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C11BA Business Analytics
Question 1
A retail company, with both in-store customers and online customers, decides to utilise customer crowdshipping (i.e., in-store customers can act as occasional drivers and perform deliveries to online customers). Previously, when the company used only their own fleet of vehicles to perform deliveries, the average waiting time for an online customer to receive their order was 4,5 days, While implementing customer crowdshipping, the company takes a sample of 20 customers for which the average waiting time is 3.2 days with a variance of 6.76.
1. The company wants to know, with a 95% confidence (i.e. a 5% level of significance), if the average waiting time for an online customer has significantly improved with the implementation of customer crowdshipping. Select an appropriate method to answer the question and show all your calculations. (10 marks)
2. The company expanded to obtain an international branch in another country where it also implemented the customer crowdshipping strategy. Another sample of 40 customers is taken at the local company for which the average waiting time is 3.3 days and the variance is 6.2. Furthermore. a sample of 45 customers is taken at the company’s new international branch for which the average waiting time is 4.2 days and the variance is 2.8. Using a 5% level of significance, determine if there is a statistically significant difference between the average waiting time for online customers at the local and international branches of the company.
(10 marks) (Total marks: 20)
Question 2
On completion of your studies at Heriot-Watt you begin your career as a Business Analyst for an international marketing company. For an upcoming concert tour, which will include a number of different countries, the company uses television, social media and websile marketing. Your manager wants to know how the expenditure for the different marketing platforms influence the percentage of tickets sold in the various countries.
1. State the dependent and independent variables.
(2 maths)
2. After collecting the relevant data and performing a regression analysis, you obtain a coefficient of determination R2 of 0.94152. How would you explain what this means (as far as the performance of the model is concerned) in plain English to the management of the company?
(3 marks)
3. Your manager asks you to explain why significance tests have been undertaken and what the P-value means. In your own words what would you tell them? (5 marks)
C11BA Business Analytics
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