Most of your statistical calculations should be carried out using Excel only and you will use Microsoft Word and Excel to complete this assignment.
1. Select a Random Sample
Select a random sample of size 50 from the given 1000 cases. You will use this sample data to complete tasks 2 to 6. Since repeat cases may occur when you draw random numbers and each case can be included only once in your sample, some of you may end up with a sample size less than 50. In such a situation do not draw another sample to acquire 50 values. You will continue to work on your sample only, even though your sample is smaller than 50.
2. Descriptive Statistics
Use appropriate data summary methods to describe the bank data in your sample using the six variables. Use an appropriate graphical and/or summary statistical technique, chosen according to the type of variable These techniques will be chosen from:
Tabular Techniques: Frequency tables and Grouped frequency tables.
Graphical Techniques: Pie chart, Bar graph, Histogram, Frequency Polygon.
Summary Statistics: Mode, Median, Mean, Standard Deviation, Range, Coefficient of Variation and Interquartile Range.
NB: You will need to choose the most appropriate technique(s) for each variable being analysed. Less appropriate/inappropriate techniques will receive fewer/no marks. Do not draw Ogive curve, Stem plot or a box plot in this assignment.
There are six variables all together to be analysed.
For a nominal or an ordinal variable draw a graph and present a frequency table in percentages.
For a ratio or an interval variable draw a graph and a summary statistics table.
Try to use variation in drawing graphs eg pie chart/ bar chart or histogram/polygon as much as possible. Do not draw two different graphs for the same variable.
3. Confidence intervals
Estimate the following quantities, using 95% confidence intervals. Explain the meaning of your confidence intervals.
(i) The average age of account holders for the open accounts only.
(ii) The average total transaction dollars for all accounts.
Compare both intervals with their respective true means. . The computations and output should be placed in an appendix.
4. Hypothesis Testing
(a) It is often felt that female account holders have different account balances on average than male account holders. For this hypothesis only consider OPEN accounts. Investigate this contention by carrying out an appropriate hypothesis test.
(b) It is often felt that the average transaction dollars differ for Visa and non-visa accounts. Use ACCOUNT TYPE for this test.
Only report a non-technical explanation of your methodology and your findings in the main section of the report. The computations and output should be placed in an appendix.
5. Correlation and Regression
In this section you will investigate the relationship between the transaction dollars and age of the account holders for OPEN accounts only.
Using these two variables develop a regression model to predict average transaction dollar from their age. Make sure that you undertake a full regression analysis, with appropriate discussion and include:
· a scattergram and a brief discussion
· an estimate of the linear regression model
· the coefficients of correlation and determination
· a test of the hypothesis that there is no linear relationship between transaction dollars and the age of an account holder.
. The computations and output should be placed in an appendix.
This assignment counts 10% towards the final score.
Executive Summary 4
Descriptive statistics 12
Confidence intervals 6
Hypothesis Tests 6
Correlation and Regression 8
Conclusion and Limitations 4
Appendix with EXCEL outputs 4
Include only relevant Excel output in the report, the rest should be placed in the appendices.
MARKS AND SUBMISSION INSTRUCTIONS:
(i) This assignment contributes 15% to the final assessment students are expected to submit genuine attempts at the assignment, before a pass grade or above can be awarded for the subject.
due Thursday October 30 by 6 pm.
Note: no extension will be given to students on the grounds that they tried to print their assignment on the due day but the print failed for any reason.
(ii) This assignment must have the correct cover page (available on the FIN10002 web page) with your ID, family name, given name, tutorial day and time and your tutor’s name. Do not use heavy plastic covers or put each page into a separate plastic pocket.
(iii) Submit your completed assignment to the 10th floor of the ATC building, in a box near the lifts in the 10th floor foyer labelled as FIN10002 Financial Statistics. DO NOT CROSS THE BRIDGE.
(iv) The penalty for late submission of assignments is 20% of awardable marks per day overdue.
(v) Marks will be awarded for presentation. Assignments must be word processed and include page numbers. Students are to use MS-Excel to perform the data analysis. All relevant Excel output, referred to but not included in the report itself, is to be placed in an appendix.
(vi) Students must work independently on this assignment and submit only their own work.
(vii) Assignment maximum lengths:
5 single-sided A4 pages, plus cover sheet, Executive Summary and appendices. Executive Summary and appendices are not included in the page count.
(i) Each student must keep a copy of their assignments for their own records.
Detailed instructions will be provided in your lectures about completing this assignment. Some Excel work will be demonstrated in some lectures to help you complete your calculations and project writing.
PRESENTATION OF A BUSINESS REPORT
The report should be presented in the form of a business report to a senior manager who cannot be assumed to have any particular knowledge of statistical methods.
Make your report informative but concise and use a non-technical style. Do not just quote statistics or analysis results but explain what they mean. In general, do not include in the report formulae, calculations, definitions of statistical terms or discussions on how graphs are constructed. Where appropriate these may be included in the appendices.
It is important that the values which have been calculated are correctly analysed, discussed and interpreted, and that a written description of the main features of the tables and graphs that have been constructed is included. The emphasis in this assignment is on interpretation and analysis, not just the computation of statistics and construction of graphs. It will be assumed that all computations have been correctly performed and that graphs have been properly constructed. Nevertheless, marks will be deducted if these are inaccurate or incorrect.