Data Analysis and Project Evaluation

This assignment delves into the significance of data analysis in addressing business challenges. It highlights the use of descriptive and advanced analytical tools to understand situations and make informed decisions. The paper emphasizes the crucial role of project evaluation methods, such as the Internal Rate of Return (IRR), in guiding investment choices based on calculated results. The document includes a discussion on limitations of IRR and its suitability for different investment opportunities.

BUSINESS DECISION MAKING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Plan for data collection in the research..................................................................................3
1.2 Sampling methods and methodology.....................................................................................4
1.3 Questionnaire.........................................................................................................................4
TASK 2............................................................................................................................................6
2.1 Descriptive statistics..............................................................................................................6
2.2 Analysis of data.....................................................................................................................7
2.3 Measures of dispersion..........................................................................................................8
2.4 Percentile and correlation coefficient....................................................................................8
TASK 3............................................................................................................................................9
3.1 Graphical representation........................................................................................................9
3.2 Trend analysis chart.............................................................................................................11
3.3 Covered in PPT....................................................................................................................12
3.4 Formal business report.........................................................................................................12
TASK 4..........................................................................................................................................12
4.1 Information processing tools in the business.......................................................................12
4.2 Project network diagram......................................................................................................13
4.3 Project evaluation method...................................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
Figure 14Freqwunecy of people visit to restaurant.......................................................................10
Figure 2People opinion on service quality....................................................................................11
Figure 3Trend analysis chart.........................................................................................................11
Figure 4Calcualtion of NPV..........................................................................................................15
Figure 5Calculation of IRR...........................................................................................................15

Table 1Descriptive statistics............................................................................................................7
Table 2Measure of dispersion..........................................................................................................9
Table 3Calculatio of correlation and percentile...............................................................................9
Table 4Freqwunecy of people visit to restaurant...........................................................................11
Table 5People opinion on service quality......................................................................................11

INTRODUCTION
Business environment is very hard and with change in the time period many problems
comes in existence. In the business huge data is generated on daily basis and analysis of same
speak a lots of things. In the current report, sales data is analyzed and comments are made on the
obtained results. Along with this, charting of primary data is done in the report and analysis of
same is done. At end of the report, project is evaluated by using project evaluation methods and
it is identified whether project is viable or not. In respect to entire report conclusion is also
prepared in the report.
TASK 1
1.1 Plan for data collection in the research
In every business there are some problems that are faced by the firms in regular time
period. It is very important to solve these problems in systematic way because by doing so
business performance can be improved to great extent. In the research different sort of data is
gathered by the researcher and same is analyzed in the systematic way and on basis of same
decisions are taken by the managers (Kantardzic, 2011). Currently, Murano restaurant is
operating in the highly competitive environment where there are number of retail players that are
giving tough competition to the business firm. In the research an attempt will be made to identify
the extent to which people think positive or negative about the business firm. On this basis it can
be determined whether restaurant must open its new branch or remain confined to the existing
business. In order to conduct research in better way two sort of data will be gathered namely
primary and secondary data. Primary data is one that is collected by the individual by make
efforts at own level. Questionnaire are the best medium that is used to gather data from the
research analyst (Stawarczyk and et.al., 2012). Secondary data will be collected from the
magazines and other sources. It will be ensured that sources from data is taken are fully reliable
and extraction and use of data from same will not lead to generation of wrong results in the
current research study. Sample of 30 people will be taken in the present research and in this
regard appropriate sampling method will be used in the present research study.

1.2 Sampling methods and methodology
In the research there are number of methods that are used to take sample units from the
population. In the current research there are different alternatives that are available to the
researcher in respect to sampling methods. Some of them are explained below. Simple random sampling: It is the approach that can be used by the any research analyst
because in same there is no technical process that one needs to follow to take sample
units from the population. Thus, any person can use this approach of sampling in the
research (Bock and Diday, 2012). This approach will not be used in the research because
in order to collect appropriate data and covering all sort of people it is necessary to do
classification. By using simple random sampling method it is not possible to do so. Stratified sampling: This method will be used in the present study because under this
entire group of people will be converted in to different stat and from same units for the
sample will be picked up. It can be said that this method will prove useful in the present
research because every sort of people can be taken as sample unit in the present study by
using mentioned method. Cluster sampling: Cluster sampling is another approach that is widely used in the
research and under this specific borough is divided in to varied parts (Mertler. and
Reinhart, 2016). From same sample is frame by taking units from the area that is
fragmented in to multiple parts. Convenience sampling: Mentioned method is used by those where in the research there
is no requirement to collect data from the specific sort of people. This method is less used
by the researchers in the research study.
1.3 Questionnaire
Definition- Questionnaire refers to the set of questions that are asked to the sample units that are
extracted from the population by following specific sampling method in the research.
Questionnaire for research
Name...
Age....
1. Frequency reflects a lots of things about the customers. As per your estimate what is the
frequency of your visit to our restaurant?
 2 ( )

