Data Analysis for Decision Making

This assignment delves into the crucial role of data analysis in informed decision making. It examines various methods, including calculating the mean, median, and standard deviation, to understand and interpret data effectively. The provided text references relevant academic sources that shed light on ethical considerations in decision-making processes and the impact of liquidity on profitability in the banking sector. Additionally, it touches upon group decision making and its complexities.

BUSINESS DECISION
MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
1.1Creation of plan for collection of primary and secondary data for a given business
problem...................................................................................................................................1
1.2 Survey methodology and use of sampling frame.............................................................2
1.3 Questionnaire for a business problem..............................................................................3
TASK 2............................................................................................................................................4
2.1 Data estimation tools........................................................................................................4
2.2 Mean, median and mode of collected data.......................................................................6
2.3 Dispersion of collected data.............................................................................................6
2.4 Quartiles and coefficient of the data.................................................................................7
TASK 3............................................................................................................................................9
3.1 Produce the graph using Spreadsheet and draw valid conclusion....................................9
3.2 Producing scatter graphs through considering data of age and weight..........................12
3.3 Preparinmg line chart using the data set of age and weight...........................................13
TASK 4..........................................................................................................................................14
4.1 Investment appraisal methods and their advantages & disadvantages...........................14
4.2 Project plan for Speedy Filters Plc.................................................................................15
4.3 Estimation of NPV & IRR for the proposed project......................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

Index of Tables
Table 1: Data estimation on collected data......................................................................................2
Table 2: SD and Variance analysis of collected data.......................................................................3
Table 3: Quartiles of collected data.................................................................................................4
Table 4: Correlation between admissions and profit at LBBA........................................................4

ILLUSTRATION INDEX
Illustration 1: Formula used for calculating mean...........................................................................1
Illustration 2: Median for odd number of respondents....................................................................2
Illustration 3: Standard deviation measurement..............................................................................3

INTRODUCTION
Business decision making is considered as an important aspect that is needed in
appropriate and full consideration so that no problems in this regards can occur in future (Ford
and Richardson, 2013). The main objective behind this report to develop techniques for the data
gathering and implantation about the business perspective, also gaining an understanding of the
tools which are available for creation and presentation of useful information in order to make
effective business decisions. A case of Excellent School Education Plc is taken in to
consideration which is a private school in North London for students from affluent back grounds
and achieved best results of its input. Thus, they want to open a new branch of school in Surrey
for which is business decision is being made. Further, there are various important methods have
been used by researcher to determine the opportunities for enterprise to expand their business
operations.
TASK 1
1.1Creation of plan for collection of primary and secondary data for a given business problem.
Primary data collection method is considered as the collection of first hand data. It is also
recognised as relevant and more focused as well as reliable as the data are collected for the first
time which creates the less chances of data manipulation. There are various important methods
of primary data collection like questionnaire, survey, interviews and others (Nowduri, 2011). In
this context, the data would be collected from the members in relation to the preferences that are
willing to set up a new school as well as their choices in order to make a proper analysis should
be taken in to consideration. Data which are collected would be from the target population who
are working in the school. In order to accomplish this task, the questionnaire is being prepared in
which questions relevant to topic are being asked from the students. It is also analysed that there
are various courses have been offered by LBBA for students which can be further analysed in
appropriate manner.
Secondary are considered as those which are collected by the researcher from the study that is
already present or conducted by different person. In this method, both primary and secondary
data are being collected by using the method of questionnaire that would be distributed between
the populations of 100 students. These secondary are being collected from the internet surfing,
journals and articles etc.
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Plan for the collection of all the required data-
In this research, all the primary data are collected from the methods of questionnaire
which will be distributed among the sample population of 100 people in order gathered correct
and relevant information. It being estimated that all the required data would be collected in the
period of 10 days, so that its analysis and interpretation can be presented in suitable manner.
Further, appropriate method of sampling is being used to so that no extra efforts are needed to be
made by the researcher in implementation of plan.
1.2 Survey methodology and use of sampling frame.
As per the analysis, methodology used in the survey is mainly discussed as the effective
practice that is used for the application of better sampling of population (Tzeng and Huang,
2011). In the present scenario, the best and most effective way of survey for LBBA would be
through the survey distribution towards the people so that no wrong things would be taken in to
consideration. Another concept that is used in sampling is considered as sampling frame which is
used to draw out the source from the given material or data. Some of the important methods of
sampling are mentioned above:
 Random sampling: Most effective method which states that the selection of imperative
data is done from the population at every particularpoint of time or interval.
