3. Summary of the data set
a) For the variable how much they would pay? Below give graphical and numerical summaries that describes the variable
It is important for them to pay 3.14 because it is a value that represents the entire variables. This price is most appropriate because it not very high or it is very low to allow the company makes a profit (Oakshott, 2001). It is appropriate for the customers not to pay a value more than Q2 but above Q3 because paying above Q3 would not attract customers but make them switch to competitors.
|
Minimum: |
3 |
|
Maximum: |
3.3 |
|
Range: |
0.3 |
|
Count: |
70 |
|
Sum: |
219.8 |
|
Mean: |
3.14 |
|
Median: |
3.1 |
|
Mode: |
3.1 |
|
Standard Deviation: |
0.11215930699201 |
|
Variance: |
0.012579710144928 |
|
Mid Range: |
3.15 |
|
Quartiles: |
Quartiles: |
|
Interquartile Range (IQR): |
0.2 |
|
Sum of Squares: |
0.868 |
|
Mean Absolute Deviation: |
0.098857142857143 |
|
Root Mean Square (RMS): |
3.1419739018649 |
|
Std Error of Mean: |
0.013405601251997 |
|
Skewness: |
0.15777426777278 |
|
Kurtosis: |
1.6512582556436 |
|
Coefficient of Variation: |
0.035719524519748 |
|
Relative Standard Deviation: |
3.5719524519748% |
|
Frequency Table |
||
|
Value |
Frequency |
Frequency % |
|
3 |
19 |
27.14 |
|
3.1 |
20 |
28.57 |
|
3.2 |
15 |
21.43 |
|
3.3 |
16 |
22.86 |
Business statistics formulas
b) Use the filter to exclude the people that do not like the product and find appropriate numerical summaries for the follow variable
i)Variable which version they prefer
|
Row Labels |
Count of Which version is the best? |
|
neither |
7 |
|
version 1 |
27 |
|
version 2 |
36 |
|
Grand Total |
70 |
Version 2 is most preferred because most respondents believe that it is the best. It is followed by version 1 which only being supported by 27 respondents. This can also be represented as shown in the table below
|
Row Labels |
Count of Which version is the best? |
Percentages |
|
neither |
7 |
10% |
|
version 1 |
27 |
39% |
|
version 2 |
36 |
51% |
|
Grand Total |
70 |
100% |
10% of the respondents had no choice on the version that they most prefer while 39% of the respondents consider version 1 as the most preferable while 51% believe that version 2 is most preferable. This is because most respondents selected version 2. It therefore means that most respondents prefer it according to my analysis.
ii)Variable How much they would pay?
They would like to pay 3.14 because it makes the company to sell its products competitively.
|
Minimum: |
3 |
|
Maximum: |
3.3 |
|
Range: |
0.3 |
|
Count: |
70 |
|
Sum: |
219.8 |
|
Mean: |
3.14 |
|
Median: |
3.1 |
|
Mode: |
3.1 |
|
Standard Deviation: |
0.11215930699201 |
|
Variance: |
0.012579710144928 |
|
Mid Range: |
3.15 |
|
Quartiles: |
Quartiles: |
|
Interquartile Range (IQR): |
0.2 |
|
Sum of Squares: |
0.868 |
|
Mean Absolute Deviation: |
0.098857142857143 |
|
Root Mean Square (RMS): |
3.1419739018649 |
|
Std Error of Mean: |
0.013405601251997 |
|
Skewness: |
0.15777426777278 |
|
Kurtosis: |
1.6512582556436 |
|
Coefficient of Variation: |
0.035719524519748 |
|
Relative Standard Deviation: |
3.5719524519748% |
Business Statistics in Practice
c) For each pair of variables below give appropriate graphical and numerical summaries that describe the relationship between use these to summaries to compare males and females.
i) The variables: Gender and do they like the product?
