ASSESSMENT BRIEF

Subject Code and Name STAT6003 : Statistics for Financial Decisions

Assessment Assessment 4 – Case Study

Individual/Group Individual

Length (2000 words, +/- 10%)

Learning Outcomes This assessment addresses the following subject learning outcomes:

a) Examine the statistical techniques for the quantitative evaluation of data in decision making for accounting, finance and business applications.

b) Identify and apply appropriate statistical techniques to the problems and challenges.

c) Students will develop analytical and statistical skills through Excel data analysis to manipulate data into meaningful information for the purpose of decision making.

d) Select and apply a range of data analysis tools to inform problem solving and decision making.

e) Conduct quantitative research, articulate and present findings to a wide range of stakeholders, from accounting and non- accounting backgrounds.

Submission By 11:55pm AEST/AEDT Sunday of Module 6.1 (week 11)

Weighting 30%

Total Marks 100 Marks

Context:

The main aims to develop students’ competency in statistical literacy for decision making in the local and global business environment. It reviews statistical techniques for the quantitative evaluation of data in Financial applications. Students will develop analytical and statistical skills to enable them to transform data into meaningful information for the purpose of decision making Instructions:

• To more broadly understand the statistical literacy for decision making.

• Interpret statistical results and communicate their statistical analysis in business reports.

Submission Instructions:

This individual assessment requires you to apply statistical knowledge and skills learned from STAT6003 lectures between weeks 1, 2, 7, 8, 9, 10 and 11.

• This assesment can be based on several theories and methods.

• Please use Excel for statistical analysis in this assessment. Relevant Excel statistical output must be properly analysed and interpreted.

• Please provide a number for every table, graph or figure used and make clear reference to the table/graph/figure in your discussion.

• The word limit for this group assignment is 2,000 words (excluding Excel output).

Submit a copy of presentation Report in .docx, or .pdf format via the Assessment link in the main navigation menu in STAT6003. The Learning Facilitator will provide feedback with reference to the criteria below via the Grade Centre in the LMS portal. Feedback can be viewed in My Grades.

Assessment tasks: The variables for this assignment are as follows:

V1) Market Price ($000)

V2) Sydney price Index

V3) Total number of square meters

V4) Age of house (years)

Task 1: Selecting your Random Sample and Creating your Sample Data File ( 8 Marks)

In order to select the sample data that will form the basis of your assignment you will need to make use of the random number table provided with this assignment. The provided table of random numbers is, as the title suggests, a sequence of randomly generated numerical digits (0 to 9). These digits are arranged in a table with one hundred rows numbered 01 to 00 and twenty columns spread over two pages. The entries in each column of each row consist of five single digits.

The property data from which you will select your sample data consists of 400 IDs each with an identifying property number (PN) ranging from 1 (or 001) to 400.

Your first task is to select 50 three digit random (property) numbers ranging from 001 to 400 from the provided table of random numbers. We will ask you to select 50 numbers, to begin with, just to cover the distinct possibility that you may select the same three digit number more than once. The type of simple random sampling that we will be engaged in here is termed “without replacement” because we specifically do not want to allow a property identification number to be selected more than once.

In order to select your 50 random property identification numbers you will need to first go to a starting position row and column in the random number table. Defined by the last three digits of your Torrens University student identification number. The last two digits of your Torrens ID number identifies the row and the third last digit identifies the column of your (relatively) “unique” starting position.

For the demonstration last three digits of 312, reading across row 12 from left to right starting at column 3 as instructed, you would encounter the following three digit numbers;

293 313 381 349 656 985 295

You need to record these first three acceptable ID numbers, 293, 313, 381 and 349 into the first column of an Excel spread-sheet and then continue this process until fifty valid three-digit personal identification numbers selected.

Task 2:

1. Provide the complete summary statistics for Market Price ($000) and Age of house

(years). (5 Marks)

2. Describe the shape of the distributions for Market Price ($000) and Age of house (years).

(5 Marks)

3. Test whether the population’s average Market Price ($000) is different from 777.

(5 Marks)

4. Construct a 95% confidence interval for the Market Price ($000), also Interpret the confidence interval.

(4 Marks)

5. Provide an introduction section on the rationale of your model , sample size, and the dependent and independent variables (including their unit of measurement) in this model.

(4 Marks)

6. Plot the dependent variable against each independent variable using scatter plot/dot function in Excel. Examine these scatter plots and correctly assess the strength and the nature of the relationship between the dependent and the independent variables?