Cluster sampling method: In this, the random selection is being done from the population which
is being already divided in to cluster (Yager and Kacprzyk, 2012). It is also considered as an
easy form of sampling that will be done a specific time limit.
Stratified sampling: It is important method in which the population is being divided in strata
from where there is various chance of collecting relevant information (Yu, P.L., 2013). In
present scenario, the data are being collected in the form of proportionate manner so that it will
be understandable from the research.
 Judgemental sampling: This method of random sampling is based on the rational decision
of the researcher through which the sampling is being done in effective manner.
In present context, the most method of stratified sampling is being used by the researcher along
with the systematic random sampling method.
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1.3 Questionnaire for a business problem.
It is method of survey in which the questions are asked from the sample population related to the
study (Albright, Winston and Zappe, 2010). A questionnaire is being prepared by the researcher
which is mentioned below:
Question1Gender?
a)Male
b)Female
Question2 Select your age group?
a) 15 to 20 years
b) 21 to 25 years
c) 25 to 30 years
d) 30 and above
Question 3 Do you think that expansion plan is beneficial for organization?
a) Yes
b) No
Question 4 Does the organization have appropriate financial position to expand its
operations?
a) Yes
b) No
Question 5 Do you think that organization has achieved a sustainable growth in their
business operations?
a) Yes
b) No
Question 6 Do you have made any suggestion to the organization related to business plan?
a) Yes
b) No
Question 7 Do you think that there is need for establish a new business plan?
a) Yes
b) No
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Question 8: Do you think that the policies and plans of organization are effective?
a) Yes
b) No
Question 9 Does the organization have recognition among the students?
a) Yes
b) No
Question 10 Up to what to extent there are chances of achievement of success in new
business decision for organization.
a) Extensive
b) limited extent
c) Inclusive
TASK 2
2.1 Data estimation tools
Data estimation is a process of estimating collected data in respect of evaluating mean,
median and mode. On the basis of these estimations, further decisions are made regarding
business operations of the entity (Craft, 2013). In this regard, marks scored by a student in
business courses within LBBA school are evaluated. However, determining mean, median and
mode concepts on collected are to be discussed as below:
 Mean: It is simplest and easy way to evaluate average of collected data. In order to this,
collected data is divided by number of respondents involved in survey (García and
Conde, 2014). However, average estimation is evaluated in this process for decision
making in context to analysing performance. In this regard, formula used for evaluating
mean is top identified as:
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Illustration 1:
Formula used for
calculating mean
 Median: It is data estimation tool in which mid value of the collected is considered as
basis of decision making for the further years (Data estimation, 2016). Besides this,
middle term's value is obtained as of data estimation and respondents' views at maximum
level. In accordance to this, formula used for calculating median is to express as follows:
For odd number of respondents:
Illustration 2: Median for odd number of
respondents
For even number of respondents:
Median= (n/2)th term value
 Mode: Under this data estimation, frequency/repeated respond is estimated for goal
setting and business operations in the future time (Ginevičius and Podviezko, 2013).
Likewise, repeated data is identified as basis for decision making and improving business'
efficiency.
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2.2 Mean, median and mode of collected data
According to given case scenario, it is recognised that LBBA offers variety of business
courses. However, marks scored in a subject in internal examination by students of the class in
various ranges. As it is to analysed that how is the performance of class in that specific subject as
marks scored by students (Hill and et.al., 2013). In order to this, averages and estimations on
collected data are calculated as below:
Table 1: Data estimation on collected data
Particulars Result(Estimation)
Mean 46.74
Median 45
Mode 48
On average, performance of students is 46.74 which is normal and required to be
improved. In this regard, average marks scored by students in a particular subject as needed to
increased. Similarly, for estimating median of the collected data, the 30th term of collected data is
45. As on average median value of the estimated data is moderate which is to be work on in the
future time. Likewise, more than 2 respondents of them scored 48 marks in the subject remain
moderate and essential to improve performance in that particular subject. Therefore, on
estimating overall collected marks scored by students in internal exam in a specific subject
during internal exam is identified. It is recognised that performance of the class is moderate and
requires improving. Similarly, it is needed to create good understanding of students with the
subject and related concepts to achieve higher grades and better results. Thus, it is essential to
increase students' performance in scoring higher marks and improving result as well.
