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Introduction
Company North-East-West-South (NEWS)
NEWS is struggling in the ultra-competitive high-tech market. They have called upon you and your analysis team to help them analyze their data in order
to make some key business decisions using the methods and tools recently learned throughout MBA 501.
Save this file for each homework assignment as follows: Last Name_First Name_Homework #.xls For example, Smith_John_Homework 2_1.xls
2-1 Excel Homework I: Scatterplots
This homework assignment will help you begin to familiarize yourself with the Excel software, creating graphs, and using the Data Analysis add-in feature.
Create a scatterplot from a given set of data and then create a regression fitted line and determine the correlation coefficient.
Provide a practical interpretation of the results.
3-2 Excel Homework II: Descriptive Statistics
This homework assignment will continue to familiarize you with the Excel software, creating graphs, and using the Data Analysis add-in feature.
In this assignment, you will create a histogram plot from a given set of data and then determine the mean, median, and standard deviation.
Provide a practical interpretation of the results.
6-2 Excel Homework III: Amortization Table
This homework assignment will continue to familiarize you with the Excel software.
In this assignment, you will create an amortization table based on a given principal, interest rate, and payment longevity.
Analyze alternative criteria to determine the optimal conditions.
7-2 Excel Homework IV: Probability
This homework assignment will continue to familiarize you with the Excel software.
In this assignment, you will analyze a given business problem based on probability.
Provide a practical interpretation of the results.
Template - Scatterplots
NEWS has gathered data over the last 52 weeks. Two of the data items that have been gathered are Profit and the Number of Defective Items.
Week Profit (thousands) Number of Defective Items
1 $ 35.00 974 Task 1: Create a Scatterplot with Trendline, Regression Equation, and R² Value
2 $ 490.00 693 Step 1. Highlight the two columns of data (Profit, Defective Items).
3 $ 777.00 248 Step 2. Click INSERT from the tool bar above.
4 $ 922.00 277 Step 3. Select Charts → Scatter
5 $ 519.00 509 Step 4. Once your graph generates, place it in the provided section below.
6 $ 520.00 635 Step 5. After, place your mouse over any data point in the graph and right click.
7 $ 899.00 200 Step 5. Select Add Trendline.
8 $ 391.00 743 Step 6. Within the Trendline Options section, select Linear and check off the Display Equation on chart and Display R-squared value on chart boxes.
9 $ 577.00 563 Step 7. Place the values in a visible area of the chart so that they are legible and not covered by any of the data.
10 $ 419.00 715 Place chart here
11 $ 667.00 397
12 $ 399.00 720
13 $ 540.00 659
14 $ 954.00 123
15 $ 1,078.00 8
16 $ 563.00 444
17 $ 619.00 464
18 $ 625.00 483
19 $ 351.00 715
20 $ 674.00 444
21 $ 547.00 639
22 $ 578.00 503
23 $ 609.00 565
24 $ 228.00 785
25 $ 871.00 286
26 $ 188.00 842
27 $ 632.00 480
28 $ 442.00 721
29 $ 442.00 571 Task 2: Correlation
30 $ 1,114.00 25 Step 1. Determine the Correlation Coefficient (R), using the =CORREL function within the highlighted cell below.
31 $ 864.00 272 CORRELATION COEFFICIENT (R) =
32 $ 825.00 241
33 $ 750.00 252 Step 2. Next, determine the Correlation Coefficient for Profit and Defective items using a different method. To do this, take the square root (=SQRT) of the R² value from the scatterplot you created in Task 1.
34 $ 615.00 500
35 $ 445.00 674 Step 3. Place your result in the highlighted cell below.
36 $ 282.00 732 Step 4. Determine if this value should be positive (+) or negative (-) based on the direction of the scatterplot's trendline from Task 1.
37 $ 409.00 701 CORRELATION COEFFICIENT (R) =
38 $ 637.00 401
39 $ 646.00 536 Question 1: Determine whether a relationship between Profit and Number of defective items exists, and support your response using the scatterplot you created in Task 1.
40 $ 999.00 156
41 $ 232.00 824
42 $ 152.00 964
43 $ 874.00 212
44 $ 981.00 218
45 $ 289.00 747
46 $ 771.00 356 Question 2: Using the information from Task 2, provide a statitistical description of whether or not a relationship exists between Profit and Defective Items by interpreting the meaning of the correlation coefficient.
47 $ 806.00 303
48 $ 921.00 113
49 $ 150.00 883
50 $ 113.00 910
51 $ 1,084.00 85
52 $ 350.00 745
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