1.
Problem 1: Wholesale Customers Analysis
Problem Statement:
A wholesale distributor operating in different regions of Portugal has information on annual spending of
several items in their stores across different regions and channels. The data consists of 440 large retailers’
annual spending on 6 different varieties of products in 3 different regions (Lisbon, Oporto, Other) and across
different sales channel (Hotel, Retail).
Solution:
1.1 Use methods of descriptive statistics to summarize data. Which Region and which Channel seems to
spend more? Which Region and which Channel seems to spend less?
Dataset has below variables
1. 'Buyer/Spender'
2. 'Channel' (categorical variable)
3. 'Region' (categorical variable)
4. 'Fresh'
5. 'Milk'
6. 'Grocery'
7. 'Frozen'
8. 'Detergents_Paper'
9. 'Delicatessen'
Observations are 440 and variables are 9
Let’s check datatypes of each variables
Let’s check descriptive statistics
Let’s see if there are any null values present in dataset
Let’s try to answer questions now,
1.1 Use methods of descriptive statistics to summarize data. Which Region and which Channel seems to
spend more? Which Region and which Channel seems to spend less?
I understand there are total four different questions to answer,
1. Which Region seems to spend more? – ‘Other’
2. Which Channel seems to spend more? – ‘Retail’
3. Which Region seems to spend less? – ‘Lisbon’
4. Which Channel seems to spend less? - ‘Hotel’
1.2 There are 6 different varieties of items are considered. Do all varieties show similar behaviour across
Region and Channel?
Lets see how strong corelation present between variables, check this heatmap
1.3 based on a descriptive measure of variability, which item shows the most inconsistent behaviour? Which
items show the least inconsistent behaviour?
Hmm…. Let’s see scatterplot also
Pair plot,
1.4 Are there any outliers in the data?
Below items hold outliers
1.Fresh
2.Milk
3.Grocery
4.Frozen
5.Detergents_Paper
6.Delicatessen
1.5 based on this report, what are the recommendations?
Recommendation
It appears that Grocery and Detergents_Paper have the strongest correlation of the pairs. It also looks like
there is some correlation between Detergents_Paper and Milk, and Grocery and Milk. This confirms my
suspicion above that Grocery was correlated with some other features that would allow for its value to be
predicted with some degree of accuracy. All of the distributions appear to be skewed to the right, with more
points hovering closer to the origin and some larger points extending it to the right. The shape of the
distributions of Detergents_Paper, Grocery, and Milk are all quite similar.
Problem 2 - (Download Survey Data)
The Student News Service at Clear Mountain State University (CMSU) has decided to gather data about the
undergraduate students that attend CMSU. CMSU creates and distributes a survey of 14 questions and
receives responses from 62 undergraduates (stored in the Survey data set).
2.1. For this data, construct the following contingency tables (Keep Gender as row variable)
2.1.1. Gender and Major
2.1.2. Gender and Grad Intention
2.1.3. Gender and Employment
2.1.4. Gender and Computer
2.2. Assume that the sample is representative of the population of CMSU. Based on the data, answer the
following question:
2.2.1. What is the probability that a randomly selected CMSU student will be male?
Probability that a randomly selected CMSU student will be male is 46.77 %
2.2.2. What is the probability that a randomly selected CMSU student will be female?
Probability that a randomly selected CMSU student will be Female is 53.23 %
2.3. Assume that the sample is representative of the population of CMSU. Based on the data, answer the
following question:
2.3.1. Find the conditional probability of different majors among the male students in CMSU.
2.3.2 Find the conditional probability of different majors among the female students of CMSU.
2.4. Assume that the sample is a representative of the population of CMSU. Based on the data, answer the
following question:
2.4.1. Find the probability That a randomly chosen student is a male and intends to graduate.
Probability That a randomly chosen student is a male and intends to graduate is 58.62
2.4.2 Find the probability that a randomly selected student is a female and does NOT have a laptop.
The probability that a randomly selected student is a female and does NOT have a laptop 12.12
2.5. Assume that the sample is representative of the population of CMSU. Based on the data, answer the
following question:
2.5.1. Find the probability that a randomly chosen student is either a male or has full-time
employment?
