ASSIGNMENT

BUSINESS STATISTICS

“Evaluating Facility location parameters for FMCG industry”

Submitted by: Submitted to:

Mohit Sadhotra, 080 Mr. Sreedhar Babu

SIOM, Nashik
Introduction

As a part of curriculum, I have done a research on the topic Customer Satisfaction in Indian Airline
Industry.
Customer Satisfaction is one of the most important processes in airline industry and is recognized as key
to the success of business competition. Customer satisfaction also plays a key role determining the exit
barriers and eventually the profits. Thus, it has become pivotal to take into account the “voice of the
customer” while developing marketing strategies. And after delivering the services, it has become equally
important to monitor how well the customers’ expectations have been met.

A set of key variables were identified

Ticket Fare
In Flight Services
On time Arrival & Departure
Ease in booking tickets & Check in
Attractive Price
Hospitality

ANALYSIS AND FINDINGS

Using Correlation Analysis
Case I
Null Hypothesis: H0 = There is large positive correlation between In flight services and On time arrival
and departure when it comes to preference of airline.
Alternate Hypothesis: Ha = There is no positive correlation between In flight services and On time
arrival and departure when it comes to preference of airline.

Results in MINITAB 15
Correlations: In Flight Services, On time Arrival & Dep.

Pearson correlation of In Flight Services and On time Arrival & Dep. = 0.187
P-Value = 0.042

Findings and Conclusion: As we see that Pearson correlation coefficient is positive but very
less (0.187). Hence there is very less positive correlation. Also P-Value is 0.042 < α (0.05).
Therefore we reject the Null Hypothesis.
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Case II

Null Hypothesis: H0 = There is large positive correlation between In flight services and Attractive price
when it comes to preference of airline.
Alternate Hypothesis: Ha = There is no positive correlation between In flight services and Attractive
price when it comes to preference of airline.

Result in MINITAB 15
Correlations: In Flight Services, Attractive Price

Pearson correlation of In Flight Services and Attractive Price = 0.851

P-Value = 0.940

Findings and Conclusion: As we see that Pearson coefficient is positive and near to unity.
Hence we can say that there is strong positive correlation. Also, P-value 0.940 > α (0.05).
Therefore Do not reject Null Hypothesis and further research is required.

Case III

Null Hypothesis: H0 = There is large positive correlation between In flight services, ease in booking
tickets and Hospitality when it comes to preference of airline.
Alternate Hypothesis: Ha = There is no positive correlation between In flight services, ease in booking
tickets and Hospitality when it comes to preference of airline.

Results in MINITAB 15

Correlations: In Flight Services, Ease in booking tickets & Check, Hospitality

In Flight Servic Ease in booking

Ease in booking 0.352
0.000

Hospitality 0.451 0.361

0.000 0.000

Cell Contents: Pearson correlation

P-Value
Findings and Conclusion: We can see from the table above all the Pearson coefficients are
positive but there value is small hence we can say that though there is positive correlation but it
is very weak. Therefore we cannot accept (reject) Null Hypothesis.
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Case IV

Null Hypothesis: H0 = There is large positive correlation between the reason for your travel and class of
preference.
Alternate Hypothesis: Ha = There is no positive correlation between the reason for your travel and class
of preference.

Results in MINITAB 15

Correlations: The reasons for your travel, Which class do you prefer to travel

Pearson correlation of The reasons for your travel and Which class do you
Prefer to travel = 0.069
P-Value = 0.041

Findings and Conclusion: Reject the Null hypothesis as Pearson coefficient is very small.

ANOVA TEST

Case V

Null Hypothesis: H0 = Reason for travel does not affect the class of preference

Alternate Hypothesis: Ha = reason for travel affects the class of preference

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Results in MINITAB 15

One-way ANOVA: The reasons for your travel versus Which class do you prefer

Source DF SS MS F P
Which class do you prefer 1 0.077 0.077 0.34 0.561
Error 71 16.032 0.226
Total 72 16.110

S = 0.4752 R-Sq = 0.48% R-Sq(adj) = 0.00%

Individual 95% CIs For Mean Based on

Pooled StDev
Level N Mean StDev ------+---------+---------+---------+---
1 66 1.3182 0.4693 (-----*-----)
2 7 1.4286 0.5345 (----------------*-----------------)
------+---------+---------+---------+---
1.20 1.40 1.60 1.80

Pooled StDev = 0.4752

Findings and Conclusion: From the results of MINITAB we can see that P- Value is 0.561
which is greater than α = 0.05 at 95% confidence level. Hence, do not reject Null Hypothesis,
further research is required.