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Contents
Introduction ............................................................................................................................................. 1
Type of variables..................................................................................................................................... 1
Descriptive statistics on gross sales ........................................................................................................ 1
Descriptive statistics type of customer and gross sales ........................................................................... 3
Charts ...................................................................................................................................................... 5
Interpretation of results ........................................................................................................................... 5
Recommendation .................................................................................................................................... 6
Conclusion .............................................................................................................................................. 7
Bibliography ........................................................................................................................................... 7
Introduction
The purpose of this report is to perform and discuss the findings of statistical analysis with
the sample data collected for hundred credit card transactions. Initially the variables are
defined and descriptive statistics has been calculated for gross sales. Use of graphs and charts
has been done for the analysis. Further analysis of the data is done for the card payment type
and type of customers. There after interpretation part is done and at the end of report
conclusion is provided.
Type of variables
Variable
Type of variable
Customer
Quantitative Discrete variable
Type of Customer
Qualitative
Items
Quantitative Discrete variable
Gross Sales
Quantitative Discrete Continuous
Method of Payment
Qualitative
Descriptive statistics on gross sales
The descriptive statistics for the gross sales variable is as under:
Gross Sales
Mean
107.4174
Standard Error
6.357078359
Median
84.73
Mode
75.36
Standard Deviation
63.57078359
Sample Variance
4041.244527
Kurtosis
0.277800944
Skewness
0.932902491
Range
294.77
Minimum
23.95
Maximum
318.72
Sum
10741.74
Count
100
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The mean of the gross sales is 107.41. Mean is a measure of central tendency, it is statistical term for
average. It is important to know the gross sales per customer, which is the value of mean. A median is
a value which divides the sample in to half. As the mean and median are not equal, the data set is
skewed. As in the present case, the mean is greater than the median, the dataset is positively skewed.
The histogram of the dataset shows that it is having a long tail. As the dataset is skewed, median is a
better representative of central tendency as compared to mean.
Mode is the most frequency occurring value in the dataset. It is relevant when the data is qualitative.
However in the present case, the gross sale is a quantitative data, hence mode does not have much role
to play in this case.
After analysis of measures of central tendency, there is need to interpret the important measures of
disperse, which are standard deviation and variance. The range of gross sales is 294.77; however it is
better to focus on the variance and standard deviation as range suffers from the drawback that it is
based upon two values only. The variance and standard deviation states that there is not unreasonable
spread of data from the central tendency. It may be noted that the variance and standard deviations are
calculated for sample and not for population.
Class
Start
Finish
f
Rf
crf
Class
Mark
1st Class
$24
$64
29 29%
29%
$44
2nd Class
$64
$104
30 30%
59%
$84
3rd Class
$104
$144
15 15%
74%
$124
4th Class
$144
$184
11 11%
85%
$164
5th Class
$184
$224
9
9%
94%
$204
6th Class
$224
$264
5
5%
99%
$244
7th Class
$264
$304
0
0%
99%
$284
8th Class
$304
$344
1
1%
100%
$324
For initiation of the class range, Sturges rule has been used. For calculating the class width the
difference between the largest value and smallest value is divided by the number of observations. The
class range is approximately 40. Besides the calculation of frequency, percentage frequency and
cumulative percentage frequency is calculated. The frequency and relative frequency percentage
appears to be same as the number of observations is 100. Relative frequency is used so that dataset
having different observations can be compared.
2
Histogram- Gross Sales
35
30
25
f
20
15
10
5
0
$44
$84
$124
$164
$204
$244
$284
$324
It is better to have a pictorial view of the frequency table. Histogram serves this purpose. The above
histogram shows the frequency distribution of gross sales.
Descriptive statistics type of customer and gross sales
The total gross sales and average sales for each of the three categories of customer has been calculated
in the excel sheet. Table of calculation and bar charts are presented as under.
Type
of No.
Customer
of Gross
customer
Avg.
Sales
Sales
per customer
Promotional 36
3690.16
102.50
Regular
37
3731.99
100.86
Walk In
27
3319.59
122.95
Total
100
10741.74
3
Gross Sales
3800
3700
3600
3500
Gross Sales
3400
3300
3200
3100
Promotional
Regular
Walk In
Avg. Sales per customer
140.00
120.00
100.00
80.00
Avg. Sales per customer
60.00
40.00
20.00
0.00
Promotional
Regular
Walk In
A study of above charts and table indicates that the number of walk in customers is lowest and so the
gross sales for walk in customers (Field, 2009). However the interesting fact is that average sales per
customer are highest for walk in customer. Thus if the company is able to increase the number of walk
in customers then it is most beneficial for the company. The number and sales for promotional
customer and regular customers are almost same.
4
Charts
Relative Frequency Polygon
100%
crf
80%
60%
40%
20%
0%
$64
$104
$144
$184
$224
$264
$304
$344
Distribution of Gross Sales
35
30
25
f
20
15
10
5
0
$44
$84
$124
$164
$204
$244
$284
$324
Interpretation of results
Further analysis of the dataset has been done (Leblanc, 2004). There are three types of customers and
four types of payment methods. It makes sense to do an analysis on this data. As the types of customer
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and types of payment methods are qualitative data times, these have been converted to quantitative
data type by assigning numerical values to it.
1
Type of Customer
Promotional
2 - Regular
3- Walk In
2 - Globuy Charge 3Method of Payment
1 - Visa
Engine Type
Total
Diesel
36
Gasoline
37
Grand Total
73
Card
Master
Card
4- AMEX
Method of Payment
Grand
Type of Customer
Visa
Globuy Charge Card
MasterCard
AMEX
Total
Promotional
21
0
12
3
36
Regular
0
37
0
0
37
Walk In
11
0
9
7
27
Grand Total
32
37
21
10
100
The above table has been created in MS Excel, after applying the formulas. The analysis states that
the least used payment method is AMEX, while Globuy Charge Card is most widely used payment
method. Another interesting finding is that only regular customers are using the Globuy Charge Card.
The promotional customers are mostly using the VISA card as payment method.
Recommendation
The statistical analysis of the data revealed several facts. The dataset is positively skewed; hence
management should expect most of the sales with in the $ 150 mark. The walk in customers are
providing highest sales per customer, hence management should focus on increasing the number of
walk in customers (Siegel, 2010). Incidentally, at present the walk in customers are lowest in number.
Company can also focus on the Visa card and Globuy Charge card holders, in order to generate more
revenue. This statement is supported by the analysis that the most of the existing customers of
Markole Stores are using these cards. Company has advertising on the target audience having these
cards.
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Conclusion
The statistical analyses are based upon the historical data and there is no guarantee that the results will
repeat in future (Zappe & Winston, 2011). However the statistical analysis provides an idea of what
may happen in future. The management should focus on the walk in customers and Visa and Globuy
Charge Card holders on first priority. If this is done than it is expected that the sale and profit of the
company will increase.
Bibliography
Field, A. (2009). Discovering Statistics Using SPSS. London: SAGE.
Leblanc, D. (2004). Statistics: Concepts and Applications for Science. NY: Jones & Bartlett Learning.
Siegel, A. (2010). Practical Business Statistics. NY: Academic Press.
Zappe, C., & Winston, W. (2011). Data Analysis and Decision Making with Microsoft Excel, Revised.
London: Cengage.
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