2.3 Dispersion of collected data
Dispersion refers as measurement for the statistical distribution of returns. In this regard,
differences between actual and standard performance are obtained as generate different ideas for
improving performance. It includes measuring tools as standard deviation, variance analysis and
so on. On which, comparison between actual and expected performance is created (Malik, Awais
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and Khursheed, 2016). However, these variances in terms of class' performance in subject during
internal examination are identified as:
Standard deviation: Under this measurement, standard difference between actual and
standard performance of class is calculated. However, used formula to calculate SD is as:
Table 2: SD and Variance analysis of collected data
Variance analysis 164.3524
Standard
deviation 12.82
Illustration 3: Standard deviation
measurement
It is interpreted that standard deviation in class' performance is 12.82 which is quite high
and required to work on. Similarly, class performance is very poor in this subject as large
difference is occurred between actual and standard performance.
Likewise, variance analysis is squared of the value of SD which is also evaluated as high.
However, there is great variance occurred between actual and expected performance of class in
internal exam for a particular subject. Thus, it is required to improve class' performance and
improving scores to get higher grade.
2.4 Quartiles and coefficient of the data
Quartile is an approach of segmenting overall collected data into three parts as Q1, Q2
and Q3. In order to this, data are segmented at the rate of 25%, 50% and 75% for the three
percetile sequentially (Craft, 2013). However, quartile on the collected data as students'
performance as of scored marks in a subject are collected as:
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Table 3: Quartiles of collected data
Quartile At the rate of (%) Collected data
Q1 25.00% 39
Q2 50.00% 45
Q3 75.00% 56
It is evaluated that the value of collected data at 1st qurtile is 39, 2nd as 45 and at 3rd
quartile is 56. As students' selected in the first segment has poorer performance than of
segmented in the 2nd and 3rd quartile. Likewise, in the last segment, students' performance is the
highest in comparison to above segments. Therefore, it is essential to improve students'
performance whose performance evaluated in the 1st segment.
Correlation: It is to express relation between two or more particulars or respondents'
performance. For example; analysing relationship of gained revenue and profit of the
organisation for decision making regarding its further implementation. However, correlation
between number of admissions and profit level of LBBA is to evaluated as:
Table 4: Correlation between admissions and profit at LBBA
Year Admission Profit
2012 200 2000
2013 300 3000
2014 400 4000
2015 500 5000
2016 600 6000
Correlation 1
An ideal correlation between two or more respondents' performance is considered as 1.
However, number of students admitted in LBBA is related with increasing in profit level of the
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entity. On behalf of this, it can be forecast that profitability of the school can be enhanced at
higher level in the future time as increasing in admission for courses.
TASK 3
3.1 Produce the graph using Spreadsheet and draw valid conclusion
On the basis of cited case situation, considering data pertaining to the number of bedrooms
in each house that are situated in the three popular street of Wimbledon pie and bar chart has
been created. The rationale behind undertaking graphical presentation is that it helps in
understanding the data set in the best possible way (Albright, Winston and Zappe, 2010). Charts
and graphs clearly indicate the segment that accounts for higher and lower percentage or area.
Referring the importance level graphs have been created so average person can understand data
quickly.
Table 5: Number of Houses
Number of Houses
Green Street Church lane Eton Avenue
Number of Bedrooms
1 8 6 4
2 28 18 20
3 37 24 32
4 17 9 12
5 10 3 12
100 60 80
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Table 6Number of bedrooms
Number of bedrooms Green Street
1 8
2 28
3 37
4 17
5 10
100
10

Church lane
1 6
2 18
3 24
4 9
5 3
60
Eton Avenue
1 4
11

2 20
3 32
4 12
5 12
80
Interpretation: The above depicted bar and pie chart clearly presents that majority of the
houses which are situated in Green street, Church lane as well as Eton Avenuehaving 2 & 3
bedrooms. Apart from this, number of houses which have 4 bedrooms in such streets accounts
for 17, 9 & 12 respectively. On the other side, 10 (Green street), 3 (Church lane) and 12 (Aton
Avenue) houses have 5 bedroomms. Thus, considering all such aspects it can be depicted that
graphs present data in a understable manner and assists in taking further decisions.
