00HomeworkProblems2014 Fall Sujit Sengupta

Homework
The objective of the Homework assignment is to provide an opportun

techniques covered in the course and to provide an opportunity to ar
course. The homework is not a test. Any resource (eLecture, web-ba
Solutions Workbook) may be used to to help answer the problems in
The Homework problems generally correspond to the types of proble

Assignment, which will be made available at the beginning of Unit 11
Homework problems will be good practice for the Applications Assign
The worksheets in this workbook correspond to the Units in the cours

for a Unit (Units 4 & 10). Each worksheet contains several problems
the Unit's eLecture, and the text content covered in the Unit.
Work through the problems for a Unit. Generally, answers to the prob
Typically, the target cells will be "boxed" or highlighted. See cells R3
In some cases, graphs & charts for example, a boxed space is provid
In most cases, directions for a problem are provided in a cell above p

work through the worksheets, look for the red comment triangle in
cells that are highlighted in yellow. The comments will reveal spe
problems. See the red comment triangle in the upper right corner of
cursor above the cell having a comment, and the comment will be di
for a Unit, submit the entire workbook to the Homework Dropbox for
Homework, it should be submitted before the close of the Unit (Tuesd
open.
Homework items are numbered and highlighted. Some of the proble

Be sure to scroll all the way down the highlighted column to find all t
There is a Homework Solutions workbook in the Homework Doc Shari

against the Solutions worksheets, but you should not simply copy the
calculations required in the problems will be invaluable practice for th
receive in Unit 11.
receive in Unit 11.
Homework Grade
Homework is 10% of the final course grade. There is a Homework as
Homework will be graded according to the rubric below and the mea
summed to get the Homework contribution to the final grade.
Homework Grading Rubric

0
.10-.25
Homework not
Up to 25% of the
submitted,
problems
submitted after the completed
close of the unit, or correctly.
submitted
homework omits
the majority of the
problems in the
worksheet.
Points per Unit

.26-.50
26-50% of the
problems
completed
correctly.
51-.75
51-75% of the
problems
completed
correctly.
ide an opportunity to apply or practice the tools and

pportunity to articulate key concepts addressed in the
Lecture, web-based,content, study partners, and the
he problems in each worksheet.
types of problems you will encounter in the Applications

nning of Unit 11. Consequently, working on the
plications Assignment.
nits in the course. In two cases, there are two worksheets

everal problems keyed to the Unit's Learning Objectives,
he Unit.
swers to the problems are to be placed in a specific cell.

ed. See cells R3 & R5 on this worksheet for an example.
space is provided near the problem's directions.
n a cell above problem's workspace. However, as you

ment triangle in the upper right-hand corner of worksheet
s will reveal specific instructions or guides to solving the
r right corner of this instruction box. Simply hover the
mment will be displayed. When finished with the problems
ork Dropbox for the Unit. To receive credit for the
f the Unit (Tuesday @ midnight) the week that the Unit is
me of the problems are displayed far down the worksheets.

umn to find all the problems in each worksheet.
ework Doc Sharing folder. You may check your homework

simply copy the answers. Actually performing the
le practice for the Applications Assignment, which you will
a Homework assignment in each of the 12 Units.

ow and the mean of the Top 10 Homework grades will be
al grade.
.76-1.0
76-100% of the
problems
completed
correctly.
4
2
xxx
10
11
12
Business Analytics concerns not only the analysis of data, but also the systems that collec
manage the data. It is impossible to conduct a "good" analysis if the data to be analyzed i
meaning secure and accurate. Answer the questions that follow as you learn about the pr
information.
What are data? Provide some examples.
Data is the raw inputs to the information system. It can be text files, it can be pictures etc. It can be b
Some examples of data are : 1) Text data such as a name - Peter, a place like Califirnia or a thing like
number like 469 955 0404, amount of $45. 3) Pictures and symbols like , , , etc.
How are data and information different?

Data is raw, unformatted and undiffrentiated. Information is the data which has been transformed to h
What are the three benefits that a strong information system will bring to an organization
A strong information system can benefit some or all the following three benefits 1) Automotive Benefi
benefits.
What is the Productivity Paradox?

Investment in IT and Information System does not always increase productivity. In certain cases it has
productivity inspite of heavy investment I IT systems. This is known as the productivity paradox.
What is an extranet? What are some advantages of Extranets?
Extranets are external networks that allows communication with external companies generally for Bus
Commerce. Some of the advantages of using Extranets are i) Improved Timeliness and accuracy of inf
documents iii) Cross platform in nature as we are not tied to specific vendors iv) Low cost of adoption
required.
What is an intranet?
An intranet is a network that is internal to an organization. It is used for only internal communication.
and is more secure as well.
What are the three decision-making levels within an organization and describe the type of
The three decision making levels within an organization are 1) Executive Level - Here Strategic inform
routine and generally long term. 2) Managerial Level - Here functional information is required that ma
frame from a few days to a few months. 3) Operational Level - Here transactional information is requir
What is an ERP? Describe.
ERP or Enterprise Resource Planning software is a complex computer based system that attempts to in
functions within a company into a single system that serves the needs of all the departments and fun
can have a huge payback if properly installed.
What is SCM? Describe.
Supply Chain Management is an integrated system that helps a company acquire, produce and delive
The fundamental components of an SCM system are Planning ( strategy for managing the resources n
and services needed to make the company's products), Manufacturing ( producing the products), Deliv
and Returning (accepting defective or excess product back from the customer).
What is CRM? Describe.
CRM refers to Customer Relationship Management. It is the strategy a company uses to learn about th
order to develop a strong relationship with them. An effective CRM strategy can allow a company to in
goods and services wanted by the customer, offering better service to the customer, cross selling, clo
customers and effectively acquiring new customers.
What are relevant issues related to information accessibility, privacy, and the ethical use?
Information accessibility concerns issues in computer litracy ( being fluent with computer - knowing ho
information is universally available. That is, make sure that the divide between the haves and have no
minimized. In so far as privacy and ethics are concerned, how do we ensure that our privacy rights as
not only treated ethically in our interactions with individuals who may have the power of the compute
the information that we as individuals may have access to.
Describe typical security attacks and ways to defend against them.
Threats to information security can come from both inside and outside the organization. Threats are v
employees and consultants, links to outside business contacts, outsiders and a variety of malware. Co
unauthorised access to data and information, theft of computers and storage media and skilled hacke
undertake risk assessment and develop measures based on vulnerabilities. In many cases risk can be
password management, maintaining firewalls, using encryption in sending and receiving data, using a
computer activity and regularly backing up data.
List and define five optical illusions that can effect one's perception of graphed data.
# Horizontal Vertical illusion in which two lines of identical length are perceived as differing in
length when shown as two lines perpendicular to one another.
# Muller-Lyer illusion in which two lines of equal length are perceived as differing in length
when capped with inward facing versus outward facing arrows.
# Poggendorf illusion in which three parallel lines are perceived as two parallel lines when
overlaid with an opaque figure.
Delboeuf illusion in which two equally sized circles will appear to differ in size when placed
concentrically inside versus outside another circle.
# Ponzo illusion in which two lines of equal length appear to differ in size when placed over
parallel lines that seem to converge as they recede into the distance.
List and define five components of effective graphing.

1) Graphical Integrity : Numbers should be proportional to the quantities represented, Clear and
thorough labeling, show data variation and not design presentation.
2) The data to ink ratio should be maximised, eliminating redundancy and effectively displaying
the graphed data.
3) Chartjunk ( unnecesary visual elements of a chart should be mininmized or eliminated.
4) Use colour appropriate to the items displayed and avoid overly bright colour.
5) Use graphics or pictures matched to the data displayed.
3 PartyAffiliation Count
Democrat
Pivot Table
Democrat
PartyAffiliation
Democrat
Democrat
26
Democrat
Independent
18
Independent
Republican
1
1
Republican
Total Result
36
80
Independent
Republican
1
1
Independent
Republican
Independent
Republican
Independent
Democrat
Democrat
Republican
Democrat
Democrat
Democrat
Republican
Republican
Independent
Republican
Democrat
Republican
Republican
Independent
Republican
Republican
Republican
Republican
Republican
Independent
Independent
Republican
Republican
Democrat
Republican
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Sum - Count
Examples of Bad Chart Types.
Total
90
80
70
60
50
40
30
20
10
0 PartyAffiliation
Democrat
Democrat
Sum - Count
Independent 26
Independent
Republican
Total Result
18
36
80
Republican
Total
90
80
70
60
50
36
40
30
26
18
20
10
0
Democrat
PartyAffiliation
Democrat
Independent
Independent
Sum - Count
Republican
26
18
Total
80
Democrat
Democrat
Democrat
Democrat
Democrat
Democrat
Independent
Republican
Independent
Republican
Independent
Republican
Independent
Republican
Independent
Democrat
Democrat
Republican
Democrat
Democrat
Democrat
Republican
Republican
Independent
Republican
Democrat
Republican
Republican
Independent
Republican
Republican
Republican
Republican
Republican
Independent
Independent
Republican
Republican
Democrat
Republican
Democrat
Democrat
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
Republican
Total Result
36
80
Total
80
60
40
20
0
Democrat
PartyAffiliation
Democrat
Independent
Republican
Total Result
SumIndependent
- Count
Republican
26
18
36
80
Total
90
80
70
60
50
40
30
20
10
0
Democrat
Independent
Republican
Tot
4 Compute PartyAffiliation frequency using the

26
18
36
Examples of Good Chart
Chart Types.
ent
PartyAffiliation
Political Party
Affiliation of college st
Democrat
90
Total
Independent
80
70
Republican
Total Result
60
50
Sum - Count
40
30
26
18
20
10
0
Republican
Democrat Sum - CountIndependent

PartyAffiliation
Democrat
26
Independent
18
Republican
36
Political Party Affiliation of college s
Total Result
80
Total Result
Total
80
26; 16%
Sum - Count
36
80; 50%
18
endent
18; 1
36; 23%
Republican
Total Result
PartyAffiliation
Democrat
Independent
Total
Total Result
Sum - Count
26
18
dent
Republican
Total Result
Total
36
80
Total Result
Sum - Count
Republican
36
Independent
18
Democrat
Republican
Total Result
Total
Sum - Count
Republican
Total Result
26
10
20
30
40
quency using the COUNTIF function.
od Chart
Sum - Count
ffiliation of college students

26 in a Business Analytics Class
80
18
36
80
36
18
Independent
Republican
Total Result
ffiliation of college students in a Business Analytics Class
Democrat
26; 16%
80; 50%
Independent
Republican
18; 11%
Total Result
36; 23%
80
80
36
18
26
20
30
40
50
60
70
80
90
Compare and contrast variables and values.
A variable is a characteristic of interest e.g. gender, age, IQ, whereas a value is a measurement of the
For example male and female are values of the variable gender 32, 45,16, 92 and 66 are values of the
worksheet a variable is frequently referred to as a "field".
Define Qualitative data.
Qualitative data also known as categorical data and Nominal data are lables or names used to identify
of a variable. It is a non numerical variable although numbers could be used for the values. For examp
is a qualitative variable although numbers are used to represent the values of the variable. Numerical
addition and subtraction) have no meaning when numbers are used to represent values of a qualitativ
Define Quantitative data.
Quantitative data are numeric values that indicate how much or how many of something. Quantitative
(e.g. number on a 5 point rating scale) or contineous (e.g. height or weight). Quantitative variables ca
where the order of the data is meaningful (e.g. finish position of a 100 meters dash) Interval where in
data points are fixed (e.g. a rating scale of 1,2,3,4 and 5) but there is no true zero points or Ratio whe
two values is meaningful.
What is variability in a distribution of data?
In essence, variability is how the values spread themselves out in a distribution. Some measures of va
( the difference between the highest and the lowest valuee) the interquartile range ( the difference be
the third quartiles, which encompasses the middle 50% of the observations in a distribution, the Varia
squared deviation of each number in a distribution subtracted from the mean of the distribution) and
Deviation ( the square root of the variance).
In the following distribution of home prices, which is a better measure of central tendency
$215,000, $215,000, $220,000, $645,000? Select answer from the Dropdown choice.
Median
Why is the choice you made the better choice.
The median is less sensitive to the extreme values than the mean.
What is bias in a statistical measure?
A Sample statistic ( Standard Deviation) applied to a population is said to be biased because it will und
population parameter. Therefore it has to be corrected. It is corrected by subtracting 1 from the sampl
denominator of the statistic.
8
Days
Count
How many
bonds are in
the list?
40.00
70
64
1
1
99
55
64
89
1
1
1
Days
36-42
43-49
87
65
62
1
1
1
50-56
57-63
64-70
7
4
10
38
67
1
1
71-77
78-84
2
5
70
60
69
78
1
1
1
1
85-91
92-99
Total Result
39
75
56
71
1
1
1
9 Create a frequency distribution of the day values that are g
Compute the
10 mean number
of days to
maturity.
68.28
Compute the
median
11 number of
days to
maturity.
Sum - Count
3
1
4
4
40
51
99
68
95
86
57
53
47
50
55
81
80
98
51
36
63
66
85
79
83
70
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
67.50
Calculate the
Variance of
12 the Days to
Maturity
sample.
279.49
Calculate the
Standard
Deviation
of
13
the Days to
Maturity
sample.
16.72
or
16.72
ay values that are grouped.
Place in cell G5.
Median
Mean
sex
1
1
org
4.92
3.67
ini
4.50
4.00
indi
5.00
3.67
inf
4.75
2.00
prwe preq prwd prwc prwco icad

