# Essay ECON 1203 STATS REPORT

1055 WordsSep 7, 20145 Pages
2014 Executive Summary This report attempts to analyse and summarise the research and data given by Business Analytics Department (BAD) in order to aid us in evaluating the performance of the new DGHG business venture known as the holiday resort of CCResort. Based on the data given by BAD, 200 recent customers’ data were examined and these were the key findings: CCResort aims to be an upmarket complex and has achieved this, as the majority of customers (69%) earn more than \$100,000 Almost half of the customers were aged between 40 and 54 The vast majority of booking parties consisted of groups of two or four which is reflective of the dominant 40-54 age as this could represent couples and young families. The majority of…show more content…
As accentuated through the diagram all averages for each length of stay is lower than \$255. Figure 7: Scatter Plot showing corelation between expenditure & length of stay Both figures 6 and 7 emphasise a strong correlation coefficient between expenditure and length of stay (0.91) which entails a positive linear relationship between the 2 variables. This implies that expenditure will increase accordingly as length of stay also rises. Other variables such as age and people have a lower correlation and hence a weaker relationship. It would be wise for DGHG to encourage people to stay for longer to increase their expenditure. Analysis of Key KPIs First KPI: more than 40% of customers stay for a full week We have to use Central Limit Theorem (CLT) as n = 200, is quite large. Under CLT, we establish that the sample distribution of a sample proportion is approximately normal. Utilising: Null Hypothesis: more than 40% of customers say the full week Alternative hypothesis: Less than 40% of customers stay the full week Assumption of a significance level of 5% Procedure: First, Establish H0 and H1 H0: p 0.4 H1: p > 0.4 Then, Establish rejection region ) = ) P (reject H0|H0 true) = α = 0.05 Reject if z > z0.05 = 1.645 Next, Standardise test statistic Sample Proportion Given: Then Zα = 1.645 = Z ≈3.1754 Z0.05 =