Assessment details for all students

Assessment item 2 —Assignment 2

Assessmentcriteria

• This assignment must be typed, word-processed or clearly hand-written (but plots and graphs must be done using EXCEL or equivalent software), and submitted online as a single file through Moodle.Important note:The file size must not be over 100MB.
• Microsoft Excel allows students to cut and paste information easily into Microsoft Word documents.Word also allows the use of Microsoft Equation Editor to produce all necessary formulae (use of these are recommended).
• It is expected that Excel would be used to assist in statistical calculations for questions in this assignment.Where Excel is used, use copy function, “Snipping tool” or similar to cut and paste relevant parts of the spreadsheet to verify that you have done the work. (In that case there is no need to write the equations.)
• For those questions where Excelis not used to do the computations,all formulae and working must be included to obtain full marks.
• Only one file will be accepted in any of the formats mentioned above. No zipped file or any other file extension will be accepted.
• There will belate submission penalty for submissions beyond the deadline unless prior approval is obtained from the Unit Coordinator through the extension system in Moodle. Under no circumstances any submission that is late beyond 14days from the deadline of Fridayof Week 10 will be marked or get any score other than zero.

Assignment markers will be looking for answers which

• demonstrate the student’sability to interpretand apply the statistical techniques in the scenarios

and

• use statistical techniquesas decision making tools in the business environment.

Full marks will not be awarded to answers which simply demonstrate statistical procedures without comment, interpretation or discussion (as directed in the questions).

Plagiarism

CQU values academic honesty.Consequently, plagiarism will not be tolerated in assessment items.This assignment must be completed by each student individually.

Question1                                      4Marks

Visit the Australian Stock Exchange website, www.asx.com.au and from “Prices and research” drop-down menu, select “Company information”. Type in the ASX code “NAB” (National Australia Bank) and find out details about the company. Also, type in the ASX code “ANZ” (Australia & N.Z. Banking) and find out the details about that company. Both these companies belong to the financial sector. Information available in the ASX website will be inadequate for your purpose, you will need to search the internet for more information. Your task will be to get the opening prices of NAB and ANZ shares for every quarter from Jan 2015 to Jul 2024 (unadjusted prices). If you are retrieving the monthly prices, read the values in the beginning of every Quarter (January, April, July, October) for every year from 2015 to 2024 (Total 39 observations). After you have researched share prices and financial sector, answer the following questions: 

1. List all the quarterly opening price values in two tables, one for NAB and the other for ANZ. Then construct a stem-and-leaf display with one stem value in the middle and NAB leaves on the right sideandANZ leaves on the left side.(MustuseEXCELor similarforthe plot.)1 mark
2. Construct a relative frequency histogram for NAB and a frequency polygon for ANZ on the same graph with equal class widths. Use two different colors for NAB and ANZ. Graph must be done in EXCEL or similar software.1 mark
3. Draw a bar chart of market capitals (or total assets) in 2023 (in billion Australian dollars) of 6 companies listed in ASXthat trade in similar products or dosimilar business as NAB orWBC withat least AUD 25 billion in market capital.Graphs must be done in EXCEL or with similar software.1 mark
4. If one wishes to invest in NAB orANZ, what is the market recommendation (for example, from Morning star,Fatprophets,InvestSmart,etc.)?If you cannot find the information,whatwouldbeyour recommendation based on your research of these twoc ompanies(trend,P/Eratio,dividendyield,debt and Beta)?        1 mark

Question2                                      4Marks

TheU.S. Department of Energy has tested mileage of various cars. The following information, each value is the performance of a patrol car tested, is provided from their records:

From the information provided in the table above,

1. Calculate the mean and standard deviation for each industry group.1mark 
2. Calculate the Minimum,Q1,Median,Q3and Maximum values for each industry group.1mark
3. Draw a box and whisker plot for the retail turn over of each industry group andputthemsidebyside on one graph with the same scale for comparison. (This graph must be done in EXCEL or similar software and cannot be hand-drawn.)1mark
4. Compare the box plots and describe the skewness of the data.1mark

Question3                                      4Marks

The Good Thought company wants to send advertisements to senior citizens of Happy Town. They send their booklets to all customers of Super Slim company. They base their strategy in the following data.

It is known that 25% of adults in that town are aged between 20 and 39, 40% are aged between 40 and 59 and 35% are 60 or older. Among people aged 20-39, 28% are obese, among people aged 40-59, 34% are obese and among people aged 60 or older 42% are obese.

1. Construct a contingency table of the data. 1mark
2. Find a probability that a randomly chosen citizen of Happy Town is aged 60 or older and is obese.1mark
3. Find a probability that a randomly chosen citizen of Happy Town is obese.1 mark                             
4. Given that a citizen of the Happy Town is obese find the probability that they are aged 60 or older.1mark 

Question4                                      4 Marks

1. The maintenance department of a city’s electric power company finds that it is cost-efficient to replace all street-light bulbs at once, rather than to replace the bulbs individually as they burn out. Assume that the lifetime of a bulb is normally distributed, with a mean of 3600 hours and a standard deviation of 400 hours. If the department wants no more than 2% of the bulbs to burn out before they are replaced, after how many hours should all the bulbs be replaced1.5marks
2. A catalogue company that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of time was found to be a random variable best approximated by an exponential distribution with a mean of 3.0 minutes. What is the probability that a randomly selected caller is placed on hold fewer than 5 minutes? 1.5marks
3.  The manager of a restaurant in a commercial building has determined that the proportion of customers who drink tea is 13%. What is the probability that in the next 100 customers at least 15customers (or 15%) will be tea drinkers?1mark 

Question5                                      4 Marks

1. A wealthy real estate investor wants to decide whether it is a good investment to build a high-end shopping complex in a suburb of Brisbane. His main concern is the total market value of the 3,605 houses in the suburb. He commissioned a statistical consulting group to take a sample of 200 houses and obtained a sample average market price of $325,000 and a sample standard deviation of $38,700. If he wants a 95% confidence on estimating the true population average market price of the houses in the suburb to be within $10,000, how large a sample will he need? (Use finite population correction factor.)   1.5 marks
2. A travel agency acts as a selling agent for a major airline company. The agency found that 240 out of 500 travelers cancelled their airline bookings after they had selected their flight details. At 0.01 level of significance, is there evidence that the population proportion of travelers who select their flights and cancel their bookings is less than 50%?          1 mark 
3. According to the American Sports Data, Inc., 60% of the 25,000,000 Americans who exercise each week by walking are women. A randomly selected group comprises 80 persons who exercise each week by walking. Use normal approximation to the binomial distribution to find the probability that there will be between 34 and 56 (inclusive) women in the group. Also, use continuity correction.                                                                                                       

1.5marks