(6 Marks)

7. Present the multiple regression model with complete regression summary output in your assignment.

(6 Marks)

8. Provide the simple linear regression data analysis for the market price as the response variable and the Land size in Square meters as the explanatory variable. Write down the least square regression equation and correctly interpret the equation.

(6 Marks)

9. Write a clear interpretation of the slope of the regression line from question 8. You must refer to the variables of interest.

(4 Marks)

10. What is the value of the coefficient of determination for the relationship between the dependent and independent variable from question 8. Interpret this value accurately and in

a meaningful way.

(4 Marks)

11. State the 95% confidence interval for the slope coefficient and interpret this interval from question 8.

(5 Marks)

12. Compare the multiple regression model (question 7) and simple linear regression model (question 8) and evaluate the goodness of fit between these two modelling techniques.

(8 Marks)

13. Predict the market price of a house (in $) with a building area of 300 square meters. Explain why your answer is valid.

(4 Marks)

14. By performing an appropriate hypothesis test what decision and conclusion would you draw about the hypothesis that the Land size in Square meters useful in predicting the market price of a house (in $)? Use the data provided to justify your answer, as appropriate.

When answering this research question.

(8 Marks)

15. For statistical analysis involving hypothesis testing in this assignment, you are required to: • Formulate the null and alternative hypotheses for full model.

• State your statistical decision using significant value (??) of 5% for this test.

• State your conclusion in this context.

(8 Marks)

Learning Rubric: Assessment 4

Assessment Criteria Fail

(Unacceptable) 0-49% Pass

(Functional)

50-64% Credit

(Proficient) 65-74% Distinction

(Advanced)

75 -84% High Distinction

(Exceptional)

85-100%

Data Analysis using Excel

45%

SLO addressed:

Examine the statistical analysis through Excel Limited or no understanding

of the statistical data analysis. Identifies a proportion of the understanding of the statistical data analysis. Identifies a majority of the understanding of the statistical data analysis. Correctly identifies all of the analytical techniques and understanding of the statistical data analysis. Not only identifies all of the analytical techniques with good understanding of the statistical data analysis.

Application of Framework

45%

SLO addressed:

Identify and apply appropriate frameworks and tools to the problems and challenges Demonstrates no understanding of the framework and concepts relevant to the data analysis. Demonstrates little understanding of the framework and concepts relevant to the data analysis. Demonstrates good knowledge of the framework and concepts relevant to the data analysis. Demonstrates correct knowledge of the framework and concepts relevant to the data analysis. Demonstrates correct and complete knowledge of the framework and concepts relevant to the data analysis.

Correct citation of key resources and evidence 10%

Overall structure, appearance and referencing of the report are assessed. Demonstrates inconsistent use of good quality, credible and relevant resources to support and develop ideas.

Very badly written, incorrect grammar, badly organised with no logical flow of the

arguments. The document is missing in text referencing and/or a reference list. Demonstrates use of credible and relevant resources to support and develop ideas, but these are not always explicit or well developed.

The document is very poorly referenced. Demonstrates use of high quality, credible and relevant resources and evidence to support and develop ideas. Demonstrates use of good quality, credible and relevant resources and evidence to support and develop arguments and statements. Demonstrates use of high-quality, credible and relevant resources and evidence to support and develop arguments and position statements.

STAT6003 Assessment 4 Brief Case Study Individual Page 5 of 6

SUBTITLE CODE AND NAME STAT6003 : Financial Decision Statistics Assessment 4 – Case Study

Individual/Group Length (2000 words, +/- 10%)

Learning Goals This test covers the following learning outcomes:

a) Study statistical approaches for quantitative data evaluation in accounting, finance, and business applications.

To solve problems and difficulties, identify and utilize statistical tools.

b) Using Excel data analysis, students will learn to turn data into useful information for decision making.

d) Choose and use data analysis tools to help solve problems and make decisions.

e) Conduct quantitative research and convey findings to a broad variety of accounting and non-accounting stakeholders.

Submission By Sunday, 11:55pm AEST/AEDT (week 11)

30 % weighting

Marks total 100

Context:

The main goal is to improve students’ statistical literacy for corporate decision making locally and globally. It examines statistical methods for analyzing financial data. Students will learn to analyze and interpret facts to make decisions. • To comprehend statistical literacy for decision making.

• Interpret statistical data and present findings in business reports.

Submission Instructions:

Between weeks 1 and 11, you must apply statistical information and abilities obtained in STAT6003 lectures.

There are numerous ways to assess this.

• Please use Excel for statistical analyses. Excel data must be correctly analyzed and interpreted.

• Give each table, graph, and figure a number and make unambiguous references to them in your commentary.

