Running Head: BUSINESS ANALYSIS 1
BUSINESS ANALYSIS 2
Deductive reasoning is a situation people make a judgment based on a general hypothesis or a general statement. According to California State University, deductive reasoning or deduction is one of the psychological reasoning to reach logical or specific reasoning from a general view. A deduction is a method that uses theories and hypotheses to make predictions and consequences of an action (Evans & Over, 2013). Deduction starts by analyzing a general situation to provide an answer to a specific question. Based on the deduction method there are two critical steps to follow to make an accurate prediction based on a general overview of a situation. Additionally, California State University indicates that a logical conclusion must be based on a true generalization. For example, all men are mortal and since John is a man, therefore he is a mortal.
On the other hand, inductive reasoning is the direct opposite the deductive reasoning where it makes a broad generation based on a specific scenario or an observation. According to Utah State University, inductive reasoning concludes and from general data. Inductive reasoning is also known as the bottom-up reasoning approach. The method starts with specific measures and observations that allow a person to make regularities and patterns by developing general theories and conclusions based on formulated hypotheses. Therefore, the main difference between the two reasoning is that deductive reasoning focuses on developing hypothesis and theories while deductive reasoning focus at testing the existing hypothesis and theories. The more the database is large the more accurate the inductive reasoning. For example, since an African American was caught stealing in Florida states all African Americans are thieves.
Confidence level based on the statistic point of view is the probability where a business enterprise or a government institution can be able to estimate a location of statistics parameters for instance arithmetic means in sample survey that is true for the entire organization. The most confidence levels commonly used by the business organization include 90/95/99%. For instance, if an organization sets the confidence level at 95% the statistical solution obtained from a specific sample should be true for the entire population affected by a specific situation. Confidence level also sets the error margin and conclusion made from a sample size will be true within the marginal error which is always set by researchers from the sample size.
For instance, if a researcher investigates the policy of smoking in the restaurant based on a 95% confidence level and sets the marginal error at 2% they will be able to conclude the entire population. For instance, if a researcher determines that 75% of a population of two thousand people is in favor of a smoking ban in American restaurants it means that the support for the ban of the entire American population ranges between 73-77%. It is an indication that if the researcher conducts the same survey a hundred times with different people of 2,000 sample size, the number of supporters for the ban will always be between 73-77%.
The confidence level is used in business analysis in market research. The method analyzes a small sample and makes a general statement for the entire market. Identification of a targeted market is a critical scenario and can be expensive it factors the views of every person in the population. The method is cost-effective since it only factors in the views of a small population. The method is also effective in managing risk and forecasting the enterprise’s budget.
Finding the mode, median, mean and standard deviation
|Groups||Frequency||C.F||Mid-point ( x)||FX||x-ẋ|
Modal class is 50-60
Median = L.L +) h
= 49.5 +) 10
= 49.5 +) 10
= 49.5 +) 10
(-10.35)^2 = 107.1
Standard deviation = √ 0.9478
There are various activities a manager can conduct to boost sales for their business. The manager can increase sales by focusing on the existing customers (Pauwels, Silva-Risso Srinivasan & Hanssens, 2018). The first thing is to ensure there are multiple advertisements to continue enlightening the existing customers of the quality and quantity of the products that they might not have tested previously. The customers’ service personnel can be trained to make a follow-up on the experiences of the customers with the organization’s products. Any complaint resulting from a customer should be addressed immediately so that they can refer other clients due to the good reputation of the company. Through the method, the manager will be able to increase sales from high referral and retention of customers.
The manager can also increase sales by providing a unique product in the market. For instance, within one month the manager can be able to change the method of packing that is attractive to customers. Additionally, through innovation, the manager can increase the quality of the enterprise and ensure the targeted market is aware of the improvement. However, the manager should not increase the prices of the products even after the improvement of the quality. The other strategy is to research the prices of the enterprise product in the market. After ascertaining the average prices of a similar product the manager can sell their products at relatively low prices than most of their competitors.
The other method to increase sales is by building a customer service approach where the manager can offer a product in different quantities to ensure all customers will different purchasing powers can access the enterprise product. The manager can also increase sales through promotion such as giving a trading discount when a client purchase beyond a certain quality. The method will increase sales since most of the customers will try to purchase large quantities to get a discount. The manager can also increase the sale by proving free goods during personal sale promotions. The other method is providing credible products such as customers’ testimonials on the enterprise websites to attract more customers. The other strategy is to provide customers with after-sales services such as offering free transportation, repair, and maintenance of the products for some time and installation services for technical products.
