BUSINESS DECISION MAKING

Business Decision Making

Business Decision Making

Task 2

(a)

Statistics

No. of Orders

N

Valid

19

Missing

0

Mean

8.4211

Median

7.0000

Mode

7.00

Quartiles

25

5.0000

50

7.0000

75

9.0000

(b)

From the above table, it can be observed that the average number of online orders for Alperton is 8.42 with the median value of 7 and most of the online orders were 7. Moreover, it is recommended that to increase the number of online orders, Alperton should focus on its marketing through discounts so that more online customers can be attracted to grocery shop which will increase the number of online orders for Alperton.

(c)

Statistics

No. of Orders

N

Valid

19

Missing

0

Std. Deviation

6.58547

Variance

43.368

Range

30.00

Minimum

3.00

Maximum

33.00

(d)

It is important and vital to note that percentiles result from dividing the data of number of online orders into hundredths, while the quartiles are the outcome of dividing the data of number of online orders into fourths. Moreover, as it is known that the median is the 50th percentile and also the second quartile, thus, it can be concluded that for Alperton, the median is 7, which shows that grocery shop is getting 7 online orders.

Task 3

(a)

(b)

Descriptive Statistics

Mean

Std. Deviation

N

Profit £ 000

282.92

105.94721

12

Sales £ 000

674.17

177.32653

12

It is important for H Meat Sausages PLC to note that average profit and sales of the company from 2000 to 2012 are 283 and 674 respectively with the standard deviation of 106 and 177 respectively. This shows that deviation in profit and sales of the company are high, which is a good indication as the increasing trend in the profit and sales is observed during the period.

Correlations

Profit £ 000

Sales £ 000

Pearson Correlation

Profit £ 000

1.000

.873

Sales £ 000

.873

1.000

Sig. (1- tailed)

Profit £ 000

.

.000

Sales £ 000

.000

.

N

Profit £ 000

12

12

Sales £ 000

12

12

In view of the above correlation table, it is also important to note that there is correlation between profit and sales of H Meat Sausages PLC. The reason of this statement is that the level of significance is less than 0.05; besides it, it is also found that the Pearson Correlation coefficient is in positive for profit and sales that is 0.873. Therefore, in view of this, it can be said that there is positive correlation between profit and sales of the company.

Model Summary b

Model

R

R Square

Adjusted R Square

Std. Error of the Estimate

Change Statistics

R Square Change

F Change

df 1

df 2

Sig. F Change

1

.873 a

.762

.739

54.15596

.762

32.100

1

10

.000

a. Predictors: (Constant), Sales £ 000

b. Dependent Variable: Profit £ 000

In addition to this, the model summary table is indicating that the R Square value and adjusted R Square value are 0.762 and 73.9%. This represents that there is strong association between the dependant and independent variables that are profit and sales of H Meat Sausages PLC.

ANOVA b

Model

Sum of Squares

df

Mean Square

F

Sig.

1

Regression

94144.235

1

94144.235

32.100

.000 a

Residual

29328.682

10

2932.868

Total

123472.917

11

a. Predictors: (Constant), Sales £ 000

b. Dependent Variable: Profit £ 000

The analysis of variance table is also indicating that the level of significance is statistically significant. The reason of this statement is that significance level is below 0.05, thus, the regression model is valid.

Coefficients a

Model

Unstandardized Coefficients

Standardized Coefficients

t

Sig.

Collinearity Statistics

B

Std. Error

Beta

Tolerance

VIF

1

(Constant)

- 68.801

64.017

- 1.075

.308

Sales £ 000

.522

.092

.873

5.666

.000

1.000

1.000

a. Dependent Variable: Profit £ 000

Moreover, with reference to the coefficients, it can be stated that there is positive association between profit and sales of H Meat Sausages ...