HELLENIC OPEN UNIVERSITY

MASTERS DEGREE PROGRAMME IN BUSINESS ADMINISTRATION

Module: ADVANCED QUANTITATIVE METHODS FOR MANAGERS
(MBA60)
Academic Year: 2016-17
2nd Written Assignment (WA2)

The attached file EYDAP.xls gives the data of 100 respondents from the
Greater Metropolitan area of Athens that were asked to give a grade for the overall
satisfaction from EYDAP services (variable Cust_Sat) on a scale of 0 to 10 (0: very
dissatisfied, 5: neither satisfied nor dissatisfied, 10: very satisfied) and report their
last quarterly bill in Euro (variable Bill).
Use the aforementioned data set in order to:

Subject 1 (20%)
1.1 Set up a 95% confidence interval to estimate the population mean of the quarterly
bill in Euros.
1.2 On the basis of your results, do you think that the hypothesis that the mean
quarterly bill is 45 Euros should be rejected at = 5% significance level? Explain.
1.3 Does the population of the quarterly bill in Euro have to be normally distributed
here? Explain.
1.4 Suppose that you used a 99% confidence interval estimate. How would your
answers to 1.1 and 1.2 be affected?

Subject 2 (20%)
The Chief Marketing Officer of EYDAP insists that due to financial problems, the
quarterly bill in Euro of customers on average should be at least 30.
2.1 State the null and the alternative Hypotheses.
2.2 Test the null hypothesis at = 5%.
2.3 On the basis of your results, is the Chief Marketing Officers requirement
satisfied?
2.4 Given that there are 4.3 million customers in the Greater Metropolitan area of
Athens set up a 95% confidence interval estimate of the total quarterly bill.

HELLENIC OPEN UNIVERSITY

MASTERS DEGREE PROGRAMME IN BUSINESS ADMINISTRATION

Subject 3 (20%)
3.1 Create an additional variable by classifying the overall satisfaction from EYDAP
services, as follows:
Cust_Sat_new: Dissatisfied (Code 1): Cust_Sat <= 5; Satisfied (Code 2):
Cust_Sat > 5; i.e.:

1, if Dissatisfied (Cust_Sat 5)
Cust_Sat_new =
.
2, if Satisfied (Cust_Sat > 5)
Using this new variable answer the following questions:
3.2 Find an unbiased point estimate of the proportion of satisfied customers.
3.3 Create a 95% confidence interval for the proportion of satisfied customers.
3.4 Given that there are 4.3 million customers in the Greater Metropolitan area of
Athens set up a 95% confidence interval estimate of the population number of
satisfied customers.

Subject 4 (20%)
4.1 Create an additional variable by classifying the quarterly bill as follows:
Bill_new:
i.e.:

Low (Code 1): Bill <= 30 Euros;

High (Code 2): Bill > 30 Euros;

1, if Low (Bill 30 Euros)

Bill_new =
.
2, if High (Bill > 30 Euros)
Using the information given on variables Cust_Sat_new and Bill_new, do the data
support the hypothesis that the percentage composition of customer satisfaction is
the same in both bill categories?
4.2 State the null and the alternative Hypotheses.
4.3 Test the null hypothesis at = 1%.
4.4 What is your conclusion?

HELLENIC OPEN UNIVERSITY

MASTERS DEGREE PROGRAMME IN BUSINESS ADMINISTRATION

Subject 5 (20%)
Is there any difference between the average quarterly bills (variable Bill) of the two
specific groups of customers: Dissatisfied (Cust_Sat_new = 1) and Satisfied
(Cust_Sat_new = 2)? Create the 95% confidence interval of the difference of the two
average quarterly bills. Explain your findings.
2

1/2

Note: Use the Z statistic with standard error of (Mean1-Mean2) = (s1 /n1 + s2 /n2) .

Assignment guidelines

It is important that the coursework reflects your knowledge rather than it being
simply an accumulation of information.
The assignment should be well structured and easy to read.
The assignment should clearly present all aspects and perspectives of the
subject area, i.e.:
o
efficiently develop all necessary elements
o
refer to actual case studies or statistics if required
o
present reasonable argumentation
o
omit irrelevant material
All questions are compulsory. The assignment, including possible diagrams,
tables, references etc., should not exceed 5000 words. For every additional 1000
words there will be a penalty of 0.5 points.
Each question accounts for a percentage of the total mark. This is clearly
marked at the beginning of each question.
The assignment is due on 10/01/2017. Please note that no assignment will
be acceptable after this date as the electronic submission system
automatically locks at 23:59 on the last day of submission.
You should submit your assignment via http://study.eap.gr (or
http://study.hou-wue.eu if you attend the HOU-WUE MBA Programme)
using your username and password.
You may use any of the following file formats:
o
Microsoft Word or / and Excel 97-2003 (*.doc / *.xls).
o
Microsoft Word or / and Excel Open XML (*.docx / *.xlsx)
o
Note: Interpretation of results and other text must be submitted ONLY
in Word format.
Other document formats or read only file formats such as Portable Document
Format (*.pdf) are not acceptable formats for the submission of your assignment.
Please pay attention to the proper naming of your assignment. The file should be
named as follows: Surname-Initial-WAnumber-YourClass. For example, if
your name is Peter Drucker, you are sending in your 3rd assignment, and you
are in ATH1 Class, then you should name your file as follows: Drucker-P-WA33

HELLENIC OPEN UNIVERSITY

MASTERS DEGREE PROGRAMME IN BUSINESS ADMINISTRATION

ATH1. Assignments that fail to comply with this requirement will receive a lower
mark in the presentation grade.
Copying is considered cheating and is not acceptable in any form. Copying
large parts or whole paragraphs of text found in any of the sources used
for an assignment (printed books, academic articles, or electronic media of
any kind) is totally unacceptable. It is considered plagiarism and leads to a
severe penalty for the student(s) involved. Students should cite all sources
from which they take data, ideas or words, whether quoted directly or
paraphrased.
Good luck!!