You are asked to carry out a study on behalf of a business analytics specialised consultancy on a subsample
on a subsample of weekly data from Randall’s Supermarket, one of the biggest in the UK. Randall’s marketing management team wishes to identify trends and patterns in a sample of weekly data collected for a number of their loyalty cardholders during a 26-week period. The data includes information on the customers’ gender, age, shopping frequency per week and shopping basket price. Randall’s operates two different types of stores (convenient stores and superstores) but they also sell to customers via an online shopping platform. The collected data are from all three different types of stores. Finally, the data provides information on the consistency of the customer’s shopping basket regarding the type of products purchased. These can vary from value products, to brand as well as the supermarket’s own high-quality product series Randall’s Top. As a business analyst you are required to analyse those data, make any necessary modifications in order to determine whether for any single customer it is possible to predict the value of their shopping basket.
Randall’s marketing management team is only interested in identifying whether the spending of the potential customer will fall in one of three possible groups including:
• Low spender (shopping basket value of £25 or less)
• Medium Spender (shopping basket value between £25.01 and £70) and
• High spenders (shopping basket greater than £70)
For the purpose of your analysis you are provided with the data set Randall’s.xls. You have to decide, which method is appropriate to apply for the problem under consideration and undertake the necessary analysis. Once you have completed this analysis, write a report for the Randall’s marketing management team summarising your findings but also describing all necessary steps undertaken in the analysis. The manager is a competent business analyst himself/herself so the report can include technical terms, although you should not exceed five pages. Screenshots and supporting materials can be included in the appendix.
After completing your analysis, you should submit a report that consists of two parts. Part A being a non-technical summary of your findings and Part B a detailed report of the analysis undertaken with more details.
Part A: A short report for the Head of Randall’s Marketing Management (20 per cent). This should briefly explain the aim of the project, a clear summary and justification of the methods considered as well as an overview of the results.
Although, the Head of Randall’s Marketing Management team who will receive this summary is a competent business analytics practitioner, the majority of the other team members have little knowledge of statistical modelling and want to know nothing about the technical and statistical underpinning of the techniques used in this analysis. This report should be no more than two sides of A4 including graphs, tables, etc. In this report you should include all the objectives of this analysis, summary of data and results as well as your recommendations (if any).
Part B: A technical report on the various stages of the analysis (80 per cent).
The analysis should be carried out using the range of analytics tools discussed:
• SPSS Statistics
Ensure that the exercise references:
• Binary and multinomial logistic regression
• Linear vs Logistic regression
• Logit Model with odds Ratio
• Co-efficients and Chi Squared
• MLR co-efficients
• Assessing usefulness of MLR model
• Interpreting a model
• Assessing over-all model fit with Psuedo R-Squared measures
• Classification accuracy (Hit Ratio)
• Wald Statistic
• Odd ratio exp(B)
• Ratio of the probability of an event happening vs not happening
• Ratio of the odds after a unit change in the predictor to the original odds
• Residuals analysis
• Cook’s distance
• Adequacy (with variance inflation factor VIF and tolerance statistic)
• Outliers and influential points cannot just be removed. We need to check them (typo? – unusual data?)
• Check for multicollinearity
Write a short and concise report to explain the technical detail of what you have done for each step of the analysis.
The report should also cover the following information:
• Any type of analysis that might be useful and check whether the main assumptions behind the analyses do not hold or cannot be
• Give evidence of the understanding of the statistical tools that you are using. For example, comment on the model selection procedure and the coefficient interpretation, e.g. comment on the interpretation of the logistic regression coefficients if such a method is used and provide an example of
• Conclusions and explanation, in non-technical terms, of the main points
3. When to balance dice are rolled, there are 36 possible outcomes. Find the probability that the sum is
is a multiple of three or greater than eight.
A certain game consist of rolling a single fair die and pays off as follows nine dollars for a six, six dollars for a five, one dollar for four and no payoffs otherwise.Find the expected winnings for this game.
A fair die is rolled four times. A 6 is considered success While all other outcomes are failures find the probability of three successes.
A pet store has nine puppies including 4 poodles 3 terriers and 2 retrievers. If Rebecca an errand in that order each select one puppy at random without replacement find the probability that Aaron select a retriever given that from last Rebecca selects a poodle.
Experience shows that a ski lodge will be for (166 guests) if there is a heavy snowfall in December, well only partially full (52 guests) With a light snowfall. What is the expected number of guests if the probability for a heavy snowfall is 0.40? I assume that heavy snowfall and light snowfall are the only two possibilities.
A pet store has six puppies Including two poodles two Terriers and to retrievers. If Rebecca and Aaron in that order each select one puppy random with replacement (They both may select the same one) Find the probability That Rebecca selects a terrier and Aaron selects a retriever.
Three married couples arrange themselves randomly in six consecutive seats in a row. Determine (A) the number of ways the following event can occur, And (B) the probability of the event. (The denominator of the probability fraction will be 6!=720, The total number of ways to arrange six items ). Each man was that immediately to the right of his wife.
A coin is tossed five times. Find the probability that all our heads. Find the probability that at least three are heads.
A certain prescription drug is known to produce undesirable facts and 35% of all patients due to drug. Among a random sample of a patient using a drug find the probability of the stated event. Exactly 5 have undesired effects.
10,000 raffle tickets are sold. One first prize of 1600, for second prizes of 800 each, And 9/3 prizes of 300 each or to be awarded with all winners selected randomly. If you purchase one ticket what are your expected winnings.
Suppose a charitable organization decides to Raise money by raffling A trip worth 500. If 3000 tickets are sold at one dollar each find the expected net winnings for a person who buys one ticket. Round to the nearest cent
Three men and seven women are waiting to be interviewed for jobs. If they are selected in random order find the probability that all men will be interviewed first
A fair diet is rolled. What is the probability of rolling on our number or a number less than three.
The pet store has 15 puppies, including five poodles, five Terriers, and five retrievers. If Rebecca and Aaron, in that order, select one puppy at random without replacement, find the probability that both select a poodle
Beth is taking a nine question multiple-choice test for which each question Has three answer choices, only one of which is correct. Beth decides on answering By rolling a fair die And making the first answer choice if the die shows one or two, The second If the die shows three or four, and the third if the die shows five or six. Find the probability of the stated event. Exactly 6 correct answers
For the experiment of drawing a single card from a standard 52 card deck find (a) the probability and (b) the odds are in favor that they do not drive six