Case Set-Up

Young Professional magazine needs to understand their customers to expand advertising base

Use customer survey data to develop subscriber demographics

Use customer survey to understand subscriber buying habits and interests

• What do you think would be most important for building a pitch to potential advertisers?

• You will analyze survey results to help management develop a plan to target advertisers.

• You are given an Excel file with the survey results and a template to provide your responses to the case questions.

Data Set:

• There are 8 columns in the data set. One column means one variable. Hence, there are 8 variables in the data set. The name of each column (shown in row 1) can be viewed as the name of each variable.

• Each row represents the response of one subscriber.

• Some variables are quantitative and others are categorical.

• In this project, we practice the following steps of data analysis:

Step 3. Characterize and Summarize Data: Describe Data

Step 4. Statistical Inference: Infer from Data

Excel Data Tools Needed: You will need to use Data Analysis Toolpak for some questions. Data Analysis Toolpak is an Excel add-in. You can find it in Data's Analyze section (at the very end of the ribbon). However, if using it for the first time, you may need to call it out first. Here is how to do it:

• Go to "File", select "Options" at the bottom of the left panel

• Click "Add-ins" on the left panel

• Find "Manage Excel Add-ins" at the bottom, click "Go..." button

• Check "Analysis ToolPak" and click "OK" button

Question 1:

• Objectives: This is part of Step 3. You should be able to

o differentiate quantitative variables and categorical variables, and

o make appropriate descriptive statistics accordingly.

• List out the names of quantitative variables in row 3, starting from column L. List out the names of categorical variables in row 14, starting from column L.

• The required descriptive statistics are listed in column K. Use the Excel functions to calculate them for each variable.

• For quantitative variables, you need to use the functions such as COUNT and some functions listed in the following slides:

1. Measure of Location

2. Measure of Variability

3. Description of Shape

You can also refer to Excel example "5. Single Variables", and video "C. Identify the Important Parameters", especially Parts 1, 2, 3, and 4

For categorical variables, you need to use the functions such as COUNT and COUNTIF. You can also refer to parts of Excel example "8. EstimateProportion", especially cells D3, D4, D5, and D. You can also watch video "D. Statistical Inference - Estimate and Hypothesis Test" for Part 2, especially its starting portion.

Question 2:

• Objectives: It is also part of Step 3. You should be able to

o create Histogram to visualize the shape of distribution, and

o make some comments based on the shape of the distribution, such as symmetric or skew, and the central location.

• You can refer to the slide "Create Distributions from Data"

• You can also check the Excel example "4. Quantitative Frequency"

• You can watch the video "B. Create Distribution form Data", especially Part 2

• Comment on: Which one, age or transaction, is more symmetric? For the less symmetric one, how does it skewed, positive or negative? What does it mean? In what age range are there most subscribers? How many transactions do most subscribers do?

Question 3

• Objectives: It is also part of Step 3. By this exercise, you should be able to

o measure the association between two variables, and

o comment on the connection between variables

• You can refer to the slide "4. Association between Two Variables", using functions listed there.

• You can also check the Excel example "6. TwoVariables".

• You can watch the video "C. Identify the Important Parameters", especially Part 5.

• Comment on: How does investment, transaction, or income tend to change, as age grows?

Question 4

• Objectives: This is part of Step 4. You should be able to

make point estimate for mean and proportion,

make interval estimate for mean and proportion, and

o make comments based on the estimates.

• For point estimate, check the slide "Point Estimation". For interval estimate, check the slides "Interval Estimation - Population Mean" and "Interval Estimation - Population Proportion".

Mean of Age: check the Excel example "7. EstimateMean", and watch the video "Statistical Inference - Estimate and Hypothesis Test", especially Part 1.

Rate of Having Children: check the Excel example "8. EstimateProportion" and watch the video "Statistical Inference - Estimate and Hypothesis Test", especially Part 2

Comment on: What do these two estimates tell you about the subscriber population for Young Professional magazine? What are their ages? At their ages, how old will be their kids? Given to these information, are they a good target market for companies selling educational software and computer games for young children?

Question 5:

• Objectives: This is also part of Step 4. You should be able to

o compose the hypotheses for Lower Tail test, Upper Tail test, and Two Tail test,

o get the corresponding p-values for each test with respect to 95% and 99% confidence levels respectively, and

o make conclusion whether a particular hypothesis can be rejected or not at 95% or 99% confidence level.

• You can refer to the slide "Hypothesis Test -Summary"

• You can check the Excel example "9. MeanTest"

You can watch the video "Statistical Inference - Estimate and Hypothesis Test", especially Part 3.

Comment on: What are the three hypotheses you can make with respect to Lower Tail test, Upper Tail test, and Two Tail test? Which hypotheses can be rejected at 95% or 99% confidence? In conclusion, what can you claim by 95% of confidence? What can you claim by 99% of confidence?