Data Analytics for Management, Individual Assignment

Subject: Data Analytics for Management, Individual Assignment

Purpose

The answers below are for problems 1-4 for of the individual assignment. Please note that the annotations and assigned markings re-start for the each problem.

Contents

Problem 1. Airline Overbooking 2

Problem 2. Managing Subscriptions at London Today 3

Problem 3. TV Movie Ratings 6

Problem 4. Housing Starts 9

Table 1: Q1 - Calculations 2

Table 2: Q2 - Outliers 4

Table 3: Q2 - Regression model 4

Table 4: Q3 - Correlation Analysis 6

Table 5: Q3 - Regression analysis 6

Table 6: Q3 - Rating comparison. 7

Table 7: Q4 - Coefficient interpretation 9

Table 8: Q4 - Trend line calculation 10

Figure 1: Q3 - Previous ratings 7

Figure 2: Q4 - Trend line 10

Problem 1. Airline Overbooking

a) If the airline sells 209 tickets what is the probability that there will be an overbooking situation?

b) If the airline sells 218 tickets what is the probability of having empty seats?

c) If the airline wants only 2% probability of an overbooking situation, how many tickets should it sell?

The table below presents the calculations & answers for the questions a-c.

Table 1: Q1 - Calculations

Description Parameter A B C

Number of seats N 209 218 203.00

Probability of no-show P 0.05 0.05 0.05

Probability of show 1-p 0.95 0.95 0.95

Mean Nxp 198.55 207.1 192.9

Standard deviation Sqrt(nxp(1-p) 3.15 3.22 3.1052

Additional parameter for question 201 198 200

Answer 21.84% 0.23% 1.07%

Explanations

a) The probability of overbooking can be described as selling more than 200 tickets (eg. 201).

Using the Excel formula: 1-Norm.Dist (201;198,55;3,15;TRUE)= 0,218, or 21,8%

b) Empty seats can mean that less than 200 seats were booked. Seats>1, so we will use 198 as a number of seats.

Using the Excel formula: Norm.Dist (198;207.1;3,22;TRUE)= 0.23%

c) If the airline wants only 2% probability of an overbooking situation, how many tickets should it sell?

As a quickest...