MATH302 Statistics - Mathematics
Assignment InstructionsA marketing company based out of New York City is doing well and is looking to expand internationally. The CEO and VP of Operations decide to enlist the help of a consulting firm that you work for, to help collect data and analyze market trends. You work for Mercer Human Resources. The Mercer Human Resource Consulting website (www.mercer.com) lists prices of certain items in selected cities around the world. They also report an overall cost-of-living index for each city compared to the costs of hundreds of items in New York City (NYC). For example, London at 88.33 is 11.67\% less expensive than NYC.More specifically, if you choose to explore the website further you will find a lot of fun and interesting data. You can explore the website more on your own after the course concludes.https://mobilityexchange.mercer.com/Insights/cost-of-living-rankings#rankingsIn the Excel document, you will find the 2018 data for 17 cities in the data set Cost of Living. Included are the 2018 cost of living index, cost of a 3-bedroom apartment (per month), price of monthly transportation pass, price of a mid-range bottle of wine, price of a loaf of bread (1 lb.), the price of a gallon of milk and price for a 12 oz. cup of black coffee. All prices are in U.S. dollars.You use this information to run a Multiple Linear Regression to predict Cost of living, along with calculating various descriptive statistics. This is given in the Excel output (that is, the MLR has already been calculated. Your task is to interpret the data). Based on this information, in which city should you open a second office in? You must justify your answer. If you want to recommend 2 or 3 different cities and rank them based on the data and your findings, this is fine as well. This should be ¾ to 1 page, no more than 1 single-spaced page in length, using 12-point Times New Roman font. You do not need to do any calculations, but you do need to pick a city to open a second location at and justify your answer based upon the provided results of the Multiple Linear Regression. Think of this assignment as the first page of a much longer report, known as an Executive Summary, that essentially summarizes your findings briefly and at a high level. This needs to be written up neatly and professionally. This would be something you would present at a board meeting in a corporate environment.What is an Executive Summary?To help you make this decision here are some things to consider:Based on the MLR output, what variable(s) is/are significant? From the significant predictors, review the mean, median, min, max, Q1 and Q3 values? It might be a good idea to compare these values to what the New York value is for that variable. Remember New York is the baseline as that is where headquarters are located.Based on the descriptive statistics, for the significant predictors, what city/cities has the best potential? What city or cities fall above or below the median and/or the mean? What city or cities are in the upper 3rd quartile? Or the bottom quartile? These are some things to consider not necessarily questions you need to answer in your Executive Summary. But they are questions to help guide you along in your analysis.Supporting Materials Math 302 Final Project.xlsx (15 KB)
math_302_final_project.xlsx
Unformatted Attachment Preview
SUMMARY OUTPUT
Regression Statistics
Multiple R
R Square
Adjusted R Square
Standard Error
