0.50

New product management team $1.00 $1.00 $1.00 $1.00 Market research expenses $0.50 $0.00 $0.00 $0.00 Incremental maintenance $0.00 $0.50 $0.50 $0.50

4 Total costs $9.50 $8.50 $8.00 $8.00

5 Calculate net income.EBITDA ($5.50) ($1.50) $1.00 $6.00

6 Less: Depreciation $1.00 $1.00 $1.00 $1.00

Income before taxes ($6.50) ($2.50) $0.00 $5.00 7 36% ($2.34) ($0.90) $0.00 $1.80

Net income ($4.16) ($1.60) $0.00 $3.20

New equipment investment $10.00

8 Estimate cash flowNet cash flow ($13.16) ($0.60) $1.00 $4.20

9 Determine the cumulative net cash flow and undiscounted payback period.Cumulative Net Cash Flow ($13.16) ($13.76) ($12.76) ($8.56)

Undiscounted payback period Years

Usually there's a discount rate that needs to be figured into the calculations.

Discount Rate 3.0%

Discounted Cash Flow $ (12.78) $ (0.57) $ 0.92 $ 3.73 $ - $ (12.78) $ (0.57) $ 0.92 $ 3.73 $ -

Cumulative Discounted Cash Flow $ (12.78) $ (13.34) $ (12.43) $ (8.70) $ (8.70)

Discounted Payback Period Years

10 Review the fundamentals of using the Solver add-in by viewing the following video: http://youtu.be/K4QkLA3sT1oThen implement Solver in the problem on the Unit10b tab.

The following represent key elements in developing a business case and show how Excel can be used in the development process.

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$0

$ - $ -

$ (8.70)

Review the fundamentals of using the Solver add-in by viewing the following video: http://youtu.be/K4QkLA3sT1o

Unit10b

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1 Enhanced E-Reader: Cash Flow StatementYear: 1 2 3 4 5 6

Relevant benefits: ($Millions)Incremental value, New E-Reader $4.00 $7.00 $9.00 $14.00 $19.00 $22.00

Relevant costs:Lost value, Current Product $6.00 $6.00 $6.00 $6.00 $6.00 $7.00

Advertising $2.00 $1.00 $0.50 $0.50 $0.50 $0.50 New product management $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Market research expenses $0.50 $0.00 $0.00 $0.00 $0.00 $0.00 Incremental maintenance $0.00 $0.50 $0.50 $0.50 $0.50 $0.50

Total costs $9.50 $8.50 $8.00 $8.00 $8.00 $9.00

EBITDA ($5.50) ($1.50) $1.00 $6.00 $11.00 $13.00 Less: Depreciation $1.00 $1.00 $1.00 $1.00 $1.00 $1.00

Income before taxes ($6.50) ($2.50) $0.00 $5.00 $10.00 $12.00 Less: Taxes @ 36% ($2.34) ($0.90) $0.00 $1.80 $3.60 $4.32 Net income ($4.16) ($1.60) $0.00 $3.20 $6.40 $7.68

Plus: Depreciation $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Minus: Investment $10.00 $0.00 $0.00 $0.00 $0.00 $0.00

Net Cash Flow ($13.16) ($0.60) $1.00 $4.20 $7.40 $8.68

Cumulative Net Cash Flow ($13.16) ($13.76) ($12.76) ($8.56) ($1.16) $7.52

Undiscounted payback period: 5.13

Discount Rate: 0.1

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Discounted Cash Flow ($11.96) ($0.50) $0.75 $2.87 $4.59 $4.90

Cumulative Discounted Cash Flow ($11.96) ($12.46) ($11.71) ($8.84) ($4.24) $0.65

Discounted payback period: 5.87($11.96) ($12.46) ($11.71) ($8.84) ($4.24) $0.65

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Unit10b

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Enhanced E-Reader: Cash Flow StatementYear: 1 2 3 4 5 6

Relevant benefits: ($Millions)Incremental value, New E-Reader $4.00 $7.00 $9.00 $14.00 $19.00 $22.00

Relevant costs:Lost value, Current Product $6.00 $6.00 $6.00 $6.00 $6.00 $7.00 Constraints

Advertising $2.00 $1.00 $0.50 $0.50 $0.50 $0.50 $0.50 New product management $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Market research expenses $0.50 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 Incremental maintenance $0.00 $0.50 $0.50 $0.50 $0.50 $0.50

Total costs $9.50 $8.50 $8.00 $8.00 $8.00 $9.00

EBITDA ($5.50) ($1.50) $1.00 $6.00 $11.00 $13.00 Less: Depreciation $1.00 $1.00 $1.00 $1.00 $1.00 $1.00

Income before taxes ($6.50) ($2.50) $0.00 $5.00 $10.00 $12.00 Less: Taxes @ 36% ($2.34) ($0.90) $0.00 $1.80 $3.60 $4.32 Net income ($4.16) ($1.60) $0.00 $3.20 $6.40 $7.68

Plus: Depreciation $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 Minus: Investment $10.00 $0.00 $0.00 $0.00 $0.00 $0.00

Net Cash Flow ($13.16) ($0.60) $1.00 $4.20 $7.40 $8.68

Cumulative Net Cash Flow ($13.16) ($13.76) ($12.76) ($8.56) ($1.16) $7.52

Undiscounted payback period: 5.13

Discount Rate: 0.1

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Discounted Cash Flow ($11.96) ($0.50) $0.75 $2.87 $4.59 $4.90

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Discounted payback period: 5.87($11.96) ($12.46) ($11.71) ($8.84) ($4.24) $0.65

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1 How is standard deviation used as a business analytic?

