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Question

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Assume that XYZ is a renowned chemical company in a particular country. The company is currently producing and marketing three products including Toothpaste, Body lotion and Face wash. The monthly data for two years on total revenue of each product are shown in Table 1. Monthly advertisement costs of all three products are also given in the same Table.

Students are required to complete the following tasks and practice by themselves (individually) in order to develop their understanding on measure of central tendency, measure of dispersion of the data and measure of association of different variables.

i.                   Identify the type of the data also identify the variables.

ii.                 Organise the data into appropriate class intervals and present the following:

• A histogram of the frequency distribution

• An “Ogive” of the cumulative frequency distribution

• Frequency polygon

iii.              Estimate the Mean, Median, Range, Standard Deviation and                                        Coefficient of Variation

iv.              Compare the risk from three different products sales based on monthly revenue data.

v.                 Calculate the 25th, 50th, and 75th percentile of the first year data on advertisement.

vi.              The marketing manager of XYZ Company proposed the CEO to invest more money on advertisement in order to increase the return of the company. Do you think the marketing manager of the company can prove that his proposed plan for new investment is justified?

(Hints: Calculate correlation coefficient between revenue data of each product and advertisement costs)

Table 1. Monthly returns and costs on advertisement (in thousand dollars) of XYZ Company for two years

 

 

Year

Months

Toothpaste (AU$)

Body Lotion (AU$)

Face wash (AU$)

Advertisement Costs (AU$)

Year 1

January

45

51

57

28

February

48

57

61

28

March

50

61

61

29

April

52

62

67

30

May

54

67

68

34

June

41

49

51

24

July

71

98

132

44

August

76

104

132

50

September

81

132

137

57

October

82

156

140

58

November

84

146

147

62

December

85

152

148

63

Year 2

January

85

156

158

70

February

55

72

70

36

March

61

73

112

37

April

66

84

121

40

May

70

95

123

43

June

21

BBAC 201 Business Statistics

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