Business Analytics Assessment - Assignment Example

Business analytics assignment Name: Course: Instructor: Date: PART 1 MEMORANDUM For Attention: Nancy Guan, Senior Editor 20/04/2015 From: Guo Li, Researcher Regarding: Analysis of New Gen Smartphone dataset Dear Nancy, Following your request for the analysis of the New Generation smartphone usage, I have had the opportunity to undertake the study and to do the analysis. Kindly find the answers to your inquiry below. 1. Summary of Smartphone Users’ monthly bills. The following table shows a summary and brief explanation of monthly bills for smartphone users. summary of monthly bills for smartphone users Mean 65.95333333 Standard Error 3.448909132 Median 61 Mode 55 Standard Deviation 42.24033771 Sample Variance 1784.24613 Kurtosis 19.59007407 Skewness 3.360097358 Range 337 Minimum 13 Maximum 350 Sum 9893 Count 150 Confidence Level (95.0%) 6.815089893 The mean monthly spending for smartphone users is $65.95333333 with a standard deviation of 42.24033771. 2. Breakdown of monthly bills for post-paid and prepaid users plans for subscribers. monthly bill for postpaid   monthly bill for prepaid subscribers Mean 68.81176471 Mean 62.21538 Standard Error 5.483397251 Standard Error 3.451831 Median 58 Median 65 Mode 55 Mode 65 Standard Deviation 50.55442473 Standard Deviation 27.82956 Sample Variance 2555.74986 Sample Variance 774.4841 Kurtosis 16.09496346 Kurtosis -0.70599 Skewness 3.387082837 Skewness 0.03772 Range 337 Range 113 Minimum 13 Minimum 15 Maximum 350 Maximum 128 Sum 5849 Sum 4044 Count 85 Count 65 Largest(1) 350 Largest(1) 128 Smallest(1) 13 Smallest(1) 15 Confidence Level(95.0%) 10.90433678 Confidence Level (95.0%) 6.895826 The total amount of money spend by post-paid and prepaid subscribers on a monthly basis are $5849 and $4044 respectively. On average a post-paid subscriber will spend $68.81176471 while prepaid subscribers will spend $62.21538 on a monthly basis. 3. Summary of the most frequently downloaded entertainment content The table below shows a summary of the most frequently entertainment content downloaded by smartphone users. Content Total Number of smartphone users Games Music Ringtones Screensavers Videos Wallpaper Other 18 23 24 7 45 16 17 150 Percentage % 12 15.3333 16 4.6667 30 10.6667 11.3333 100 4. current user satisfaction with their providers a) The overall distribution of satisfaction levels The table below shows the overall distribution of satisfaction levels of the user with their providers. Level of satisfaction Total Number of user Very satisfied Moderately Satisfied Little Dissatisfied Very Dissatisfied 63 49 27 11 150 Percentage % 42 32.6667 18 7.3333 100% Overall the users are satisfied with their providers. Among the 150 respondents, 63 of the respondents feel very satisfied with their providers, 49 feel moderately satisfied, 27 feel little dissatisfied while 11 feel very dissatisfied. b. user satisfaction for male and female users. Please find the tables below showing user satisfaction by gender. Level of satisfaction (male) Total Number of user Very satisfied Moderately Satisfied Little Dissatisfied Very Dissatisfied 45 36 22 8 111 Percentage % 40.5405 32.4324 19.8198 7.2072 100% Level of satisfaction(female) Total Number of user Very satisfied Moderately Satisfied Little Dissatisfied Very Dissatisfied 18 13 5 3 39 Percentage % 46.1538 33.3333 12.8205 7.6923 100% Overall level of satisfaction by gender Overall Level of satisfaction Total Number of user Very satisfied Moderately Satisfied Little Dissatisfied Very Dissatisfied Female 18 13 5 3 Male 45 36 22 8 Total 63 49 27 11 150 5. Influence of PercentForWork, Calls, SMS and MMS on monthly bills In order to determine the influence of PercentForWork, Calls, SMS and MMS on monthly bills, a regression and correlation analysis was undertaken. The regression and correlation results are shown below. The relation equation Y(monthly bill)= 23.40369+0.14927 PercentForWork +0.7091calls+1.310662SMS+7.101673MMS+e According to the equation above, all the factors positively influence the monthly bill. Specific analysis reveal that; an increase in PercentForWork by one dollar will increase a subscriber’s monthly bill by $0.14927; an increase in calls by one dollar will increase monthly bill by $0.7091; an increase in SMS by one dollar will increase the monthly bill by $1.310662; and increase in MMS by one dollar will increase monthly bill by $7.101673 provided all factors held constant. As revealed by the regression results above, MMS stands out to be the most effective since it has the largest coefficient. That is, increasing a unit spending by one