• This group assignment’s word limit is 2,000. (excluding Excel output).

Report in.docx or.pdf format using the Assessment option in STAT6003’s main navigation menu. The Learning Facilitator will provide comments via the Grade Centre in the LMS interface. My Grades has feedback.

Work tasks: This assignment’s variables are:

Price ($000)

SPI (V2)

V3) Total square meters

V4) House age (years)

Preparing your random sample data file ( 8 Marks)

To select the sample data for your assignment, utilize the random number table provided with this assignment. The offered table of random numbers is a random series of numerical digits (0 to 9). On two pages, a table of these digits has 100 rows numbered 01 to 00 and 20 columns. Each column and row contains five single digits.

The property data consists of 400 IDs, each with a PN ranging from 1 (or 001) to 400.

Select 50 three-digit random (property) numbers ranging from 001 to 400 from the attached table. We’ll ask you to pick 50 numbers at first, just in case you pick the same three digit number again. This sort of basic random sampling is called “without replacement” since we don’t want a property identification number to be chosen more than once.

To select your 50 random property identification numbers, first select a row and column in the random number table. The last three digits of your Torrens student ID number. Last two digits of Torrens ID identify row, third digit indicates column of (relatively) “unique” beginning position.

The last three digits of 312 are 293 313 381 349 656 985 295

This method should be repeated until fifty valid three-digit personal identification numbers are selected (293, 313, 381 and 349).

T2:

1. Stats on Market Price ($000) and Age of House (years). (5)

2: Describe the market price ($000) and age distributions (years).

(5)

3. Compare the population’s average Market Price ($000) to 777.

(5)

4. Create a 95% confidence interval for the Market Price ($000) and interpret it.

(4)

5. Explain the model’s justification, sample size, and dependent and independent variables (including their unit of measurement).

(4)

6. In Excel, plot the dependent variable against each independent variable. Review these scatter plots and determine the link between the dependent and independent variables.

(6)

7. In your assignment, present the multiple regression model with summary output.

(6)

• Simple linear regression using market price as response and land area in square meters as explanatory variable. Write the least square regression equation and interpret it correctly.

(6)

9. Interpret the slope of the regression line in question 8. You must use the variables.

(4)

10. What is the coefficient of determination for the dependent and independent variables? This value should be interpreted correctly.

(4)

11. Interpret the 95% confidence interval for the slope coefficient from question 8.

(5)

12. Compare the multiple regression model (question 7) with the simple linear regression model (question 8) and their goodness of fit.

(8)

13. Estimate the market price of a 300 square meter house in dollars. Justify your answer.

(4)

14. Based on an acceptable hypothesis test, what would you conclude about the claim that land size in square meters predicts market price of a house in dollars? Use the data to support your response.

This research question.

(8)

• Formulate the null and alternative hypotheses for the whole model.

• For this test, use a significant value (??) of 5%.

• State your conclusion here.

(8)

Rubric: 4th Assessment Criteria Fail \s(Unacceptable) 0-49 % Pass \s(Functional)

50-64 % Credit \s(Proficient) 65-74 % Distinction \s(Advanced)

75-84 % Distinction (Exceptional)

85-100 %

Excel Data Analysis

45%

SLO cited:

Examine the stats through Excel Lack of knowledge in statistical data analysis. Identifies a piece of statistical data analysis understanding. Identifies a majority of statistical data analysis understanding. Identifies and understands all statistical data analysis procedures. Analytical procedures with solid comprehension of statistical data analysis.

Framework Use

SLO addressed at 45%

Find and use relevant frameworks and tools to solve problems. Lacks comprehension of the data analysis approach and principles. Lacks comprehension of the data analysis approach and principles. Knows the framework and key principles for data analysis. Demonstrates correct knowledge of the framework and concepts relevant to the data analysis. Knowledge of the framework and concepts important to data analysis.

Correct citation of key resources and evidence 10%

Overall structure, appearance and referencing of the report are assessed. Demonstrates inconsistent use of good quality, credible and relevant resources to support and develop ideas.

Very badly written, incorrect grammar, badly organised with no logical flow of the arguments. The document is missing in text referencing and/or a reference list. Demonstrates use of credible and relevant resources to support and develop ideas, but these are not always explicit or well developed.

The document is very poorly referenced. Demonstrates use of high quality, credible and relevant resources and evidence to support and develop ideas. Demonstrates use of good quality, credible and relevant resources and evidence to support and develop arguments and statements. Demonstrates use of high-quality, credible and relevant resources and evidence to support and develop arguments and position statements.

STAT6003 Assessment 4 Brief Case Study Individual Page 5 of 6