Singapore Campus, Study Period SP53, 2013

Statistical Report

Analysis of Case study 3: Heavenly Chocolates website transactions

Prepared for Dr Tjong Budisantoso

Done by Mr. Keung, Tseung

Student ID : 12776910

20/12/2013

Table of contents

Introduction ---------------------------------------------------------------------------

Question a ---------------------------------------------------------------------------

Question b

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Correlations Analysis

Step 1: Scatter Diagram: the amount ($) spent and the time spent

Independent variable: Time Spent (Mins)

Dependent variable: Amount Spent

Step 2: Elaboration

The Scatter diagram illustrate a strong positive linear correlation and a direct relationship between the two variables.

To apply the Coefficient of Correlation (r) formula: Coefficient of correlation = 0.96184 (Solved by Excel)

When r is close to 1, which proves it is a positive correlation, so there is a direct relationship can be seen between the time spent and the amount spent , and the value of 0.96184 is fairly close to 1.00, so it can be concluded that the association is strong.

e). You have to develop a 90% confidence interval estimate of the expected sales and interpret the interval.

Solution:

To begin, let's assume the population distribution is normal. In this case, the assumption is probably reasonable. Knowing that a sample of 50 Heavenly chocolates transactions was chosen in the previous monthâ€™s sales , by computing the sample standard deviation and the average amount spent(Sample of mean) is to construct a 90% confidence interval estimate of the expected sales.

A calculation of average Amount Spent ($) (Sample of mean) :

$758.86 + $414.86 + $407.02 + $294.03 + $925.43 + $394.4 + $222.15 / 50= $68.34

Sample standard deviation formula: S