3.2 Producing scatter graphs through considering data of age and weight
Data pertaining to age and weight is enumerated below:
Age Weight
1 9
2 11.5
3 14.5
3 15
4 16.5
4 17
5 18.5
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6 19.5
Scatter graphs are highly effective and significant which in turn clearly presents the
manner in which one variable is influenced from another. From assessment, it has identified that
scatter graphs are highly similar to line presentation and used for a specific purpose (García and
Conde, 2014). In other words, it can be stated that scatter graphs presents or assists in identifying
correlation takes place between the two variables. Such graph is highly suitable to the present
situation which in turn clearly exhibits that age and weight of child is highly related to each
other.
3.3 Preparinmg line chart using the data set of age and weight
Age Weight
1 9
2 11.5
3 14.5
3 15
4 16.5
4 17
5 18.5
6 19.5
Sum of Weights 121.5
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Total number of kids 8
Average Weight 121.5 / 8 = 15
TASK 4
4.1 Investment appraisal methods and their advantages & disadvantages
The case study detailed above brings forth the business plan of Speedy filters plc of
development of new product line. It has planned to provide mobile auto-repair services; so as to
facilitate customers of getting their vehicles fixed within the comfort zone of their home. The
business unit has included novel services so as to enhance its revenue & thereby profitability.
The distinct set of investment appraisal techniques are designed by scholars to test the financial
feasibility of projects into consideration. Different investment appraisal techniques with their
advantages & disadvantages are detailed underneath.
 Payback period: It is one of the traditional methods to ascertain viability of investment
decisions in hand. The methodology emphasizes on estimating duration in which initial
investment made on part of the organization is recovered. It is the simplest technique to
judge feasibility of investment option & is easily understood. However, the technique
ignores time value of money & cost of capital involved into investment decision. It can
be therefore said that the technique do gives fuzzy idea of investing into the certain
project.
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 Accounting rate of return (ARR): Accounting rate of return is estimated as an average
of annual returns that is anticipated to get generated through future cash flows. The
methodology is not regarded as apt for deciding feasible investment option since it
overlooks decrease in value of money with time & cost incurred to acquire capital.
 Net Present Value (NPV): The technique focuses on estimating the present value of
anticipated inflows/outflows in monetary terms. It is regarded as the most suitable
technique for judging feasibility of the investment option. The methodology considers the
fact that value of money decreases with passage of time; and also a cost is involved in
acquiring capital that is required for investment. As per the Net present value method;
investment should be made if NPV is positive; investment option should not be
considered in case of negative NPV. Further, if NPV is estimated at zero; the
organization is said to be irrational for investment decision.
 Internal Rate of Return (IRR): Another methodology to judge feasibility of investment
options is to estimate Internal Rate of return. It is the rate at which Net present Value
equates zero. IRR helps in estimating the rate of return that is expected to be generated
throughout life of the project. The methodology estimates rate of return after
consideration of time value of money & cost of capital. Henceforth, the business unit can
decides feasibility of investment option on basis of internal rate of return.
4.2 Project plan for Speedy Filters Plc
Speedy Filters plc need to design & implement the decided actions to implement the
project into consideration. It is through implementation of new project plan that the business unit
is able to expand operations by increasing its services. The list of activities, Gantt chart &
network diagram presented underneath clarifies the implementation of project into consideration:
Table 7: List of activities
S.no
. Activities
Duratio
n
Preceding
activities
1 Conducting Survey of potential customers 10 days
2 Targeting a niche market segment 5 days 1
3 Designing operations to deliver new services 6 days 1,2
4
Finalising different locations where services will
be delivered 6 days 1,2
5 Appointing new employees 10 days 3
6 Anticipating financial requirements 2 days 3
7 Measuring future cash inflows/outflows 1 day 3
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8 Acquisition of the required funds 4 days 6
9
Entering into lease agreement for acquisition of
vehicles & tools 2 days 5,8
10 Promotion of new services 20 days 4,5
11 Conducting pilot survey 10 days 5,8,9
12 Launch of new services 1 day 11
Figure 1: List of activities
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Figure 2: Gantt chart
The Gantt chart pictured above shows a schedule through which planned list of activities can be
implemented. Speedy Filters Plc needs to follow the schedule so as to meet deadlines &
complete execution of project on time. It is through meeting short term targets that the business
unit is able to achieve its expansion objectives.
