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IOM121 Statistics for Business

Semester 1, 2025/26 Individual Assignment

Submission Deadline: 20:00 on December 31st, 2025

GENERAL INSTRUCTIONS TO CANDIDATES:

This assignment comprises 100 marks and weighs 40% in the final score of this module.

1.   The assignment should be accomplished in English.

2.   All the contents and results are required to be summarized in a report (in the format of a doc or docx file), which is supposed to be uploaded to LMO before 20:00, 31st December, 2025.

3.   The name of the report should include the module number, the student ID, followed by    the    term    “Individual    assignment”    (e.g.    IOM121-xxxxxxx-Individual assignment).

4.   Standard  XJTLU penalties  apply  for  lateness  and plagiarism.  Please note that weekends are treated as normal working days and count towards the lateness.

HAND-IN REQUIREMENTS:

Given below is a business case of Brew Haven Café. All data in the case are summarized in a separate csv file. Following the case, there are 11 questions, in each of which you are supposed to calculate some critical quantities based on the case and the data set. Please check carefully the following requirements for the assignment:

1.    The standard coversheet provided by our school should be used. The cover sheet will be uploaded on LMO.

2.    Please  write  down  in  the assignment all detailed calculation processes.  Only giving the final answer will not achieve full marks.

3.    Please support all your conclusions by solid evidence, both from your numerical results and reasonable business analysis.

The report is supposed to be uploaded on LMO by 20:00, 31st December, 2025.

Brew Haven CaféCase Study

Brew Haven Café is a neighborhood café located in Shanghai’s downtown financial district. Opened in 2021, it has grown into a local favorite for both office workers and weekend families. The caféoperates 7 days a week with 5 full-time staff (2 baristas, 1 chef, 1 cashier, 1 manager) and several part-time student employees who cover peak hours.

The  café offers  specialty  coffee,  loose-leaf teas,  artisan  pastries,  healthy  bowls,  and sandwiches. It has seating for 45 people inside and 10 outdoor tables (in warmer months). Opening hours are 7:30 AM – 7:00 PM on weekdays and 8:30 AM – 6:00 PM on weekends. Surrounded by chain coffee shops, it differentiates itself through atmosphere, food quality, and personalized service. Promotions are occasional: 10% discounts or loyalty stamp cards. Its social media presence is modest but growing.

The  owner,  Angela  Chen,  is  considering  whether  to  hire  more  staff,  expand  loyalty promotions, and apply for a small business loan to renovate. She believes the caféhas potential to grow but wants to back decisions with data

Over  3  months  (Jan–Mar  2025),  the  café recorded  daily  data:  Date,  Day  of Week, Promotion  type  (None,  Discount,  Loyalty),  Customers  per  day,  Average  spend  per customer (AvgSpend), Total daily sales ($), and Average satisfaction score (survey, 1–10). Angela asks you (student consultants) to analyze this dataset and provide insights for her strategic decisions.

Part A: Describing & Probability Tools

Q1. Summarize Customers, AvgSpend, and Satisfaction by Day of Week using tables and charts. Compare weekdays vs weekends, in terms of customer counts and satisfaction. Please interpret the reasons for the difference. (10 points)

Q2. Compare daily averages of Customers, AvgSpend, and Satisfaction by Promotion type using tables and charts. Which promotion drives more customers visiting? Which risks lowering per-customer revenue? Are customers happier during promotions? If Angela could run only  one type of promotion next  quarter, under what  situation would you recommend discount or loyalty, and why? (10 points)

Q3. Angela says, 'We usually make about $2400 a day'. Plot distribution of daily Sales. Calculate P(Sales < $2000) and P(Sales > $3000) using the empirical data. Does the average reflect reality? How might misinterpreting 'average' sales affect planning (e.g., staffing, inventory)? (10 points)

Q4. Hourly arrivals follow Poisson (λ=12). Compute P(X=15), P(X<10). If each barista handles ~10 customers/hour, how many baristas should be scheduled averagely? Do you recommend Agenla to schedule more backup baristas during the peak hours to protect service quality? If yes, how many. (10 points)

Part B: Inference & Business Decisions

Q5. Conduct a hypothesis test on customer satisfaction, H0: μ>=8 vs H1: μ<8 with n=40, mean=7.6, std=1.2, α=0.05. State your conclusion. If satisfaction is falling, what might be the root causes (both in and outside the data)? (10 points)

Q6. Compare mean Sales across Promotion types using ANOVA. If differences across groups are significant, identify which promotions outperform. Present results clearly for a non-technical manager. Even if promotions increase sales, what hidden costs should be considered for both promotion practices? (10 points)

Q7. Fit regression: Sales ~ Customers. Interpret slope and R².Even if the linear relation is significant, is it reasonable to assume the same slope across all ranges of customers? Please discuss where the relationship may break down (when capacity, discounts). (10 points)

Q8. Based on previous analysis, summarize your top 3 recommendations for Angela. Support with evidence from your analysis. Highlight risks or assumptions that might affect your advice. (10 points)

Part C: Extension Question

Q9. What important business factors are missing from the dataset, other than promotion and weekday/weekend? Suggest 2–3 additional factors, of which Angela could collect data to improve future analysis. Explain why these would matter. (10 points)

Q10. Imagine Angela needs to present results to her bank to support a loan application. Draft 2–3 key insights (with visuals/statistics) that would persuade a banker of the café’s stability and growth potential. (10 points)