4.67 5.00 4.56 3.92 4.50 4.86
4.33 4.25 3.22 3.00 3.00 3.43
icim icimo
5.00 5.00
4.40 4.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3.25
3.17
3.67
3.75
4.42
3.67
4.67
3.75
4.08
3.83
4.00
4.00
2.92
3.92
3.17
4.08
3.75
3.58
3.42
4.67
4.00
4.33
3.42
2.25
4.42
4.33
4.00
3.83
2.50
4.75
3.58
4.67
4.17
2.83
2.50
4.75
3.50
2.58
4.42
4.00
3.67
3.00
3.00
3.50
3.50
4.00
4.00
3.50
4.00
3.00
4.00
2.50
3.50
3.00
2.50
3.00
4.50
4.00
4.00
3.50
4.00
4.00
4.00
2.50
3.00
3.50
3.50
3.50
3.00
3.50
4.50
3.50
4.50
4.00
3.50
3.00
2.50
3.00
4.00
4.00
3.50
4.00
3.50
3.00
3.83
3.33
4.00
3.83
4.00
3.83
4.50
3.67
2.50
3.17
3.00
3.33
3.67
4.00
3.67
3.67
3.33
4.67
3.50
4.33
3.50
2.00
4.00
4.00
3.50
3.00
3.50
4.67
2.50
4.67
4.00
2.67
3.00
4.50
3.40
1.83
4.17
3.83
3.67
2.75
2.25
2.75
3.75
3.33
3.75
2.75
4.00
3.75
2.75
3.50
3.00
3.00
3.75
2.25
3.50
3.75
3.75
3.75
4.50
3.50
4.50
2.25
2.00
4.00
3.50
3.75
2.50
3.25
4.50
2.75
4.75
4.25
3.75
2.50
4.25
3.25
3.00
3.00
3.75
4.25
4.33
4.00
4.00
3.33
4.67
4.00
4.00
4.00
4.00
4.00
3.33
4.00
4.00
3.67
4.00
4.00
4.00
4.33
3.67
4.33
4.33
4.00
4.67
2.33
4.00
4.67
4.00
4.33
4.00
5.00
4.00
4.67
4.33
3.67
3.33
4.00
3.67
4.33
4.33
3.67
3.33
3.80
4.20
4.80
3.80
3.60
4.00
4.20
4.60
4.80
4.60
4.80
4.60
4.00
4.60
3.40
4.60
4.20
4.60
4.60
4.80
4.20
4.20
4.40
4.60
4.80
5.00
4.00
4.60
4.20
5.00
4.00
4.40
5.00
4.40
4.60
5.00
4.80
4.80
4.80
4.20
3.80
4.50
4.00
3.75
2.75
3.75
4.00
3.25
3.75
3.75
4.00
4.00
4.00
3.50
3.75
3.25
4.00
3.75
3.75
3.75
4.00
3.75
4.00
2.50
3.25
4.00
4.00
3.75
4.00
4.00
4.50
3.25
3.75
4.00
2.75
3.25
4.25
4.00
4.50
4.75
4.00
4.50
2.38
3.56
3.44
3.56
3.11
3.11
3.67
3.00
2.78
3.67
2.33
3.33
2.67
2.89
3.11
3.67
2.78
2.56
2.67
2.89
2.67
3.78
2.67
3.00
3.56
3.56
3.25
3.11
3.11
4.00
2.33
3.67
2.56
1.89
2.44
4.67
2.67
2.00
3.75
3.11
2.89
2.33
2.92
3.25
3.00
3.50
2.75
3.91
2.25
1.92
3.08
2.17
3.42
2.44
2.33
2.92
2.92
1.92
2.67
2.58
2.00
2.92
3.17
1.67
2.25
3.00
2.92
2.58
2.75
2.25
2.42
2.58
2.92
2.50
1.92
1.83
2.58
2.42
2.25
4.17
2.67
3.08
2.00
2.50
2.00
3.50
4.50
3.00
5.00
2.50
3.00
3.00
2.50
3.00
2.50
3.00
2.50
3.00
2.00
2.00
2.50
2.50
2.50
3.00
1.50
1.50
3.00
2.50
3.00
2.50
2.00
2.50
2.00
2.50
2.50
2.50
1.50
4.50
2.50
1.50
4.00
2.50
3.00
3.14
2.86
2.00
3.43
4.14
3.43
3.71
3.71
3.29
3.57
3.71
2.86
3.60
2.71
3.00
3.71
3.00
3.86
3.14
3.71
3.29
3.57
2.57
2.71
4.71
3.71
3.71
3.57
3.14
4.29
2.86
4.00
4.71
2.71
2.57
4.14
2.00
2.71
3.83
3.29
3.14
3.00
3.00
5.00
4.00
4.50
4.00
4.50
4.50
4.00
4.00
4.50
4.50
4.00
4.00
3.50
4.00
4.00
5.00
4.50
4.50
4.00
4.50
3.50
5.00
4.50
5.00
4.00
3.50
3.00
5.00
4.00
5.00
4.50
3.00
3.00
5.00
5.00
4.00
5.00
3.50
4.00
1
1
1
1
4.25
3.50
3.92
3.33
3.50
3.50
3.00
3.50
3.80
3.17
3.33
3.17
4.00
2.50
3.25
2.75
4.00
3.67
3.33
4.33
3.50
4.25
3.25
4.00
3.33
3.33
3.11
2.56
3.42
2.33
2.50
2.50
4.00
2.00
3.00
3.00
3.86
3.14
3.57
3.29
4.20
4.40
4.40
4.60
5.00
4.00
4.00
4.50
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
3.92
3.92
3.92
4.67
4.00
3.08
3.58
4.42
4.33
4.00
3.92
4.08
3.67
3.67
2.42
3.17
3.50
4.25
2.92
3.75
3.50
3.42
4.42
3.58
3.91
4.42
3.50
4.00
4.00
4.00
3.50
3.50
3.50
4.00
3.50
2.00
4.00
4.00
2.00
4.00
3.00
4.00
4.00
3.50
4.00
4.00
3.50
3.50
4.00
3.50
4.50
3.00
3.67
3.33
3.50
4.00
4.00
2.33
3.33
4.17
4.50
3.50
4.00
2.50
3.33
2.67
3.83
3.00
3.33
4.33
3.50
3.67
3.17
3.00
4.17
3.00
3.33
2.83
3.75
3.75
3.75
3.50
4.00
1.00
3.50
4.25
3.75
3.75
3.25
2.75
3.00
2.25
2.50
2.75
1.00
4.00
4.00
3.50
3.50
2.00
4.25
3.25
3.25
3.00
3.67
3.33
3.33
4.67
4.00
4.00
4.00
4.00
4.67
4.67
4.33
4.33
4.00
4.00
3.00
3.67
4.00
4.00
4.33
4.00
4.00
4.00
4.00
3.67
4.00
4.00
3.00
4.25
3.75
3.25
3.75
2.50
4.00
3.50
4.00
3.75
3.25
3.75
4.00
4.00
1.75
4.50
3.75
4.00
2.50
3.25
3.50
4.00
3.75
3.25
4.25
4.00
3.11
3.44
3.75
3.00
3.67
2.67
3.33
3.11
3.11
3.44
3.56
2.78
2.78
3.11
2.44
2.33
2.44
3.00
2.67
2.78
2.67
3.11
4.00
3.56
2.89
2.33
2.83
3.00
3.33
2.33
3.08
3.08
2.67
2.75
3.08
1.92
2.92
2.58
2.91
3.00
2.08
3.08
3.08
2.75
2.83
2.67
2.67
3.17
3.83
2.83
2.50
3.08
3.00
3.00
3.00
2.50
3.50
3.50
4.00
2.50
2.50
2.50
4.00
3.00
3.00
3.00
2.00
2.00
1.50
3.50
3.50
3.00
1.50
3.00
3.00
3.50
2.50
2.50
2.57
4.14
3.86
3.86
3.57
2.29
2.86
3.14
2.71
3.57
3.86
3.71
3.00
3.00
1.57
1.86
2.57
3.86
3.29
3.57
2.14
2.14
4.00
3.71
3.57
3.71
4.60
4.60
4.80
4.60
4.40
4.80
4.40
4.40
5.00
4.80
4.60
4.80
4.40
4.00
4.00
4.80
4.20
4.40
4.60
4.40
4.40
4.00
4.40
3.60
4.80
3.80
3.50
4.00
4.00
5.00
4.00
5.00
4.00
4.00
4.50
5.00
5.00
5.00
4.00
5.00
4.50
4.50
4.00
4.00
4.50
4.00
4.00
4.00
4.00
4.00
5.00
5.00
1
1
1
2.25
4.00
3.75
2.50
4.00
4.00
2.00
3.33
4.00
2.50
4.00
3.25
3.00
4.67
4.00
3.25
2.75
4.25
3.22
4.11
3.33
2.75
2.67
3.00
2.00
3.50
2.50
2.00
3.71
4.00
2.80
4.80
4.20
1.50
4.50
3.00
1
1
1
1
1
1
1
1
1
3.25
3.92
3.08
3.33
3.83
3.83
3.67
3.75
4.00
3.00
4.50
3.00
4.00
4.00
2.00
5.00
3.50
3.50
3.00
3.17
3.50
3.67
4.00
2.50
3.33
3.83
3.50
2.75
2.00
3.25
3.75
4.00
3.25
5.00
3.00
4.25
3.33
4.33
3.67
3.33
4.00
2.67
5.00
4.00
4.00
3.75
4.00
4.00
3.25
4.00
3.50
3.50
3.25
4.75
1.44
2.89
2.44
3.50
3.89
1.33
2.89
3.22
3.00
2.08
2.75
2.17
2.75
3.58
1.25
1.75
2.67
2.08
1.50
4.00
1.50
4.00
4.00
1.50
1.50
2.00
1.50
3.29
3.43
2.83
2.57
2.86
2.43
3.57
3.57
3.43
4.40
4.80
4.60
4.80
4.20
5.00
4.20
4.20
4.80
4.00
4.00
4.00
4.50
4.00
4.00
5.00
4.00
5.00
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
sex
org
ini
indi
inf
prwe
preq
prwd
prwc
prwco
icad
3.17
3.67
4.42
3.08
3.67
4.67
4.33
4.00
3.92
3.75
4.70
2.64
4.67
3.92
3.83
3.75
3.83
4.33
2.58
2.92
3.42
3.73
4.25
4.70
3.67
4.17
3.58
2.67
4.09
2.92
3.64
4.17
4.00
2.50
3.50
4.50
3.00
3.50
4.00
4.00
3.00
3.50
4.00
2.50
3.50
2.50
4.00
3.50
3.50
3.50
2.50
3.00
4.00
3.50
3.00
3.00
4.00
3.00
3.50
3.00
4.00
4.00
2.50
4.00
2.67
3.50
3.67
4.00
3.83
4.00
4.33
3.67
2.67
3.67
4.00
1.83
4.50
3.83
4.17
3.83
4.17
3.83
2.83
2.83
3.00
4.00
3.83
3.50
3.67
3.83
3.83
2.67
3.50
3.50
3.50
3.50
3.00
3.25
3.00
4.00
3.50
4.00
3.50
4.00
2.75
3.75
2.25
2.25
4.00
4.25
3.75
3.50
4.00
4.00
1.75
2.00
3.33
4.00
3.75
4.00
4.00
3.50
1.75
2.75
5.00
4.25
3.50
2.75
Gender: 1=Male; 2=Female