Figure 3: Network diagram
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It is through construction of network diagram that the critical path that is the shortest duration to
implement project is estimated. As per the network diagram constructed above & estimated
critical path, the implement of expansion plan for Speedy Filters plc will complete in minimum
of 51 days.
4.3 Estimation of NPV & IRR for the proposed project
The NPV & IRR for the expansion project of Speedy Filters plc is estimated underneath.
Table 8: Initial investment & cost of capital
Initial investment (in £’s) 40000
Cost of capital 10%
Table 9: Net cash flows (Amount in £’s)
Year Revenue Operating cost Lease rental Net cash flow
1 200000 150000 40000 10000
2 250000 180000 40000 30000
3 280000 210000 40000 30000
4 300000 240000 40000 20000
Table 10: Internal rate of return
Year Cash flows (in £’s)
0 -40000
1 10000
2 30000
3 30000
4 20000
IRR 38%
Table 11: Net present value (Amount in £’s)
Year Cash flow
PV factor @
10%
Present value -
cash flow
1 10000.00 0.91 9090.91
2 30000.00 0.83 24793.39
3 30000.00 0.75 22539.44
4 20000.00 0.68 13660.27
Total present value 70084.01
Less: Initial investment -40000.00
Net present value 30084.01
The table presented above shows values for Net present value & internal rate return.
Internal rate of return is estimated at 38% which shows that the project into consideration is
viable for the investment purpose. As per IRR, Speedy Filters plc is expected to generate
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adequate rate of return on the investment made. Further, net present value is estimated at
£30084.01 which suggest that the business unit is capable of generating sufficient & positive
NPV. Henceforth, the investment into expansion plan is considered to be feasible in nature on
part of Speedy Filters plc.
CONCLUSION
In conclusion to this report, it can be presented that data has been gathered by the researcher
from both primary as well as secondary data sources. It can be seen in the report that with the
motive to gather appropriate information survey has been conducted within a 15 miles radius in
Surrey through the means of questionnaire. By applying statistical tools on data set it has
assessed that in the internal examination performance of students are good. Along with this, it
has been articulated that graphical presentation is highly significant which in turn presents clear
picture or view of data set. Further, it can be summarized from the evaluation that average
weight of children fall into the category of 1 to 6 months accounts for 15 pound respectively. In
addition to this, it can be presented that that Speedy Fitters Plc should select the proposed
investment project. Moreover, IRR of such project is 38% and NPV also accounts for positive
return so it can be depicted that firm will generate higher return by investing money in such
proposal.
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REFERENCES
Books and Journal
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Learning.
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Ford, R.C. and Richardson, W.D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics (pp. 19-44).Springer
Netherlands.
García, F.J. and Conde, M.Á., 2014. Using informal learning for business decision making and
knowledge management.Journal of Business Research.67(5).pp.686-691.
Ginevičius, R. and Podviezko, A., 2013. The evaluation of financial stability and soundness of
Lithuanian banks.Economic Research-EkonomskaIstraživanja.26(2).pp.191-208.
Hill, R. and et.al., 2013. Indigenous land management in Australia: extent, scope, diversity,
barriers and success factors.
Hwang, C.L. and Lin, M.J., 2012. Group decision making under multiple criteria: methods and
applications (Vol. 281). Springer Science & Business Media.
Malik, M.S., Awais, M. and Khursheed, A., 2016. Impact of Liquidity on Profitability: A
Comprehensive Case of Pakistan’s Private Banking Sector. International Journal of
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Nowduri, S., 2011. Management information systems and business decision making: review,
analysis, and recommendations. Journal of Management and Marketing Research, 7, p.1.
Tzeng, G.H. and Huang, J.J., 2011. Multiple attribute decision making: methods and
applications. CRC press.
Yager, R.R. and Kacprzyk, J. eds., 2012. The ordered weighted averaging operators: theory and
applications. Springer Science & Business Media.
Yu, P.L., 2013. Multiple-criteria decision making: concepts, techniques, and extensions (Vol.
30). Springer Science & Business Media.
Online
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