ANSWERS
1ba
Use Employee Data.xlsx to answer the following.
a. Construct histogram for annual Salary and comment on its shape. (2 M)
the shape of the histogram is with a single peak in middle and the majority of salaries falling
2bb
The salary of 10,000 workers in Renata Ltd was approximately normally distributed with
mean salary Rs. 12,000 and standard deviation salary Rs. 3,000
a. Find the probability that a worker receives salary between Rs.12,000 and Rs.18,000.
(2 M)
b. Find the probability that a worker receives salary between Rs. 7,000 and Rs.10,000. (2
M)
c. Find the probability that a worker receives a salary of Rs.16,000 or less (2 M)
d. Fine the probability that a worker receives a salary of Rs. 8,500 and more (2 M)
Mean 12000
St 3000
no. of workers 10000
12000<=X<=18000
0.47738
(X<18000)-X<11,999 3 2b.i
(X<18000) 0.97725
(X<11,999) 0.49986
7
7000<=X<=10000
0.20473
(X<10000)-(X<6999) 5 2b.ii
0.25249
(X<10000) 3
0.04775
(X<6999) 7
0.90878
(X<16000) 9 2b.iii
0.87832
(X>8500) 1-(X<8500) 7 2b.iv
0.12167
(X<8500) 3
3 Compulsory question:
a. Discuss the role of data visualisation in Business Management (2 M)
b. A researcher is interested to establish a relationship between price and ad expenditure,
their effect on sales. He has got the following regression model. (4 M)
Sales = 28.2569 – 1.28 * price + 0.92 * ad expenditure.
1. Is the above model simple regression or multiple regression model? Justify your
answer.
2. Interpret the relationship between the dependent variable and independent variables.
3. If the multiple correlation coefficient among the variables is +0.8, then comment on
the model validity.
4. Interpret the regression coefficients of the above model
c. Discuss the importance of seasonal indices in business. (2 M)
4b. The file Salesdata.xlsx, explains the company’s monthly revenue for 2022.
a. Use exponential smoothing method, taking the damping factor as 0.8 to predict
January 2023 revenues. (2 M)
b. Compute mean squared error (MSE) and root mean squared error (RMSE) (2 M)
c. Determine the optimal value of alpha (α) so that the RMSE is minimum. (2 M)
d. Draw the trend lines and comment on the forecasting values(2M)
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver Engine
Engine: GRG Nonlinear
Solution Time: 0.015 Seconds.
Iterations: 0 Subproblems: 0
Solver
Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Central
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative
Objective Cell (Min)
Final
Cell Name Original Value Value
$G$6 SF 0 0
Variable Cells
Final
Cell Name Original Value Value Integer
$G$6 SF 0 0 Contin
Constraints
Cell Name Cell Value Formula Status Slack
Not
$G$6 SF 0 $G$6<=1 Binding 1
$G$6 SF 0 $G$6>=0 Binding 0
Result: Solver found a solution. All Constraints and optimality conditions are satisfied.
Solver
Engine
Engine: GRG Nonlinear
Solution Time: 0.015 Seconds.
Iterations: 0 Subproblems: 0
Solver
Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001
Convergence 0.0001, Population Size 100, Random Seed 0, Derivatives Central
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative
Objective Cell (Min)
Final
Cell Name Original Value Value
$G$6 SF 0 0
Variable
Cells
Final
Cell Name Original Value Value Integer
$G$6 SF 0 0 Contin
Constraints
Cell Name Cell Value Formula Status Slack
Not
$G$6 SF 0 $G$6<=1 Binding 1
$G$6 SF 0 $G$6>=0 Binding 0
Actual
Month Sales
($) DF= 0.8 Squared error
Jan 150
Feb 210 150 3600
6977.93
Mar 320 162 24964 MSE 9
83.5340
Apr 175 193.6 345.96 RMSE 6
May 140 189.88 2488.014 SF 0
Jun 250 179.904 4913.449
193.923
Jul 230 2 1301.535
201.138
Aug 130 6 5060.695
186.910
Sep 300 8 12789.16
209.528
Oct 280 7 4966.207
223.622
Nov 350 9 15971.16
248.898
Dec 230 4 357.1478
245.118
JAN 7 76757.33
Exponential Smoothing
400
350
300
250
Value
200
150
100
50
0
1 2 3 4 5 6 7 8 9 10 11 12
Data Point
Actual Forecast
5.The file housedata.xlsx contains the data related to age of houses, grocery stores near each
house and the price per unit in lakhs. The age and grocery stores indicate the independent
variables and the price per unit area indicate the dependent variable.
a. Construct scatter plot between dependent and independent variables. Comment on the
findings. (2 M)
b. Develop an estimated regression equation with Age of the house, Grocery store near each
house as independent variable and price per unit area as dependent variable. Discuss your
findings. (2 M)
c. Is the model a good fit? If yes, why? (2 M)
d. What is the predicted price per unit area with 24 years old house, 5 grocery stores
near each house? (2 M)
Standard Error
Observations
ANOVA
Regression
Residual
Total
Intercept
Age of the houses
Number of grocery stores near each one of them
The Age of house is negatively related with the price in terms of regression coefficient. They aremoving in opposite d
The number of the grocery stores is positively related with the price in terms of regression coefficient.They are movi
RESIDUAL OUTPUT
Observation
Ag Nu Pri
e mb ce Age of the houses
of er s
60
the of pe
ho groc r
use ery un 50
s stor it
es ar
40
nea ea
r
eac 30
h
one 20
of
10
0
0 5 10 15 20 25 30 35 40
the
m
The line is moving downward for this graph.That
means they have a negative relation and they
37.
32 10 are both moving in opposite direction. With the
9
increase in the age of the houses, there is
decrease in the price due to depreciation.
42.
19 9
2
47.
13 5
3
47.
13 5
5
51.
5 5
5
48.
7 3
2
40.
34 7
3
46.
20 6
7
18.
30 1
8
25.
17 3
8
Grocery stores
60
50
The line is moving upwards in this graph. That
means they ahave a positive relation and are
40
moving in the same direction. They are
30 directly proportional. With increase in the
20
grocery store number, there is increase in the
price
10
0
0 2 4 6 8 10 12
