MAF210 Quantitative Methods for Business

Trimester T1, 2025

Individual Report (Analytical)

DUE DATE AND TIME: 5 May 2025 (Monday) 8:00 PM

PERCENTAGE OF FINAL GRADE: 40% (30% (Report) +10% (Video))
HURDLE DETAILS: None
Learning Outcome Details
Unit Learning Outcome (ULO) Graduate Learning Outcome
(GLO)
ULO1: Apply statistical methods and analytical GLO1: Discipline-specific
techniques to examine cross sectional and times knowledge and capabilities
series data. GLO5: Problem solving
Assessed by correct application and
interpretation of statistical methods in the
report and clear explanation in the video.

ULO2: Address business problems and GLO1: Discipline-specific

challenges using various quantitative knowledge and capabilities
techniques. GLO4: Critical thinking
Assessed by effective use of techniques to
address business problems in the report and
concise explanation in the video.
ULO3: Interpret and convey financial and GLO3: Digital literacy
business information to relevant stakeholders. GLO5: Problem solving
Assessed by the clarity, conciseness, and
effectiveness of communication in both the
report (structure, writing) and video
(presentation skills, visual aids).

Instruction
This assignment is to be attempted individually. This assignment consists of FIVE parts,
and each part may have multiple questions. Please answer ALL questions. The word limit
for this assignment is 1300, but feel free to use more if you need it. You will not be
penalised for using more words.

Written Report:

A concise, well-structured document addressing each task above. Include tables or figures
where appropriate. Emphasize interpretation and clarity while you write answers to questions.

Two-Minute Video:
A clear, polished video that succinctly communicates the top insights. Format options could
include a screen-recorded slideshow, a face-to-camera explanation, or a simple animated
overview—whichever best conveys the findings within the allotted time.

Submission
An electronic copy of the assignment (one copy per student including one Word document,
two minute video file and one Excel file) must be uploaded to the Assignment folder under
Assessment at the online unit site by 8:00 pm 5 May 2025 (Monday). The electronic copy
must be named using either the student name or the student ID number. If you experience
any problem in uploading the document, please contact the CloudDeakin help line. Please only
upload one Word file with all questions, one video file and one Excel file with all
supporting data and analysis. Please provide all explanations or answers to the questions
in the Word file. Use FormulaText in the Excel file to indicate all the formulas you have
used in completing this assignment.
Please note: The uploaded soft copy of your report to the unit site will be considered the
official copy and it is the time of upload of this copy that will determine if the assignment
was submitted on time.
Late submission
In accordance with University’s policy, the following marking penalties will apply if you
submit an assessment task after the due date without an approved extension: 5% will be
deducted from available marks for each day up to five days, and work that is submitted
more than five days after the due date will not be marked. You will receive 0% for the
task. 'Day' means working day for paper submissions and calendar day for electronic
submissions. The Unit Chair may refuse to accept a late submission where it is unreasonable
or impracticable to assess the task after the due date.
Extensions can only be approved by the Unit Chair. Extensions can be granted for documented
serious illness (not just on the day the assignment is due!) or for compassionate reasons under
extenuating circumstances. The unit chair can ask to see how much work has been completed
before granting an extension. Work or holiday reasons are NOT grounds for an extension
– you are expected to manage these issues as part of your studies. You are strongly
encouraged to start early and to continually backup your assignment as you progress.
Computer crashes or corrupted files will NOT be accepted as valid reasons for an extension of
any length. For further information about Special Consideration, visit
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Assessment Feedback
Students who submit their work by the due date will receive their marks and feedback within
10 business days of the due date.

Referencing
The Harvard style of referencing is the preferred referencing style in this assessment.
Academic Integrity, Plagiarism and Collusion
Plagiarism and collusion constitute extremely serious breaches of academic integrity. They are
forms of cheating, and severe penalties are associated with them, including cancellation of
marks for a specific assignment, for a specific unit or even exclusion from the course. If you
are ever in doubt about how to properly use and cite a source of information, consult your
lecturer or the Study Support website
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• Plagiarism occurs when a student passes off as the student’s own work, or copies
without acknowledgement as to its authorship, the work of any other person or
resubmits their own work from a previous assessment task.
• Collusion occurs when a student obtains the agreement of another person for a
fraudulent purpose, with the intent of obtaining an advantage in submitting an
assignment or other work.

Work submitted may be reproduced and/or communicated by the university for the purpose of
assuring academic integrity of submissions.
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Assignment: Automotive Price Analysis

Role: Junior Data Analyst at DriveData Consulting

Manager: Ms. Parker (Senior Data Strategist)

Background Story

Your firm, DriveData Consulting, has just signed a contract with a client who wants a
thorough analysis of what drives car prices in the market. You have been handed a dataset
with 205 observations on various car models. Each observation includes the price of the
vehicle and additional features. Please review the car price data.xslx and car price data
dictionary.xslx to know about the features. Some of the features are in text. Please convert
them to categorical variable before using. For example, the variable fueltype has two
categories; “gas” and “diesel”. You can use =IF(D2="gas", 1,0). This code is appropriate if
there are only two categories. Also you can use “Find and replace” function to convert text
data to numeric data.

