Answers for final exam Assignment Example | Topics and Well Written Essays - 1250 words

Answers for final exam - Assignment Example ...........................Discrete Participation in online auction............Discrete Amount spent online .........................Continuous Time ............................................... Continuous (McBurney and White, 2009) b) In addition to the variables above, data were also collected on total sales each month. Using the SPSS output provided below, describe the distribution of ‘Monthly Sales’. Remember to comment on Centre, Shape and Spread. (1 ? marks) Distribution of sales has a mean value of $ 4178.29 per month with a standard deviation of 7011.633. The data is further skewed to the right, and is widely scattered apart. The skewedness value, the plots and the standard deviation explains this (Gravetter and Forzano, 2010). c) Is the distribution of ‘Monthly Sales’ normal? Explain. (1 mark) The distribution is not normal. This is because of the observed deviation of the plats from the straight line as observed in the Normal Q-Q plot. (Hahn and Meeker, 2011) Question 2 (3 marks) An investor wants to compare the performance of three managed funds, so she performs an ANOVA test to compare their returns. The results of this ANOVA test and the post-hoc Tukey test are provided below: ANOVA Return Sum of Squares df Mean Square F Sig. Between Groups 4191.977 2 2095.988 9.627 .000 Within Groups 669510.465 3075 217.727 Total 673702.442 3077 Multiple Comparisons Return Tukey HSD (I) Fund (J) Fund Mean Difference (I-J) Std. Error Sig. 95% Confidence Interval Lower Bound Upper Bound 1.00 2.00 -1.07173 .65147 .227 -2.5993 .4559 3.00 -2.83090* .65147 .000 -4.3585 -1.3033 2.00 1.00 1.07173 .65147 .227 -.4559 2.5993 3.00 -1.75916* .65147 .019 -3.2868 -.2316 3.00 1.00 2.83090* .65147 .000 1.3033 4.3585 2.00 1.75916* .65147 .019 .2316 3.2868 *. The mean difference is significant at the 0.05 level. a) Explain why the investor used an ANOVA test. (1 mark) The investor used an ANOVA test because the test is suitable for comparing more than two means and compares means of each pair of variables to determine the one with the highest mean (Rumsey, 2007). b) Interpret the results of the one-way ANOVA test. (1 mark) The low p-value, 0.00 that is less that 0.05, from the ANOVA test shows that a significant relationship exists among the different funds at 0.05 level of significance (Comrey and Lee, 2006). c) Based on the post-hoc Tukey test, which of the funds had the highest returns? Explain. (1 mark) The mutual fund 3 had the highest returns. This is because its mean is significantly different from, and larger than the means for fund 2 and fund 3 (Hanna and Dempster, 2012). Question 3 (10 marks) A large company wants to compare the performance of two of its franchises. To complete this study, they collected monthly sale revenue data from the Sydney and Newcastle franchises. They believe that the Sydney store is performing better, but want to conduct a statistical test to prove this fact. If Newcastle is seen to be underperfor ming, management intends to increase advertising for this store. A two-sample t-test is conducted and the following output is reported from SPSS: a. Explain why an independent two-sample t-test was used rather than a paired samples t-test. (2 mark) An independent two-sample-t test was used because the two sets of observations were made from different samples, franchises, instead of paired sample test’s two sets of observations, each pair from same participants in a sample (Walkenbach, 2013). b. Write the null and alternate hypotheses (2 marks). HO: