Muhammad Abdul Qawi bin Roslee

14B6027

Question 1
The table below shows the attributes of five selected products and their associated
development efforts. A graph is to be made by comparing each of the attributes against
their development cost and to see whether there is a correlation with each other.
Correlation is defined as a statistical tools used to define whether both of the variables
compared are related to each other ("Correlation - Statistical Techniques, Rating Scales,
Correlation Coefficients, And More - Creative Research Systems").

Product
Developme
nt Cost
Annual
Production
Volume
Sales
Lifetime
Sales Price
Part
Numbers
Developme
nt Time
Internal
Developme
nt Team
Size
External
Developme
nt Team
Size
Production
Investment

Stanley
Tools
Jobmaste
r
Screwdriv
er

Rollerbla
de InLine
Skate

150,000

750,000

HewlettPackard
Deskjet
Printer
50,000,0
00

100,000

100,000

4,000,00
0

100,000

50

40
5

3
150

2
130

6
20,000

30
260,000,000

35

200

10,000

130,000

1.5

3.5

4.5

100

800

6,800

10
1,000,00
0

75
25,000,0
00

800
500,000,0
00

10,000
3,000,000,0
00

150,000

Volkswage
n New
Beetle
Automobil Boeing 777
e
Airplane
400,000,0 3,000,000,0
00
00

Table 1 shows attributes of the five selected products

Annual Production Volume versus Development Cost

4,500,000
4,000,000
3,500,000
3,000,000
2,500,000

Annual Production Volume 2,000,000

1,500,000
1,000,000
500,000
0

2,000,000,000

Development Cost

Figure 1 shows annual production volume against development cost

There is no correlation as the graph shows both variables neither increase nor decrease
together. Hence the number of production per annum does not justify the development
cost to produce one product.

Sales Lifetime versus Development Cost

Sales Lifetime

45
40
35
30
25
20
15
10
5
0

2,000,000,000

Development Cost

Figure 2 shoes sales lifetime against development cost

There is no correlation as the graph shows both variables neither increase nor decrease
together. Hence the product sales lifetime does not justify the development cost.

Sales Price versus Development Cost

300,000,000
250,000,000
200,000,000

Sales Price 150,000,000

100,000,000
50,000,000
0

2,000,000,000

Development Cost

Figure 3 shoes sales price against development cost

There is a positive correlation as the graph shows both variables increases together.
Hence the sales prices increases as the development cost increases.

Part numbers versus Development Cost

140,000
120,000
100,000
80,000

Part Numbers

60,000
40,000
20,000
0

2,000,000,000

Development Cost

Figure 4 shows part numbers against development cost

There is a positive correlation as the graph shows both variables increases together.
Hence as the number of parts increases to produce a complete product, the
development cost also increases in terms of complexity.

Development Time versus Development Cost

5
4
3

Development Time

2
1
0

2,000,000,000

Development Cost

Figure 5 shows development time against development cost

There is a positive correlation as the graph shows both variables increases together for
most of the product. Hence as the development time increases, the development cost
also increases due to expenditure.

Internal Development Team Size versus Development Cost

8,000
7,000
6,000
5,000

Internal Development Team Size 4,000

3,000
2,000
1,000
0

2,000,000,000

Development Cost

Figure 6 shows internal development team size versus development cost

There is a positive correlation as the graph shows both variables increases together.
Hence as the internal development team increase, this puts an increase in the
development total cost.

External Development Team Size versus Development Cost

12000
10000
8000

External Development Team Size

6000
4000
2000
0

2,000,000,000

Development Cost

Figure 7 shows external development team size against development cost

There is a positive correlation as the graph shows both variables increases together
which is same as the internal development team. Hence as the external development
team increase, this puts an increase in the development total cost.

Production Investment versus Development Cost

3,500,000,000
3,000,000,000
2,500,000,000
2,000,000,000

Production Investment 1,500,000,000

1,000,000,000
500,000,000
0

2,000,000,000

Development Cost

Figure 8 shows production investment against development cost

There is a positive correlation as the graph shows both variables increases together.
Hence as more money is poured into production investment, the total cost of the
development also increases exponentially.
Question 2
Scope of development efforts for a PC development project.
The team

Development time: 2 years

Development cost: 10 million
Team size (internal) : 100 people
Team size (external): 75 people

The product

Product cost: U$ 1000 1600

Number of parts : 30-40
Annual production volume : 100,000
Sales lifetime : 2-3 years
Initial production cost: U$ 1500

Reference
"Correlation - Statistical Techniques, Rating Scales, Correlation Coefficients, And More Creative Research Systems". Surveysystem.com. N.p., 2016. Web. 19 Aug. 2016.