According to this analysis, 32% of the male respondents hate the products while 68% like the product. The result also showed that 28% of the female hate the products while 72% like these products. This is shown in the table below.
|
Proportion of people that like the product |
Column Labels |
|
|
|
Row Labels |
like |
hate |
Grand Total |
|
male |
68.00% |
32.00% |
100.00% |
|
female |
72.00% |
28.00% |
100.00% |
|
Grand Total |
70.00% |
30.00% |
100.00% |
It is also clearly indicated in the table below that 34 of male respondents like the products as compared to 36 of their female counterparts. It therefore means that these products are most liked by female than male (Saunders and Thornhill, 2002). In addition, it is also highlighted that 16 of the male respondents hate these products while only 14 of the female hate the products. It also therefore shows that more male customers do not like to use this product as compared to female customers.
|
Count of people that like product |
Column Labels |
|
|
|
Row Labels |
like |
hate |
Grand Total |
|
male |
34 |
16 |
50 |
|
female |
36 |
14 |
50 |
|
Grand Total |
70 |
30 |
100 |
ii) The variables how much they would pay? And gender
|
Minimum: |
0 |
||||||||||||||||||||||||||||||||||||
|
Maximum: |
3.3 |
||||||||||||||||||||||||||||||||||||
|
Range: |
3.3 |
||||||||||||||||||||||||||||||||||||
|
Count: |
50 |
||||||||||||||||||||||||||||||||||||
|
Sum: |
115.9 |
||||||||||||||||||||||||||||||||||||
|
Mean: |
2.318 |
||||||||||||||||||||||||||||||||||||
|
Median: |
3.05 |
||||||||||||||||||||||||||||||||||||
|
Mode: |
3 |
||||||||||||||||||||||||||||||||||||
|
Standard Deviation: |
1.328 |
||||||||||||||||||||||||||||||||||||
|
Variance: |
1.762 |
||||||||||||||||||||||||||||||||||||
|
Mid Range: |
1.65 |
||||||||||||||||||||||||||||||||||||
|
Quartiles: |
Quartiles: |
||||||||||||||||||||||||||||||||||||
|
Interquartile Range (IQR): |
2.7 |
||||||||||||||||||||||||||||||||||||
|
Sum of Squares: |
86.35 |
||||||||||||||||||||||||||||||||||||
|
Mean Absolute Deviation: |
1.174 |
||||||||||||||||||||||||||||||||||||
|
Root Mean Square (RMS): |
2.665 |
||||||||||||||||||||||||||||||||||||
|
Std Error of Mean: |
0.1877 |
||||||||||||||||||||||||||||||||||||
|
Skewness: |
-0.97 |
||||||||||||||||||||||||||||||||||||
|
Kurtosis: |
1.97 |
||||||||||||||||||||||||||||||||||||
|
Coefficient of Variation: |
0.5727 |
||||||||||||||||||||||||||||||||||||
|
Relative Standard Deviation: |
57.27% |
||||||||||||||||||||||||||||||||||||
|
Frequency:
|
|||||||||||||||||||||||||||||||||||||
According to the table above, it is vital for the customers of this company not to pay 3.2 but not less than 0.5. They must ensure that they pay 2.318. This is to ensure that the company neither over charge its customers nor under pay themselves (Swift and Piff, 2005). This will help it attract customers and also enable the company to make a reasonable profit. This can also be represented graphically as shown below:
Conclusion and Recommendation
From the result of this analysis, it is determined that this product is mostly preferred by female than male customers. It is also denoted that only 30% of the respondents hate this product while70% of the respondents have a positive attitude towards it. This shows that this product is liked by most of the people and therefore it is important for the business to explore other initiatives such as product differentiation, cost leadership and product development in order to improve customer share. From this analysis, we also observed that most people prefer version 2 than version 2 of this product. It is therefore important when this company improves the quality of version 1and also reduce its price by exploring current technology to make it cost effective. This will attract new customers and develop customer loyalty to existing customers. Finally, this company can only increase its market share by considering male gender than female. This will increase the number of make customers that use this product. It should also consider elderly people who have low taste about snacks. The company should consider their demand and produce snacks that old people would use instead of only focusing on the youths.
Bibliography
Oakshott, L. (2001). Essential Quantitative Methods for Business Management and Finance 2nd Edition, London: Palgrave.
Swift L., and Piff S., (2005), Quantitative Methods for Business Management and Finance, London: Palgrave.
Saunders M. and Thornhill A., (2002) Research Methods for Business Students, Prentice-Hall.
