ECON940 Statistics for Decision Making - Assessment 2

ECON940 Assessment 2 Case study analysis report

KC Analytica (KCA) is a consulting firm which advises on start-up business plans. Among other things, KCA is trying to prepare a report that will advise clients on setting up of restaurants in different locations of Sydney, and understand important differences in economic performance (profitability) across locations and cuisine served. Suppose that KCA has employed you to analyse the performance of restaurants. KCA has provided you with sample data of restaurants from a questionnaire survey. The sample data are recorded and classified as follows: Profit: Annual figure from 2017-2018 financial year expressed in $000
Location of Restaurants: 1 for CBD 1; 2 for Inner City (within 5 kms of CBD); 3 for Suburbs (greater than 6 kms from CBD) Firm type: 1 for Owner-operator; 2 for Partnerships Cuisine: 1 for Asian food; 2 for European food Data for the questions are in the file ASS2T2.xls in your Moodle site.. Your research report for KCA must include the following tasks:

1. Visually present data of the profit/loss in the three locations. Calculate descriptive statistics for the profit/loss in the three locations. Comment on the location, shape and variability of those distributions.

2. Visually present data of the profit/loss for Asian and European restaurants. Calculate descriptive statistics for the profit of Asian and European restaurants. Comment on the location, shape and variability of those distributions.

3. Visually present data of the profit/loss of restaurants in CBD for Asian and European restaurants. Calculate descriptive statistics for the profit/loss for restaurants in the CBD for restaurants serving Asian and European restaurants. Comment on the location, shape and variability of those distributions

4. Many prospective investors believe that profits of European restaurants are higher than Asian restaurants. Using appropriate inferential statistical technique test whether the average profit of European restaurants are higher than Asian restaurants.

5. Using appropriate inferential statistical technique report whether there is no significant difference of the average profit of restaurants from the different locations.

6. Many prospective investors believe that Owner-operated restaurants make more profit than Partnership-operated restaurants. Using appropriate inferential statistical technique test whether the average profits of Owner-operated restaurants are higher than the average profits of Partnership-operated restaurants.

7. Many prospective investors believe that CBD European restaurants make more profit than CBD Asian restaurants due to presence of large business organisations in the CBD. Using appropriate inferential statistical technique test whether the average profits of CBD European restaurants are higher than average profits of CBD Asian restaurants.

More information on this assessment will be provided during the session time including the presentation of the assignment and submission to Turnitin. Please note that you should submit the assignment according to the format given in the Moodle site.