Reference no: EM131427735

Part 1 -

This is part of the Fortune 100 data we began working with in class on week 1. Please answer the following questions about these companies.

1) If you create z-scores for each variable, do any firms represent outliers? What happens to the rest of the data if you remove the extreme outliers (use values above 8 for this example)?

2) What is the percent likelihood of a new firm observation to this set having assets greater than $300,000 (millions, using the data in the format listed)? What is the likelihood of a new firm having profits less than $7,500 (again, using the data in the millions format noted here)?

3) Firm revenue increases as you go up the ranking, but are profits signficantly greater for the top-50 firm group than for the bottom 50 firm group?

4) Do the top-50 firms in this group have significantly more employees than the group of bottom-50 firms?

Part 2 -

Happy Worker Employee Wellness Company offers three different wellness programs that companies can implement to improve their worker health and well-being. The first one (coded 1) is called the "Great Outdoors" which provides employees more time outside while working. The second (coded 2) is called "Better World" which allows employees to be paid for volunteer time outside the office. The third (coded 3) is called "Whole Person" which provides nutritional and healthy habits consultation to employees. They have a fourth group (coded 4) where no change was made. Happy Worker uses this fourth group as a comparison group. The company has gathered data on the effectiveness of the programs by asking participants about their well-being before and after the program they received. They also asked workers whether they would recommend the program after completion. Please answer the following questions using this data. Each program should have 50 observations.

1) In general, does reported well-being improve from pre-program to post-program?

2) How does the Great Outdoors program compare to the Whole Person program in improving well being across the pre- and post-program? Is there a significant interaction? If so, how do you interpret it?

3) Evaluate how all four programs perform against each other in improving well-being in pre-and post scores.

4) Does recommendation likelihood differ by program type? Please use post-hoc testing to compare the differences if appropriate.

Part 3 -

New Direction Consulting collects performance data for all company clients with whom they work. They collected the metrics in this spreadsheet to study the role of some firm behaviors for 180 publicly-traded companies. Stock price and ROI index are actual performance measures that were extracted from the CompuStat financial database. The other variables are scoring metrics assigned by New Direction consultants for a variety of firm and industry characteristics. High scores imply that the consultants observed more of the characteristic in question. The variable "industry focus" is a categorical variable where the firm's primary industry association is classified as: 1 = manufacturing, 2 = services, and 3 = other. Please answer the following questions using this data.

1) Does multicolinearity appear to be a problem? How do you know and? If so, how will you proceed?

2) Does innovativeness positively influence stock price? Estimate the regression equation and interpet your findings. What would the predicted stock price be if you had a new firm observation with an innovativeness score of 50? If you had a new firm with an innovativeness score of 76?

3) New Direction is piloting a program to develop extreme innovativeness at the companies they serve. They want to test whether innovativeness has a nonlinear relationship with stock price as a way to help sell this new program. Is the relationship nonlinear? Report your findings.

4) How do the firm characteristics of competitive intensity and planning rigidity influence ROI? How do these same two variables influence stock price? Which is the better model and why? Estimate both ROI and stock price if we acquire a new firm observation with a competitive intensity score of 50 and a planning rigidity score of 50.

5) How do the industry characteristics of market stability and technology change influence stock price? Does the model improve if you control for the firm's industry focus?

6) Is there a significant difference in stock price values for firms in the three industry groupings?

Attachment:- Assignment File.rar