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This study aims to use a variant from the family of discrete choice models, i.e. the logit model, to analyse the relationship between the Y dependent and X explanatory variables. This model addresses the linear probability model's main drawback by constraining the probabilities of the Y outcome between 0 and 1. The logit model also offers an extra advantage, in that it can provide odd ratio estimations.

This is a compact case written specifically to teach statistics, econometrics and research method. It has an accompanying data set for the case-users to do hands-on statistical analyses. The data set has been collected from a questionnaire survey from the students enrolled in Attitune, i.e. the music school that the case protagonist founded.

The case revolves around a relatively new music school, Attitune Music, established in July 2017 in the heart of the capital city of a northern state in Malaysia. Michael Lee Wei-Pin was the founder of Attitune Music Sdn. Bhd. He was also one of the four music instructors of Attitune Music. His speciality instruments were the guitar and the piano. The case opens with the case protagonist, Michael, pondering over Attitune’s performance in terms of its music students’ enrolment. Attitune faced a major challenge – its student enrolment had remained more or less constant since its establishment. Low and/or constant number of students could ultimately translate into stagnant or even worse, shrinking revenues for Attitune. To attract more students, Michael had been toying with the idea of injecting new elements into Attitune’s music lessons, something different from what other music schools were offering and that could be unique selling points for Attitune. With this in mind, Michael surveyed Attitune’s students to gather information that could help him gauge the potential and feasibility of his idea.

This case is well positioned to be perhaps the pioneer Malaysian teaching case to be written to teach courses in statistics, econometrics and research methods. The case can be easily adapted to teach at either the introductory or at an advanced level.

Wall Street hedge fund manager Kim Meyer is considering investing in an SFA (slate financing arrangement) in Hollywood. Dave Griffith, a Hollywood producer, is pitching for the investment and has conducted a broad analysis of recent movie data to determine the important drivers of a movie’s success. In order to convince Meyer to invest in an SFA, Griffith must anticipate possible questions to maximize his persuasiveness.

Students will analyze the factors driving a movie’s revenue using various statistical methods, including calculating point estimates, computing confidence intervals, conducting hypothesis tests, and developing regression models (in which they must both choose the relevant set of independent variables as well as determine an appropriate functional form for the regression equation). The case also requires the interpretation of the quantitative findings in the context of the application.

The decision maker is in charge of procurement auctions at the department of transportation of Orangia (a fictitious U.S. state). Students are asked to assist him in estimating the winning bids in various auctions concerning highway repair jobs using data on past auctions. The decision maker is faced with various professional, statistical, and ethical dilemmas.

To analyze highway procurement auctions from the buyer-auctioneer perspective, establish basic facts regarding the project price-to-estimated cost ratio, set up and estimate a structural regression model to predict the winning bid, and compute the probability the winning price will be below estimated cost. Difficulties include heteroskedasticity, logarithmic specification, and omitted variable bias. Also to estimate a Logit regression and predict bidder collusion probability.

With the development of inclusive financial business in China in recent years, this case describes the credit risk control of “mobile credit”, a smart online credit platform launched by Shanghai Mobanker Co. Ltd. (referred to as “Mobanker”, previously named as “Shanghai Mobanker Financial Information Service Co., Ltd.”) which provides technical services for inclusive finance industry.

After completion of the case study, the students will be able to understand the calculation of cost of individual sources of funds and cost of capital, examine various tools such as economic value added and cash value added analyses which help determining whether a company has added value to its shareholders or not and explore the application of Benford’s law and the Beneish M-score in detecting manipulation of numbers in financial statements.

Nimmy Jacob, a newly recruited research analyst with an equity research firm, was entrusted with tracking the “auto ancillary industry”, specifically “Minda Corporation Ltd” (MIL). MIL was a leading diversified auto components manufacturing companies in India. The company’s share price meteorically rose during February 2021–2022 (Figure 1). The company’s turnover over the past few years had grown at a compounded annual growth rate of 15% during the three preceding years. The company had in the recent past bought a 15% stake in another competitor, Pricol Ltd, for a consideration of INR 400 crores and previously had used joint ventures and acquisitions to scale up its operations. Jacob, apart from the conventional financial analysis, had to ascertain whether all the strategic decisions were adding value to the shareholders’ investments by exploring the various tools available for the same and also calculate the minimum expected rate of return for MIL. Jacob was apprehensive about the financial statements, although the numbers for the company were good. Jacob was skeptical about a high-growth company having the incentive to manipulate its earnings. Manipulations could be in the form of abnormal increase in accruals, inconsistency in expenses and high days of receivables. Therefore, Jacobs used certain analytics/statistical tools to detect any manipulation of numbers in the financial statements of the company and to ascertain apt findings about the company.

