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Chapter 6: Statistical Inference: Case Problem 1 Young Professional Magazine Book Title: Business Analytics Printed By: Jigar Jitendrak Patel ([email protected]) © 2021 Cengage Learning, Cengage Learning

Chapter Review

Case Problem 1 Young Professional Magazine

Young Professional magazine was developed for a target audience of recent collegegraduates who are in their first 10 years in a business/professional career. In its two years ofpublication, the magazine has been fairly successful. Now the publisher is interested inexpanding the magazine’s advertising base. Potential advertisers continually ask about thedemographics and interests of subscribers to Young Professional. To collect thisinformation, the magazine commissioned a survey to develop a profile of its subscribers.The survey results will be used to help the magazine choose articles of interest and provideadvertisers with a profile of subscribers. As a new employee of the magazine, you havebeen asked to help analyze the survey results, a portion of which are shown in the followingtable.

Age Sex

RealEstatePurchases

Value ofInvestments($)

Number ofTransactions

BroadbandAccess

HouseholdIncome ($) Children

38 Female No 12,200 4 Yes 75,200 Yes

30 Male No 12,400 4 Yes 70,300 Yes

41 Female No 26,800 5 Yes 48,200 No

28 Female Yes 19,600 6 No 95,300 No

31 Female Yes 15,100 5 No 73,300 Yes

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Some of the survey questions are as follows:

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1. What is your age?

2. Are you: Male Female

3. Do you plan to make any real estate purchases in the next two years? Yes No

4. What is the approximate total value of financial investments, exclusive of your home,owned by you or members of your household?

5. How many stock/bond/mutual fund transactions have you made in the past year?

6. Do you have broadband access to the Internet at home? Yes No

7. Please indicate your total household income last year.

8. Do you have children? Yes No

The file Professional contains the responses to these questions. The table shows theportion of the file pertaining to the first five survey respondents.

Managerial Report

Prepare a managerial report summarizing the results of the survey. In addition to statisticalsummaries, discuss how the magazine might use these results to attract advertisers. Youmight also comment on how the survey results could be used by the magazine’s editors toidentify topics that would be of interest to readers. Your report should address the followingissues, but do not limit your analysis to just these areas.

1. Develop appropriate descriptive statistics to summarize the data.

2. Develop 95% confidence intervals for the mean age and household income ofsubscribers.

3. Develop 95% confidence intervals for the proportion of subscribers who havebroadband access at home and the proportion of subscribers who havechildren.

4. Would Young Professional be a good advertising outlet for online brokers?Justify your conclusion with statistical data.

5. Would this magazine be a good place to advertise for companies sellingeducational software and computer games for young children?

6. Comment on the types of articles you believe would be of interest to readersof Young Professional.

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Chapter 6: Statistical Inference: Case Problem 1 Young Professional Magazine Book Title: Business Analytics Printed By: Jigar Jitendrak Patel ([email protected]) © 2021 Cengage Learning, Cengage Learning

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