The Organization
Information
Direction
Feedback
Work Environment
Equipment & Supplies
Work Disorganization
Working Conditions
Working Conditions Outcome
Advancement
3.67
4.33
4.33
4.33
3.67
3.33
4.00
4.33
3.50
5.00
5.00
3.67
4.00
3.67
4.00
4.00
3.67
4.33
3.33
3.00
4.00
4.00
4.33
5.00
4.00
4.33
2.67
3.67
3.67
3.00
4.00
4.67
4.25
3.25
4.00
4.50
4.00
4.50
3.50
3.50
3.50
4.00
4.50
2.00
4.25
3.25
4.00
3.25
3.50
4.25
1.25
2.75
3.50
3.00
4.00
3.75
3.50
3.00
4.00
3.50
4.25
4.25
3.00
4.00
3.78
2.11
3.89
3.11
2.56
3.67
2.67
2.78
2.29
3.56
3.78
2.78
3.44
4.22
3.56
3.56
3.50
4.22
1.56
2.56
3.11
3.00
2.89
4.33
3.78
3.22
1.89
3.00
2.67
3.00
2.78
2.78
2.75
2.25
3.00
2.33
2.42
3.00
3.08
2.33
2.90
3.33
3.38
1.58
3.92
2.33
2.67
2.75
2.58
3.08
1.50
1.92
2.42
2.75
2.92
3.67
3.27
2.50
2.25
2.33
3.08
3.08
3.08
2.92
3.00
2.00
4.00
1.50
2.00
3.00
4.00
2.50
3.00
3.00
3.00
2.00
4.00
2.50
3.50
3.00
2.50
4.00
1.50
2.50
3.00
2.50
3.50
4.50
4.50
4.00
1.50
2.00
2.00
3.00
4.00
4.00
3.00
3.14
3.71
3.00
3.43
3.57
3.43
3.14
2.33
3.43
3.67
2.71
3.71
3.29
4.00
4.14
4.00
3.14
1.86
3.43
3.00
3.14
3.00
3.86
2.71
3.57
2.43
3.14
3.29
2.86
3.14
3.71
4.40
4.80
3.80
5.00
4.20
4.20
3.60
4.80
4.60
4.40
5.00
3.80
4.20
4.80
4.40
4.60
4.20
4.60
4.60
4.20
4.60
4.00
4.00
4.80
4.20
4.20
3.80
4.80
4.60
4.60
4.00
4.60
3.50
5.00
5.00
4.00
2.00
4.50
4.00
5.00
4.00
4.50
5.00
4.50
4.50
5.00
4.00
4.00
4.00
4.50
3.00
4.00
4.50
4.00
4.00
5.00
4.50
2.50
4.50
2.00
3.50
4.50
4.50
4.50
icim
icimo
icpa
icpy
su
tr
cptw
itl
Impact
Impact Outcome
Pay Administration
Pay & Benefits
Immediate Supervisor
Training
Compelling Place to Work
Intention to Leave
icpa
4.50
2.50
icpy
4.33
3.67
su
4.56
2.50
tr
4.75
3.75
cptw
4.80
3.70
itl
5.00
5.00
PR
5.63
4.53
3.00
3.50
2.50
4.00
3.50
4.50
4.00
5.00
4.50
2.50
2.00
4.50
3.00
3.50
3.00
2.50
3.50
3.00
3.50
4.50
3.00
4.50
3.00
3.00
4.50
2.50
3.50
3.00
3.50
4.00
3.00
4.00
3.00
3.50
3.50
5.00
4.00
4.00
3.00
4.50
1.50
1.33
3.00
2.00
3.00
4.33
3.33
4.33
3.33
3.33
3.00
1.33
2.67
3.67
2.00
3.67
3.67
2.33
3.00
2.67
3.33
2.67
3.67
2.33
3.00
4.00
3.67
4.00
2.33
2.67
3.67
2.67
4.00
3.00
2.67
2.00
3.67
4.00
3.33
4.33
3.33
3.33
2.75
3.00
1.63
3.50
4.21
3.50
3.88
3.88
3.31
3.50
3.69
2.94
2.71
2.31
2.50
2.56
3.25
2.94
3.47
3.00
3.25
4.00
2.50
1.69
4.31
2.93
3.44
3.56
3.06
4.00
2.13
4.06
3.81
3.25
3.06
4.00
3.23
1.56
3.73
3.94
3.06
3.50
3.75
3.75
3.25
4.00
4.00
3.00
3.00
3.25
3.75
2.75
3.50
2.33
3.00
3.00
4.50
3.25
3.00
3.25
3.50
3.00
3.00
1.25
3.00
4.00
3.75
3.25
3.50
3.25
4.50
2.50
4.25
3.25
3.00
1.50
2.50
2.00
3.25
3.67
2.75
3.00
3.50
3.20
3.80
4.00
4.40
3.40
4.20
3.90
3.80
4.20
3.90
4.00
3.38
4.00
3.30
3.50
3.40
3.60
3.50
3.70
4.00
4.30
3.00
2.60
4.30
4.20
4.00
3.70
2.60
4.60
3.30
4.60
4.10
3.00
3.00
4.40
3.90
2.70
4.30
3.50
3.50
3.25
4.00
4.00
4.75
3.00
4.75
5.00
5.00
4.75
4.50
4.00
4.50
4.00
3.50
5.00
5.00
4.00
4.00
4.00
5.00
5.00
5.00
3.00
2.75
5.00
5.00
4.75
4.75
4.25
5.00
3.50
5.00
5.00
4.00
3.75
5.00
3.50
3.50
4.25
3.50
4.25
4.02
3.93
4.06
4.16
5.02
4.35
5.07
4.40
4.62
4.49
4.19
4.44
3.85
4.33
3.75
4.69
4.16
4.28
4.05
4.93
4.40
4.53
3.95
2.97
4.77
4.73
4.37
4.40
3.72
5.17
3.94
4.81
4.80
3.81
3.39
5.23
3.88
3.84
4.99
4.19
4.00
1 Define correlation and describe how

Correlation, represented by the letter r,
meaning the variables vary inversely, n
relationship, i.e. r = 0. Correlations are
variables, x and y, then knowing a valu
2 Calculate the correlation between c

0.4991
3 Calculate the correlation between c

cptw
itl
4 What does the term best linear com

When there are multiple predictor (x) va
variables with the dependant (y) variab
a straight line, the regression line can b
points and the line.
5 Use the TREND function as an ARRA

the variables org to tr. Place the re
6 Use the LINEST function to comput

to tr. Select the cells in the box be
Place in the box below.
7 Create a one-way Pivot Table tabul
4.50
4.00
4.50
3.00
3.67
3.00
3.67
3.33
3.75
3.06
3.38
2.88
3.75
4.00
3.50
3.00
4.30
3.80
3.60
3.60
5.00
4.00
5.00
5.00
4.73
3.98
4.23
4.37
4.50
4.50
4.00
4.00
2.50
3.00
4.00
4.00
3.00
3.00
3.00
3.00
4.00
4.00
2.00
4.00
1.50
3.00
4.00
3.00
2.00
3.50
4.00
4.00
3.00
4.50
2.67
3.67
3.00
4.00
2.67
1.67
3.00
3.33
2.33
3.00
2.33
2.67
3.33
2.33
1.00
2.67
2.00
1.67
2.67
2.00
1.67
2.00
3.00
3.00
4.33
4.00
3.44
4.06
4.00
4.00
3.69
3.63
3.25
3.63
4.63
2.75
4.06
2.88
3.33
2.50
2.25
2.38
2.00
3.56
2.31
3.19
2.94
2.38
4.31
3.63
3.63
3.06
3.75
3.75
3.75
3.50
3.50
3.75
3.00
3.75
4.00
4.25
4.00
1.75
3.00
3.00
3.25
2.00
2.50
3.00
2.75
2.75
3.50
2.50
4.00
2.50
3.75
3.25
3.80
3.90
4.30
4.30
4.00
3.70
3.50
3.80
4.30
3.60
4.10
4.20
3.90
3.70
3.00
3.50
3.20
3.90
2.90
3.60
3.70
3.50
4.30
4.00
4.11
4.30
3.50
3.50
4.50
5.00
4.50
4.00
5.00
3.50
5.00
4.50
4.75
5.00
4.50
4.00
3.75
5.00
3.75
5.00
5.00
4.75
4.75
4.50
5.00
4.75
5.00
5.00
4.31
4.39
4.38
4.81
4.57
4.17
4.55
4.47
4.58
4.51
4.90
4.74
4.14
4.31
3.14
3.82
3.87
4.81
4.44
4.50
3.74
4.10
4.62
4.20
4.42
4.27
3.50
5.00
3.50
4.00
3.33
4.33
2.75
3.44
2.19
2.25
3.75
4.00
2.10
4.20
3.60
2.50
4.50
5.00
2.71
4.92
4.40
4.50
3.50
3.50
2.00
3.00
1.00
5.00
2.50
5.00
3.67
3.00
3.00
3.33
3.00
3.00
3.00
2.33
3.67
2.69
3.50
2.56
3.47
3.94
2.31
3.25
3.31
2.69
3.25
4.25
2.75
3.00
4.00
1.25
2.50
3.50
2.75
3.00
3.50
3.50
3.60
4.10
3.40
4.20
3.50
3.60
3.50
5.00
2.75
3.25
5.00
5.00
5.00
4.00
3.50
3.65
5.02
3.67
4.27
4.52
3.54
4.38
4.10
4.22
8 Create a Scatterplot (Scatter Diagr
Insert a Trendline and the regressio
The correlation of the Actual values

C
9 two or more variables. Using the
should get the same value for R2 as
5.00
3.50
3.50
3.50
3.00
3.50
3.50
3.00
4.50
3.00
3.00
3.50
4.00
3.50
2.50
3.50
4.00
4.00
3.00
2.00
3.50
3.00
3.00
3.50
4.00
4.00
1.50
4.00
2.50
3.00
2.00
3.00
2.33
2.33
3.67
2.00
3.33
3.00
2.00
1.67
2.33
3.33
4.00
3.33
3.67
2.33
2.67
2.67
3.67
2.33
2.00
3.00
4.00
3.00
2.33
4.33
3.33
4.33
3.67
2.33
2.67
2.67
2.33
3.00
3.06
2.56
3.50
3.44
2.00
3.75
3.69
4.00
2.77
2.75
3.71
1.44
4.19
2.63
3.63
3.63
4.06
3.38
2.13
2.81
2.50
3.63
3.69
4.31
3.81
4.19
2.69
2.56
3.06
3.50
3.00
3.33
3.00
3.25
3.75
4.00
3.75
3.75
2.75
3.25
3.25
3.00
3.25
2.50
3.50
3.00
4.00
3.25
2.75
4.00
3.00
4.25
3.75
4.00
3.00
3.50
3.50
2.75
3.75
2.75
2.50
3.75
2.75
3.00
3.60
3.50
4.10
2.90
3.00
4.20
4.30
4.20
3.90
3.70
4.86
2.89
4.50
3.60
3.70
4.00
3.80
4.20
2.70
2.90
3.50
3.78
3.90
4.75
3.90
3.70
3.20
2.80
4.00
3.70
3.89
3.80
5.00
4.50
5.00
4.50
4.50
5.00
3.50
3.50
4.75
4.00
5.00
1.25
5.00
4.25
5.00
4.75
4.50
5.00
3.25
4.25
5.00
4.00
4.50
5.00
5.00
5.00
1.75
2.00
2.75
2.50
5.00
5.00
4.19
4.19
4.81
4.12
4.07
4.46
4.77
4.51
4.22
4.60
5.07
3.40
4.84
4.22
4.69
4.52
4.17
4.97
3.30
3.64
4.30
4.07
4.58
5.23
4.59
4.76
3.33
3.81
4.19
3.82
4.34
5.09
correlation and describe how it's typically used.

tion, represented by the letter r, is the degree to which two variables behave or covary. Correlations vary from ng the variables vary inversely, negative correlation, or in the same direction (positive correlation). Two variable
nship, i.e. r = 0. Correlations are typically used to predict or forcast values. For example if there is known correla
es, x and y, then knowing a value of x , will allow the prediction of y, with error or course.
ate the correlation between cptw & itl using the CORREL function.
ate the correlation between cptw & itl using the Correlation analysis tool in Data Analysis found in
cptw
itl
1
0.4991073069
1
does the term best linear combination mean?

here are multiple predictor (x) variables, combining them in such a way as to maximize the correlation of the co
es with the dependant (y) variable. When the combination of the predictor variables is graphed against the dep
ght line, the regression line can be drawn through the data points in such a way as to minimize the distance bet
and the line.
e TREND function as an ARRAY function to predict an itl value for each of the observations from
riables org to tr. Place the results in the column headed PR (for predicted).
e LINEST function to compute a basic regression analysis predicting cptw for the variables icpy
Select the cells in the box below to place the results. Note LINEST is an ARRAY function.
in the box below.
e a one-way Pivot Table tabulating the frequency of sex. Place in X42.
e a Scatterplot (Scatter Diagram) of itl and the predicted value of itl (PR). Place in the box below.
a Trendline and the regression equation, including R 2.
orrelation of the Actual values with the Predicted values is the Multiple Correlation, R, when the Pre
more variables. Using the CORREL function, verify this by calculating the correlation between itl a
d get the same value for R2 as displayed in the Scatterplot.
R
R2
or covary. Correlations vary from -1.0 to +1.0 ,

(positive correlation). Two variables can have a zero
r example if there is known correlation between two
or or course.
tool in Data Analysis found in the Data tab on the Ribbon. Place the results in cell X13.
maximize the correlation of the combined predictor

riables is graphed against the dependant variable, y,
ay as to minimize the distance between the plotted
ch of the observations from

dicted).
cptw for the variables icpy

an ARRAY function.
(PR). Place in the box below.
ple Correlation, R, when the Predicted values is the linear combination of

ng the correlation between itl and PR. Then, square the correlation. You
cell X13.
RandomNum Gender
Female
Female
Female
Female
Female
Female
Male
Female
Male
Female
Male
Female
Male
Male
Female
Female
Female
Female
Male
Male
Female
Male
Female
Female
Female
Female
Male
Female
Female
Male
Female
Female
Female
Female
Female
Male
Female
Male
Male
Female
Female
Female
Female
Race
Black/African
White
White
Black/African
Black/African
White
White
Black/African
White
White
White
Black/African
Black/African
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
Black/African
White
White
Black/African
White
American
American
American
The data columns B & C constitute the p

job in a large company. The data were
Opportunity) reporting purposes. See t
1 Using Pivot Tables create Gender b

Place the table in cell F7.
American
American
American
American
Is the association between Gender

2 Use one of the statistical calculator
determination.
http://vassarstats.net/newcs.html
American
American
American
Assume that you did not have acce

Column A, but had to select a rando
3 your association statistic. Assign a
observations, then select the 30 low
sample. Calculate the association s
Female
Male
Male
Female
Female
Female
Female
Female
Female
Female
Male
Female
Female
Male
Female
Female
Female
Female
Female
Female
Male
Male
Female
Female
Male
Female
Male
Female
Female
Female
Female
Male
Female
Female
Male
Female
Female
Female
Female
Female
Male
Female
Female
Male
Female
White
White
White
White
White
White
White
White
Black/African
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
White
White
White
Black/African
Black/African
White
Assume that you did not have acce

Column A, but had to select a rando
3 your association statistic. Assign a
observations, then select the 30 low
sample. Calculate the association s
4 Create a gender by Race crosstabu

