Econ940

Content

2……………………Executive summary

3-5…………………..Part 1

6-9…………………..Part 2, Conclusion & Implication

10-11………………..Appendix

Executive summary

An Australian manufacturing company headquartered in Sydney is active in developing and designing new products to expand into Australian and Asian markets. A proposal prepared by the R&D department is about new product line of fragrance. This report aims to study and analyse the detailed characteristics in the current fragrance market so as to help the company decide the production and price of the fragrance. In the first section it’s about the mean, mode, median, standard deviation and coefficient of variation of the prices regarding different gender, intensity, types of fragrance and manufacturing countries. The main technique and tool used in this section is Excel. The second section consists of several studies and analysis which go further deeper into the market. This section generally uses hypothesis testing procedures on 0.05 level of significance.

Part 1: Calculation of mean, median, mode, standard deviation and coefficient of variation regarding:

Question 1: Prices for gender: male and female

First of all, it is necessary to classify the prices into two categories: male and female. Then simply use Excel to find the answers. To find out the mean for each column of data, type “=average (data)”. For Median, type “=Median (data)”. For mode, type “=mode (data)”. For standard deviation, type “=stdev (data)”. For coefficient of variation, type “=stdev/mean”. By doing so, it is able to get the answers like this:

For prices for male:

For prices for female:

Conclusions: The price of the fragrance for male is generally higher than that of female, and the male fragrance’s prices show a more dispersing distribution. As for skewness, the male’s is negatively skewed while the female’s is a positively skewed distribution....