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Solutions to

Case Problems
Chapter 2
Descriptive Statistics: Tabular and Graphical Presentations
Case Problem 1: Pelican Stores
1. There were 70 Promotional customers and 30 Regular customers. Because there are 100
observations in the sample, the freuenc! and percent freuenc! distribution are the same. Percent
freuenc! distributions for man! of the variables are given.
"o. of #tems Percent
$reuenc!
1 %&
% %7
3 10
' 10
( &
) 7
7 or more *
Total+ 100
"et ,ales Percent
$reuenc!
0.00 - %'.&& &
%(.00 - '&.&& 30
(0.00 - 7'.&& %(
7(.00 - &&.&& 10
100.00 - 1%'.&& 1%
1%(.00 - 1'&.&& '
1(0.00 - 17'.&& 3
17(.00 - 1&&.&& 3
%00 or more '
Total+ 100
.ethod of Pa!ment Percent
$reuenc!
/merican 01press %
2iscover '
.aster3ard 1'
Proprietar! 3ard 70
4isa 10
Total+ 100
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3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
5ender Percent
$reuenc!
$emale &3
.ale 7
Total+ 100
.artial ,tatus Percent
$reuenc!
.arried *'
,ingle 1)
Total+ 100
/ge Percent
$reuenc!
%0 - %& 10
30 - 3& 30
'0 - '& 33
(0 - (& 1)
)0 - )& 7
70 - 7& '
Total+ 100
These percent freuenc! distributions provide a profile of Pelican6s customers. .an! observations
are possible, including+
/ large ma7orit! of the customers use "ational 3lothing8s proprietar! credit card.
9ver half of the customers purchase 1 or % items, but a few ma:e numerous purchases.
The percent freuenc! distribution of net sales shows that )1; of the customers spent <(0 or
more.
3ustomers are distributed across all adult age groups.
The overwhelming ma7orit! of customers are female.
.ost of the customers are married.
%.
3. / crosstabulation of t!pe of customer versus net sales is shown.
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3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
"et ,ales
3ustomer
0-
%(
%(-
(0
(0-
7(
7(-
100
100-
1%(
1%(-
17(
17(-
%00
%00-
%%(
%%(-
%(0
%(0-
%7(
%7(-
300
Total
Promotional 7 17 17 * & 3 % 3 1 % 1 70
Regular % 13 * % 3 1 1 30
Total & 30 %( 10 1% ' 3 3 1 % 1 100
$rom the crosstabulation it appears that net sales are larger for promotional customers.
'. / scatter diagram of net ,ales vs. age is shown below. / trendline has been fitted to the data. $rom
this, it appears that there is no relationship between net sales and age.
/ge is not a factor in determining net sales.
Case Problem 2: The Motion Picture Industry
This case provides the student with the opportunit! to use tabular and graphical presentations to anal!=e
data from the motion picture industr!. 2eveloping and interpreting freuenc! distributions, percent
freuenc! distributions and scatter diagrams are emphasi=ed. The interpretations and insights can be uite
varied. >e illustrate some below.
Frequency Distribution and Percent Frequency Distribution
The choice of the classes for freuenc! distributions or percent freuenc! distributions can be e1pected to
var!. The freuenc! distributions we developed are as follows+
Opening Gross Sales
(Millions)
Frequency
(or Percentage)
<0 ? &.&& 70
10 ? 1&.&& 1(
%0 ? %&.&& *
30 ? 3&.&& %
3P - 3
0.00
(0.00
100.00
1(0.00
%00.00
%(0.00
300.00
3(0.00
0 10 %0 30 '0 (0 )0 70 *0 &0
Age
N
e
t

