Business Statistics : The Present Assessment Answer

Answer:

Introduction

The present project is the analysis of the data we collected. The data was collected from four locations – Inner city, Outskirts of city, Suburbs and remote regions. The data regarding the oil prices were collected from equal number of locations. The brands of oils were Shell and Caltex. Data was collected from 224 stations, equally divided amongst the two stations.

The response variable of the study is the price of the unipacket petrol.

The independent variables are the station from which the petrol is being purchased and the location of the petrol station.

Research Question

The research question for the project is: Does location of the station affect the price of petrol?

Research Hypothesis

To answer the above research question three hypothesis were developed.

The hypothesis for the tests

• Hypothesis 1

Null Hypothesis: The station brand has no effect on the price of petrol

Alternate hypothesis: The station brand has an effect on the price of petrol.

• Hypothesis 2

Null Hypothesis: The Location of the station has no effect on the price of petrol

Alternate Hypothesis: The Location of the station has an effect on the price of petrol

• Hypothesis 3

Null Hypothesis: There is no effect of the station brand and the location of the petrol station on the price of petrol

Alternate Hypothesis: The station brand and the location of the petrol station is linked by the price of petrol.

Data Analysis

To answer the above question we used the two factorial ANOVA.

Between-Subjects Factors
		Value Label	N
Brands	1	S	112
	2	NS	112
Locations	1	Inner City	56
	2	Outskirts of City	56
	3	Suburbs	56
	4	Remote Region	56

Table 1: Frequency of Station brand and Location of the petrol station

(source created by author)

Descriptive Statistics
Dependent Variable: UN
Brands	Locations	Mean	Std. Deviation	N
S	Inner City	114.9393	7.74570	28
	Outskirts of City	107.9000	.00000	28
	Suburbs	114.7714	2.87632	28
	Remote Region	116.7000	6.65488	28
	Total	113.5777	6.22869	112
NS	Inner City	108.3393	2.08581	28
	Outskirts of City	121.1857	5.79180	28
	Suburbs	115.7214	2.99448	28
	Remote Region	115.6750	5.97406	28
	Total	115.2304	6.41218	112
Total	Inner City	111.6393	6.53271	56
	Outskirts of City	114.5429	7.83565	56
	Suburbs	115.2464	2.94840	56
	Remote Region	116.1875	6.28719	56
	Total	114.4040	6.36105	224

Table 2: Descriptive statistics of the price of petrol based on the Station brand and Location of the station

(source created by author)

Tests of Between-Subjects Effects
Dependent Variable: UN
Source	Type III Sum of Squares	df	Mean Square	F	Sig.	Partial Eta Squared
Corrected Model	3755.322a	7	536.475	21.997	.000	.416
Intercept	2931774.564	1	2931774.564	120211.155	.000	.998
Brands	152.955	1	152.955	6.272	.013	.028
Locations	646.995	3	215.665	8.843	.000	.109
Brands * Locations	2955.371	3	985.124	40.393	.000	.359
Error	5267.925	216	24.389
Total	2940797.810	224
Corrected Total	9023.246	223
a. R Squared = .416 (Adjusted R Squared = .397)

Table 3: Between subject effects of the price of petrol based on the Station brand and Location of the station

(source created by author)

From table 3 we find that there are statistically significant interaction between the station brand of petrol and the location of the petrol station, F(3,216)= 40.393, p = 0.000.

We also find that there are statistically significant differences between the station brand and the price of petrol F(1,216)=6.272, p = 0.013.

In addition, we also find that there are statistically significant differences between the location of the petrol station and the price of the petrol F(3,216) = 8.843, p = 0.000.

Figure 1: The price of petrol based on station brand and location of the station

(source created by author)

From figure 1 and table 2 we find that the price of station brand “S” petrol is the lowest at the outskirts of the city, and the highest at the remote region. The price of station brand “NS” is the highest at the outskirts of the city and the lowest at the inner city location.

Conclusion

From the above analysis we find that the price of unipacket petrol varies with the location and the brand of petrol station.