Module 1 Case Studies
Case Study 1– Statistical Analysis of Employee Salaries and Work Experience
Problem statement: A company wants to analyse the relationship between employees'
salaries and their years of work experience. The HR department has collected data from 40
employees, including their years of experience and annual salaries (in thousands). Your task
is to organize this data into frequency distributions and perform statistical analyses.
[Link] Numerical Data into Frequency Distribution:
1. Group the experience and salary data into suitable class intervals.
2. Construct frequency tables for both variables.
2. Find Measures of Central Tendency:
1. Compute the mean, median, and mode for both years of experience and salary.
3. Calculate Measures of Dispersion:
1. Compute the standard deviation for both variables.
4. Analyze Correlation:
1. Find the correlation coefficient between years of experience and salary.
Raw Data (Years of Experience & Salary in Thousands)
Employee Experience (Years) Salary (₹1000s)
1 1 22
2 2 24
3 3 27
4 3 28
5 4 30
6 5 32
7 6 38
8 6 39
9 7 42
10 7 44
11 7 45
12 8 46
13 9 50
14 9 52
15 10 53
16 10 55
17 11 58
18 12 60
19 12 62
20 13 63
21 14 65
22 14 68
23 15 70
24 16 72
25 16 75
26 17 77
27 18 80
28 18 83
29 19 85
30 19 87
31 20 90
32 21 92
33 21 95
34 22 97
35 23 100
36 23 103
37 24 105
38 24 108
39 25 110
40 25 115
Solution:
Experience Salary
(Years) (₹1000s)
Mean 13.475 66.175
Median 13.5 64
Mode 7 No mode
S.D 7.228 26.863
Correlation coefficient 0.997
Case Study 2: Sales Performance and Advertising Spend Analysis
Problem Statement:
A retail company wants to analyze the relationship between its monthly advertising expenditure and
sales revenue. The company has collected data for 40 months, including the amount spent on
advertising (in $1000s) and the corresponding sales revenue (in $1000s).
Tasks:
[Link] Numerical Data into Frequency Distributions
1. Group advertising expenditure and sales revenue into suitable class intervals.
2. Construct frequency tables.
2. Find Measures of Central Tendency
3. Compute the mean, median, and mode for both advertising expenditure and sales
revenue.
2. Calculate Measures of Dispersion
1. Compute the standard deviation for both variables.
3. Analyze Correlation
1. Compute the correlation coefficient between advertising expenditure and sales
revenue.
4. Perform Regression Analysis
1. Compute the regression equation to predict sales revenue based on advertising
spend.
2. Predict the expected sales revenue if the company spends $50,000 on advertising.
Month Advertising Spend Sales Revenue ($1000s)
($1000s)
1 5 50
2 7 55
3 6 52
4 8 58
5 12 65
6 15 75
7 9 60
8 14 73
9 10 68
10 13 72
11 18 85
12 20 95
13 22 98
14 25 110
15 30 120
16 27 115
17 24 108
18 28 125
19 26 118
20 32 130
21 35 140
22 40 155
23 45 160
24 50 170
25 38 145
26 42 150
27 48 165
28 52 175
29 55 185
30 60 200
31 43 152
32 47 162
33 37 142
34 39 148
35 53 178
36 57 190
37 33 132
38 31 128
39 29 127
40 23 104
Solution:
Advertising Sales
Spend Revenue
($1000s) ($1000s)
Mean 30.2 121
Median 29.5 126
Mode No mode No mode
S.D 15.808 42.94
Correlation
coefficient 0.9946
Case Study 3: Students' Study Hours and Exam Performance
Problem Statement:
A university is conducting research to determine the impact of study hours on students' exam
scores. The university collects data from 40 students, recording their weekly study hours and exam
scores (out of 100).
Tasks:
A. Convert Numerical Data into Frequency Distributions
3. Group study hours and exam scores into class intervals.
4. Construct frequency tables.
B. Find Measures of Central Tendency
a. Compute the mean, median, and mode for both study hours and exam scores.
C. Calculate Measures of Dispersion
a. Compute the standard deviation for both variables.
D. Analyze Correlation
a. Compute the correlation coefficient between study hours and exam scores.
