Final-Term Exam (Take-Home) Fall – 2020

Department of Business Administration

Subject: Business Analytics Submission Day: Saturday

Instructor: Multiple Submission Date: 30/01/2021
Program: BBA Max. Marks: 40

Please follow the instructions carefully:

1. Write your answers in a Word file and upload the file before the due date on Blackboard.
2. Write your name and registration ID on the first page of your Word file.
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4. To avoid any unforeseen problems, you are advised NOT to wait for the last hour to
upload your answer script.
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Therefore, do not submit your document through email or any other medium.
6. Use 12 pt. font size and Times New Roman font style along with 1-inch page margins.
7. Follow the requirements of the word limit and the marking criteria while writing your
answers.
8. Provide relevant, original and conceptual answers, as this exam aims to test your ability to
examine, explain, modify or develop concepts discussed in class.
9. Do not copy answers from the internet or other sources. The plagiarism of your answers
may be checked through Turnitin.
10. Recheck your answers before the submission on BlackBoard to correct any content or
language related errors.
11. Double check your word file before uploading it on BlackBoard to ensure that you have
uploaded the correct file with your answers.
Question No. 1: [12 Marks]

ZIMS store sells its products on installments in Karachi. The store decided to investigate the link
between the life of the product and the cost. The data collected from store is shown in Table 1.1:

Table 1.1
LIFE OF PRODUCT (Years) COST (Thousand Rupees)
3.0 25
3.5 28
4.0 32
4.5 34
5.0 34
3.0 30
5.5 40
4.5 40
4.0 42
3.5 42
6.0 50
7.5 50
8.0 53
8.5 55

a) Plot a scatter chart from the above data. [3]

b) Find the equation of the least square regression line in the form 𝒚 = 𝒂 + 𝒃𝒙. [3]
Given the value of 𝒂 𝑎𝑛𝑑 𝒃 up to 3 decimal places.
c) What are the exact interpretations of the estimated regression factors? [3]
d) Using your answer of part (b). Find the cost predicted by the regression line [3]
for 𝟔. 𝟓 year’s life of a product.

Question No. 2: [08 Marks]

In ZIMS store the manager is interested in determining which items sell well together. The
manager assigned you this task and you opted for using Apriori Algorithm for finding the
frequent item sets and association rules.
You set the following threshold parameters for given sales transactional database:
Support: 0.4
Confidence: 0.9
The sales transactional database available to you in Table 2.1:

Present your findings to the manager showing detailed workings and outcome of the process.
 Table 2.1
Sales ID Items
S1 {O,W,C,N,Z}
S2 {O,C,K,N,Z}
S3 {K,N,W,Z,O}
S4 {K,W,Z,O}
S5 {C,K,N,Z}
S6 {O,K,N}
S7 {O,N,W,Z}
S8 {K,N,Z}

Question No. 3: [06 Marks]

The average time that Pakistani commute to spend is 3.85 hours (Visited Best Places, summer,
2019). The average commute times in hours for 8 cities are as follows:

Table 3.1
CITIES TIME IN HOURS
HUNZA 5.72
GILGIT 4.58
SKURDU 7.60
NEELUM 3.35
KAGHAN 2.24
NARAN 2.17
KALASH 1.60
SWAT 5.44

a) What is the sample variance of commute times for these 8 cities?

[1]
b) What is the sample standard deviation of commute times for these 8 cities? [1]
c) What is the third quartile of commute times for these 8 cities? [2]
d) Compute the 85th percentile. [2]
Question No. 4: [06 Marks]

Table 4.1 show the SUV prices in Pakistani Automobile market, find the following:

Table 4.1
Tax Rate Increase Tax Rate Decrease Total
SUV Price Increase 30 60 90
SUV Price Decrease 55 30 85
Total 85 90 175

a) To what probability a SUV prices will increase when there is a decrease in tax rates? [2]
b) To what probability tax rate will increase when there is a decrease in SUV price? [2]
c) What is the probability that tax rate decreases and SUV price increases? [2]

Question No. 5: [08 Marks]

Engro group, who recently sold its Engro foods start-up for a multi-million-rupees sum, is
looking for another investment for fresh capital. It is considering an investment in coal (X) and
solar (Y) power plant. For that they had a collected data on 5 different characteristics. Amanda
has applied k-means clustering to this data for k = 2. Given the following data:

Table 5.1
Observations X Y
1 20 18
2 8 20
3 36 26
4 22 12
5 14 4

a) Which value of k is the most appropriate to categorize these investments? Justify your [2]
choice with calculations.
b) The two cluster centers after the first round of execution. [2]

c) The final two clusters. [2]

d) Visually represent the clusters of both parts (b) and (c). [2]