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Essay Available:
Pages:
2 pages/≈550 words
Sources:
No Sources
Style:
APA
Subject:
Mathematics & Economics
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.72
Topic:

Default in the Probability

Case Study Instructions:

The Case Analysis Reports will help you complete the following course learning objectives:
Identify relevant data for the analysis.
Describe how to make sense of data.
Build abstract models replicating the real-life situation as closely as possible.
Formulate an appropriate hypothesis given the context of your dataset.
Interpret the results of statistical tests and decision models, use them in making managerial decisions, and learn to articulate the results.
The Case Reports will be graded using the following criteria:
Case report clearly identifies important questions in the business case.
Case report includes conversion of business questions into well-structured questions that can be analyzed statistically.
Case report includes a descriptive analysis of the data from the case study, with appropriate graphical displays as needed.
Case report describes the statistical tests applied to the data. The analysis is driven by the data provided, tried a variety of methods to verify results, and addresses assumptions made in the conclusions.
Case report brings together conclusions from the data analysis and smooths them together into a clearer discussion.
Case report clearly identifies any unusual outcomes from the data analysis, and discusses possibilities for future analysis.
Case report follows the writing conventions set out in the “Preparing the written report” section of the Case Analysis Process document.

Case Study Sample Content Preview:

Case Analysis Reports
Students Name
Affiliations
Course
Instructor
Date
Question 1
Estimate the probability that a customer participating in the student purchase program will default. Compute the expected profit from selling the JCN-2001 system to a university student under the existing program. Is student program beneficial? Explain and attach the necessary support.
Customers participating in the student buy program have a 40% chance of defaulting on their payments, whereas 60% are likely to make complete payments. This likelihood has been estimated based on the information gathered from the 342 students. Because there is a higher likelihood that students would pay in full, we might infer from the probability alone that Berkshire is lucrative. However, Davis claims that in this instance, each student-customer who defaults incurs an average loss of nearly $1,200, while those who pay their invoices on average make a profit of around $750. Concerning the 205 students who paid in whole, Berkshire generated a profit of $153750, while the 137 defaulters cost the company $164400. According to the calculations, the program has not been profitable because losses have outweighed sales.
Question 2
Based on the data, is defaulting on the computer payments independent of the
university attended by the student? Show your work. (Hint: Realize that this is only
a sample of data.) If there were dependence, what might be possible causes for this
dependence?
Failure to make computer payments on time is not unrelated to the student's place of attendance at the university. As you can see, there are differences in the distribution between the four schools, indicating that the number of students who default depends on the institution the student attended. School rankings, tuition expenses, financial aid options, parental support, the number of classes they are enrolled in, and a host of other factors that are not included in the data sample but may influence dependence, including scholarships and financial help.
Question 3...
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