The probability that a randomly chosen student is either a male or has full-time employment is 14.32
2.5.2. Find the conditional probability that given a female student is randomly chosen, she is
majoring in international business or management.
The conditional probability that given a female student is randomly chosen, she is majoring in
international business or management is 24.0
2.6. Construct a contingency table of Gender and Intent to Graduate at 2 levels (Yes/No). The Undecided
students are not considered now and the table is a 2x2 table. Do you think the graduate intention and being
female are independent events?
No, they are not independent events.
2.7. Note that there are four numerical (continuous) variables in the data set, GPA, Salary, Spending, and
Text Messages.
Answer the following questions based on the data
2.6.1. If a student is chosen randomly, what is the probability that his/her GPA is less than 3?
If a student is chosen randomly, the probability that his/her GPA is less than 3 is 27.0
2.6.2. Find the conditional probability that a randomly selected male earns 50 or more. Find the conditional
probability that a randomly selected female earns 50 or more.
The conditional probability that a randomly selected male earns 50 or more is 48.28
The conditional probability that a randomly selected female earns 50 or more is 54.55
2.8. Note that there are four numerical (continuous) variables in the data set, GPA, Salary, Spending, and
Text Messages. For each of them comment whether they follow a normal distribution. Write a note
summarizing your conclusions.
GPA and Salary seem follow normal distributions
Spending and Text-messages seem not to follow normal distribution. They seem right skew
Problem 3 -
An important quality characteristic used by the manufacturers of ABC asphalt shingles is the amount of
moisture the shingles contain when they are packaged. Customers may feel that they have purchased a
product lacking in quality if they find moisture and wet shingles inside the packaging. In some cases,
excessive moisture can cause the granules attached to the shingles for texture and colouring purposes to fall
off the shingles resulting in appearance problems. To monitor the amount of moisture present, the
company conducts moisture tests. A shingle is weighed and then dried. The shingle is then reweighed, and
based on the amount of moisture taken out of the product, the pounds of moisture per 100 square feet is
calculated. The company would like to show that the mean moisture content is less than 0.35 pound per
100 square feet.
The file (A & B shingles.csv) includes 36 measurements (in pounds per 100 square feet) for A shingles and 31
for B shingles.
3.1 Do you think there is evidence that means moisture contents in both types of shingles are within the
permissible limits? State your conclusions clearly showing all steps.
1. Define null and alternative hypotheses
H0 = mean moisture content is not equal to 0.35 pound per 100 square feet
H1 = mean moisture content is less than 0.35 pound per 100 square feet
2. Decide the significance level
Here we select 𝛼 = 0.05 and the population standard deviation is not known
3. Identify the test statistic
We have two samples and we do not know the population standard deviation.
Sample sizes for both samples are not same. n1=36 n1=31
We use two sample t-test.
4. Calculate the p - value and test statistic
tstat 0.845
p-value for one-tail: 0.2025369351827172
5. Decide to reject or accept null hypothesis
Paired two-sample t-test p-value= 0.2025369351827172
We do not have enough evidence to reject the null hypothesis in favour of alternative hypothesis
We need to accept alternate hypothesis "mean moisture content is less than 0.35 pound per 100
square feet"
3.2 Do you think that the population mean for shingles A and B are equal? Form the hypothesis and conduct
the test of the hypothesis. What assumption do you need to check before the test for equality of means is
performed?
1. Define null and alternative hypotheses
H0: 𝜇𝐴 - 𝜇𝐵 ≠ 0
HA: 𝜇𝐴 - 𝜇𝐵 = 0
2. Decide the significance level
Here we select 𝛼 = 0.05 and the population standard deviation is not known
3. Identify the test statistic
We have two samples and we do not know the population standard deviation.
Sample sizes for both samples are not same. n1=36 n1=31
We use two sample t-test.
4. Calculate the p - value and test statistic
tstat 0.985249977839441
P Value 0.3284577916404776
5. Decide to reject or accept null hypothesis
We do not have enough evidence to reject the null hypothesis in favour of alternative hypothesis
