Week Six Calculations QNT 565 Version 2

Question: #8959

Week Six Calculations
QNT/565 Version 2

University of Phoenix Material
Week Six Calculations
Read the following scenarios, and answer the accompanying questions.
1. A research team conducted a study of soft- drink preferences among residents in a test
market prior to an advertising campaign for a new cola product. Of the participants, 130 are
teenagers and 130 are adults. The researchers secured the following results:

Teenagers
Adults

Cola
50
90

Non-cola
80
40

Apply the steps in testing a research hypothesis.
Perform a chi-square test and interpret the results.
Determine how to present the results.
How might the results obtained from the test affect the advertising strategy?

2. The expense ratio of a mutual fund measures the percentage of the fund’s assets used to pay
for annual administrative overhead. Funds with higher ratios spend more of the fund’s return
to operate the fund. A random selection of 16 stock mutual funds last year revealed the
following data:

Expense Ratio,
X
0.62
1.21
1.03
0.67
0.40
1.12
0.78
0.47
0.75
0.92
0.57
0.95
0.20
1.00
1.25
1.03

Total Return, Y
34.3
33.0
31.4
30.8
32.9
27.6
30.3
31.9
33.8
27.9
32.6
24.3
36.3
31.7
29.9
34.7

Construct a scatter plot of the data.
Draw the least squares line on the scatter plot.
Find the equation for the least squares line of best fit.
Interpret the regression coefficients. Does expense hurt or help the fund’s return?

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Week Six Calculations
QNT/565 Version 2

Predict the total return for a stock fund with an expense ratio of 0.81%. What can you
conclude?

3. Fill in the missing blocks for the ANOVA summary table on net profits and market value used
with regression analysis.
ANOVA-One Factor Summary Table
Sum of Squares

Mean Square

F
________

Regression

11,116,995.47

__________

Error

____

____________

116,104.63

Total

1

9

12,045,832.50

What does the F tell you? (alpha 5.05)
What is the t-value? Explain its meaning.

4. Answer the questions below using the following Forbes data set.
Forbes 500 Random Subsample ($, millions)
Assets

Net
Profit

Cash
Flow

Number of (thousands)

1,510.00

697.00

82.60

126.50

16.60

956.00

785.00

1,271.00

89.00

191.20

5.00

1,890.00

2,533.00

1,783.00

176.00

267.00

44.00

1,133.00

532.00

752.00

82.30

137.10

2.10

11,682.00

3,790.00

4,149.00

413.50

806.80

11.90

6,080.00

635.00

291.00

18.10

35.20

3.70

31,044.00 3,296.00

2,705.00

337.30

425.50

20.10

5,878.00

3,204.00

2,100.00

145.80

380.00

10.80

1,721.00

981.00

1,573.00

172.60

326.60

1.90

2,135.00

Market
Value

1,034.00

Sales

2,268.00

2,634.00

247.20

55.50

21.20

Conduct a correlation matrix using the Forbes 500 dataset. Determine which variables have
a significant relationship.
Select an independent and dependent variables and run a regression analysis. What can
you conclude from the findings?

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Week Six Calculations
QNT/565 Version 2

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