Analysis of Mobile phone usage

 
Question:
Scenario
You are Grace Park, an analyst for BI Intelligence. BI Intelligence is the Business Insider’s paid
research service. Business Insider is the world’s fastest‐growing business news website and its
articles include the latest technology, money and market news. BI Intelligence produces a number of
reports on key digital areas, including the mobile industry. Information from those reports is then
subsequently published on the Business Insider’s website by their respective writers.
Michelle Yeoh, a tech journalist at Business Insider, wants to publish an article on the current smart
mobile phone usage in Australia. This is in light of Australia being ranked 2nd in the world behind
Singapore for smart phone usage. Businesses, including telcos, find this information useful and
subsequently use it to improve their own operations, marketing strategies, etc., for the digital age.
Michelle’s article will be wide ranging and include commentary on the user’s expenditure, usage
patterns and demographics. Michelle has asked you to conduct the market research.
You subsequently take a random sample of 150 smart phone users in Australia and survey them on
their usage, as well as other related data.
Michelle’s specific analysis requirements are outlined in his email, which is reproduced on the next
page.
Memorandum
Memorandum
Date: 14th April, 2018
To: Grace Park, Research and Analysis Department
From: Michelle Yeoh, Chief Data Analyst
Subject: Analysis of Mobile Phone Data
Dear Grace,
Can you please carry out an analysis of the recent Mobile Phone market data (contained in the file
MobileData.xlsx) and prepare a Memorandum reply to me containing answers to the following
questions. In your Memorandum, please use plain language as I will provide your reply directly to
people who do not necessarily understand statistical jargon.
My specific questions are:
Q1. An Overall View of Mobile Phone spend per month
Can you provide an overall summary of how much consumers spend on their smart phones per
month? A summing up of the variable “Monthly Bill” just by itself, would be useful.
Q2. Monthly Bill vs Lifestyle Factors
I am interested in how the monthly smart phone bill relates to lifestyle factors. In particular, does
there appear to be any difference in how much consumers spend on their smart phone per month,
across the three most common geoTribe categories – Achievers, Independents and Suburban
Splendour.
Q3. Mobile Phone Affordability
(a) Can you estimate the average monthly bill for all smart phone owners in Australia?
(b) Using your smart phone as a payment device is the next frontier in a cashless society. Can
you estimate the proportion of all smart phone owners in Australia that use their phone as a payment device?
(c) Additionally, can we conclude that there is a difference between the proportion of male and
female owners when it comes to using their smart phone as a payment device?
Q4. Mobile Phone Usage
(a) A previous report, published by Business Insider, indicated that the proportion of smart
phone owners in Australia who use their smart phone for work‐related activities is no more
than 75%. A colleague of mine believes that the proportion is higher, given that the smart
phone synchronises email, calendars and documents. Can you check my colleague’s claim?
(b) A business rival stated that the average number of phone calls made by Australian smart
phone owners last month was at least 27 calls. I feel that this average may be overstated as
there are other ways in which communication can occur, including popular Internet based
alternatives. Is there any evidence to suggest that the average calls last month is less than
27?
Q5. Relationships
I would like to see whether factors listed below provide any explanation in the variation of monthly
phone bills between consumers. If so, can you also indicate which factor is the most important?
(a) Number of Calls
(b) SMS’s
(c) Data Allowance
Q6. Appropriate Sample Size
Finally, I am concerned that the sample of 150 smart phone users in Australia is too small to provide
accurate results as this seems hardly enough data. For a study we intend to undertake next year, we
would like to be able to:
(a) estimate the proportion of Mobile Phone users that have purchased an item online to within
6%, and
(b) accurately estimate the average monthly bill to within $4.
How many Mobile Phone users would we need to include in next year’s survey to satisfy both of
these requirements?
Regards, Michelle

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