AC 3102 STATISTICS MW (10:30-12:00 PM)

Activity 3

Rivera, Jireh
Kato, Marina
Venancio, Abigail
Ortiz, Levi
Lambujon, Claudette

A. Determine whether each situation will involve the use of descriptive or inferential
statistics.

DESCRIPTIVE 1. An instructor ranks his students according to their average grades.

INFERENTIAL 2. The manager of department store records the number of buying customers
daily for 5 consecutive days and the estimates the number of buying customers for the following
weeks.

DESCRIPTIVE 3. A basketball fan computes for the shooting averages of his favorite players
during the last NBA season.

INFERENTIAL 4. A math instructor employs one teaching menthod to once class and another
teaching method to another class. He then gives the same examination to the two classes and
uses the results to determine which method is more effective.

DESCRIPTIVE 5. A market researcher of a manufacturing company constructs a graph showing

the fluctuations in sales for major product line during the last three years.

DESCRIPTIVE 6. Liza interviews every 10th student she meets at the school campus.

INFERENTIAL7. A prospective examinee gathers data on the batting averages of two review
centers in order to decide which review center to enroll.

INFERENTIAL 8. A Nurse examines the effect of a certain diet on the weights of her weights.

INFERENTIAL9. An insurance company analyzes the effect of no- fault insurance on premium
rates

DEACRIPTIVE10. An economist records population growth within a particular area.

 B. Determine whether each of the following variables is qualitative, discrete or continuous.

QUALITATIVE1. Educational Attainment

DISCRETE2. Number of classes taken by a student this semester

QUALITATIVE3. ID number

QUALITATIVE 4. Year in School (Freshman, Sophomores, etc.)

CONTINUOUS 5. IQ Score

CONTINUOUS 6. Height of a Building

DISCRETE 7. Number of years in school

QUALITATIVE 8. Blood Type

DISCRETE 9. Rank of Teachers

CONTINUOUS10. Speed of cars

QUALITATIVE11. Place of residence

CONTINUOUS12. Weight of package

CONTINUOUS 13. Time required to repair a TV set

QUALITATIVE 14. Birth order of children in a family

DISCRETE15. Points scored by basketball players

C. Determine whether each of the following variables is nominal, ordinal, interval or ratio.

ORDINAL1. Educational Attainment

RATIO2. Number of classes taken by a student this semester

NOMINAL3. ID number

ORDINAL4. Year in School (Freshman, Sophomores, etc.)

INTERVAL 5. IQ Score

RATIO 6. Height of a building

RATIO 7. Number of years in school

NOMINAL 8. Blood type

ORDINAL 9. Rank of teachers

RATIO 10. Speed of Cars

NOMINAL 11. Place of residence

RATIO 12. Weight of Package

RATIO 13. Time required to repair a TV set

ORDINAL 14. Birth order of children in a family

RATIO 15. Points scored by Basketball players

RATIO 16. Grades in Math 30N

RATIO17. Length of commute to school

RATIO18. PHISIX INDEX (Philippine Stock Index)

RATIO19. Number of unemployed for quarter 1

INTERVAL20. Body temperature

D.

1.

2. Ohio Logistics manages the logistical activities for firms by matching companies that need
products shipped with carriers that can provide the best rates and best service for the
companies. Ohio Logistics is very concerned that it uses carriers that get their customers'
material delivered on time, so it carefully monitors its carriers' on time percentage of deliveries.
The table from WebFile Carriers (Carriers.xls) contains a list of the carriers used by Ohio
Logistics and the corresponding on time percentages for the current and previous year.

a. sort the carriers in descending order by their current years on time percentage. Which carrier
is providing the best service in the current year? Which carrier is providing the worst service in
the current year?
Answer:
Carrier Previous Year On-time Current Year On-time
Percentage Percentage
Blue Box Shipping 88.4% 94.8%
Cheetah LLC 89.3% 91.8%
Smith Logistics 84.3% 88.7%
Granite State Carriers 81.8% 87.6%
Super Freight 92.1% 86.8%
 Minuteman Company 91.0% 84.2%
Jones Brothers 68.9% 82.8%
Honsin Limited 74.2% 80.1%
Rapid Response 78.8% 70.9%

Blue Box Shipping is providing the best on-time service in the current year. Rapid Response is
providing the worst on-time service in the current year.

 b. Calculate the change in on time percentage from the previous to the current year for each
carrier. Use Excel's conditional formatting to highlight the carriers whose on time percentage
decreased from the previous year to the current year.

c. Use Excel's conditional formatting tool to create data bars for the change in on time
percentage from the previous year to the current year for each carrier calculated in part b.

 
d. Which carriers should Ohio Logistics try to use in the future? Why?

The top 4 shippers based on current year on-time percentage (Blue Box Shipping, Cheetah
LLC, Smith Logistics, and Granite State Carriers) all have positive increases from the previous
year and high on-time percentages. These are good candidates for carriers to use in the future.
3. In a study of how CEOs spend their days, it was found that CEOs spend an average of about
18hrs per week, not including conference calls, business meals, and public events. Shown in
the file CEO time are the times spent per week in meetings/hours) for a sample of 25 CEOS.

a. What is the least amount of time a CEO spent per week on meetings in this sample? The
highest?
Time per Week on Meetings Time per Week on Meetings

23 18

23 18

23 18

23 16

22 15

21 15

21 15

21 15

20 15

20 14

19 13

19 12

19

Based on the sorted Data above, the least amount of time a CEO spent per week is 12 while the
highest amount of time a CEO spent per week is 23.

b. Use a class width of 2 hours to prepare a frequency distribution and a percent frequency
distribution for the data
Hours in Meetings per Week Frequency Percent Frequency

11-12 1 4%

13-14 2 8%
 15-16 6 24%

17-18 3 12%

19-20 5 20%

21-22 4 16%

23-24 4 16%

TOTAL 25 100%

c. Prepare a histogram and comment on the shape of the distribution

Hours in Meeting
The distribution is
7
slightly skewed to the
6 left.

