Question 2

A company is evaluating its monthly sales data which they have collected over the last 5 years. Use the data in Monthly_Sales_Data.xlsx to answer the questions 2-9:

What is the average monthly sales?

Question 3

What is the standard deviation of the monthly sales?

Question 4

Given their performance record, what is the probability of having a month which will have monthly sales exceeding $9,000? 

Question 5

Given their performance record, what is the probability of having a month with less than $7,000 in sales?

Question 6

If you view the company’s performance record as a representative sample of its overall sales performance, and considering what you know about normal distribution, what is the dollar value for the 95th percentile?

Question 7

If you view the company’s performance record as a representative sample of its overall sales performance, and considering what you know about normal distribution, what is the dollar value for the lowest 25th percentile?

Question 8

Given the company’s performance record and based on the empirical rule of normal distribution (also known as the 68%-95%-99.7% rule), what would be the lower bound of the range of sales values that contains 68% of the monthly sales?

Question 9

Given the company’s performance record and based on the empirical rule of normal distribution (also known as the 68%-95%-99.7% rule), what would be the upper bound of the range of sales values that contains 68% of the monthly sales? 

Question 10

An insurance company wants to make sure that its best customers (those with lowest value of insurance claims) stay with the company. To achieve this goal, the company plans to offer a 10% discount on the annual health insurance premium for customers with the lowest 20% of annual health care expenses. If the average annual health care expenses for a family of four is $3,450 with a standard deviation of $955, what is the amount of the maximum health care expense that will qualify for the proposed discount?

Question 11

A manager of a telemarketing firm wants to reward her best sales personnel. Each salesperson gets a list of customers to call. The data has been collected on the number of sales made per 100 calls. Now the manager wants to evaluate this data in order to decide what should be considered "exceptional" performance. Use Sales_Record.xlsx to answer questions 11-12.

Based on this data, what is the expected number of sales (per 100 calls)?

Question 12

Based on the data for Question 11, what is the standard deviation of sales per 100 calls?

Question 13

This scenario applies to Questions 13 and 14

An analyst thinks that the overall growth of the economy would impact the rate of return of the investment portfolio for the next year. Based on historical data, the analyst has developed the following possibilities:

What is the expected rate of return for the next year?

Question 14

Based on the scenario in Question 13, what is the standard deviation of this distribution?

Question 15

Begin with the analysis you performed in the Module 1 Assignment on the data provided in Temp_Data.xlsx

Now, add the numerical summary needed to answer the following questions:

(1) How does the average temperature of the two cities compare? Please make sure you cite the statistics for both cities in your response.

(2) How does the standard deviation of temperatures for the two cities compare? Which city has a smaller standard deviation? Please make sure that you cite the standard deviation statistics for both cities in your response.

Finally, assess the graph you’ve originally created for Module 1 assignment. (If you did not submit Module 1 assignment, please review Assignment 1 directions, create the graph, and include it in your response).

(3) From the graph which you had created in the previous assignment, could you tell which city has a smaller standard deviation? Why, or why not? Please provide the graph that you had created in the previous assignment along with your answer.

MonthlySalesDataxlsx

SalesRecordxlsx

TempDataxlsx