Observations
0.935824078
0.875766706
80.12\%
8.30945321
17
ANOVA
df
Regression
Residual
Total
SS
4867.380768
690.4701265
5557.850894
MS
811.2301279
69.04701265
Coefficients
Standard Error
35.63950178
15.41876933
-0.003212852
0.003974813
0.299650003
0.076964051
16.59481787
6.713301249
2.912081706
1.98941146
-0.889805486
0.740190296
-2.527438053
6.484555358
t Stat
2.311436213
-0.808302603
3.89337619
2.47193106
1.463790555
-1.202130709
-0.389762738
6
10
16
Intercept
Rent (in City Centre)
Monthly Pubic Trans Pass
Loaf of Bread
Milk
Bottle of Wine (mid-range)
Coffee
RESIDUAL OUTPUT
Observation
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Predicted Cost of Living Index
34.32607137
53.21656053
49.41436121
58.63611785
73.08449538
86.50256003
75.89216916
67.7257781
90.51996071
81.07358731
83.80564633
80.02510391
82.41624318
97.75654811
87.73993924
86.81668291
94.36817468
Residuals
-2.586071368
-2.266560525
-3.964361215
4.42388215
5.105504624
-3.052560026
6.307830843
-0.975778105
-16.45996071
8.866412685
9.134353675
-8.37510391
3.483756815
2.243451893
3.040060757
1.11331709
-6.038174677
Standard Residuals
-0.39366613
-0.345028417
-0.603477056
0.673427882
0.777188237
-0.464677621
0.960213003
-0.148538356
-2.50562653
1.349694525
1.390481989
-1.274904778
0.530316788
0.341510693
0.462774913
0.169475303
-0.919164446
F
Significance F
11.74895331
0.00049963
P-value
0.043401141
0.437722785
0.002993072
0.032995588
0.173964311
0.257006081
0.704884259
City
Mumbai
Prague
Warsaw
Athens
Rome
Seoul
Brussels
Madrid
Vancouver
Paris
Tokyo
Berlin
Amsterdam
New York
Sydney
Dublin
London
Lower 95\%
1.284342794
-0.012069287
0.128163411
1.636650533
-1.520603261
-2.539052244
-16.97592778
Upper 95\%
69.99466077
0.005643584
0.471136595
31.55298521
7.344766672
0.759441271
11.92105168
Lower 95.0\% Upper 95.0\%
1.284342794 69.99466077
-0.012069287 0.005643584
0.128163411 0.471136595
1.636650533 31.55298521
-1.520603261 7.344766672
-2.539052244 0.759441271
-16.97592778 11.92105168
City
Mumbai
Prague
Warsaw
Athens
Rome
Seoul
Brussels
Madrid
Vancouver
Paris
Tokyo
Berlin
Amsterdam
New York
Sydney
Dublin
London
mean
median
min
max
Q1
Q3
New York
Cost of Living Index
31.74
50.95
45.45
63.06
78.19
83.45
82.2
66.75
74.06
89.94
92.94
71.65
85.9
100
90.78
87.93
88.33
75.49
82.2
31.74
100
66.75
88.33
100
Rent (in City Centre)
$1,642.68
$1,240.48
$1,060.06
$569.12
$2,354.10
$2,370.81
$1,734.75
$1,795.10
$2,937.27
$2,701.61
$2,197.03
$1,695.77
$2,823.28
$5,877.45
$3,777.72
$3,025.83
$4,069.99
$2,463.12
$2,354.10
$569.12
$5,877.45
$1,695.77
$2,937.27
$5,877.45
Monthly Pubic Trans Pass
$7.66
$25.01
$30.09
$35.31
$41.20
$50.53
$57.68
$64.27
$74.28
$85.92
$88.77
$95.34
$105.93
$121.00
$124.55
$144.78
$173.81
$78.01
$74.28
$7.66
$173.81
$41.20
$105.93
$121.00
Loaf of Bread
$0.41
$0.92
$0.69
$0.80
$1.38
$2.44
$1.66
$1.04
$2.28
$1.56
$1.77
$1.24
$1.33
$2.93
$1.94
$1.37
$1.23
$1.47
$1.37
$0.41
$2.93
$1.04
$1.77
$2.93
Milk
$2.93
$3.14
$2.68
$5.35
$6.82
$7.90
$4.17
$3.63
$7.12
$4.68
$6.46
$3.52
$4.34
$3.98
$4.43
$4.31
$4.63
$4.71
$4.34
$2.68
$7.90
$3.63
$5.35
$3.98
Bottle of Wine (mid-range)
$10.73
$5.46
$6.84
$8.24
$7.06
$17.57
$8.24
$5.89
$14.38
$8.24
$17.75
$5.89
$7.06
$15.00
$14.01
$14.12
$10.53
$10.41
$8.24
$5.46
$17.75
$7.06
$14.12
$15.00
Coffee
$1.63
$2.17
$1.98
$2.88
$1.51
$1.79
$1.51
$1.58
$1.47
$1.51
$1.49
$1.71
$1.71
$0.84
$2.26
$2.06
$1.90
$1.76
$1.71
$0.84
$2.88
$1.51
$1.98
$0.84
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