Scenario

CatchIt Limited

CatchIt Limited: Background

CatchIt Ltd is one of Australia's leading supermarket chains. There are hundreds of stores in the chain. Originating     from a family-based chain of general stores, CatchIt now has supermarkets all over Australia, with the first one being established 30 years ago. In terms of operation, each state capital has a company office and these have significant     autonomy in individual state's operations. The company planning and direction take place in the company Head         Office in Melbourne. Included in the Head Office, is the Research and Analysis Department. A principal role of the      department is to provide statistical advice on matters affecting the company. As the analyst working for CatchIt, you are required to do the following analysis and provide a report:

Data file

Your report must include two files:

1.    An Excel file, which will include:      your analysis

     the interactive dashboard to be used by the CEO.

2.    A Word file, which will include your report

Required analysis:

1.   The Weekly Sales is the most important measure for the business. Provide details of the average weekly sales by each of the state in the survey (NSW, QLD, SA, VIC).

Approach:

     Create suitable tables of summary statistics of the variable Sales and at least one graph      Calculate a 95% confidence interval for average Weekly Sales for each state.

     In the “Conclusion” section write a (one sentence) conclusion for each Weekly Sales category (e.g., “I am 95%

confident…”).

2.   Are there any differences in the overall proportion of the stores surveyed in each state (NSW, QLD, SA, VIC)? That is, is there any state sampled proportionally more than any other?

Approach:

     Calculate the proportion of the stores surveyed in each state (NSW, QLD, SA, VIC).

     Produce the relevant tabulated summary statistics and graph(s).

     Calculate, compare and contrast, 95% confidence interval estimates for the proportion of the stores in each

state (NSW, QLD, SA, VIC).

     In the Conclusion section, write a (one sentence) conclusion for each state (e.g., “I am 95% confident…”).

     In  the  Conclusion  section,  in  one  sentence,  answer  the  question  “Is  there  any  state  that  is  represented

proportionally more (or less) than the others?

3.   Assuming that the Gross profits are approximately normally distributed, answer the following questions:

a)   What is the probability that the Gross profit of a randomly selected business from each state (NSW, QLD, SA,

VIC) is greater than $35,000 ($0.035m)?

b)   What is the probability that the Gross profit of a randomly selected business from each state (NSW, QLD, SA,

VIC) would be less than $1,500,000 ($1.5m)?

c)    What is the minimum value of Gross profit that will be earned by the top 20% of the stores in each of the 4 states (NSW, QLD, SA, VIC)?

Approach:

Q.3(a):

     Produce descriptive summary statistics for Gross profit in each state (NSW, QLD, SA, VIC)  and find

relevant information to apply for the probability calculations.

     For each state (NSW, QLD, SA, VIC)  calculate the probability of Gross profit greater than $35,000

($0.035m)

     In the Conclusion section write a (one sentence) conclusion for each state’s Gross profit (e.g. “The

probability that the Gross profit…”).

Q3(b)

     For each state (NSW, QLD, SA, VIC)  calculate the probability of Gross profit less than $1,500,000

($1.5m)

     In the Conclusion section write a (one sentence) conclusion for each state’s Gross profit (e.g. “The

probability that the Gross profit…”).

Q3(c)

     For each state (NSW, QLD, SA, VIC)  identify the relevant z-score and use it to calculate the respective

Gross profit,

     In the Conclusion section write a (one sentence) conclusion for each state (e.g. “The Gross profit

for……”).

4.a. It has been suggested at our most recent meeting that the Average Gross profits of the 4 states (NSW, QLD, SA,  VIC)  are  now  more  than  $800,000  ($0.8m).  Does  this  data  confirm  this  hypothesis?  (Use  10%  level  of significance).

Approach:

     Use a 10% Level of Significance (α = 10%)

     Conduct appropriate hypothesis test for average Gross profit of each state separately (NSW, QLD, SA,

VIC)

     In the Conclusion section write a (one sentence) conclusion for average Gross profit (e.g., “At a 10% level

of Significance…”).

4.b. Further, is there sufficient evidence to conclude that the proportion of Gross profit in any sate (NSW, QLD, SA, VIC) is LESS than 15% of all the Gross profits?