3 4. The owner of an
automobile repair
2
shop studied the
1
waiting times for
customers who
0 arrived at the shop for
11-Dec 13-14 15-16 17-18 19-20 21-22 23-24 oil change. From the
file Repair Shop.xlsx,
data with waiting
times in minutes were collected over a-month period.

Using classes of 0-4, 5-9, and so on, show:

a. the frequency distribution

Class Frequency

0-4 4

5-9 8

10-14 5
 15-19 2

20-24 1

TOTAL 20

b. the relative frequency distribution

Class Frequency Relative Frequency

0-4 4 0.2

5-9 8 0.4

10-14 5 0.25

15-19 2 0.1

20-24 1 0.05

TOTAL 20 1

c the cumulative frequency distribution

Relative Frequency Cumulative Frequency Cumulative Relative Frequency

0.2 4 0.2

0.4 12 0.6

0.25 17 0.85

0.1 19 0.95

0.05 20 1

d. the proportion of customers needing an oil change who wait 9 minutes or less
From the cumulative relative frequency distribution, 60% of customers wait 9 minutes or less.

5.
6.
7.
8.Consider the SmartPhone file regarding smartphone ownership by age.

a. Construct a stacked column chart to display the survey data on type of mobile phone
ownership. Use Age Category as the variable on the horizontal axis.

Smartphone Ownership By Age

Smartphone Other Cell No Cell Phone
1.2
1
OWNERSHIP (%)

0.8
0.6
0.4
0.2
0
18-24 25-34 35-44 45-54 55-64 65+
AGE CATEGORY

b. Construct a clustered column chart to display the survey data. Use Age Category as the
variable on the horizontal axis.
 Smartphone Ownership By Age
Smartphone Other Cell No Cell Phone
0.7
0.6
OWNERSHIP (%)

0.5
0.4
0.3
0.2
0.1
0
18-24 25-34 35-44 45-54 55-64 65+
AGE CATEGORY

c. What can you infer about the relationship between age and smartphone ownership from the
column charts in parts a and b? which column chart (stacked or clustered) is best for
interpreting this relationship? Why?

With the given data and bar charts illustrated above, I can infer that majority who are more likely
to own smartphones are those from younger respondents. On the other hand, older
respondents tend to lean more on having other cell phones or no cellphones at all. More so in
the 65+ age category, it can be inferred that they are the respondents most comfortable with
having no cellphones at all. For me, the clustered column chart makes it much easier to
interpret the relationship of respondents in different age categories to smartphones ownership
since its much more vivid even at a glance. It also makes it easier to compare the relative
percent ownership values within an age category since it isn’t stacked together compared to the
first one. It separates the data for the categories which makes it the best column chart to use.

9. The Ajax company uses a portfolio approach to manage their research and development
(R&D) projects. Ajax wants to keep a mix of projects to balance the expected returns and risk
profiles of their R&D activities. Consider the situation where Ajax has six R&D projects as
characterized in the table from the file Ajax. Each project is given an expected rate of return and
a risk assessment, which is a value between 1 and 10 where 1 is the least risky and 10 is the
most risky. Ajax would like to visualize their current R&D projects to keep track of the overall risk
and return of their R&D portfolio.
a. Create a bubble chart where the expected rate of return is along the horizontal axis, the risk
estimate is on the vertical axis, and the size of the bubbles represents the amount of capital
invested. Format this chart for best presentation by adding axes labels and labeling each bubble
with the project number.

Ajax R&D Projects

9
8 34.2
7 6.4
6 17.2 45.8
RISK ESTIMATE

5
4 9.2
3 14.8
2
1
0
4 6 8 10 12 14 16 18 20 22 24
RATE OF RETURN (%)

b. The efficient frontier of R&D projects represents the set of projects that have the highest
expected rate of returns for a given level of risk. In other words, any project that has a smaller
expected rate of return for an equivalent, or higher, risk estimate cannot be on the efficient
frontier. From the bubble chart in part a, what projects appear to be located on the efficient
frontier?

From the bubble chart in Part A, the projects that appear to be located on the efficient frontier
are 6, 3, 2 and 5.

10. The table from WebDevelop shows monthly revenue for six different web development
companies.
a. Use Excel to create sparklines for sales at each company.
b. Which companies have generally decreasing revenues over the six months? Which company
has exhibited the most consistent growth over the six months? Which companies have
revenues that are both increasing and decreasing over the six months?

Timmler Company and Accelerate Inc., appear to have generally decreasing revenues over the
six months. Allen and Davis, LLC appears to have had the most consistent growth over the six
months. Blue Sky Media, Innovate Technologies and Smith Ventures have revenues that have
both increased and decrease over the six months.

c. Use Excel to create a heat map for the revenue of the six companies. Do you find the heat
map or the sparklines to be better at communicating the trend of revenues over the six months
for each company? Why?

It is difficult to create a heat map that effectively conveys the overall trend of revenues during
the six months for each company. The heat map shows the relative magnitude of the revenues
which is absent from the sparklines, but the trend for each company is less apparent.