BU1007 Business Data Analysis and Interpretation Singapore Campus, Study Period SP53, 2013
Statistical Report
Analysis of Case study 3: Heavenly Chocolates website transactions Prepared for Dr Tjong Budisantoso Done by Mr. Keung, Tseung Student ID : 12776910
20/12/2013
Table of contents
Introduction --------------------------------------------------------------------------- Question a --------------------------------------------------------------------------- Question b Correlations Analysis Step 1: Scatter Diagram: the amount ($) spent and the time spent
Independent variable: Time Spent (Mins) Dependent variable: Amount Spent
Step 2: Elaboration The Scatter diagram illustrate a strong positive linear correlation and a direct relationship between the two variables.
To apply the Coefficient of Correlation (r) formula: Coefficient of correlation = 0.96184 (Solved by Excel) When r is close to 1, which proves it is a positive correlation, so there is a direct relationship can be seen between the time spent and the amount spent , and the value of 0.96184 is fairly close to 1.00, so it can be concluded that the association is strong.
e). You have to develop a 90% confidence interval estimate of the expected sales and interpret the interval.
Solution: To begin, let's assume the population distribution is normal. In this case, the assumption is probably reasonable. Knowing that a sample of 50 Heavenly chocolates transactions was chosen in the previous month’s sales , by computing the sample standard deviation and the average amount spent(Sample of mean) is to construct a 90% confidence interval estimate of the expected sales.
A calculation of average Amount Spent ($) (Sample of mean) : $758.86 + $414.86 + $407.02 + $294.03 + $925.43 + $394.4 + $222.15 / 50= $68.34
