Question Part B;Course Project: AJ DAVIS DEPARTMENT STORES;Introduction;AJ DAVIS is a department store chain, which has many credit customers and wants to find out;more information about these customers. A sample of 50 credit customers is selected with data;collected on the following five variables.;1. Location (rural, urban, suburban);2. Income (in $1,000'sbe careful with this);3. Size (household size, meaning number of people living in the household);4. Years (the number of years that the customer has lived in the current location);5. Credit balance (the customers current credit card balance on the store's credit card, in $).;The data is available in Doc Sharing Course Project Data Set as an Excel file. You are to copy;and paste the data set into a minitab worksheet.;PROJECT PART A: Exploratory Data Analysis;Open the file MATH533 Project Consumer.xls from the Course Project Data Set folder in;Doc Sharing.;For each of the five variables, process, organize, present, and summarize the data.;Analyze each variable by itself using graphical and numerical techniques of;summarization. Use minitab as much as possible, explaining what the printout tells you.;You may wish to use some of the following graphs: stem-leaf diagram, frequency or;relative frequency table, histogram, boxplot, dotplot, pie chart, bar graph. Caution: Not all;of these are appropriate for each of these variables, nor are they all necessary. More is;not necessarily better. In addition, be sure to find the appropriate measures of central;tendency and measures of dispersion for the above data. Where appropriate use the five;number summary (the Min, Q1, Median, Q3, Max). Once again, use minitab as;appropriate, and explain what the results mean.;Analyze the connections or relationships between the variables. There are 10 pairings;here (location and income, location and size, location and years, location and credit;balance, income and size, income and years, income and balance, size and years, size;and credit balance, years and Credit Balance). Use graphical as well as numerical;summary measures. Explain what you see. Be sure to consider all 10 pairings. Some;variables show clear relationships, while others do not.;Prepare your report in Microsoft Word (or some other word processing package);integrating your graphs and tables with text explanations and interpretations. Be sure that;you have graphical and numerical back up for your explanations and interpretations. Be;selective in what you include in the report. I'm not looking for a 20-page report on every;variable and every possible relationship (that's 15 things to do). Rather, what I want you;do is to highlight what you see for three individual variables (no more than one graph for;each, one or two measures of central tendency and variability (as appropriate), and two;or three sentences of interpretation). For the 10 pairings, identify and report only on three;of the pairings, again using graphical and numerical summary (as appropriate), with;interpretations. Please note that at least one of your pairings must include location and at;least one of your pairings must not include location.;All DeVry University policies are in effect, including the plagiarism policy.;Project Part A report is due by the end of Week 2.;Project Part A is worth 100 total points. See grading rubric below.;Submission: The report from Part 4, including all relevant graphs and numerical analysis along;with interpretations;Format for report;A. Brief introduction;B. Discuss your first individual variable, using graphical, numerical summary, and;interpretation;C. Discuss your second individual variable, using graphical, numerical summary, and;interpretation;D. Discuss your third individual variable, using graphical, numerical summary, and;interpretation;E. Discuss your first pairing of variables, using graphical, numerical summary, and;interpretation;F. Discuss your second pairing of variables, using graphical, numerical summary, and;interpretation;G. Discuss your third pairing of variables, using graphical, numerical summary, and;interpretation;H. Conclusion;Project Part A: Grading Rubric;Category;Points % Description;Three Individual;graphical analysis, numerical analysis (when;Variables;36;36;appropriate) and interpretation;12 points each;Three Relationships;graphical analysis, numerical analysis (when;45;45;15 points each;appropriate), and interpretation;writing, grammar, clarity, logic, cohesiveness;Communication Skills 19;19;adherence to the above format;A quality paper will meet or exceed all of the;Total;100;100;above requirements.;Project Part B: Hypothesis Testing and Confidence;Intervals;Your manager has speculated the following.;a. The average (mean) annual income was greater than $45,000.;b. The true population proportion of customers who live in a suburban area is less than 45%.;c. The average (mean) number of years lived in the current home is greater than 8 