S
a
l
e
s
3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
'0 ? '&.&& 1
(0 ? (&.&& 1
)0 ? )&.&& 0
70 ? 7&.&& 1
*0 ? *&.&& 0
&0 ? &&.&& 0
100 ? 10&.&& %
Total 100
Total Gross Sales
(Millions)
Frequency
(or Percentage)
<0 ? '&.&& 77
(0 ? &&.&& 1)
100 ? 1'&.&& 1
1(0 ? 1&&.&& 1
%00 ? %'&.&& 3
%(0 ? %&&.&& 1
300 ? 3'&.&& 0
3(0 ? 3&&.&& 1
Total 100
Number
o T!eaters
Frequency
(or Percentage)
0 ? '&& (1
(00 ? &&& 3
1000 ? 1'&& )
1(00 ? 1&&& 7
%000 ? %'&& (
%(00 ? %&&& )
3000 ? 3'&& 17
3(00 ? 3&&& (
Total 100
Number o
"ee#s
in Top $%
Frequency
(or Percentage)
0 ? ' 33
( ? & %*
10 ? 1' 1*
1( ? 1& 1(
%0 ? %' (
%( ? %& 1
Total 100
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3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
&istograms
The following histograms are based on the freuenc! distributions shown above.
0
10
%0
30
'0
(0
)0
70
*0
0
-
&
.
&
&
1
0
-
1
&
.
&
&
%
0
-
%
0
.
&
&
3
0
-
3
&
.
&
&
'
0
-
'
&
.
&
&
(
0
-
(
&
.
&
&
)
0
-
)
&
.
&
&
7
0
-
7
&
.
&
&
*
0
-
*
&
.
&
&
&
0
-
&
&
.
&
&
1
0
0
-
1
0
&
.
&
&
Opening "ee#end Gross Sales (millions)
F
r
e
q
u
e
n
c
y
0
10
%0
30
'0
(0
)0
70
*0
&0
0
?
'
&
.&
&
(
0
?
&
&
.&
&
1
0
0
?
1
'
&
.&
&
1
(
0
?
1
&
&
.
&
&
%
0
0
-
%
'
&
.
&
&
%
(
0
?
%
&
&
.&
&
3
0
0
?
3
'
&
.
&
&
3
(
0
?
3
&
&
.&
&
Total Gross Sales (millions)
F
r
e
q
u
e
n
c
y
3P - (
3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
0
10
%0
30
'0
(0
)0
0
-
'
&
&
(
0
0
-
&
&
&
1
0
0
0
-
1
'
&
&
1
(
0
0
-
1
&
&
&
%
0
0
0
-
%
'
&
&
%
(
0
0
-
%
&
&
&
3
0
0
0
-
3
'
&
&
3
(
0
0
-
3
&
&
&
Number o T!eaters
F
r
e
q
u
e
n
c
y
0
(
10
1(
%0
%(
30
3(
0-' (?& 10?1' 1(?1& %0?%' %(?%&
Number o "ee#s in t!e Top $%
F
r
e
q
u
e
n
c
y
'nterpretation
Opening "ee#end Gross Sales( The distribution is s:ewed to the right. "umerous motion pictures have
somewhat low opening wee:end gross sales, while a relativel! few @7;A have an opening wee:end gross
sales of <30 million or more. 9nl! %; had opening wee:end gross sales of <100 million or more. 70; of
the motion pictures had opening wee:end gross sales less than <10 million and *(; of the motion pictures
had opening wee:end gross sales less than <%0 million. Bnless there is something unusuall! attractive
about the motion picture, an opening wee:end gross sales less than <10 million appears t!pical.
Total Gross Sales( This distribution is also s:ewed to the right. /gain, the ma7orit! of the motion pictures
have relativel! low total gross sales with 77; less than <(0 million and &3; less than <100 million.
Cighl! successful bloc:buster motion pictures are rare. Total gross sales over <%00 million occurred onl!
(; of the time and over <300 million occurred onl! 1; of the time. "o motion picture reported <'00
million in total gross sales. Bnless there is something unusuall! attractive about the motion picture, a total
gross sales less than <(0 million appears t!pical.
3P - )
3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
Number o T!eaters( This distribution is s:ewed to the right, but not so much as sales data distributions.
The number of theaters range from less than (00 to almost '000. (1; of the motion pictures had the
smaller mar:et e1posure with the number of theaters less than (00. #nterestingl! enough, %%; of the
motion pictures had the widest mar:et e1posure, appearing in over 3000 theaters. 3000 to '000 theaters is
t!pical for a highl! promoted motion picture.
Number o "ee#s in Top $%( This distribution is s:ewed to the right, but not as much as the other
distributions. #n appears that almost all newl! released movies initiall! ma:e it into the top )0, with )7;
sta!ing in the top )0 for ( or more wee:s. 0ven motion pictures with relative low gross sales can appear in
the top )0 motion pictures for a month or more. /lmost '0; of the motion pictures are in the top )0 for 10
or more wee:s, with ); of the motion pictures in the top )0 for %0 or more wee:s.
General Obser)ations. The data show that there are relative few high-end, highl! successful motion
pictures. The financial rewards are there for the pictures that ma:e the bloc:buster level. But the ma7orit!
of motion pictures will have low opening wee:end gross sales and low total gross sales. .otion pictures
being shown in less than 1(00 theaters and motion pictures less than 10 wee:s in the top )0 are common.
Scatter Diagrams
Three scatter diagrams are suggested to show how Total 5ross ,ales is related to each of the other three
variables.
0.00
(0.00
100.00
1(0.00
%00.00
%(0.00
300.00
3(0.00
'00.00
0.00 %0.00 '0.00 )0.00 *0.00 100.00 1%0.00
Opening "ee#end Gross Sales
T
o
t
a
l