Standard deviation is one of the most commonly used methods of dispersion from a sample of data from its mean. Standard deviation calculates and provides insight into the absolute variability of a distribution. The higher the variability or dispersion, the higher the standard deviation and it is also known as a root-mean squire (Wan, Wang, Liu & Tong, 2014). The method is referred to as the root- means squire since it is obtained from getting the squire root of the squared deviations. However, the sample mean is the average score a character or a parameter could have obtained from the total score from a group of data. The sample mean is commonly used to compare the strength of different groups competing for the same objective or goals.
The real-life application of standard deviation is common in the education sector. For, instance a professor can obtain the standard deviation of the student’s performance to determine whether the majority of students obtain marks close to the average, and there the scores were evenly distributed. Standard deviation is also commonly applied in a healthcare sector where insurance analysts obtain the standard deviation of ages of the insured people so that they can determine the level of variation and which groups should be charged more based on the rate of readmission and vulnerability to diseases. The real estate experts also use standard deviation to determine the squire footage of house prices in a specific area which will enable them to make to set prices that are based on the law of demand and supply.
T-Stat is a technique that is used to determine whether a null hypothesis will be supported or will be rejected. T-Stat is similar to Z-Score however it is used to analyze data when an analyst has no standard deviation for a particular data or when there is the availability of a small size sample (Cheadle, Cho-Chung, Becker & Vawter, 2003). There must be additional information for T-Stat to make meaning in data analysis. For instance, when one states the average of dogs is 25 it means the data has no meaning. However, when somebody states that the average weight of ten dogs is twenty kilograms then the picture becomes clearer. For a T- Stat to make become relevant and become clearer there must be more information provided.
There are different forms of T-Stat such as a one-sample t-test and a paired t-test. One sample t-test is applicable in the business organizations to test a mean of a group against a known mean. The method is used to determine the accuracy of the already obtained mean of a group. On the other hand, a paired t-test is used to compare the means of the similar groups over a long period. Z-score enables large-scale organizations to determine whether the obtained mean is from the stated group. T-Stat is applicable in the healthcare system where healthcare personnel can compare averages for instance by using a small sample to determine whether administrating a new drug for cancer will increase the life expectancy or not to people living in the United States.
Cheadle, C., Cho-Chung, Y. S., Becker, K. G., & Vawter, M. P. (2003). Application of z-score transformation to Affymetrix data. Applied bioinformatics, 2(4), 209-217.
Pauwels, K., Silva-Risso, J., Srinivasan, S., & Hanssens, D. M. (2018). New products, sales promotions, and firm value: The case of the automobile industry. In LONG-TERM IMPACT OF MARKETING: A Compendium (pp. 287-324).
Evans, J. S. B., & Over, D. E. (2013). Reasoning to and from belief: deduction and induction are still distinct. Thinking & Reasoning, 19(3-4), 267-283.
Wan, X., Wang, W., Liu, J., & Tong, T. (2014). Estimating the sample mean and standard deviation from the sample size, median, range and/or interquartile range. BMC medical research methodology, 14(1), 1-13.
Running head: STATISTICS 1
Statistics Using Excel
Based on the data, please answer the following.
1. What were the best days of the month for sales? (Top 5)
22/03/2021, 14/03/2021, 09/03/2021, 06/03/2021, 30/03/2021
2. What days of week are the best for sales?
The end of the week records the best sales.
3. What was the total sales for the month?
4. What days were the worst for sale? (Lowest 5)
15/03/2021, 18/03/2021, 12/03/2021, 31/03/2021, 04/03/2021, 25/03/2021
5. Rank the weeks by best sales from greatest to least: 1, 2, 3, or 4. Hint: total the week’s sales and group accordingly. Omit the 29-31 in your ranking.
|Revenue Rank||Date||Revenue||Distance (Miles)|
6. What is the average for the month?
$ 740.94 for the Sales, and 1.6355 Miles for the distance
7. What is the mode?
$816 Sales and 1.3 Miles
8. What is the range in sales?
9. Run a regression and use the data to create a graph in Excel.
|Adjusted R Square||0.041280446|
|Coefficients||Standard Error||t Stat||P-value||Lower 95%||Upper 95%|
Revenue 976 940 916 906 900 844 835 817 816 81 6 811 801 782 775 774 765 750 733 733 732 694 688 674 665 632 608 590 582 567 558 289 1.3 1.3 0.4 3.4 0.9 1.3 1.2 0.4 0.5 1.7 2.1 0.8 1.3 0.5 1.7 2 1.2 1.7 3 2.6 2.6 0.4 3 0.9 3.4 2.7 2 0.8 0.9 2.6 2.1