This case study is intended for discussion in corporate finance, financial reporting and analysis and financial analytics at Master of Business Administration/undergraduate level.

Teaching notes are available for educators only.

CSS1: Accounting and finance

First National Healthcare (FNH) runs a large network of hospitals and has worked to systematically reduce waiting times in its emergency departments. One of FNH's regional networks has run a successful marketing campaign promoting its low ED waiting times that other regions want to emulate. The corporate quality manager must now determine whether to allow these campaigns to be rolled out and, if so, which waiting time estimates to use. Are the numbers currently being reported accurate? Is there a more accurate way of estimating patient waiting time that can be easily understood by consumers?

During one of the most nerve-wracking football matches of the 2012–2013 Bundesliga season, life-long friends Franz Dully and Max Vogel begin arguing about whether the wealth of a football club determines its success during the season. In order to disprove Vogel's claim that “money scores goals,” Dully must analyze the Bundesliga's current market values, points earned, and mid-season leader data.

After analyzing the case, students will be able to compute prediction intervals, develop regression models, and interpret data. The development of the regression models asks students to choose the relevant set of independent variables, as well as determine an appropriate functional form for the regression equation. The models derived have to be evaluated as well as compared to one another. Further, the students have to interpret the quantitative findings in the context of the application.

Post analysis of the case study, students will be able to comprehend the significance of Six Sigma and its integration with the human resources (HR) processes in the service sector. Post case study discussion, students will be able to: examine the HR processes of ISOQAR (India) and deduce the reasons to seek change in their approach; validate the importance of integrating Six Sigma in the human resource management (HRM) framework of an organization; and categorize the difficulties encountered while implementing Six Sigma in the service sector compared to those in a manufacturing environment.

In September 2006, four senior employees of an audit firm made the decision to start their own venture. They identified a gap in a sizable and fiercely competitive auditing industry. Nishid Shivdas, Suhas Risbood, Shiv Prakash Bhutra and Burgis Bulsara, co-founders of ISOQAR (India), had distinct leadership experiences that drove the organization to concentrate on developing a broad range of services, with a focus on management consulting, training and audit services. They created a distinctive positioning in market in a short span and reported growth by building strong customer relationships, providing high-quality service and personalized attention to individual clients and meeting deadlines. The wide gamut of services included areas such as the payment card industry, data security standard, information security management systems, business continuity management, service management systems, food safety management system, Responsible Jewellery Council certification services, retail audit services and risk assessment services. They concentrated on collaborating with UKAS for their accreditations. The focus on offering great services with faster response times, a varied array of services and the expertise of its founders let them to price their services at par with some of its competitors, and even higher in few cases. It did not have a large support staff; however, the ones they had were multifaceted, both full time and contractual. Being in the service industry, the founders realized that to maintain growth as the firm aims to grow geographically, their heavy engagement in the existing operations would have to give way to more standardized processes in general and HR in particular. Ensuring the integration of the current workforce to the Six Sigma framework presented challenges.

This case is designed for second-year students enrolled in Master of Business Administration/Post Graduate Diploma in Management (MBA/PGDM) or equivalent postgraduate-level programmes, in the domain of “Human Resource.” It will enable the students to engage with the significance of “Six Sigma” being used in various processes in the HRM framework. It can also be taught to students in the domain of Marketing because of its relevance to the service sector.

Teaching notes are available for educators only.

CSS 6: Human Resource Management.

In early December 2013, Roxann Biller, Associate at the Chicago-based private equity firm Delta Quantitative Real Estate Capital, was asked to assess the risk associated with the firm's first potential overseas investment. Haifu Sentā Gendaino (HSG) was a large multi-tenant logistics property located in the Gaikando area of Tokyo. High-quality tenants currently occupied the property, so at first glance the risks of investing in the property seemed minimal. However, Biller knew that she had to consider the potential drawbacks. This would mean gaining a better understanding of each tenant, trying to forecast the future condition of the Tokyo logistics market, and considering what new risks her firm would face because the property's cash flows were in a foreign currency.

thyssenkrupp Steel Europe, a major European steel company, operates a so-called push-pickling line (PPL) in Bochum, Germany. The PPL produces a particular type of steel strips that are sold to B2B customers, mainly in the automotive industry. In spring 2014, a senior vice president of thyssenkrupp Steel's production operations and one of his production managers notice that over the span of ten years the production facility regularly did not meet its planned production volumes. They set out to determine the drivers for the deviations from planned production figures with the ultimate goal to improve the production planning process at the Bochum PPL. Students will step into the shoes of Markus Schulze a production manager at thyssenkrupp Steel as he searches for performance drivers at the Bochum PPL and analyzes recent production data to build a forecasting model for production planning.