American
American
5 Define the Yule-Simpson effect and
American
American
American
Female
Female
Female
Female
Female
Female
Female
Male
Male
Female
Male
Female
Male
Female
Female
Female
Female
Female
Female
Male
Male
Female
Male
Female
Female
Female
Female
Female
Male
Female
Male
Male
Male
Female
Male
Female
Female
Male
Female
Female
Female
Male
Male
Male
Female
White
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
Black/African
White
White
Black/African
White
White
White
White
White
Black/African
White
Black/African
American
American
American
American
American
American
American
Female
Male
Male
Male
Male
Female
Female
Male
Female
Female
Female
Female
Female
Female
Male
Male
Female
Male
Male
Female
Male
Female
Female
Female
Female
Male
Female
Male
Male
Male
Male
Male
Female
Male
Female
Female
Female
Male
Male
Female
Male
Male
Female
Female
Female
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
Black/African
White
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
White
American
American
American
American
American
Male
Female
Female
Female
Female
Male
Female
Female
Female
Female
Female
Male
Male
Female
Female
Male
Male
Female
Male
Female
Female
Female
Female
Female
Male
Female
Male
Female
Female
Male
Female
Male
Male
Female
Female
Male
Female
Female
Female
Female
Female
Female
Female
Female
Female
Black/African
White
White
White
White
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
Black/African
White
White
White
White
White
White
White
White
Black/African
Black/African
White
White
White
White
White
Black/African
White
White
White
White
White
Black/African
Black/African
Black/African
White
White
American
American
American
American
American
American
American
American
American
Female
Male
Female
Female
Female
Female
Female
Male
Male
Male
Female
Female
Male
Female
Male
Female
Female
Female
Female
Female
Female
Male
Female
Female
Female
Female
Female
Male
Female
Female
Female
Female
Female
Female
Female
Female
Male
Female
Female
Male
Female
Female
Male
Male
Male
Black/African
White
White
White
White
White
Black/African
White
White
Black/African
White
White
White
White
White
White
White
Black/African
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
Black/African
White
White
White
Black/African
White
American
American
American
American
American
American
American
Male
Female
Male
Female
Male
Female
Female
Female
Female
Female
Female
Male
Male
Female
Female
Female
Male
Male
Male
Male
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Male
Female
Male
Female
Male
Female
Male
Female
Female
Female
Black/African
White
White
White
White
White
White
White
White
Black/African
White
White
Black/African
White
White
White
Black/African
White
White
White
Black/African
White
White
White
White
White
White
White
White
Black/African
White
White
White
White
Black/African
Black/African
White
White
White
White
White
White
White
White
White
American
American
American
American
American
American
American
American
Male
Female
Male
Female
Female
Female
Female
Male
Male
Female
Male
Female
Female
Female
Male
Female
Female
Male
Male
Female
Male
Female
Female
Female
Male
Male
Female
Male
Male
Female
Female
Female
Female
Male
Male
Female
Male
Male
Female
Female
Female
Male
Female
Male
Female
White
White
White
Black/African
White
White
Black/African
White
White
Black/African
Black/African
White
Black/African
White
White
White
White
White
White
Black/African
White
White
Black/African
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
White
American
American
American
American
American
American
American
Female
Male
Female
Male
Female
Female
Female
Female
Female
Male
Female
Female
Female
Male
Female
Male
Female
Female
Female
Male
Female
Male
Male
Female
Male
Female
Male
Female
Female
Female
White
Black/African
White
Black/African
White
White
White
Black/African
White
White
White
White
White
White
White
White
Black/African
White
Black/African
White
White
White
White
White
White
Black/African
White
Black/African
Black/African
White
American
American
American
American
American
American
American
American
ta columns B & C constitute the population of individuals in a retail clerk

large company. The data were collected for EEO (Equal Employment
unity) reporting purposes. See the comment in cell A1 for instructions.
Pivot Tables create Gender by Race crosstabulation of the data in Columns B & C.
the table in cell F7.
association between Gender and Race statistically significant?

ne of the statistical calculators located on the web to make this
mination.
vassarstats.net/newcs.html
Chi Square
p-level
Statistically significant?
e that you did not have access to the population of data in

n A, but had to select a random sample on which to calculate
ssociation statistic. Assign a random number to the
vations, then select the 30 lowest random numbers for your
e. Calculate the association statistics on this sample.
e that you did not have access to the population of data in

n A, but had to select a random sample on which to calculate
ssociation statistic. Assign a random number to the
vations, then select the 30 lowest random numbers for your
e. Calculate the association statistics on this sample.
Chi Square
p-level
Statistically significant?
Fisher's Exact Probability
a gender by Race crosstabulation. Place in F54.
the Yule-Simpson effect and show an example of it.
What are the characteristics of the normal distribution?

# It is symmetrical.
# Skewness = 0.
# 34.13% of Normal Distribution will fall
between the distribution's mean and 1 standard
deviation from the mean, both above and below. That
is, 68.26% of a normal distribution will be found within
the range +1 and -1 of standard deviation from the
mean of the distribution.
#
95.55% of the distribution fall within the range +2
and -2 standard deviations of the mean.
# 99.7% of the distribution fall within the range +3
and -3 standard deviations of the mean.
What is the unit normal or standard normal distribution?

It is a special case of the normal distribution. It has a
mean of 0 and a standard deviation of 1. These two
characteristics allow one to know the cumulative area
below any value. For example, a unit normal value of
one (1), 84.13% of the distribution is below one and
100 - 84.13% = 15.87% is above the unit normal
value of one.
Describe the function NORM.DIST. Provide an example in H28.

The Excel NORM.DIST() calculates the Normal
Probability Density Function or the Cumulative Normal
Distribution Function for a supplied value of x, and a
supplied distribution mean and standard deviation.
For example, with a Normal distribution with a mean
of 40 and a standard deviation of 20, a value of 60
would yeild a value of .8413 indicating that 84.13%
of the distribution will be below that score.
Describe the function NORM.S.DIST. Provide an example in H41.

This function is the same as the NORM.DIST function
except that it is applied to the standard normal
distribution.
except that it is applied to the standard normal

distribution.
Describe the function NORM.INV. Provide an example in H50.

The Excel NORM.INV Function calculates the inverse of
the cumulative normal distribution function for a
supplied probability, and a supplied distribution mean
and standard deviation. A Normally distributed
variable is assumed. For example, the distribution
value at the 60th percentile i.e. 60% below the score
and 40% above the score in a distribution with a
mean of 50 and a standard deviation of 10 would be
calculated as follows : NORM.INV(.6,50,10) and would
yeild a value of 52.53.
Describe the function NORM.S.INV. Provide an example in H61.

The Excel NORM.S.INV calculates the inverse of the
standard normal cumulative distribution function for a
supplied probability value. The result is a z-score. For
example, in the unit or standard normal distribution
the z-score at the 60th percentile, i.e. 60% below the
score and 40% above the score is .253.
What is a confidence interval and how does it relate to the normal distribution?
A confidence interval is a range of values that gives a
sence of how precisely statistic derived for a sample
estimates a population parameter. Typical confidence
interval are 95% and 99%. If many samples are drawn
from a population and a mean is calculated for a
variable in each sample and the sample means are
plotted, the distribution of the means will approximate
a normal distribution. If a confidence interval, say
95%, is placed around them, 95% of the confidence
interval would capture the true population mean.
Calculate a 95% confidence interval for a sample size=30 when the population mean (
53.58
46.42
Calculate a 99% confidence interval for a sample size=30 with mean of 50 and a stand
54.70
45.30
10a What is a controlling factor in the range of the confidence interval?
Sample Size
11 Define the Central Limit Theorem

Select sample from a population that is distributed in
any way ( skewed, normal, rectangular, bimodal etc)
and plot the computed mean. The distribution of the
plotted means will approximate the normal
distribution.
12 Explain the rationale for testing the difference between means.

Via statistical testing one can determine
probabilistically wether the means from the two
sample come from the same population of the same
population. The ability to do this is fundamental to
inferential statistics and is used for many practical
purposes eg., estimating the effects of drugs,
comparing the profit margins of two product lines ,
testing the difference of two achievement outcomes
from two different educational programs etc. The
general idea of such testing is to determine if
something (say a drug) has no effect (null hypothesis)
or has an impact (alternate hypothesis).
13 Compute a z-test.
Prices
$ 45.23
$ 35.48
$
36.57
$
$
$
$
$
43.22
42.94
37.11
44.05
44.96
$ 44.12 Sample Mean

$40.69 Null hypothesis (H0:)
> $40.70 Alternative hypothesis (Ha:)
0.002 p-value
2.851 z of p-value
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
42.99
40.23
50.93
36.26
51.91
37.03
40.12
41.59
40.18
61.40
40.51
40.17
49.93
61.61
36.93
45.39
41.56
40.93
50.49
43.03
40.13
52.97
42.10
30.31
54.16
46.67
43.32
31.88
64.60
45.71
58.27
31.94
14 Compute a t-test comparing the two samples.

State 1
State 2
283
229
254
267
328
326
292
309
315
231
336
283
378
344
314
310
312
258
328
272
307
348
233
354
400
341
313
309
308
340
300
316
268
259
276
271
362
340
339
300
333
316
241
281
218
284
311
254
217
267
299
266
264
264
290
312
298
305
244
303
299
285
308
260
204
291
242
329
315
246
322
293
15 What is the decision rule?

It is the significance level of a statistical test that is
specified in advance of an analysis. Typical
significance levels , called alpha levels, are .05 and .
01. A difference is said to be statistically significant if
a computed statistical value exceeds the value that is
expected at the significance level.
16 What is statistical power?

The power of an hypothesis test is the probability of
not making a type II error, that is the probability of
rejecting a false null hypothesis. Power varies
between 0 and 1 and measures the ability of the
hypothesis to detect a false null hypothesis.
The power of an hypothesis test is the probability of

not making a type II error, that is the probability of
rejecting a false null hypothesis. Power varies
between 0 and 1 and measures the ability of the
hypothesis to detect a false null hypothesis.
mal distribution?
mal distribution?
ide an example in H28.

0.8413447461
vide an example in H41.

0.8413447461
e an example in H50.
52.5334710314
ide an example in H61.

0.2533471031
oes it relate to the normal distribution?
a sample size=30 when the population mean (50) and the population standard deviation (10) are kn
a sample size=30 with mean of 50 and a standard deviation of 10, but the population mean and the
of the confidence interval?
erence between means.
hesis (H0:)
e hypothesis (Ha:)
10b
t-Test: Two-Sample Assuming Unequal Variances
Mean
Variance
Observations
Hypothesized Mean Difference
df
t Stat
P(T<=t) one-tail
Variable 1
Variable 2
313.40625
279.625
1380.6360887097 1196.34294872
32
40
0
64
3.9523495392
0.0000979222810876012
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail
1.6690130255
0.0001958446
1.9977296334
rd deviation (10) are known.
opulation mean and the population standard deviation are unknown.
Compute the upper and lower confidence interval limits for a sample with a mean =50 and a sample s
for the following two sample sizes.
N=30
N=100
54.70
52.58
Upper limit
45.30
47.42
Lower limit
See the following video for an explanation of the Central Limit Theorem.
https://www.youtube.com/watch?v=JNm3M9cqWyc
a mean =50 and a sample standard deviation = 10
1 What's the difference in directional (one-tailed) and non-directional (two-tailed) hypothe
2 Compute a t-test comparing the two samples.

