BackgroundFrostbury is a supermarket in a small conurbation in the north of England. It caters for a population ofaround 3000 households. Although its main business is food, it has extended to other items such as clothesand white/electrical/electronic goods. The management of Frostbury, anxious of the drop in retail takings,wanted to understand the behavioural pattern of all its shopping population in order to respond correctlyto their need. It has introduced its own loyalty card and local people can apply for it using an applicationform made available at the supermarket. Those shoppers opting for this card will earn loyalty points thatcan be claimed via air miles and against future spending.The application form for the loyalty card has a small questionnaire where customers can give their opinionabout five key motivations for their choice of Frostbury to do their shopping, namely, the location of thesupermarket, the presence of the car park, the opening hours, the till service and helpfulness of staff. Thequestions are stated as follows:Rate on a scale 1 to 7 (1 = Not at all important and 7 = Very important)the following five motivations for shopping at Frotsbury.As well as asking people for their personal details such as the gender of the applicant, their age, maritalstatus and the number of children still living with them, the applicants were also asked to give an estimateof the time it takes them to get to the supermarket.The supermarket management are interested in the following three key research questions and possibleextensions to them:1. The demographic profile of applicants2. Their motivation for choosing to shop at Frostbury3. Their respective monthly spending4. The prediction of future spendingThe demographic data of applicants and their motivations for shopping with Frostbury are obtained fromthe application forms whereas the data on spending was obtained from the loyalty card database. A sampleof 163 customers has elected to apply for the loyalty card. The whole information is made available on anSPSS file named LCholders.sav. Some responses are missing and are represented by codes such as 99and 999, therefore before you undertake any analysis, you should re-label the responses properly andidentify the missing data.BA5001: Business Decision MakingYear: 2013-14Coursework 1Page | 2Part one: Analysis of dataYou work for a market research agency and the management of Frostbury have approach your agency foranalysis of their data. They presented you with the data file and their research objectives as stated in theirresearch questions. For this part, they are interested in the first three research questions.Since your CV stated that you have experience in working with SPSS software and a decent enougheducation on statistical methods, your line manager has chosen you for this project.Research question 1: The demographic profile of applicantsRequired:? Using SPSS, produce appropriate frequency tables of the demographic profile of shoppers whoapplied for Frostbury loyalty card. The profile will have to include their gender, marital status, andthe mode of transport they use to get to the supermarket.? Using SPSS, produce three appropriate charts to describe the age, the number of children still livingwith the family and the type of accommodation they live in.? Comment on your SPSS output.Note: For this section, you need to report on what the frequency tables and charts tell you. The reportshould be no more than 400 words in total and should include your output placed appropriatelywithin your report.Research question 2: Motivation for choosing to shop at FrostburyRequired:? Using SPSS, calculate the minimum, the maximum, the median, the lower quartile and the upperquartile for the ratings of the shoppers? motivations for choosing to shop with Frostbury. All fivemotivational items should be considered.? Comment on the single most important motivation. Also comment on the single most consistentmotivation among this sample of shoppers.Note: Again for this section, you need to produce a small report of no more than 100 words and includethe SPSS output. The SPSS output, which is a single table, should be inserted with your report.Research question 3: Monthly spendingRequired:? Using SPSS, draw a histogram and calculate the descriptive statistics for the January spendingamong this sample of shoppers. Comment on the shape of the spending distribution as well as itsaverage and spread.? Calculate the descriptive statistics of the January spending split by:o Gendero Accommodationo Transport usedo Number of children living the houseYou should include the sample size, the mean, median, skewness and standard deviation.Comment briefly on the results.Note: Again for this section, you need to produce a report of no more than 300 words (excluding the SPSSoutput). The different parts of the SPSS output need to be inserted within your report to enable thereader to check your results. In particular, you need to comment on the distribution of spendingacross the whole sample and then comment on which profile is high spender and/or low spender.Page | 3Part two: Hypothesis testing and linear regressionExtension to research questions: Hypothesis testingIndustry standards report that at least 40% of shoppers should be able to walk to their supermarketwithout needing public or private transport of some sort. Equally, the same standards indicate