Approach:

     Conduct the appropriate hypothesis test for each state (NSW, QLD, SA, VIC)with 5% significance.      In the Conclusion section write a (one sentence) conclusion for each state (NSW, QLD, SA, VIC)         Include an interactive Dashboard to explore the performance of of all stores.

Dashboard

Please produce an interactive Dashboard, which the CEO can use to understand and visualise key data and to drill down into the data.

Assignment instructions

The assignment consists of three parts:

Part 1: Data Analysis

When conducting the analysis, you will apply techniques from descriptive analytics, visualisations, probabilities, and confidence interval calculation. Hence, you will use various tables, graphs, and summary measures. When exploring data, we often produce more results than we eventually use in the final report, but by investigating the data from different angles, we can develop a much better ‘feel’ for the data: a deeper understanding of the data.

     Always  ensure  that  you  consider  relevant  modelling  assumptions  such  as  considerations  of  the  level  of

measurement of the variable, the method of sampling, the shape of the population distribution, and the sample size.

     The analysis section you submit should be on Q1 to Q4 sheets of the Excel file.

     Where possible, it is always useful to produce both numerical and graphical statistical summaries as sometimes,

something is revealed in one that is not obvious in the other.

     Your analysis should be clearly labelled and grouped around each question.

     Poorly presented, unorganised analysis, or excessive output will be penalised.

Part 2: Report

The report should include:

1.   your  understanding  about  the  contributions  made  by  the  different  operating  levels  as  per  the  above requirements and any suggestions or recommendations that you may provide for improvements.

2.    any comments that you are able to make on the differences in the overall proportion of stores in different states surveyed as per the requirements above.

You are allowed no more than 2 pages to cover your written conclusions. Please use the font size 11 (Arial), 1.5 line spacing and leave a margin of 2.54 cm.

Please consider the following dot points very carefully.

     Keep the English simple and the explanations succinct. Avoid the use of technical statistical jargon.

     Your reader will not necessarily understand complicated statistical terms, thus your task is to convert your analysis

into plain, simple, easy to understand language.

     The email is to be written as a stand-alone document. Thus, you should not have any references in the email to

your analysis, nor should you include any charts and tables in your email.

     Use an email format for your reply. That means the email heading (e.g. To: From: Subject :) should be included,

the recipient should be addressed at the beginning and the signature or name of the sender should be included at the end.

     When composing your reply, make sure that you actually answer the questions asked.

     Do not copy the questions in the email.

     Sequentially number your answers in both your email and your analysis (1, 2 ...) to match the email.      Include a simple introduction at the start of the email and a summary/conclusion at the end.

     Marks will be deducted for the use of technical terms, irrelevant material, poor presentation / organisation /

formatting and emails that are over two pages long or copy questions in the email.

When you have completed the email, it is a useful exercise to leave it for a day, return to it and re-read it as if you knew nothing about the analysis.

     Does it flow easily?

     Does it make sense?

     Can someone without prior knowledge follow your written conclusions?

Often on re-reading, you become aware that you may have made some unclear points, and find that you can re- phrase them much more clearly.

Part 3: Interactive Dashboard

The minimum requirement is a neat, functional, interactive dashboard. It is expected that the dashboard includes 4 or 5 interactive graphs/tables.

The Microsoft Excel file should contain a separate sheet for the interactive Dashboard.

The following questions will help guide you in designing an interactive dashboard.

     What are the most appropriate visualisations for the dashboard?

     What about the choice of colour?

     How can I make the dashboard interactive?

Submission Instructions

Your submission will comprise of two files:

1.   Your report in Microsoft Word format.

2.   A Microsoft Excel workbook file (Containing: Your Analysis including all the graphs, charts etc.).

3.    Submission should have the following format: MIS171_T2_StudentID.doc (or .docx) and MIS171_T2_StudentID.xls (or .xlsx).

4.   This assessment is to be submitted ONLINE ONLY into the Assessment 2 Turnitin link available on the MIS171 Moodle site.

5.   All work you submit is checked electronically or by other means to detect potential collusion and/or plagiarism.

6.   When you are required to submit an assignment through Moodle (Turnitin link), you will receive an instant notification on the screen confirming that it has been submitted.

Notes

Penalties for late submission:

The following marking penalties will apply if you submit an assessment task after the due date without an approved extension: