Reference no: EM132382307

Elite Education Institute

Assessment 2-Individual Assignment

STA101 - Statistics for Business

As an assistantbusiness analyst, your reporting supervisor asked you to conduct a research for an Australian food company ACE Pty Ltd, who is considering launch an advertisement campaign for their newly published milk drink. After reading the case, you are required to write a report on the following focus,

1) Give a brief introduction of the firm provided, including basic background information and issues to address.

2) How much sales do you expect to generate after this advertising campaign based on the least squares line? In your work, you need to include your excel calculation for covariance, correlation coefficient between selling expense and sales as well as a plotted scatter diagram. Briefly comment on the relationship between selling expense and sales.

3) The company wants to find out whether the consumer will consume more than 250 bottles of their milk drink this year. Please do a hypothesis testing using α =0.05, and show details of your work.
4) Provide a report to ACE Pty Ltd marketing officer detailed outline which option you would take and the reasons behind.

Your assignment should follow below structure

1. Introduction

1.1 Firm Background
1.2 Issues to address

2. Data analysis

2.1 Prediction on sales after advertisement campaign and Briefly comment on the relationship between selling expense and sales.
2.2 hypothesis testing using α =0.05

3. Conclusion and recommendation
 
Marks will be allocated as follows:

Introduction, assignment presentation and excel workings
o Well planned structure.
o The student's essay reads well (not confusing). English expression is appropriate for an in-class essay (i.e. not expected to be as polished as a take home essay).
o The introduction clearly outlines the objective of the essay (what the student is going to do) while the conclusion reiterates the objective and summarises their argument/position.
o All the working are done via Excel clearly with all the formula and diagram attached

Details of the data analysis, Your assessment
o Calculations are done via Excel and all the calculations must be clear and sufficient
o There is a relevant discussion on different parameters.
o Hypothesis testing has been conducted and explained clearly with supporting calculation provided

Conclusion and recommendation
o The student's arguments are logical and consistent.A clear, consistent argument is presented which addresses the student's perspective/position in relation to the proposed advertisement option
o Conclusion is made based on correct calculations.
o Calculations are correct and clear

Case Details

ACE Pty Ltd is a food company, and the key product is milk drink. The company rolled out new passion fruit flavored milk drink recently. In the past 2 years, the company did the survey for a sample of 100 target households asking about ‘how many bottles of milk drink would a household consume per year'. This year's survey data is attached in the excel. Given that the consumption for milk drink is normally distributed with a standard deviation of 18.

The marketing manager in the company is organizing the advertisement campaign for this exciting new product for both domestic and overseas market. He collected data for the past 8 months, the total selling expense ($1,000) vs. the sales ($1,000) were recorded below.

Given the current economic environment is quite tough, the company does not have much budget for the marketing department, the maximum they could get is $12,000 for this advertisement campaign. Marketing department wants to maximize the consumers to see their advertisement of the new product. They have three options.

Option 1: They split the TV advertisement into two time slots: one between 8-9am in the morning and the other one between 8-9pm in the evening, they estimate around 40% consumers will watch their advertisement in the morning, and 70% consumers will watch in the evening respectively.

Option 2: They do advertisement in the train stations. They expect 10% consumers never take the pubic transports thus they would never see. Among the rest 90% consumers, they expect 85% will see the advertisement.

Option 3: They will give out free samples at train stations, bus stop as well as schools. They expect 80% consumer will be able to get this free sample.

All the data have been attached in the Excel raw data attached in the assignment folder. Please make sure you submit both the report and original calculation form Excel, which could clearly show the working process.