2 Describe the purposes of the Excel's standard deviation functions.

3 Define "confidence interval" and how it relates to business analytics.

4 Compute the 95% confidence interval for the following data. See instructions in the comment field.Passersby

544468399759526212256456553259469366197178

5The following are data showing the advertising budget and unit sales for a company.

Advertising Budget Unit Sales$3,500 16,523

$10,073 6,305$11,825 1,769$33,550 30,570$37,200 7,698$55,400 9,554$55,565 54,154$66,501 54,450$71,000 47,800$82,107 74,598$83,100 25,257$90,496 80,608

$100,000 40,800$102,100 63,200$132,222 69,675$136,297 98,715$139,114 75,886$165,575 83,360

6 Given the strong linear relationship between the advertising budget and unit sales in the previous example, can it be said that the budgeted dollars caused the sales?A for Yes; B for No.

7 Use Excel's regression tool to perform a regression analysis for the budget and sales data in the above dataset. Treat the advertising budget as the independent variable.

Create an X-Y Scatter Diagram (Scatterplot) for the data. Insert a trend line. Also include the regression equation and the R2 on the chart. Place the scatterplot in the box.

7Place the results In B97.

8 Using the TREND function as an ARRAY function, for the data in the above item predict the unit sales for the following advertising budget dollar amounts.$200,000$210,000

9 Use LINEST to perform a regression analysis on the budget and unit data above. Treat unit sales as the dependent variable.

10The following adds additional data (Sales Price) to the dataset the previous problems used.Treating Advertising Budget and Sales Price as independent variables, use the Regression tool in Data Analysis to conduct a regression analysis with Unit Sales as the dependent variable.Specify F137 as the Output Range.

Advertising Budget Sales Price Unit Sales$3,500 $88 16,523

$10,073 $110 6,305$11,825 $85 1,769$33,550 $28 30,570$37,200 $101 7,698$55,400 $71 9,554

$55,565 $7 54,154$66,501 $82 54,450$71,000 $62 47,800$82,107 $24 74,598$83,100 $91 25,257$90,496 $40 80,608

$100,000 $45 40,800$102,100 $21 63,200$132,222 $40 69,675$136,297 $8 98,715$139,114 $63 75,886$165,575 $5 83,360

11 Are both predictors statistically significant?A=Yes; B=No.

12 What is the Multiple Correlation?

13 Is the Multiple Correlation statistically significant?A=Yes; B=No.

Upper boundLower bound

CONFIDENCE.TUpper boundLower bound

Given the strong linear relationship between the advertising budget and unit sales in the previous example, can it be said that the budgeted dollars caused the sales?

Use Excel's regression tool to perform a regression analysis for the budget and sales data in the above dataset. Treat the advertising budget as the independent variable.

Create an X-Y Scatter Diagram (Scatterplot) for the data. Insert a trend line. Also include the regression equation and the R2 on the chart. Place the scatterplot in the box.

Using the TREND function as an ARRAY function, for the data in the above item predict the unit sales for the following advertising budget dollar amounts.

Use LINEST to perform a regression analysis on the budget and unit data above. Treat unit sales as the dependent variable.

Treating Advertising Budget and Sales Price as independent variables, use the Regression tool in Data Analysis to conduct a regression analysis with Unit Sales as the dependent variable.

1 What is the contribution margin?

2 For the scenario detailed below, compute total sales, total variable costs, contribution margin, and contribution margin ratio.Unit Sales Price: $11.25 USP Increase

Number Sold: 1250 $ 11.25 1.00

Sales: 1250 DVDs @ $11.25:

Less: Variable costs associated with production:

Employee costs (1000 DVDs @ $0.50): $625

Materials costs (1000 DVDs @ $5): $6,250

Packaging costs (1000 DVDs @ $1): $1,250

Total variable costs:

Contribution margin:

Contribution margin ratio:

3 What is unit contribution?

4 Calculate the unit contribution from the data presented in the previous scenario.

5 Define breakeven analysis.

6 What is the breakeven point?

7 For the following data, calculate the breakeven point in sales and in units.Volume Fixed Variable Total Total(units) Costs Costs Costs Sales

1 $50 $15 $65 $20 2 $50 $30 $80 $40 3 $50 $45 $95 $60 4 $50 $60 $110 $80 5 $50 $75 $125 $100 6 $50 $90 $140 $120 7 $50 $105 $155 $140 8 $50 $120 $170 $160 9 $50 $135 $185 $180

10 $50 $150 $200 $200

11 $50 $165 $215 $220 12 $50 $180 $230 $240 13 $50 $195 $245 $260 14 $50 $210 $260 $280 15 $50 $225 $275 $300 16 $50 $240 $290 $320 17 $50 $255 $305 $340 18 $50 $270 $320 $360 19 $50 $285 $335 $380

8 For the data in the above example, create a graph showing the breakeven point.

9 Which of the following is not an assumption made in contribution analysis?A - Revenues and expenses are linear across the relevant range of volume.B - Costs can be accurately allocated fixed and variable cost categories.

C - Sales mix is constant. That is from one period to the next, total sales are based on the same percent of each product line.D - Worker productivity is constant.E - None of A - D are assumptions of contribution analysis.F - All of A - D are assumptions of contribution analysis.

For the scenario detailed below, compute total sales, total variable costs, contribution margin, and contribution margin ratio.

Breakeven in Units

Breakeven in Sales

C - Sales mix is constant. That is from one period to the next, total sales are based on the same percent of each product line.

00HomeworkProblems2014 Fall Sujit Sengupta

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