State 1
State 2
283
229
p-level
254
267
t-value
328
326
292
309
315
231
336
283
378
344
314
310
312
258
328
316
272
241
307
348
233
354
400
341
313
309
308
340
300
316
268
259
276
271
362
340
339
300
333
281
218
284
311
254
217
267
299
266
264
264
290
312
298
305
244
303
299
285
308
260
204
291
242
329
315
246
322
293
3 Discuss the impact of unequal group (sample) sizes on hypothesis tests.
4 Use the Data Analysis t-test tool to compare the mean for Males vs. Females.
Male
Female
4.80
3.70
3.50
3.20
3.80
4.00
4.40
3.40
4.20
3.90
3.80
4.20
3.90
4.00
3.38
4.00
3.30
3.50
3.40
3.60
3.50
3.70
4.00
4.30
3.00
2.60
4.30
4.20
4.00
3.70
2.60
4.60
3.30
4.60
4.10
3.00
3.00
4.40
3.90
2.70
4.30
3.50
3.50
4.30
3.80
4.86
2.89
4.50
3.60
3.70
4.00
3.80
4.20
2.70
2.90
3.50
3.78
3.90
4.75
3.90
3.70
3.20
2.80
4.00
3.70
3.89
3.80
Specify the null and alternate hypotheses.
3.60
3.60
3.80
3.90
4.30
4.30
4.00
3.70
3.50
3.80
4.30
3.60
4.10
4.20
3.90
3.70
3.00
3.50
3.20
3.90
2.90
3.60
3.70
3.50
4.30
4.00
4.11
4.30
2.10
4.20
3.60
3.00
3.50
3.50
3.60
4.10
3.40
4.20
3.50
3.60
3.60
3.50
4.10
2.90
3.00
4.20
4.30
4.20
3.90
3.70
5 What is multiple regression versus single regression?
sex
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
org
4.92
3.67
3.25
3.17
3.67
3.75
4.42
3.67
4.67
3.75
4.08
3.83
4.00
4.00
2.92
3.92
3.17
4.08
3.75
3.58
3.42
4.67
4.00
4.33
3.42
2.25
4.42
4.33
4.00
ini
4.50
4.00
3.00
3.00
3.50
3.50
4.00
4.00
3.50
4.00
3.00
4.00
2.50
3.50
3.00
2.50
3.00
4.50
4.00
4.00
3.50
4.00
4.00
4.00
2.50
3.00
3.50
3.50
3.50
indi
5.00
3.67
3.50
3.00
3.83
3.33
4.00
3.83
4.00
3.83
4.50
3.67
2.50
3.17
3.00
3.33
3.67
4.00
3.67
3.67
3.33
4.67
3.50
4.33
3.50
2.00
4.00
4.00
3.50
inf
4.75
2.00
2.75
2.25
2.75
3.75
3.33
3.75
2.75
4.00
3.75
2.75
3.50
3.00
3.00
3.75
2.25
3.50
3.75
3.75
3.75
4.50
3.50
4.50
2.25
2.00
4.00
3.50
3.75
prwe
4.67
4.33
4.33
4.00
4.00
3.33
4.67
4.00
4.00
4.00
4.00
4.00
3.33
4.00
4.00
3.67
4.00
4.00
4.00
4.33
3.67
4.33
4.33
4.00
4.67
2.33
4.00
4.67
4.00
preq
5.00
4.25
4.50
4.00
3.75
2.75
3.75
4.00
3.25
3.75
3.75
4.00
4.00
4.00
3.50
3.75
3.25
4.00
3.75
3.75
3.75
4.00
3.75
4.00
2.50
3.25
4.00
4.00
3.75
1
1
1
1
1
1
3.83
2.50
4.75
3.58
4.67
4.17
3.00
3.50
4.50
3.50
4.50
4.00
3.00
3.50
4.67
2.50
4.67
4.00
2.50
3.25
4.50
2.75
4.75
4.25
4.33
4.00
5.00
4.00
4.67
4.33
4.00
4.00
4.50
3.25
3.75
4.00
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2.83
2.50
4.75
3.50
2.58
4.42
4.00
3.67
4.25
3.50
3.92
3.33
3.92
3.92
3.92
4.67
4.00
3.08
3.58
4.42
4.33
4.00
3.92
4.08
3.67
3.67
2.42
3.17
3.50
4.25
2.92
3.75
3.50
3.42
4.42
3.58
3.91
4.42
2.25
3.50
3.00
2.50
3.00
4.00
4.00
3.50
4.00
3.50
3.50
3.00
3.50
3.50
4.00
4.00
4.00
3.50
3.50
3.50
4.00
3.50
2.00
4.00
4.00
2.00
4.00
3.00
4.00
4.00
3.50
4.00
4.00
3.50
3.50
4.00
3.50
4.50
3.00
2.50
2.67
3.00
4.50
3.40
1.83
4.17
3.83
3.67
3.80
3.17
3.33
3.17
3.67
3.33
3.50
4.00
4.00
2.33
3.33
4.17
4.50
3.50
4.00
2.50
3.33
2.67
3.83
3.00
3.33
4.33
3.50
3.67
3.17
3.00
4.17
3.00
3.33
2.83
2.00
3.75
2.50
4.25
3.25
3.00
3.00
3.75
4.25
4.00
2.50
3.25
2.75
3.75
3.75
3.75
3.50
4.00
1.00
3.50
4.25
3.75
3.75
3.25
2.75
3.00
2.25
2.50
2.75
1.00
4.00
4.00
3.50
3.50
2.00
4.25
3.25
3.25
3.00
2.50
3.67
3.33
4.00
3.67
4.33
4.33
3.67
3.33
4.00
3.67
3.33
4.33
3.67
3.33
3.33
4.67
4.00
4.00
4.00
4.00
4.67
4.67
4.33
4.33
4.00
4.00
3.00
3.67
4.00
4.00
4.33
4.00
4.00
4.00
4.00
3.67
4.00
4.00
3.00
2.75
3.25
4.25
4.00
4.50
4.75
4.00
4.50
3.50
4.25
3.25
4.00
3.00
4.25
3.75
3.25
3.75
2.50
4.00
3.50
4.00
3.75
3.25
3.75
4.00
4.00
1.75
4.50
3.75
4.00
2.50
3.25
3.50
4.00
3.75
3.25
4.25
4.00
3.25
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
sex
4.00
3.75
3.25
3.92
3.08
3.33
3.83
3.83
3.67
3.75
4.00
3.17
3.67
4.42
3.08
3.67
4.67
4.33
4.00
3.92
3.75
4.70
2.64
4.67
3.92
3.83
3.75
3.83
4.33
2.58
2.92
3.42
3.73
4.25
4.70
3.67
4.17
3.58
2.67
4.09
2.92
3.64
4.17
4.00
4.00
3.00
4.50
3.00
4.00
4.00
2.00
5.00
3.50
3.50
4.00
2.50
3.50
4.50
3.00
3.50
4.00
4.00
3.00
3.50
4.00
2.50
3.50
2.50
4.00
3.50
3.50
3.50
2.50
3.00
4.00
3.50
3.00
3.00
4.00
3.00
3.50
3.00
4.00
4.00
2.50
4.00
3.33
4.00
3.00
3.17
3.50
3.67
4.00
2.50
3.33
3.83
3.50
2.67
3.50
3.67
4.00
3.83
4.00
4.33
3.67
2.67
3.67
4.00
1.83
4.50
3.83
4.17
3.83
4.17
3.83
2.83
2.83
3.00
4.00
3.83
3.50
3.67
3.83
3.83
2.67
3.50
3.50
3.50
3.50
Gender: 1=Male; 2=Female
4.00
3.25
2.75
2.00
3.25
3.75
4.00
3.25
5.00
3.00
4.25
3.00
3.25
3.00
4.00
3.50
4.00
3.50
4.00
2.75
3.75
2.25
2.25
4.00
4.25
3.75
3.50
4.00
4.00
1.75
2.00
3.33
4.00
3.75
4.00
4.00
3.50
1.75
2.75
5.00
4.25
3.50
2.75
4.67
4.00
3.33
4.33
3.67
3.33
4.00
2.67
5.00
4.00
4.00
3.67
4.33
4.33
4.33
3.67
3.33
4.00
4.33
3.50
5.00
5.00
3.67
4.00
3.67
4.00
4.00
3.67
4.33
3.33
3.00
4.00
4.00
4.33
5.00
4.00
4.33
2.67
3.67
3.67
3.00
4.00
4.67
2.75
4.25
3.75
4.00
4.00
3.25
4.00
3.50
3.50
3.25
4.75
4.25
3.25
4.00
4.50
4.00
4.50
3.50
3.50
3.50
4.00
4.50
2.00
4.25
3.25
4.00
3.25
3.50
4.25
1.25
2.75
3.50
3.00
4.00
3.75
3.50
3.00
4.00
3.50
4.25
4.25
3.00
4.00
org
ini
indi
inf
prwe
preq
prwd
prwc
prwco
icad
icim
icimo
icpa
icpy
su
tr
cptw
itl
The Organization
Information
Direction
Feedback
Work Environment
Equipment & Supplies
Work Disorganization
Working Conditions
Working Conditions Outcome
Advancement
Impact
Impact Outcome
Pay Administration
Pay & Benefits
Immediate Supervisor
Training
Compelling Place to Work
Intention to Leave
7 Recompute
org
4.92
3.67
3.25
3.17
3.67
3.75
4.42
3.67
4.67
3.75
4.08
3.83
4.00
4.00
2.92
3.92
3.17
4.08
3.75
3.58
3.42
4.67
the multiple regression using the independent variables with a p-value <= .0
prwc
icimo
su
cptw
3.92
5.00
4.56
4.80
3.00
4.00
2.50
3.70
2.33
3.00
2.75
3.50
2.92
3.00
3.00
3.20
3.25
5.00
1.63
3.80
3.00
4.00
3.50
4.00
3.50
4.50
4.21
4.40
2.75
4.00
3.50
3.40
3.91
4.50
3.88
4.20
2.25
4.50
3.88
3.90
1.92
4.00
3.31
3.80
3.08
4.00
3.50
4.20
2.17
4.50
3.69
3.90
3.42
4.50
2.94
4.00
2.44
4.00
2.71
3.38
2.33
4.00
2.31
4.00
2.92
3.50
2.50
3.30
2.92
4.00
2.56
3.50
1.92
4.00
3.25
3.40
2.67
5.00
2.94
3.60
2.58
4.50
3.47
3.50
2.00
4.50
3.00
3.70
4.00
4.33
3.42
2.25
4.42
4.33
4.00
3.83
2.50
4.75
3.58
4.67
4.17
2.83
2.50
4.75
3.50
2.58
4.42
4.00
3.67
4.25
3.50
3.92
3.33
3.92
3.92
3.92
4.67
4.00
3.08
3.58
4.42
4.33
4.00
3.92
4.08
3.67
3.67
2.42
3.17
3.50
4.25
2.92
3.75
2.92
3.17
1.67
2.25
3.00
2.92
2.58
2.75
2.25
2.42
2.58
2.92
2.50
1.92
1.83
2.58
2.42
2.25
4.17
2.67
3.08
3.42
2.33
2.50
2.50
2.83
3.00
3.33
2.33
3.08
3.08
2.67
2.75
3.08
1.92
2.92
2.58
2.91
3.00
2.08
3.08
3.08
2.75
2.83
2.67
4.00
4.50
3.50
5.00
4.50
5.00
4.00
3.50
3.00
5.00
4.00
5.00
4.50
3.00
3.00
5.00
5.00
4.00
5.00
3.50
4.00
5.00
4.00
4.00
4.50
3.50
4.00
4.00
5.00
4.00
5.00
4.00
4.00
4.50
5.00
5.00
5.00
4.00
5.00
4.50
4.50
4.00
4.00
4.50
4.00
3.25
4.00
2.50
1.69
4.31
2.93
3.44
3.56
3.06
4.00
2.13
4.06
3.81
3.25
3.06
4.00
3.23
1.56
3.73
3.94
3.06
3.75
3.06
3.38
2.88
3.44
4.06
4.00
4.00
3.69
3.63
3.25
3.63
4.63
2.75
4.06
2.88
3.33
2.50
2.25
2.38
2.00
3.56
2.31
3.19
4.00
4.30
3.00
2.60
4.30
4.20
4.00
3.70
2.60
4.60
3.30
4.60
4.10
3.00
3.00
4.40
3.90
2.70
4.30
3.50
3.50
4.30
3.80
3.60
3.60
3.80
3.90
4.30
4.30
4.00
3.70
3.50
3.80
4.30
3.60
4.10
4.20
3.90
3.70
3.00
3.50
3.20
3.90
2.90
3.60
3.50
3.42
4.42
3.58
3.91
4.42
2.25
4.00
3.75
3.25
3.92
3.08
3.33
3.83
3.83
3.67
3.75
4.00
3.17
3.67
4.42
3.08
3.67
4.67
4.33
4.00
3.92
3.75
4.70
2.64
4.67
3.92
3.83
3.75
3.83
4.33
2.58
2.92
3.42
3.73
4.25
4.70
3.67
4.17
3.58
2.67
3.17
3.83
2.83
2.50
3.08
2.75
2.67
3.00
2.08
2.75
2.17
2.75
3.58
1.25
1.75
2.67
2.08
2.75
2.25
3.00
2.33
2.42
3.00
3.08
2.33
2.90
3.33
3.38
1.58
3.92
2.33
2.67
2.75
2.58
3.08
1.50
1.92
2.42
2.75
2.92
3.67
3.27
2.50
2.25
4.00
4.00
4.00
4.00
5.00
5.00
1.50
4.50
3.00
4.00
4.00
4.00
4.50
4.00
4.00
5.00
4.00
5.00
3.50
5.00
5.00
4.00
2.00
4.50
4.00
5.00
4.00
4.50
5.00
4.50
4.50
5.00
4.00
4.00
4.00
4.50
3.00
4.00
4.50
4.00
4.00
5.00
4.50
2.50
4.50
2.94
2.38
4.31
3.63
3.63
3.06
2.75
3.44
2.19
2.69
3.50
2.56
3.47
3.94
2.31
3.25
3.31
2.69
3.06
2.56
3.50
3.44
2.00
3.75
3.69
4.00
2.77
2.75
3.71
1.44
4.19
2.63
3.63
3.63
4.06
3.38
2.13
2.81
2.50
3.63
3.69
4.31
3.81
4.19
2.69
3.70
3.50
4.30
4.00
4.11
4.30
2.10
4.20
3.60
3.00
3.50
3.50
3.60
4.10
3.40
4.20
3.50
3.60
3.60
3.50
4.10
2.90
3.00
4.20
4.30
4.20
3.90
3.70
4.86
2.89
4.50
3.60
3.70
4.00
3.80
4.20
2.70
2.90
3.50
3.78
3.90
4.75
3.90
3.70
3.20
2.67
4.09
2.92
3.64
4.17
2.33
3.08
3.08
3.08
2.92
2.00
3.50
4.50
4.50
4.50
2.56
3.06
3.50
3.00
3.33
2.80
4.00
3.70
3.89
3.80
ional (two-tailed) hypotheses in statistical tests?
esis tests.
es vs. Females.
otheses.
prwd
4.56
3.22
2.38
3.56
3.44
3.56
3.11
3.11
3.67
3.00
2.78
3.67
2.33
3.33
2.67
2.89
3.11
3.67
2.78
2.56
2.67
2.89
2.67
3.78
2.67
3.00
3.56
3.56
3.25
prwc
3.92
3.00
2.33
2.92
3.25
3.00
3.50
2.75
3.91
2.25
1.92
3.08
2.17
3.42
2.44
2.33
2.92
2.92
1.92
2.67
2.58
2.00
2.92
3.17
1.67
2.25
3.00
2.92
2.58
prwco
4.50
3.00
2.00
2.50
2.00
3.50
4.50
3.00
5.00
2.50
3.00
3.00
2.50
3.00
2.50
3.00
2.50
3.00
2.00
2.00
2.50
2.50
2.50
3.00
1.50
1.50
3.00
2.50
3.00
icad
4.86
3.43
3.14
2.86
2.00
3.43
4.14
3.43
3.71
3.71
3.29
3.57
3.71
2.86
3.60
2.71
3.00
3.71
3.00
3.86
3.14
3.71
3.29
3.57
2.57
2.71
4.71
3.71
3.71
icim
5.00
4.40
3.80
4.20
4.80
3.80
3.60
4.00
4.20
4.60
4.80
4.60
4.80
4.60
4.00
4.60
3.40
4.60
4.20
4.60
4.60
4.80
4.20
4.20
4.40
4.60
4.80
5.00
4.00
icimo
5.00
4.00
3.00
3.00
5.00
4.00
4.50
4.00
4.50
4.50
4.00
4.00
4.50
4.50
4.00
4.00
3.50
4.00
4.00
5.00
4.50
4.50
4.00
4.50
3.50
5.00
4.50
5.00
4.00
3.11
3.11
4.00
2.33
3.67
2.56
2.75
2.25
2.42
2.58
2.92
2.50
2.50
2.00
2.50
2.00
2.50
2.50
3.57
3.14
4.29
2.86
4.00
4.71
4.60
4.20
5.00
4.00
4.40
5.00
3.50
3.00
5.00
4.00
5.00
4.50
1.89
2.44
4.67
2.67
2.00
3.75
3.11
2.89
3.33
3.33
3.11
2.56
3.11
3.44
3.75
3.00
3.67
2.67
3.33
3.11
3.11
3.44
3.56
2.78
2.78
3.11
2.44
2.33
2.44
3.00
2.67
2.78
2.67
3.11
4.00
3.56
2.89
2.33
3.22
1.92
1.83
2.58
2.42
2.25
4.17
2.67
3.08
3.42
2.33
2.50
2.50
2.83
3.00
3.33
2.33
3.08
3.08
2.67
2.75
3.08
1.92
2.92
2.58
2.91
3.00
2.08
3.08
3.08
2.75
2.83
2.67
2.67
3.17
3.83
2.83
2.50
3.08
2.75
2.50
1.50
4.50
2.50
1.50
4.00
2.50
3.00
4.00
2.00
3.00
3.00
3.00
3.00
3.00
2.50
3.50
3.50
4.00
2.50
2.50
2.50
4.00
3.00
3.00
3.00
2.00
2.00
1.50
3.50
3.50
3.00
1.50
3.00
3.00
3.50
2.50
2.50
2.00
2.71
2.57
4.14
2.00
2.71
3.83
3.29
3.14
3.86
3.14
3.57
3.29
2.57
4.14
3.86
3.86
3.57
2.29
2.86
3.14
2.71
3.57
3.86
3.71
3.00
3.00
1.57
1.86
2.57
3.86
3.29
3.57
2.14
2.14
4.00
3.71
3.57
3.71
2.00
4.40
4.60
5.00
4.80
4.80
4.80
4.20
3.80
4.20
4.40
4.40
4.60
4.60
4.60
4.80
4.60
4.40
4.80
4.40
4.40
5.00
4.80
4.60
4.80
4.40
4.00
4.00
4.80
4.20
4.40
4.60
4.40
4.40
4.00
4.40
3.60
4.80
3.80
2.80
3.00
3.00
5.00
5.00
4.00
5.00
3.50
4.00
5.00
4.00
4.00
4.50
3.50
4.00
4.00
5.00
4.00
5.00
4.00
4.00
4.50
5.00
5.00
5.00
4.00
5.00
4.50
4.50
4.00
4.00
4.50
4.00
4.00
4.00
4.00
4.00
5.00
5.00
1.50
4.11
3.33
1.44
2.89
2.44
3.50
3.89
1.33
2.89
3.22
3.00
3.78
2.11
3.89
3.11
2.56
3.67
2.67
2.78
2.29
3.56
3.78
2.78
3.44
4.22
3.56
3.56
3.50
4.22
1.56
2.56
3.11
3.00
2.89
4.33
3.78
3.22
1.89
3.00
2.67
3.00
2.78
2.78
2.67
3.00
2.08
2.75
2.17
2.75
3.58
1.25
1.75
2.67
2.08
2.75
2.25
3.00
2.33
2.42
3.00
3.08
2.33
2.90
3.33
3.38
1.58
3.92
2.33
2.67
2.75
2.58
3.08
1.50
1.92
2.42
2.75
2.92
3.67
3.27
2.50
2.25
2.33
3.08
3.08
3.08
2.92
3.50
2.50
1.50
4.00
1.50
4.00
4.00
1.50
1.50
2.00
1.50
3.00
2.00
4.00
1.50
2.00
3.00
4.00
2.50
3.00
3.00
3.00
2.00
4.00
2.50
3.50
3.00
2.50
4.00
1.50
2.50
3.00
2.50
3.50
4.50
4.50
4.00
1.50
2.00
2.00
3.00
4.00
4.00
3.71
4.00
3.29
3.43
2.83
2.57
2.86
2.43
3.57
3.57
3.43
3.00
3.14
3.71
3.00
3.43
3.57
3.43
3.14
2.33
3.43
3.67
2.71
3.71
3.29
4.00
4.14
4.00
3.14
1.86
3.43
3.00
3.14
3.00
3.86
2.71
3.57
2.43
3.14
3.29
2.86
3.14
3.71
4.80
4.20
4.40
4.80
4.60
4.80
4.20
5.00
4.20
4.20
4.80
4.40
4.80
3.80
5.00
4.20
4.20
3.60
4.80
4.60
4.40
5.00
3.80
4.20
4.80
4.40
4.60
4.20
4.60
4.60
4.20
4.60
4.00
4.00
4.80
4.20
4.20
3.80
4.80
4.60
4.60
4.00
4.60
4.50
3.00
4.00
4.00
4.00
4.50
4.00
4.00
5.00
4.00
5.00
3.50
5.00
5.00
4.00
2.00
4.50
4.00
5.00
4.00
4.50
5.00
4.50
4.50
5.00
4.00
4.00
4.00
4.50
3.00
4.00
4.50
4.00
4.00
5.00
4.50
2.50
4.50
2.00
3.50
4.50
4.50
4.50
ables with a p-value <= .05 in the full regression model. Place the results in J339.
icpa
4.50
2.50
3.00
3.50
2.50
4.00
3.50
4.50
4.00
5.00
4.50
2.50
2.00
4.50
3.00
3.50
3.00
2.50
3.50
3.00
3.50
4.50
3.00
4.50
3.00
3.00
4.50
2.50
3.50
icpy
4.33
3.67
1.33
3.00
2.00
3.00
4.33
3.33
4.33
3.33
3.33
3.00
1.33
2.67
3.67
2.00
3.67
3.67
2.33
3.00
2.67
3.33
2.67
3.67
2.33
3.00
4.00
3.67
4.00
su
4.56
2.50
2.75
3.00
1.63
3.50
4.21
3.50
3.88
3.88
3.31
3.50
3.69
2.94
2.71
2.31
2.50
2.56
3.25
2.94
3.47
3.00
3.25
4.00
2.50
1.69
4.31
2.93
3.44
tr
4.75
3.75
3.50
3.75
3.75
3.25
4.00
4.00
3.00
3.00
3.25
3.75
2.75
3.50
2.33
3.00
3.00
4.50
3.25
3.00
3.25
3.50
3.00
3.00
1.25
3.00
4.00
3.75
3.25
cptw
4.80
3.70
3.50
3.20
3.80
4.00
4.40
3.40
4.20
3.90
3.80
4.20
3.90
4.00
3.38
4.00
3.30
3.50
3.40
3.60
3.50
3.70
4.00
4.30
3.00
2.60
4.30
4.20
4.00
itl
5.00
5.00
3.25
4.00
4.00
4.75
3.00
4.75
5.00
5.00
4.75
4.50
4.00
4.50
4.00
3.50
5.00
5.00
4.00
4.00
4.00
5.00
5.00
5.00
3.00
2.75
5.00
5.00
4.75
6.00
3.00
3.50
4.00
3.00
4.00
3.00
2.33
2.67
3.67
2.67
4.00
3.00
3.56
3.06
4.00
2.13
4.06
3.81
3.50
3.25
4.50
2.50
4.25
3.25
3.70
2.60
4.60
3.30
4.60
4.10
4.75
4.25
5.00
3.50
5.00
5.00
3.50
3.50
5.00
4.00
4.00
3.00
4.50
1.50
4.50
4.00
4.50
3.00
4.50
4.50
4.00
4.00
2.50
3.00
4.00
4.00
3.00
3.00
3.00
3.00
4.00
4.00
2.00
4.00
1.50
3.00
4.00
3.00
2.00
3.50
4.00
4.00
3.00
4.50
3.50
2.67
2.00
3.67
4.00
3.33
4.33
3.33
3.33
3.67
3.00
3.67
3.33
2.67
3.67
3.00
4.00
2.67
1.67
3.00
3.33
2.33
3.00
2.33
2.67
3.33
2.33
1.00
2.67
2.00
1.67
2.67
2.00
1.67
2.00
3.00
3.00
4.33
4.00
4.00
3.25
3.06
4.00
3.23
1.56
3.73
3.94
3.06
3.75
3.06
3.38
2.88
3.44
4.06
4.00
4.00
3.69
3.63
3.25
3.63
4.63
2.75
4.06
2.88
3.33
2.50
2.25
2.38
2.00
3.56
2.31
3.19
2.94
2.38
4.31
3.63
3.63
3.06
2.75
3.00
1.50
2.50
2.00
3.25
3.67
2.75
3.00
3.75
4.00
3.50
3.00
3.75
3.75
3.75
3.50
3.50
3.75
3.00
3.75
4.00
4.25
4.00
1.75
3.00
3.00
3.25
2.00
2.50
3.00
2.75
2.75
3.50
2.50
4.00
2.50
3.75
3.25
2.25
3.00
3.00
4.40
3.90
2.70
4.30
3.50
3.50
4.30
3.80
3.60
3.60
3.80
3.90
4.30
4.30
4.00
3.70
3.50
3.80
4.30
3.60
4.10
4.20
3.90
3.70
3.00
3.50
3.20
3.90
2.90
3.60
3.70
3.50
4.30
4.00
4.11
4.30
2.10
4.00
3.75
5.00
3.50
3.50
4.25
3.50
4.25
5.00
4.00
5.00
5.00
3.50
3.50
4.50
5.00
4.50
4.00
5.00
3.50
5.00
4.50
4.75
5.00
4.50
4.00
3.75
5.00
3.75
5.00
5.00
4.75
4.75
4.50
5.00
4.75
5.00
5.00
2.50
5.00
3.50
4.50
3.50
3.50
2.00
3.00
1.00
5.00
2.50
5.00
5.00
3.50
3.50
3.50
3.00
3.50
3.50
3.00
4.50
3.00
3.00
3.50
4.00
3.50
2.50
3.50
4.00
4.00
3.00
2.00
3.50
3.00
3.00
3.50
4.00
4.00
1.50
4.00
2.50
3.00
2.00
3.00
3.33
4.33
3.67
3.00
3.00
3.33
3.00
3.00
3.00
2.33
3.67
2.33
2.33
3.67
2.00
3.33
3.00
2.00
1.67
2.33
3.33
4.00
3.33
3.67
2.33
2.67
2.67
3.67
2.33
2.00
3.00
4.00
3.00
2.33
4.33
3.33
4.33
3.67
2.33
2.67
2.67
2.33
3.00
3.44
2.19
2.69
3.50
2.56
3.47
3.94
2.31
3.25
3.31
2.69
3.06
2.56
3.50
3.44
2.00
3.75
3.69
4.00
2.77
2.75
3.71
1.44
4.19
2.63
3.63
3.63
4.06
3.38
2.13
2.81
2.50
3.63
3.69
4.31
3.81
4.19
2.69
2.56
3.06
3.50
3.00
3.33
3.75
4.00
3.25
4.25
2.75
3.00
4.00
1.25
2.50
3.50
2.75
3.00
3.25
3.75
4.00
3.75
3.75
2.75
3.25
3.25
3.00
3.25
2.50
3.50
3.00
4.00
3.25
2.75
4.00
3.00
4.25
3.75
4.00
3.00
3.50
3.50
2.75
3.75
2.75
2.50
3.75
2.75
3.00
4.20
3.60
3.00
3.50
3.50
3.60
4.10
3.40
4.20
3.50
3.60
3.60
3.50
4.10
2.90
3.00
4.20
4.30
4.20
3.90
3.70
4.86
2.89
4.50
3.60
3.70
4.00
3.80
4.20
2.70
2.90
3.50
3.78
3.90
4.75
3.90
3.70
3.20
2.80
4.00
3.70
3.89
3.80
4.50
5.00
3.50
5.00
2.75
3.25
5.00
5.00
5.00
4.00
3.50
5.00
4.50
5.00
4.50
4.50
5.00
3.50
3.50
4.75
4.00
5.00
1.25
5.00
4.25
5.00
4.75
4.50
5.00
3.25
4.25
5.00
4.00
4.50
5.00
5.00
5.00
1.75
2.00
2.75
2.50
5.00
5.00
Using the Data Analysis Regression tool compute a multiple regression using all the variab
After the analysis is complete go to cell B337 for further instructions.
sion using all the variables org to tr to predict cptw. Place results in V198.
1 What are the purposes of accounting?

