Prepare a Report Using an Appropriate Word Processing Package e.g. Microsoft Word, to Explain Your Investigations: Business and Marketing Business Mathematics Report, BC, Singapore

Prepare a report using an appropriate word processing package e.g. Microsoft Word, to explain your investigations into the tasks specified in this assessment. Please include appropriate images and results of the work done (calculations and Excel/Geogebra) to support your reported findings. Your completed work should be uploaded to study smart in a single word-processed report.

Learning outcomes assessed:

Knowledge and Understanding

KU2: Evaluate the strengths and weaknesses of alternative models, and consequently, of any conclusions drawn.

Subject Specific Skills

SS3: Identify, simplify and abstract the underlying mathematical structure of a business situation allowing a business-related problem to be modelled.

SS4: Solve a range of business-related problems either deterministically or probabilistically as appropriate.

SS5: Choose and apply appropriate techniques in algebra and calculus in finding a solution to a problem.

Key and Employability Skills

KE6: Use a range of IT packages, including calculators, spreadsheets, word processors, and skills in the analysis and solution of business problems.

Question. 1.

The Bank of England is offering different types of mortgages. Some of their mortgages are quite a in demand and they would like to investigate 2 of these mortgages in particular. The data collected for these two mortgages is given below:

The Bank of Englanden wishes to introduce new mortgage types to attract more customers. Your task is to process the data provided above to understand the characteristics of people’s mortgage choices and provide advice to their consultants.

Write a report using statistical methods and interpret your findings.

Task 1

Using descriptive statistical methods, calculate: Mean, Modal Class, Standard Deviation, and Variance for both regions. Create box plot diagrams. Compare and contrast both mortgage types based on your findings, and the box plot diagram. Include your tables/ formulae and boxplot diagrams in your report

Task 2

The Government’s report suggests that for the current market for first-time buyers, the ideal mortgage amount is between £170 and £210 thousand. Based on the mortgage data provided by the Bank of Englanden:

(a) Estimate the number of mortgages provided for this suggested amount
(b) Advise the bank which mortgage is more popular. Suggest possible reasons for this.

Investigation 2

To understand the demand in housing, the government collected data over a year. Below is the data for the number of properties rented and the number of mortgage applications approved.

You are asked to advise the housing association if the number of mortgage applications approved affects the demand in rental properties.

Task 3

Investigate the relationship between the number of mortgage applications approved and the number of properties rented. Explain if there are other factors affecting the demand in rental properties. Provide an interpretation for your findings.

Task 4

The Bank of Englanden is expected to approve 1150 mortgages in July and 1400 mortgages in August in the next quarter. You are asked to advise the Housing association about the number of rental properties that should be available for the next quarter.Justify your estimates and provide your reasons.

Investigation 3

The Financial Conduct Authority’s data shows the percentage increase of the property purchase loans to the individuals over the last four years. It is the Housing Association’s duty to provide necessary strategies to meet the demand for housing. You are asked to write a report for the Housing Association about the trends in 2021.

Task 5

Using suitable methods based on the data provided, provide a visual aid to show the increase/ decrease in number of new purchases.

Task 6

Explain and elaborate what the trend shows over the four years in the housing market and give an interpretation about the increase/ decrease in new purchases for each quarter. Explain the trendline equation and the differences
between the trend line values and the observed values.

Task 7

Based on your findings, provide the Housing Association with the expected figures in 2021 for each quarter.

Investigation 4

The Financial Conduct Authority’s data shows that 15% of residential mortgages are fixed rate, 17% are tracker and 23% are interest only. The rest of the mortgages are various types, but these three types of mortgages are provided to first time buyers. Bellerbys Bank received 1000 mortgage applications from first time buyers

Task 8

You are an employee at Bellerbys Bank working in the Mortgages Department. Your job is to prepare a report about the numbers of expected mortgage applications. Explain how you would predict these figures and justify your
choice of probability distribution model with your reason(s).

Task 9

Calculate the probabilities that
(a) at most, there are 300 Fixed Rate mortgages
(b) at least there are 176 Tracker mortgages
(c) between 400 (exclusive) and 450 (exclusive) Non-First Time Buyer mortgages will be provided Using excel, or otherwise, calculate the probabilities and include your working/formulae in your report.