Ms. Parker is looking for a well-reasoned statistical report that explores (1) which features
are most influential in determining price, and (2) whether certain hypotheses about
differences between car groups hold true. Below is the assignment Ms. Parker has outlined.

Project Tasks

Part I: Preliminary Exploration (20 Points)

1. Forming Your Initial Conjecture

Ms. Parker wants to see your initial thoughts before you dive into the data. Write a
short paragraph explaining which features you predict will have the greatest impact
on Price. Provide a brief justification—why do you expect these features to be key
drivers?
 2. Data Familiarization

(a) Check (conceptually) for missing values or outliers. Ms. Parker wants to ensure you
have a strategy in place to handle any problematic data points.

(b) Prepare basic summary statistics for each numerical variable. Briefly comment on the
overall picture you get from the summary statistics. You do not have to discuss the
summary statistics of each variable separately.

(c) List any surprising or notable insights.

Part II: Correlation Insights (20 Points)

3. Correlation Matrix
Ms. Parker is interested in a quick snapshot of how variables relate to Price.

(a) Create a correlation matrix between price and the features.

(b) Report which variables (top 4–5) show the strongest correlation with price.

(c) Provide a brief commentary on why high correlation does not automatically mean a
variable causes high price. Give at least one example of a variable that might be highly
correlated but not necessarily causal.

Part III : Hypothesis Testing (Variance Unknown) (20 Points)

4. Testing a Claim about a Key Feature

Ms. Parker has heard a market claim that “On average, cars nowadays have at least
100 horsepower.” She wants you to test whether this claim stands for the cars in your
dataset, using classical hypothesis testing.

(a) Define the null hypothesis and the alternative hypothesis for a single population
mean, recognizing that you do not know the population variance.

(b) Explain why the population variance is assumed unknown.

(c) Outline the steps you would take to compute the test statistic, degrees of freedom, and
p-value.

5. Type I & Type II Errors

(a) Ms. Parker wants clarity on errors. Describe what a Type I error would mean in this
context.

(b) Describe what a Type II error would mean in this context.

(c) Provide a real-world scenario showing the consequence of each type of error—
especially if a manufacturer is making decisions about engine performance standards.

6. Interpretation of the Hypothesis Test

 (a) Ms. Parker wants an example of how you would interpret a hypothetical result—for
instance, a p-value of 0.03 at α=0.05.

(b) How could sample size affect your ability to detect whether the mean is truly different
from 100 horsepower?

(c) If your final conclusion contradicts Ms. Parker’s claim, how might you present this
finding diplomatically?

Part IV: Multiple Linear Regression (40 Points)

7. Building the First Model

Ms. Parker requests a multiple linear regression model where price is the dependent
variable and the features are potentially the explanatory variables.

(a) Which are the predictors do you think are relevant and why?

(b) Conceptually discuss the estimated coefficients, standard errors, and p-values.
Which predictors appear to be statistically significant at α=0.05?

(c) Do these results match the expectations you formed in Part I or the correlations in
Part II?

8. Model Diagnostics & Assumptions

Ms. Parker emphasizes model reliability. She wants you to check the classic
assumptions:

(a) How do you verify the relationship is approximately linear ?

(b) Do you think the model is reliable for identifying the true relationship between price
and the features you have identified from your analysis. Explain.

9. Model Evaluation

(a) Compare R-Square and Adjusted R-Square. Why is the Adjusted R-Square more
relevant for comparing models with different numbers of predictors? Which metric do
you rely on more, and why? It will be useful if you refer to the analysis you did in Q7
part (a) as you answer this question.

(b) Provide a one-paragraph summary answering: “Is this final model good enough for
the client’s needs? Why or why not?”

(c) Present two limitations that might affect results.

10. Exploring a Log-Transform

(a) Ms. Parker is curious if using ln(price) instead of price might improve the model.
Explain how you would fit a log-linear model with the same predictors.

(b) Compare the interpretation of coefficients and see if the log model is better.
 (c) Decide which model you recommend—linear or log-linear—and why.

Part V: Final Manager’s Video (20 Points)

11. Two-Minute Video Presentation

Ms. Parker also wants you to create a short, 2-minute video summarizing the key
takeaways of your analysis. Highlight the top 2–3 insights you uncovered. Think of
this video as a brief briefing for upper management—keep it concise, clear, and
visually engaging if you’re using slides.

Good luck with your analysis! Ms. Parker eagerly awaits your thorough yet succinct report
and your two-minute video highlighting the major findings. If you need any clarifications
about the tasks or guidance on classical statistical methods, reach out for an internal memo or
schedule a brief meeting. Remember: Your ultimate goal is to provide actionable insights
that help the client understand the key factors driving car prices.