G
r
o
s
s

S
a
l
e
s
0.00
(0.00
100.00
1(0.00
%00.00
%(0.00
300.00
3(0.00
'00.00
0 (00 1,000 1,(00 %,000 %,(00 3,000 3,(00 ',000 ',(00
Number o T!eaters
T
o
t
a
l

G
r
o
s
s

S
a
l
e
s
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3hapter % 2escriptive ,tatistics+ Tabular and 5raphical Presentations
0.00
(0.00
100.00
1(0.00
%00.00
%(0.00
300.00
3(0.00
'00.00
0 ( 10 1( %0 %( 30
Number o "ee#s in t!e Top $%
T
o
t
a
l

G
r
o
s
s

S
a
l
e
s
'nterpretation
Opening "ee#end Gross Sales( The scatter plot of total gross sales and opening wee:end gross sales
shows a strong positive relationship. .otion pictures with the highest total gross sales were the motion
pictures with the highest opening wee:end gross sales. Cow the motion picture does during its opening
wee:end should be a ver! good predictor of how the motion picture will do in terms of total gross sales.
"ote in the scatter diagram that the ma7orit! of the motion pictures show a low opening wee:end gross
sales and a low total gross sales.
Number o T!eaters( The scatter plot of the total gross sales and number of theaters also shows a positive
relationship. $or motion pictures pla!ing in less than 3000 theaters, the total gross sales has a positive
relationship with the number of theaters. #f the motion picture is shown in more theaters, higher total gross
sales are anticipated. $or motion pictures pla!ing in more than 3000 theaters, the relationship is not as
strong. 3000 to '000 represents the ma1imum number of theaters possible. #f a motion picture is shown in
this man! theaters, 1( motion pictures did slightl! better in terms of total gross sales. Cowever, the
bloc:buster motion pictures in this categor! showed e1tremel! high total gross sales for the number of
theaters where the motion picture was shown.
Number o "ee#s in Top $%( The scatter plot of the total gross sales and number of wee:s in the top )0
shows a positive relationship, but this relationship appears to be the wea:est of the three relationships
studied. 5enerall!, the more successful, higher gross sales motion pictures are in the top )0 for more
wee:s. Cowever, this is not alwa!s the case. $our of the si1 motion pictures with the highest total gross
sales appeared in the top )0 less than %0 wee:s. /t the same time, four motion pictures with %0 or more
wee:s in the top )0 did not have unusuall! high total gross sales. This suggests that in some cases
bloc:buster movies with high gross sales ma! run their course uic:l! and not have an e1cessivel! long run
on the top )0 motion picture list. /t the same time, perhaps ualit! motion pictures with a limited audience
ma! not generate the high total gross sales but ma! still show a run of %0 or more wee:s on the top )0
motion picture list. The number of wee:s in the top )0 does not appear to the best predictor of total gross
sales.
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