Accounting has two basic purposes. Management Accounting is inward looking providing informati
Accounting also provides information to decision makers, but it also has an outside focus, providin
and governments.
2 How is the income statement typically used?

The income statement sows the flow of money in an organization and and the relationship of reve
point for the analysis of a business. There is no single way to structure an income statement. Inco
company's management.
statements commonly divide income into two categories. Operating income, which the day to day
represents assets that may have been financed, tax impacts and extraordinary occurences ( e.g. o
3 What is the relationship between the General Journal, the General Ledger and the Inco
Individual transactions are recorded chronologically as debits and credits in the General Journal. T
in the General Ledger. The data from the General Ledger are used to construct the Income Statem
4 How is accrual accounting used to manage financial analysis?
5 Contrast the Traditional and Contribution approaches to organizing income statements
6 Arrange the following data for the ABC Company into a balance sheet. Begin the Balan
Cash
Inventory
Accounts Receivable
Prepaid Expenses
Other Current Assets
Equipment (less depreciation)
Leasehold Improvements (less depr)
Other Fixed Assets
Accounts Payable
Notes Payable
Line of Credit Payable
Taxes Payable
Other Current Liabilities
Long Term Debt
Other Long Term Liabilities
Owner's Capital Contribution
Less Owners Draw
25450
18000
16000
1000
0
36000
17250
0
10000
0
1500
2000
0
23350
0
50000
20500
Retained Earnings
47350
7 How is a current asset cash balance determined? Demonstrate with the cash workshee
Date Explanation
11/30/11 Closing balance, November
12/1/11 Purchase medical insurance policy
12/1/11 Purchase of office supplies
12/4/11 Cash Receipts
12/4/11 Check for returns to supplier
12/14/11 Purchase of books from Neal Publishing
12/14/11 Purchase of books from Lenny Distributing
12/18/11 Accounts Receivable payment for Novemb
12/27/11 Telephone bill, November
12/27/11 Purchase of books from Neal Publishing
12/29/11 Salary check, Rodgers
12/29/11 Salary check, Rouse
12/29/11 Salary check, Tafoya

12/29/11 Advertising bill, November
8 How is a current asset accounts receivable balance determined? Demonstrate with the
Date Accounts Receivable: Explanation

11/30/11 Closing balance, November
12/1/11 Credit sales
Payment from service bureau, 11/11
12/18/11 charges
9 How are prepaid expenses handled on a balance sheet? Calculate the Current Balance
Asset Account
Medical Insurance
Date
Explanation
12/1/2011 Purchase of medical policy

12/31/2011 Expiration of one month coverage
Balance
How are costs and revenues matched?
10 For the following data, how would the recording of expenses differ if Office Supplies we
What is the impact on net income?
Income Statement
1/31/2010 Marble Designs, Inc.
Sales
Expenses
Salary
Office lease
Telephone
Office supplies
Purchase: Computer
Total Expenses
Net Income
11 How do cash and working capital differ?
12 Calculate working capital for the data below.