Student Study Hours (per Exam Score (out of
week) 100)
1 2 40
2 3 45
3 4 48
4 5 50
5 6 55
6 7 60
7 8 62
8 9 65
9 10 70
10 12 75
11 11 73
12 13 78
13 15 80
14 14 79
15 16 85
16 18 88
17 20 90
18 22 92
19 21 91
20 24 95
21 25 97
22 27 98
23 28 99
24 30 100
25 26 96
26 29 100
27 19 89
28 17 87
29 23 93
30 31 100
31 9 64
32 14 79
33 10 70
34 8 60
35 12 75
36 11 73
37 5 50
38 6 55
39 3 45
40 2 40
Solution:
Study Exam
Hours Score
(per (out of
week) 100)
Mean 14.375 74.775
Median 12.5 76.5
Multi
Mode modal 100
S.D 8.666728 18.94593
Correlation
coefficient 0.965
Case Study 4: Employee Age and Productivity Levels
Problem Statement:
A manufacturing company is studying the impact of employee age on productivity levels. The HR
department collects data from 40 employees, recording their age (years) and average daily
productivity (units produced per day).
Tasks:
A. Convert Numerical Data into Frequency Distributions
a. Group employee age and productivity levels into class intervals.
b. Construct frequency tables.
B. Find Measures of Central Tendency
a. Compute the mean, median, and mode for both age and productivity levels.
C. Calculate Measures of Dispersion
a. Compute the standard deviation for both variables.
D. Analyze Correlation
a. Compute the correlation coefficient between employee age and productivity.
Employee Age(Years) Productivity(Units per day)
1 22 50
2 23 55
3 24 53
4 25 57
5 26 60
6 27 58
7 28 62
8 29 65
9 30 64
10 31 67
11 32 69
12 33 68
13 34 71
14 35 74
15 36 72
16 37 75
17 38 77
18 39 76
19 40 78
20 41 80
21 42 79
22 43 81
23 44 83
24 45 82
25 46 81
26 47 80
27 48 78
28 49 75
29 50 72
30 51 70
31 52 68
32 53 65
33 54 63
34 55 60
35 56 57
36 57 55
37 58 52
38 59 50
39 60 48
40 61 45
Solution:
Age(Years Productivity(Units
) per day)
Mean 41.5 66.875
Median 41.5 68
Mode No mode 50
S.D 11.69045 10.86558
Correlation
coefficient -0.0554
Case Study 5: Household Income and Monthly Savings
Problem Statement:
A financial research institute wants to study the relationship between household income and
monthly savings. The institute collects data from 40 households, recording their monthly income (in
$1000s) and savings (in $1000s).
Tasks:
A. Convert Numerical Data into Frequency Distributions
a. Group monthly income and savings into class intervals.
b. Construct frequency tables.
B. Find Measures of Central Tendency
a. Compute the mean, median, and mode for both monthly income and savings.
C. Calculate Measures of Dispersion
a. Compute the standard deviation for both variables.
D. Analyze Correlation
a. Compute the correlation coefficient between monthly income and savings.
E. Perform Regression Analysis
a. Compute the regression equation to predict savings based on income.
b. Predict the expected savings for a household earning $8,000 per month.
Household Monthly Income ($1000s) Monthly Savings ($1000s)
1 2 0.2
2 3 0.4
3 4 0.5
4 5 0.7
5 6 1.0
6 7 1.2
7 8 1.5
8 9 1.7
9 10 2.0
10 11 2.3
11 12 2.5
12 13 2.8
13 14 3.0
14 15 3.3
15 16 3.5
16 17 3.8
17 18 4.0
18 19 4.3
19 20 4.5
20 21 5.0
21 22 5.2
22 23 5.5
23 24 5.8
24 25 6.0
25 26 6.3
26 27 6.5
27 28 6.8
28 29 7.0
29 30 7.3
30 31 7.5
31 32 7.8
32 33 8.0
33 34 8.3
34 35 8.5
35 36 8.8
36 37 9.0
37 38 9.2
38 39 9.5
39 40 9.8
40 42 10.0
Solution:
Monthly Monthly
Income Savings
($1000s) ($1000s)
Mean 21.525 5.025
Median 21.5 5.1
Mode No mode No mode
S.D 11.73421 3.026359
Correlation
coefficient 0.999501748
Regression y= 2.5 +0.25x
equation
When x=8, y=4.5
Prediction