years.;d. The average (mean) credit balance for rural customers is less than $3,200.;1. Using the sample data, perform the hypothesis test for each of the above situations in;order to see if there is evidence to support your managers belief in each case AD. In;each case, use the Seven Elements of a Test of Hypothesis in Section 6.2 of your text;book with =.05, and explain your conclusion in simple terms. Also, be sure to compute;the p-value and interpret.;2. Follow this up with computing 95% confidence intervals for each of the variables;described in AD, and again interpreting these intervals.;3. Write a report to your manager about the results, distilling down the results in a way that;would be understandable to someone who does not know statistics. Clear explanations;and interpretations are critical.;4. All DeVry University policies are in effect, including the plagiarism policy.;5. Project Part B report is due by the end of Week 6.;6. Project Part B is worth 100 total points. See the grading rubric below.;Submission: The report from Part 3 and all of the relevant work done in the hypothesis testing;(including minitab) in 1 and the confidence intervals (minitab) in Part 2 as an appendix;Format for report;A. Summary report (about one paragraph on each of the speculations, AD);B. Appendix with all of the steps in hypothesis testing (the format of the Seven Elements of;a Test of Hypothesis, in Section 6.2 of your text book) for each speculation AD, as well;as the confidence intervals, including all minitab output;Project Part B: Grading Rubric;Category;Points % Description;Addressing each speculation;hypothesis test, interpretation;80;80;20 points each;confidence interval, and interpretation;one paragraph on each of the;Summary report;20;20;speculations;A quality paper will meet or exceed all of;Total;100;100;the above requirements.;Project Part C: Regression and Correlation Analysis;Using MINITAB, perform the regression and correlation analysis for the data on income(Y), the;dependent variable, and credit balance (X), the independent variable, by answering the following.;1.;Generate a scatterplot for income ($1,000) versus credit balance($), including the graph of;the best fit line. Interpret.;2.;Determine the equation of the best fit line, which describes the relationship between;income and credit balance.;3.;Determine the coefficient of correlation. Interpret.;4.;Determine the coefficient of determination. Interpret.;5.;Test the utility of this regression model (use a two tail test with =.05). Interpret your;results, including the p-value.;6.;Based on your findings in 15, what is your opinion about using credit balance to predict;income? Explain.;7.;Compute the 95% confidence interval for beta-1 (the population slope). Interpret this;interval.;8.;Using an interval, estimate the average income for customers that have credit balance of;$4,000. Interpret this interval.;9.;Using an interval, predict the income for a customer that has a credit balance of $4,000.;Interpret this interval.;10.;What can we say about the income for a customer that has a credit balance of $10,000?;Explain your answer.;In an attempt to improve the model, we attempt to do a multiple regression model predicting;income based on credit balance, years, and size.;11.;Using MINITAB, run the multiple regression analysis using the variables credit balance;years, and size to predict income. State the equation for this multiple regression model.;12.;Perform the global test foruUtility (F-Test). Explain your conclusion.;13.;Perform the t-test on each independent variable. Explain your conclusions and clearly;state how you should proceed. In particular, state which independent variables should we keep;and which should be discarded.;14.;Is this multiple regression model better than the linear model that we generated in parts;110? Explain.;All DeVry University policies are in effect, including the plagiarism policy.;15. Project Part C report is due by the end of Week 7.;16. Project Part C is worth 100 total points. See the grading rubric below.;Summarize your results from 114 in a report that is 3 pages or less in length and explains and;interprets the results in ways that are understandable to someone who does not know statistics.;Submission: The summary report + all of the work done in 114 (Minitab Output + interpretations);as an appendix;Format;A. Summary Report;B. Points 114 addressed with appropriate output, graphs, and interpretations. Be sure to;number each point 114.;Project Part C: Grading Rubric;Category;Questions 112;and 14;5 points each;Points %;Description;65;65;addressed with appropriate output, graphs, and;interpretations;Question 13;15;15;Summary;20;Total;100;addressed with appropriate output, graphs, and;interpretations;20 writing, grammar, clarity, logic, and cohesiveness;A quality paper will meet or exceed all of the;100;above requirements.
Paper#60459 | Written in 18-Jul-2015Price : $32