Income Statement
$40,209
Revenues
Sales
Less Cost of Goods Sold
Beginning Inventory
Purchases
Ending inventory
$0
$2,000
$1,500
Gross profit
Operating Expenses
Salaries
Office Lease
Telephone
Office supplies
Depreciation, Computer
Net income
An analysis of cash flow can help determine how a company uses its cash assets.
13 Is it used to acquire assets, meet liabilities, retire debt etc. The starting point of
a cash flow analysis is a review of the income statement and balance sheet.
Income Statement
1/31/2011
Revenues
Sales
Beginning inventory
Purchases
Ending inventory
Gross profit
Operating Expenses
Salaries
Office Lease
Telephone
Office supplies
Depreciation, Computers
$1,500
$25,000
$2,000
Gain on sale of office

Net income
14
Considering the above income statement and balance sheet:

What was the value of the materials in inventory at the beginning of the period?
15 How much additional inventory was purchased during the year?
16 How much inventory was used during the year?
17 Calculate the working capital for both month end periods.
18 What was the cash on hand at the end of Jan 2011?
looking providing information to decision makers inside the company. Financial

s an outside focus, providing information in a standardized way to investors, creditors
and the relationship of revenues to expenses over a time period. It is the starting
an income statement. Income statements can be tailored to meet the needs of a
Income
come, which the day to day generation of income and non-operating income, which
ordinary occurences ( e.g. one time sale of an asset).
eral Ledger and the Income Statement and the Balance Sheet?
ts in the General Journal. These transactions are accumulated into specific accounts
onstruct the Income Statement and Balance Sheet.
zing income statements.
e sheet. Begin the Balance Sheet in cell H72.
with the cash worksheet below by calculating the daily balance from the beginning to the end of th
Debit
$
$
$
$
$
Credit
$
$
6,864
3,194
$
$
6,023
8,474
1,835
$
$
$
6,440
2,950
2,761
4,690
91
1,006
8,207
9,592
Distributing
$
$
$
$
Balance
$
29,344
4,663
17,951
5,514
3,791
9,050
$
$
$
4,377
3,116
6,841
d? Demonstrate with the data below by calculating the daily balance from the beginning to the end
Debit
$
$
$
$
$
$
$
$
$
Credit
1,127
1,258
497
288
187
977
1,236
454
855
$
$
$
$
$
$
$
$
$
$
$
Balance
17,951
882
789
1,337
392
856
1,291
1,418
390
1,337
1,277
ate the Current Balance for the data below.
Debit
Credit
6,864
$
1,144
iffer if Office Supplies were allocated over 12 months and the Personal Computer were depreciated
ement
Before
After
$10,000
$3,500
$900
$96
$2,000
$1,950
$8,446
$1,554
Changes to Balance Sheet, 1/1 - 1/31

Assets
$40,179
$40,209
$10,000 Cash
Accounts Receivable
Inventory
Office Supplies
$500 Computer
Accumulated depreciation
$9,500
$9,000
$2,554
$8,000
$1,500
$1,833
$1,950
-$54
$9,000
$15,783
$3,500
Liabilities and Owner's Equity
$900
$96 Notes payable
$167 Jean Marble, equity
$9,000
$54
$4,783
$9,000
$2,000
$13,783
$15,783
Working capital -->
es its cash assets.

he starting point of
alance sheet.
ement
Changes to Balance Sheet, 1/31/10 - 1/31/11

Assets
$90,000 Cash
Accounts Receivable
Inventory
Office Supplies
$24,500 Computer
Computer
$65,500 Accumulated depreciation
1/31/2010
1/31/2011
$2,554
$8,000
$1,500
$1,833
$1,950
$17,783
$5,500
$2,000
$1,833
$1,950
$2,320
-$1,091
$30,295
-$54
$15,783
$42,000
$10,800
$1,151 Notes payable
$2,000
$2,000 Jean Martin, equity
$13,783
$1,037
$3,000
$27,295
$5,000
$13,512 Working capital
ing of the period?
$15,783
$427,884
m the beginning to the end of the month.
from the beginning to the end of the month.
nal Computer were depreciated (expense) over 3 years?
10a. Impact on net income: Percent increase/decrease?
Income Statement
$40,209
Revenues
Sales
Beginning Inventory
Purchases
Ending inventory
Gross profit
Operating Expenses
Salaries
Office Lease
Telephone
Office supplies
Depreciation, Computer
Net income
$0
$2,000
$1,500
Income Statement
Changes to Balance Sheet, 1/1 - 1/31

Assets
$40,179
$40,209
$10,000 Cash
Accounts Receivable
Inventory
Office Supplies
$500 Computer
Accumulated depreciation
$9,500
$9,000
$2,554
$8,000
$1,500
$1,833
$1,950
-$54
$9,000
$15,783
$3,500
$900
$96 Notes payable
$167 Jean Marble, equity
$9,000
$54
$4,783
Working capital
$2,000
$13,783
$9,000
$15,783
$9,000
$11,887
1 What is statement analysis?
2 What does it mean to common-size a report?
The following is a balance sheet displaying two year's data on a company. Common-siz
Calculate the Dollar Change and the Percent Change from 2012 to 2013. Place results
2013
2012
Property, plant & equipment
260,000
240,000
Goodwill
Intangible assets
60,000
120,000
60,000
100,000
440,000
400,000
Current assets
Inventories
Trade receivables
24,000
50,000
20,000
60,000
Cash and cash equivalents
16,000
20,000
90,000
100,000
530,000
500,000
ASSETS
Non-current assets
TOTAL ASSETS
EQUITY AND LIABILITIES
Common-sized
2013
Equity
Share capital
Retained earnings
Revaluation reserve
200,000
100,000
30,000
200,000
80,000
20,000
Total equity
330,000
300,000
70,000
100,000
70,000
20,000
50,000
16,000
30,000
30,000
10,000
4,000
Total current liabilities

Total liabilities
130,000
200,000
100,000
200,000
TOTAL EQUITY AND LIABILITIES
530,000
500,000
Non-current liabilities
Long term borrowings
Current liabilities
Trade and other payables
Short-term borrowings
Current portion of long-term
borrowings
Current tax payable
4 What is Variance Analysis?

Processaimed atcomputingvariancebetween actual and budgeted or targeted levels ofperforma
theircauses.
http://www.businessdictionary.com/definition/variance-analysis.html
The following shows budget figures and actual figures (profit & expense) for a month.
Compute the percentages and variances indicated. Follow the instructions in the comm
Gross profit
Salaries
Payroll taxes
Lease
Phone
Supplies
Insurance
Total OpEx
EBITDA: Actual
EBITDA: Plan
Budget
Actual
Jan
42,589
20,000
5,040
1,000
500
300
500
27,340
15,249
Jan
32,845
27,520
6,935
1,000
562
142
500
36,659
-3,814
Gross profit
Salaries
Payroll taxes
Lease
Phone
Supplies
Insurance
Total OpEx
EBITDA
6 Considering the variance figures in the above analysis, what expense seem most proble
Salary
7
The following table shows the headcount and profit & expense data for a department in
Compute the per-employee (common-sized) figures for the profit and expense items.
Jan
Feb
Mar
Apr
Headcount
5
5
5
5
Gross profit
32,845
46,208
21,710
12,607
Salaries
27,520
22,701
25,984
22,618
Payroll taxes
6,935
5,721
6,548
5,700
Lease
1,000
1,000
1,000
1,000
Phone
562
737
608
678
Supplies
142
263
132
299
Insurance
500
500
500
500
Total OpEx
36,659
30,922
34,772
30,795
EBITDA: Actual
-3,814
15,286
-13,062
-18,188
EBITDA: Plan
15,249
26,425
11,506
-8,996
Gross profit
Salaries
Payroll taxes
Lease
Phone
Supplies
Insurance
Total OpEx
EBITDA: Actual
EBITDA: Plan
8 What is ratio analysis?
9 Describe issues related to interpreting industry averages and trends and to comparing
10 Compare horizontal and vertical analysis.
11 What is a profitability ratio? How are they interpreted?
12 In analyzing a company's profitability, which ratios are commonly used?
13 Define financial leverage and list commonly used leverage ratios.
14 What is liquidity and what are the commonly used liquidity ratios?
15 Compute the Earnings per Share for the following:

Net Income
$
658,964
Shares of common stock
outstanding
EPS
2,000
16 Compute the Gross Profit Margin for the following:

Sales
$
2,984,077
Cost of Sales
$
1,523,477
Gross Profit Margin
17 Compute the Net Profit Margin for the following:

Net Income
$
458,964
Sales
$
2,925,707
Net profit margin
18 Compute the Return on Assets for the following:

EBIT
$
310,838
Total Assets
$
3,612,824
Return on Assets
19 Compute the Return on Equity for the following:

EBIT
$
310,838
Total Equity
$
2,123,456
Return on Equity
20 Compute the Debt Ratio for the following:

Total Liabilities
$
1,645,225
Total Assets
$
3,922,889
Debt Ratio
21 Compute the Equity Ratio for the following:

Stockholders' Equity
$
2,999,425
Total Assets
Equity Ratio
4,665,668
22 Compute the Times Interest Earned ratio for the following:

EBIT
$
645,001
Interest
$
28,792
Times Interest Earned
23 Compute the Current Ratio on the following:

Current Assets
$
1,400,815
Current Liabilities
$
693,849
Current Ratio
24 Compute the Quick Ratio on the following:

Current Assets
$
1,400,815
Inventory
$
666,748
Current Liabilities
$
693,849
Quick Ratio
a company. Common-size the report. Place results in the columns headed Common-sized.
2 to 2013. Place results in the Dollar Chg & Pct Chg columns.
Common-sized
2012
Dollar Chg
Pct Chg
targeted levels ofperformance, and identification of
& expense) for a month.

instructions in the comment boxes.
Variance
Jan
xpense seem most problematic?
data for a department in a company.

fit and expense items.
May
Jun
3
3
18,938
18,268
16,761
16,783
4,224
4,229
1,000
1,000
486
259
106
158
500
500
23,077
22,929
-4,139
-4,661
-3,698
-2,997
trends and to comparing ratios within industries.
nly used?
ded Common-sized.
1 What is a pro forma financial statement?
Using the two most recent years shown create a two-year percentage of sales forecast f
2 Use the 2-year percentage of sales forecast to develop a pro forma budget for the follow
Develop a quarterly sales budget for the following year.
Income Statement for the year ended:
Sales
$
Cost of Goods Sold
Inventory, 1/1
$
Purchases
$
Available for sale
$
Inventory, 12/31
$
Cost of goods sold $
Gross profit
$
2012
498,541 $
2013
367,450
116,081
115,372
231,453
85,919
145,534
353,007
$
$
$
$
$
$
85,919
147,970
233,889
112,969
120,920
246,530
6,166
8,750
3,906
2,110
62,378
3,708
1,070
4,192
92,280
260,727
65,182
195,545
$
$
$
$
$
$
$
$
$
$
$
$
5,915
9,110
3,754
2,680
72,924
5,507
6,310
4,192
110,392
136,138
34,035
102,104
Expenses
Advertising
Office lease
Insurance
Office supplies
Salaries
Communications
Travel
Depreciation
Operating expenses
Operating income
Taxes
Net income
$
$
$
$
$
$
$
$
$
$
$
$
3 Sensitivity analysis measures the impact of changes. What would be percentage effect
4 Define the term forecasting.
5 Define baseline data.
The following are weekly sales volume figures. Compute a three week moving average.
Use the TREND function as an ARRAY function to predict weekly sales for the time series
Week
Sales volume
1
748
2
660
3
814
4
693
5
572
6
374
7
297
8
418
9
451
10
825
11
770
12
792
13
770
14
660
15
704
16
17
18
7 Differentiate linear and nonlinear relationships.
Considering the sales volume data in the previous problem, plot Weeks by Sales volume
Next, create a second Scatter Diagram using the same data points. Insert a 3rd order p
ercentage of sales forecast for the items shown in the income statement.
o forma budget for the following year. Assume a 6% sales increase over the previous year.
2014
389,864
$
$
$
$
$
$
112,969
187,540
300,509
129,125
171,384
218,480
$
$
$
$
$
$
$
$
$
$
$
$
6,770
9,544
4,010
3,862
94,347
7,014
8,733
4,192
138,472
80,008
20,002
60,006
Percentage of Sales
2-year average
would be percentage effect on net profit be of a 2% price increase of the COGS purchases)
hree week moving average. Round the average to the nearest whole number.
ekly sales for the time series and to predict sales for weeks 16-18. Round to the nearest whole num
Moving Avg
plot Weeks by Sales volume in a Scatter Diagram. Insert a linear trend line including R 2. Does a st
points. Insert a 3rd order polynomial trend line. Does this trend line fit the data better?
over the previous year.
2015 Projection
of the COGS purchases)
Q1
Sales Budget
Q2
Q3
Q4
ole number.
Round to the nearest whole number.
rend line including R 2. Does a straight line fit the data well?
ine fit the data better?
1 Describe the key components of developing an effective business ca
2 The following represent key elements in developing a business case

Year:
New E-Reader: Sales Forecast

Total sales, New E-Reader
Cost of Goods Sold @ 50% of sales
Incremental Gross Profit, New E-Reader
$8
$4
$4
$14
$7
$7
($Millions)
$18
$9
$9
In this case the relevant benefit of the new product is the increment
incremental value
$4
$7
$9
The relevant cost factors should be identified

3 Relevant costs:
Lost value, Current Product
Advertising
New product management team
Market research expenses
Incremental maintenance
and estimated over the timeframe of the

$6.00
$2.00
$1.00
$0.50
$0.00
$6.00
$1.00
$1.00
$0.00
$0.50
$6.00
$0.50
$1.00
$0.00
$0.50
4 Total costs
$9.50
$8.50
$8.00
5 Calculate net income.

