Business Data Analysis

2372 words - 10 pages

1. Suppose we are interested to estimate the proportion (p) of smokers among the male students in IIMA. Suppose a sample of size 100 is chosen out of the male students and the sample proportion of smokers is found to be 0.2. Give an interval based on your data so that you are 95% confident that the true value of the unknown proportion lies inside it.
How would you explain 95% confidence to a layman? Suppose a professor of IIMA thinks that true proportion is 0.3. Are you ready to accept the professor’s perception based on your data at 99% confidence level?

Solution – 1
Sample Size n = 100 (male smokers)
p = 0.2
Sd (P) = √(pq / n)
= .04
95% confidence interval of p
= ...view middle of the document...

51
Sd (p) = √(pq / n) = 0.004999

95% confidence interval of p
= 0.51 ± 2 x 0.004999
= 0.5 to 0.52

Since 0.51 lies in the interval 0.5 to 0.52 we can claim with 95% confidence that democrats would win.

At 99 % confidence interval
= 0.51 ± 2.58 x .0049
= 0.49 to 0.52

Since 0.51 lies in the interval 0.49 to 0.52 we can claim with 99% confidence also that democrats would win.

3. A company likes to predict what proportion of people who click on its ad on the web would eventually buy its product. Last month’s data show that 1 million clicked on the ad but 10,000 customers eventually bought the product. Could the company claim with 95% confidence that at least 0.5% of those who clicked would buy its product? How would you explain 95% confidence to a layman?

Solution – 3
Sample Size = 1,000,000
p = 10,000/1,000,000 = .01
Sd (p) = √(pq / n)
= 9.95 x10^(-5)
95% confidence interval of p
= 0.01± 2 x 9.95 x10^(-5)
= .0098 to 0.0102

As 0.5% (.05) does not lie in this interval, the company cannot claim with 95% confidence that at least 0.5% of those who clicked the ad would buy eventually buy the product.

Explanation to a Layman: If one took a sample of no of persons who clicked the advertisement of the Company and whether they bought the product or not then based on the last month’s data ratio / or of a chosen sample of ads clicked to product purchase, we can conclude with 95% confidence that of the sample 0.5% (in the present case) of people may not eventually buy the product.

4. A Call Center is interested to compare the skills of two of its employees, say, Ram and Shyam, in generating subscription to a credit card. It was found during the last month Ram called up 2000 people and 150 of them subscribed while for Shyam the numbers are 1500 and 200. Using the above data could you claim with 95% confidence that Shyam is more competent (in the sense that if Shyam calls up a person, the chance of his/her to subscribe is more than that of Ram)?

Solution – 4
Case – 1: Ram
Total Subscribed 150
Sample size 2000
(No of Persons Called)
p = sample proportion
Sample proportion = 150/2000 = 0.075

95% confidence interval of p
Sd (p) = √(pq / n) =.0059
= 0.075 ± 2 x 0.0059
0.063 to 0.086

With 95 % confidence interval the true value of p (0.075) for Ram’s case lies between 0.063 to 0.086

Case – 2: Shyam
Total Subscribed 200
Sample size 1500
(No of Persons Called)
p = sample proportion
Sample proportion 0.1333
(200/1500)

95% confidence interval of p
Sd (p ) = √(pq / n)
=.0088
= 0.1333 ± 2 x 0.0088
=0.115 to 0.151

With 95 % confidence interval the true value of p (0.133) in Shyam’s case lies between 0.115 to 0.151.
Thus based on past month’s data we can conclude since Shyam’s success ratio is higher in conversion of calling the person to credit card subscription we can conclude with 95% confidence that Shyam is more competent than...

Other Essays Like Business Data Analysis

Big Data Essay

1013 words - 5 pages "Business, Social and Big Data Analytics (BSBDA)"Not more than a few years ago, the trend was to hold data and to try to derive some patterns within them to facilitate decision making. Though it still stands valid in many cases, when it comes to social data the idea kind of topples over. Because there is just so much complex and unstructured data generated every day that it is impossible to house it. Getting valuable insight from social data is

Big Data and Data Analytics Essay

988 words - 4 pages which exceeds the current processing capacity, still there lies a great potential to help companies to take faster and intelligent decisions and improve operations. There are three characteristics that define big data, which are: 1. Volume 2. Velocity 3. Variety * Volume: The volume of data under analysis is large. Many factors contribute to the increase in data volume, for example, * Transaction-based data stored through

Data Leakage

4381 words - 18 pages . The protection measure must be taken to secure these valuable data because if data is leaked from an organization and cybercriminals ―cash out‖ or sell this data for profit it costs organizations money, damages the brand, image and destroys customer trust. In the course of doing business, sometimes sensitive data must be handed over to supposedly trusted third parties for some enhancement or operations, for example, a hospital may give

