Topics: Statistical hypothesis testing, Null hypothesis, Hypothesis testing Pages: 12 (2873 words) Published: April 26, 2011
Statistic Report for
UNITE AUTOMOBILE ENTERPRISE

Lecturer:-
Dr Haslindar Ibrahim

Prepared by:-
Zalifah Che Embee (DL1010195)
Zahari Sehak (DL1016065)

Introduction
Unite Automobile Enterprise was established in January 2009. The company is involved in selling various types of domestic and import cars. Unite Automobile Enterprise sales have been particularly slow this past year. Unite Automobile has a very limited budget for advertising this year, so they feel that it is crucial to target the demographic most likely to account for the majority of money spent in the approaching year. The research data that has been collected includes such variables as: buyer’s age, amount of money spent by each group and type of car purchased; domestic or import.

Objectives and Research Problem
Unite Automobile Enterprise plan to increase their sales in the upcoming year. The data and statistics that have been collected from previous customers will help determine the course of action that Unite will take when planning their new advertising campaign. With Unite’s limited advertising budget, the need to optimize the effects of their only marketing campaign is essential to securing profits for the forthcoming year.   The research information will be comprised of many different variables collected from Unite’s past year’s customers. There are 80 samples collected from previous customer’s including: customer age demographic, the amount of money that a customer of each age demographic was willing to spend on a car, and the type of car; import or domestic, preferred by customer age.   By researching this data, the company hopefully will be able to design an effective marketing campaign to successfully draw new customers to the company within the age demographic that has been determined to be the target audience by the majority of money that had been spent by that group.

Types Of Variables and Level of measurement
Age Groups
The age groups will be divided into people in their 20s, 30s, 40s, and 50s.   This is an scale is measuring a range of customers between the ages of 20-59.   This is an interval measurement because there is no absolute zero.   With age, ratio is the common measurement scale, but because no one under age 20 has purchased a car at Unite Automobile; there is really no absolute zero. At first glance, it seems that the age group of customers in their 40s is the most prevalent in the sales roster; therefore, this group of people may, in fact, be the target audience for the marketing campaign.   This, of course, will have to be analyzed by determining the total amount spent by the 40s and all other age groups.

Amount Spent

The next variable in this experiment in the amount of money spent by customers of these age groups.   Although the 40s age group shows up predominantly on the sales roster, that does not necessarily mean that this group accounts for the highest amount of money being spent at Unite each year.   The level of measurement for sales is ratio because there is an absolute zero when it comes to dollar amounts.   All of the selected age groups have purchased a vehicle from the company meaning that sales transactions have taken place, in which dollar amounts have been taken into account.

Domestic versus Import

The final variable in this experiment is the preference of import or domestic cars among the different age groups.   The recorded data in the sales roster presents a mix of foreign and domestic cars sold at all age groups.   By determining the customer’s preference to purchase an import or domestic car, Unite Automobile will know which direction to take when choosing the vehicles featured in their advertising campaign.

By looking at the preference between import and domestic, a nominal scale is the means of measurement.   The nominal...