dollar will increase the monthly bill by more than $7. Correlation   monthly bill PercentForWork Calls SMS MMS monthly bills 1 PercentForWork 0.082542 1 Calls 0.392875 0.08264 1 SMS 0.379516 0.051967 0.362137 1 MMS 0.216531 -0.05938 0.015869 0.093748 1 The correlation coefficients above show that monthly bill exhibits a positive correlation with both the PercentForWork, Calls, SMS and MMS. That is, a change in any of the variables will result to a positive change in monthly bill. Please note that this document is only but a summary of most results. Otherwise, the intensive analysis and interpretation are found in the appendix below. Feel free to view the appendix for more information and analysis of the questions. Thank you Regards Guo Li APPENDICES Part 2: DATA ANALYSIS 1. Smart phone users monthly bills summary of monthly bills for smartphone users Mean 65.95333333 Standard Error 3.448909132 Median 61 Mode 55 Standard Deviation 42.24033771 Sample Variance 1784.24613 Kurtosis 19.59007407 Skewness 3.360097358 Range 337 Minimum 13 Maximum 350 Sum 9893 Count 150 Confidence Level (95.0%) 6.815089893 Taking a sample of 150 users, the total amount spent by the users on smartphone is $9893 in one month. The mean monthly bills for smartphone users is $ 65.95333333 with a standard deviation of $42.24033771. It is worth noting that the standard deviation shows how much the value within the data set varies from the mean. That is, through the standard deviation, the researcher will be able to determine how the values in the data are effectively bunched around the mean of the data. The results above shows a high standard deviation indicating a widely spread standard deviation hence less reliable. According to the statistics above, the highest amount that an individual can use on the smartphone is $350 while the minimum amount is $13. This gives a range of $337 per monthly. The values were obtained at 95% confidence level with a sample size of 150 users. This cuts across the groups regardless of the marital status, sex, living status, states, income and other variables. Nevertheless, most users of smartphone use $55 as monthly bill as shown by the mode of the study. The mode is the value that occurs most often in the dataset and in this case it is $55. 2. Breakdown of monthly bills for post-paid and prepaid users plans for subscribers. monthly bill for postpaid   monthly bill for prepaid subscribers Mean 68.81176471 Mean 62.21538 Standard Error 5.483397251 Standard Error 3.451831 Median 58 Median 65 Mode 55 Mode 65 Standard Deviation 50.55442473 Standard Deviation 27.82956 Sample Variance 2555.74986 Sample Variance 774.4841 Kurtosis 16.09496346 Kurtosis -0.70599 Skewness 3.387082837 Skewness 0.03772 Range 337 Range 113 Minimum 13 Minimum 15 Maximum 350 Maximum 128 Sum 5849 Sum 4044 Count 85 Count 65 Largest(1) 350 Largest(1) 128 Smallest(1) 13 Smallest(1) 15 Confidence Level(95.0%) 10.90433678 Confidence Level (95.0%) 6.895826 The total amount of money spend by postpaid and prepaid subscribers on a monthly basis are $5849 and $4044 respectively. On average a postpaid subscriber will spend $68.81176471 while prepaid subscribers will spend $62.21538 on a monthly basis. According to the results above, there is a huge difference in terms of spending between the groups irrespective of the gender. There are several reasons that explains why most people prefer prepaid services over postpaid services as revealed by the statistics above. One of the reasons is that most operators offer cool services with their cheap prepaid plans and this is revealed by the lowest comparatively mean as shown above. Consumers are rational individuals that will go for cheaper services that will serve their need. Another reason why subscribers prefer prepaid services is because it gives them the freedom to control their spending. Most subscribers believe that undertaking postpaid connection would result into uncontrolled spending. In addition, undertaking a prepaid package will ensure a more regular and stable revenue from the subscriber as compared to the post-paid package. As revealed by the results above, there is a difference in mean between postpaid and prepaid subscribers. To task the significance of the difference, a hypothesis test will be carried out using z-test analysis. Ho: There is a significance difference between the postpaid and prepaid plan. H1: There is no significance difference between the postpaid and prepaid plan z-Test: Two Sample for Means   post paid prepaid Mean 68.81176 47.57647 Known Variance 2555.75 774.4841 Observations 85 85 Hypothesized Mean Difference 6.5964 z 2.338731 P(Z Read More