EBITDA
6
Income before taxes
7
Net income
Less: Depreciation
36%
New equipment investment
($1.50)
$1.00
($2.50)
($0.90)
($1.60)
$1.00
$1.00
$0.00
$0.00
$0.00
($0.60)
$1.00
$10.00
8 Estimate cash flow

Net cash flow
9
($5.50)
$1.00
($6.50)
($2.34)
($4.16)
($13.16)
Determine the cumulative net cash flow and undiscounted payback p

Cumulative Net Cash Flow
($13.16)
Undiscounted payback period
($13.76)
($12.76)
Years
Usually there's a discount rate that needs to be figured into the calc
Discount Rate
Discounted Cash Flow
$ (12.78) $
$ (12.78) $
Cumulative Discounted Cash Flow
$ (12.78) $ (13.34) $ (12.43)
Discounted Payback Period
10
3.0%
(0.57) $
(0.57) $
0.92
0.92
Years
Review the fundamentals of using the Solver add-in by viewing the f

Then implement Solver in the problem on the Unit10b tab.
ective business case.
g a business case and show how Excel can be used in the development proces
4
$28
$14
$14
ct is the incremental profit.

$14
$0
er the timeframe of the case.

$6.00
$0.50
$1.00
$0.00
$0.50
$8.00
$0
$6.00
$1.00
$5.00
$1.80
$3.20
$4.20
counted payback period.

($8.56)
gured into the calculations.
$
$
$
3.73
3.73
$
$
(8.70) $
$
$
(8.70) $
(8.70)
n by viewing the following video: http://youtu.be/K4QkLA3sT1o

10b tab.
e development process.
A3sT1o
Unit10b
A
1
2
3
4
5
6
Year:
Relevant benefits:
Incremental value, New E-Reader
$4.00
$7.00
($Millions)
$9.00
$14.00
$19.00

Advertising
New product management
$6.00
$2.00
$1.00
$0.50
$0.00
$6.00
$1.00
$1.00
$0.00
$0.50
$6.00
$0.50
$1.00
$0.00
$0.50
$6.00
$0.50
$1.00
$0.00
$0.50
$6.00
$0.50
$1.00
$0.00
$0.50
$9.50
$8.50
$8.00
$8.00
$8.00
($5.50)
$1.00
($6.50)
($2.34)
($4.16)
($1.50)
$1.00
($2.50)
($0.90)
($1.60)
$1.00
$1.00
$0.00
$0.00
$0.00
$6.00
$1.00
$5.00
$1.80
$3.20
$11.00
$1.00
$10.00
$3.60
$6.40
Net Cash Flow
$1.00
$10.00
($13.16)
$1.00
$0.00
($0.60)
$1.00
$0.00
$1.00
$1.00
$0.00
$4.20
$1.00
$0.00
$7.40
($13.16)
($13.76)
($8.56)
($1.16)
Relevant costs:
8
9
10
Total costs
EBITDA
Less: Depreciation
Income before taxes
Less: Taxes @ 36%
Net income
Plus: Depreciation
Minus: Investment
21
22
23
24
25
1 Enhanced E-Reader: Cash Flow Statement
11
12
13
14
15
16
17
18
19
20
26
27
Undiscounted payback period:
5.13
28
29
Discount Rate:
0.1
Page 232
($12.76)
Unit10b
A
30
31
32
33
34
35
36
37
($11.96)
($0.50)
($11.96)
($12.46)
5.87
($11.96)
($12.46)
Discounted payback period:
38
39
40
41
42
43
44
45
46
47
48
Page 233
$0.75
$2.87
$4.59
($11.71)
($8.84)
($4.24)
($11.71)
($8.84)
($4.24)
Unit10b
H
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
6
$22.00
Enhanced E-Reader: Cash Flow Statement

Year:
1
Relevant benefits:
Incremental value, New E-Reader
$4.00
3
($Millions)
$7.00
$9.00
Relevant costs:
$7.00
$0.50
$1.00
$0.00
$0.50
$9.00
$13.00
$1.00
$12.00
$4.32
$7.68

Advertising
New product management
Total costs
EBITDA
Less: Depreciation
Income before taxes
Less: Taxes @ 36%
Net income
Plus: Depreciation
Minus: Investment
$6.00
$2.00
$1.00
$0.50
$0.00
$6.00
$1.00
$1.00
$0.00
$0.50
$6.00
$0.50
$1.00
$0.00
$0.50
$9.50
$8.50
$8.00
($5.50)
$1.00
($6.50)
($2.34)
($4.16)
($1.50)
$1.00
($2.50)
($0.90)
($1.60)
$1.00
$1.00
$0.00
$0.00
$0.00
$1.00
$0.00
($0.60)
$1.00
$0.00
$1.00
($13.76)
$1.00
$0.00
$8.68
Net Cash Flow
$1.00
$10.00
($13.16)
$7.52
($13.16)
26
27
Undiscounted payback period:
5.13
28
29
Discount Rate:
0.1
Page 234
($12.76)
Unit10b
H
30
31
32
33
34
35
36
37
$4.90
$0.65

Discounted payback period:
$0.65
38
39
40
41
42
43
44
45
46
47
48
Page 235
($11.96)
($0.50)
$0.75
Err:504
Err:504
Err:504
5.87
($11.96)
($12.46)
($11.71)
Unit10b
O
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
$14.00
$19.00
$22.00
$6.00
$0.50
$1.00
$0.00
$0.50
$6.00
$0.50
$1.00
$0.00
$0.50
$7.00 Constraints
$0.50
$0.50
$1.00
$1.00
$0.00
$0.00
$0.50
$8.00
$8.00
$9.00
$6.00
$1.00
$5.00
$1.80
$3.20
$11.00
$1.00
$10.00
$3.60
$6.40
$13.00
$1.00
$12.00
$4.32
$7.68
$1.00
$0.00
$4.20
$1.00
$0.00
$7.40
$1.00
$0.00
$8.68
($8.56)
($1.16)
$7.52
26
27
28
29
Page 236
Unit10b
30
31
32
33
34
35
36
37
$2.87
$4.59
$4.90
Err:504
Err:504
Err:504
($8.84)
($4.24)
$0.65
38
39
40
41
42
43
44
45
46
47
48
Page 237
1 How is standard deviation used as a business analytic?
2 Describe the purposes of the Excel's standard deviation functions.
3 Define "confidence interval" and how it relates to business analytics.
4 Compute the 95% confidence interval for the following data. See instructions in the co
Passersby
544
468
399
759
526
212
256
456
553
259
469
366
197
178
The following are data showing the advertising budget and unit sales for a company.
Create an X-Y Scatter Diagram (Scatterplot) for the data. Insert a trend line. Also inclu
Advertising Budget
$3,500
$10,073
$11,825
$33,550
$37,200
$55,400
$55,565
$66,501
$71,000
$82,107
$83,100
$90,496
$100,000
$102,100
$132,222
$136,297
$139,114
$165,575
Unit Sales
16,523
6,305
1,769
30,570
7,698
9,554
54,154
54,450
47,800
74,598
25,257
80,608
40,800
63,200
69,675
98,715
75,886
83,360
6 Given the strong linear relationship between the advertising budget and unit sales in t
A for Yes; B for No.
Use Excel's regression tool to perform a regression analysis for the budget and sales d
Place the results In B97.
8 Using the TREND function as an ARRAY function, for the data in the above item predict
$200,000
$210,000
9 Use LINEST to perform a regression analysis on the budget and unit data above. Treat
The following adds additional data (Sales Price) to the dataset the previous problems u
10 Treating Advertising Budget and Sales Price as independent variables, use the Regress
Specify F137 as the Output Range.
Advertising Budget Sales Price

Unit Sales
$3,500
$88
$10,073
$110
$11,825
$85
$33,550
$28
$37,200
$101
$55,400
$71
$55,565
$7
$66,501
$82
$71,000
$62
$82,107
$24
$83,100
$91
$90,496
$40
$100,000
$45
$102,100
$21
$132,222
$40
$136,297
$8
$139,114
$63
$165,575
$5
11 Are both predictors statistically significant?

A=Yes; B=No.
12 What is the Multiple Correlation?
13 Is the Multiple Correlation statistically significant?

A=Yes; B=No.
16,523
6,305
1,769
30,570
7,698
9,554
54,154
54,450
47,800
74,598
25,257
80,608
40,800
63,200
69,675
98,715
75,886
83,360
e instructions in the comment field.
Upper bound
Lower bound
CONFIDENCE.T
Upper bound
Lower bound
sales for a company.
a trend line. Also include the regression equation and the R 2 on the chart. Place the scatterplot in
dget and unit sales in the previous example, can it be said that the budgeted dollars caused the sa
the budget and sales data in the above dataset. Treat the advertising budget as the independent v
the above item predict the unit sales for the following advertising budget dollar amounts.
unit data above. Treat unit sales as the dependent variable.
he previous problems used.

iables, use the Regression tool in Data Analysis to conduct a regression analysis with Unit Sales as
chart. Place the scatterplot in the box.
udgeted dollars caused the sales?
g budget as the independent variable.
dget dollar amounts.
on analysis with Unit Sales as the dependent variable.
1 What is the contribution margin?
2 For the scenario detailed below, compute total sales, total variable costs, contribution m
Unit Sales Price:
$11.25
USP
Number Sold:
1250
$ 11.25
Sales: 1250 DVDs @ $11.25:
Less: Variable costs associated with production:
Employee costs (1000 DVDs @ $0.50):
$625
Materials costs (1000 DVDs @ $5):
$6,250
Packaging costs (1000 DVDs @ $1):
$1,250
Total variable costs:

Contribution margin:
Contribution margin ratio:
3 What is unit contribution?
4 Calculate the unit contribution from the data presented in the previous scenario.
5 Define breakeven analysis.
6 What is the breakeven point?
7 For the following data, calculate the breakeven point in sales and in units.
Volume Fixed
Variable
(units) Costs
Costs
1
$50
$15
2
$50
$30
3
$50
$45
4
$50
$60
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$50
$75
$90
$105
$120
$135
$150
$165
$180
$195
$210
$225
$240
$255
$270
$285
8 For the data in the above example, create a graph showing the breakeven point.
9 Which of the following is not an assumption made in contribution analysis?

A - Revenues and expenses are linear across the relevant range of volume.
B - Costs can be accurately allocated fixed and variable cost categories.
C - Sales mix is constant. That is from one period to the next, total sales are based on the same pe
D - Worker productivity is constant.
E - None of A - D are assumptions of contribution analysis.
F - All of A - D are assumptions of contribution analysis.
iable costs, contribution margin, and contribution margin ratio.

Increase
1.00
previous scenario.
and in units.
Total
Costs
$65
$80
$95
$110
Total
Sales
$20
$40
$60
$80
Breakeven in Units
$125
$140
$155
$170
$185
$200
$215
$230
$245
$260
$275
$290
$305
$320
$335
e breakeven point.
$100
$120
$140
$160
$180
$200
$220
$240
$260
$280
$300
$320
$340
$360
$380
Breakeven in Sales
ion analysis?
es are based on the same percent of each product line.

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00HomeworkProblems2014 Fall Sujit Sengupta

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Homework

The objective of the Homework assignment is to provide an opportun

The Homework problems generally correspond to the types of proble

The worksheets in this workbook correspond to the Units in the cours

In most cases, directions for a problem are provided in a cell above p

Homework items are numbered and highlighted. Some of the proble

There is a Homework Solutions workbook in the Homework Doc Shari

receive in Unit 11.

Homework Grading Rubric

Points per Unit

ide an opportunity to apply or practice the tools and

types of problems you will encounter in the Applications

nits in the course. In two cases, there are two worksheets

swers to the problems are to be placed in a specific cell.

n a cell above problem's workspace. However, as you

me of the problems are displayed far down the worksheets.

ework Doc Sharing folder. You may check your homework

a Homework assignment in each of the 12 Units.

How are data and information different?

What is the Productivity Paradox?

What is an extranet? What are some advantages of Extranets?

List and define five components of effective graphing.

Examples of Bad Chart Types.

4 Compute PartyAffiliation frequency using the

Examples of Good Chart

Democrat Sum - CountIndependent

quency using the COUNTIF function.

ffiliation of college students

ffiliation of college students in a Business Analytics Class

Compare and contrast variables and values.

9 Create a frequency distribution of the day values that are g

ay values that are grouped.

Place in cell G5.

prwe preq prwd prwc prwco icad

Gender: 1=Male; 2=Female

1 Define correlation and describe how

2 Calculate the correlation between c

3 Calculate the correlation between c

4 What does the term best linear com

5 Use the TREND function as an ARRA

6 Use the LINEST function to comput

7 Create a one-way Pivot Table tabul

8 Create a Scatterplot (Scatter Diagr

Insert a Trendline and the regressio

The correlation of the Actual values

correlation and describe how it's typically used.

does the term best linear combination mean?

e a one-way Pivot Table tabulating the frequency of sex. Place in X42.

a Trendline and the regression equation, including R 2.

or covary. Correlations vary from -1.0 to +1.0 ,

maximize the correlation of the combined predictor

ch of the observations from

cptw for the variables icpy

(PR). Place in the box below.

ple Correlation, R, when the Predicted values is the linear combination of

The data columns B & C constitute the p

1 Using Pivot Tables create Gender b

Is the association between Gender

Assume that you did not have acce

Assume that you did not have acce

4 Create a gender by Race crosstabu

5 Define the Yule-Simpson effect and

ta columns B & C constitute the population of individuals in a retail clerk