that thelocation of supermarkets is such that the average travelling time is about 12 minutes.Another report, published by a consumer research agency, suggested, among other things, that theavailability of parking at supermarkets is a significant incentive among shoppers, particularly among thoseusing their own private transport. The same report stated that male and female shoppers see thesupermarket?s opening hours as highly important, though they rate them differently. It was also stipulatedin the same report that average monthly spending per household at supermarkets depends on whether youlive in a flat or a house.Required:Using information from this sample of loyalty card applicants and an SPSS hypothesis testing facility to,? Test one: Test if industry standards apply in relation to the proportion of all shoppers to Frotsburyable to walk to the supermarket.? Test two: Test if industry standards apply to travelling time of all Frostbury shoppers.? Test three: Test the ratings of motivations for shopping at Frostbury against each of gender, maritalstatus, type of accommodation, number of children and mode of transport used, and identify thesignificant associations only.? Test four: Test if the January average spending of all shoppers is significantly different betweenthose who live in a flat and those who live in a house.? Comment on each of the four hypothesis tests above in relation to the information obtained fromthe two reports stated in the preamble above.Note: For this section, you need to produce a statistical reporting of your results in no more than 200words. Report on each test separately. For each test, you need to state clearly the hypotheses (Nulland alternative), indicate the level of significance you have chosen and then make a decision basedon your test result. You must only use SPSS to conduct your statistical test. Each useful SPSSoutput should be placed within the report. No statements are acceptable unless they are followedby appropriate statistical evidence taken from your SPSS output.Page | 4Modeling future spending ? Simple linear regression analysisThe spending by the loyalty card holders was also given for the month of February. We want to investigatewhether the amounts spent by cardholders in February can be explained by the amounts spent in January.Required:? Use SPSS to draw a scatter diagram of spending in February against spending in January.? Use SPSS to find a linear equation between the two monthly spending amounts.? Comment on your results and what they mean in this context. Your comments should include aspectsof the scatter diagram, the coefficient of determination, the significance of the model as a whole andwhether gradient coefficient is statistically significant.Note: As evidence, your output should include tables of the Model summary, Anova and coefficients.Comment on your simple linear model.Modeling future spending ? Multiple linear regression analysisThe intention here is to build a linear regression model for the February spending using the following fourvariables:? The spending by loyalty card holders in January (the previous month)? The age of applicants? The number of children still living with the parents? The time taken to get to the supermarketIn essence, your dependent (or outcome) variable is the February spending and your independent (orexplanatory) variables are the four stated above (in bullet points).Required:? Use SPSS to produce the best multiple linear model for predicting the February spending.? Comment on your multiple linear model. Your comments should include the variablesincluded/excluded by the model, aspects of the variation of the February spending amounts that areaccounted for by the model, the significance of the model (and its gradient variables) and the outliersto this model.Note: Your output should include tables of the model summary, Anova, Coefficients and the Casewisediagnostics (outside 3 standard deviations). Also, your comments should be written as if they are addressedto your manager at the market research agency. Your manager is familiar with the statistical terminology soyou can use technical language in this report. However, you will also need to explain the implications ofyour findings in more general, formal English.General expectations:? You are expected to write in a formal academic English style when producing your report and youshould not include the data set. Your comments should be written in a report form with separateparagraphs, titles and sub-titles (if needed).? In the comments, you can refer to certain parts of your SPSS output to help the readers (Markers inthis case) check the evidence of your findings.? Your SPSS output can be either screen-shot (or copied and pasted) on a word processor together withyour report so the reader can see your comments and check your results at the same time.? The reports you are including in this coursework are purely evidence based and should not contain anytheory notes taken from books or the internet.? Include a bibliography of any sources you have used/read to complete the coursework.? Note that comments such as there are more males than females or the most important motivationis the opening hours are not acceptable unless they are followed by appropriate statistical evidencesuch as Males represent 30% of the total for example.
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