Data Management

1592 words - 7 pages Database Partitioning JOHN OWENS West Florida University Data Management March 18, 2014 Data partitioning is a tool that can help manage the day-to-day needs of an organization. Each organization has unique values that drive business. All organizations have policies and processes that are influenced by their environment and industry. The use of data partitioning can help productivity by recognizing the need to categorize data to

Data Warehousing

1704 words - 7 pages -forward analysis via a business question. This grade denotes that you have demonstrated through practice your ability to create a small-scale data warehouse solution Typically 45-48% is likely to represent a discussion-only assignment submission. You have not successfully implemented a working solution, but you can give a reasonable discussion of the theory/concepts of the subject. Lower marks represent failures to meet the module Learning

Financial Data

2454 words - 10 pages COURSE WORK DONE BY : JEFF JACOB THOMAS STUDENT I.D: JAJED0A UNDERSTANDING AND INTERPRETING FINANCIAL DATA DBQAN30 COURSEWORK ON RATIO ANALYSIS This assignment comprises an individually analysed and presented case study, designed to assess the depth of knowledge of ratio analysis at an introductory level, and to demonstrate ability to comment on the result obtained and write a short report advising the users of financial

Accounting Data

2948 words - 12 pages [pic] Analysis of financial statement 525 Semester 2 2013 Individual Assignment Student Name: Lihan Ye Student Number: 16030886 Part 1 History of Patties foods Patties Foods, whose former name is Patties Bakery, now is the largest pie supplier in Australia. It was founded by the Rijs Family who are the immigrants from Holland in 1966. Today’s Patties Foods is based in Bairnsdale, own 7 famous brands, including

Data Center

4499 words - 18 pages goals and it helps students to gain knowledge about job field. Though I was always interested on Data base on web development and this is really such a great achievement for me to work in SynTech in such field and this report is based on this experience. 2.1 Rationale: An internship report provides the faculty that information which qualifies the student for graded credit; it also provides the faculty with in-depth information

Walmart Data Warehousse

921 words - 4 pages DATA WAREHOUSE A data warehouse is a logical collection of information gathered from different operational databases and used to create business intelligence that supports decision making tasks and business analysis activities. Walmart is known for having the biggest data warehouse used, which is larger then 4 Petabytes. Wal-Mart is very secretive about their data warehouse. After achieving a major milestone Teradata, Wal-Mart’s data warehouse

Data Development Cycle

1240 words - 5 pages basis. In this analysis we must give highest priority to the end user. The main objectives in the phase are to know the existing system, Defining the problems in the business,Defining the data design and Defining the guidelines for database system. Database design In this phase database architecture should define the required database design as per the organization requirements. In this phase designers must try to answer to many questions

The Big Data Challenges

978 words - 4 pages The Big Data Challenges April 19th, 2012 Introduction When Volvo separated from Ford in 2010, it was breaking free from an IT infrastructure that consisted of a tangle of different systems and licenses. The need was there to develop a new stand alone IT infrastructure that could provide better Business Intelligence, boost communication capabilities and enrich collaborations. Volvo Car Corporation Integrates the Cloud into Its

Related Papers

Data Analysis

1406 words - 6 pages RMG 700 - Applied Retail Research Data Analysis Assignment I. Introduction Today more than ever, there is a major and constant fear of an impending recession in Canada’s economy. A recession is a decline in any given country’s Gross Domestic Product (GDP) for two or more consecutive quarters of a year. A recession normally takes place when consumers loose confidence in the growth of the economy and spend less. This leads to a decrease

Financial Data Analysis

1377 words - 6 pages Financial Data Analysis HCS/577 July 14, 2014 Financial Data Analysis Patton - Fuller Community Hospital | Balance Sheet as of December 31 | 2009 and 2008 | (In thousands) | (Audited) | 2009 | 2008 | Assets | Current Assets | Cash and Cash Equivalents | $22,995 | $41,851 | Assets of Limited Use | $27,594 | $41,851 | Patient Accounts Receivable (1) | $58,787 | $37,666 | (net of Allowance for

Data Mining Essay

1317 words - 6 pages research to get the competitive edge better analysis of the data collected in the market through survey helps the organization to grow and also helps to sale the specific product in the field. 2. Establishing or collaborating with other business entity also requires the predictive analysis because in this way firms evaluate the opportunities to grow or expand with other units. In many ways data plays the significant role to provide the full fledge

Data Mining Essay

2361 words - 10 pages Data Mining Introduction to Management Information System 04-73-213 Section 5 Professor Mao March 22, 2011 Group 5: Carol DeBruyn, Jason Rekker, Matt Smith, Mike St. Denis Odette School of Business – The University of Windsor Table of Contents Table of Contents ……………………………………………………………...…….………….. ii Introduction ……………………………………………………………………………………… 1 Data Mining ……………………………………………………………………...……………… 1 Text Mining