 3 ( )
 4 ( )
 5 ( )
2. Service of excellent quality is provided to the customers in our restaurant. In your opinion is it
right statement?
 Strongly agree ()
 Agree ()
 Neutral ()
 Disagree ()
 Strongly disagree ()
3. On special occasions we arrange special lunch and dinner for the customers. Do you think that
up to best quality we are providing services to the customers and meeting their expectations?
 Strongly agree ()
 Agree ()
 Neutral ()
 Disagree ()
 Strongly disagree ()
4. Which of the below given factors that are given below you consider to large extent for
selecting any restaurant?
 Interior of the restaurant ( )
 Availability of dishes at low price ( )
 Excellent quality of served dish ( )
5. Do you think that interior play a significant role in helping restaurant in creating new and
retaining old customers in the business?
 Yes ()
 No ()
6. Variety of dishes are available in the restaurant. Out of all available alternatives which one
you often prefer to eat?
 Spicy ()
 Less spicy ()
 Other than spicy and less spicy ()

7. All items are served on time on the table. Do you agree?
 Strongly agree ()
 Agree ()
 Neutral ()
 Disagree ()
 Strongly disagree ()
8. Service personnel of the Murano restaurant are behaving in proper manner with the customers
in the restaurant?
 Strongly agree ( )
 Agree ( )
 Neutral ( )
 Disagree ( )
 Strongly disagree ( )
9. Firm is charging most suitable price on the products that is served to the customers?
 Highly satisfied ()
 Satisfied ()
 Dissatisfied ()
 Highly dissatisfied ()
TASK 2
2.1 Descriptive statistics
Table 1Descriptive statistics
1 20000
2 30000
3 35000
4 50000
5 57000
Mean 38400
Median 35000
Mode #N/A
 Mean: It is the statistical tool that have huge importance for the data analysts. This
method of data analysis is used by all research analysts whether they are working in any
domain. This tool is used in analysis section in starting stage because it is very important

to obtain an overall picture of the variable in terms of way in which it performed during
specific time interval. It is observed that first of all researchers usually calculate mean of
the variable and then advance analytics is performed in order to obtain specific results.
Thus, there is a great importance of the mean for the researchers. Median: Median is the tool that is used to develop broad understanding about the
variable in respect to which there is a huge data set that can be analyzed by taking a
single look (Mertler and Reinhart, 2016). There are number of facts that are hidden in the
large data set and same are discovered from the set of values by using median. Median
value classified entire set of data in to two parts and trends that exist in same are
identified by using different approaches like percentage etc. Percentage change that
happened in the data set can be identified and by using same different patterns in which
value of variable move can be identified and on that basis decisions can be made by the
managers. Mode: Mode is the tool that is often used by the researchers specially equity analysts that
along with using traditional methods also use statistical method for data analysis that is
related to the stock market. It must be noted that in the specific time period particular
price level comes in existence again and again. Thus, mode help one in finding out the
price that is occurring or coming in existence several time in the specific time period.
Thus, prediction can be made about the way in which in the upcoming time period
variable can move.
2.2 Analysis of data Mean: It can be seen from the table that is given above that mean value of the variable is
£38400. This means that firm perform good because at present it make sales valued at
£57000 which is greater than the above mentioned value. This gap between both values is
indicating that firm successfully beat the benchmark standard and give fabulous
performance in its business which reflects that firm is creating new customers in its
business and manage to retain old one in same.
 Median: Median value is £35000 and by using this value classification of data is done
in the report.
1 20000
2 30000 50%

3 35000 17%
4 50000 43%
5 57000 14%
It can be seen on analysis of data that sales growth rate declined sharply from 50% to
17%. This means that there was less demand of the product in the market and due to this
reason sudden declined comes in the growth rate. The interesting point is that after
median value growth rate increased to 43% from 17%. However, from 43% to growth
rate of sales declined to 14%. It can be said that there is lack of stability in the firm
performance. It need to formulate proper strategy by using which performance can be
improved and stability can be maintained in same.
 Mode: Value of mode is no computed by the software because sales of the firm is
increasing consistently and none of value is repeating in the data set. Consistent increase
in the sales value is revealing that firm give fabulous performance in its business.
2.3 Measures of dispersion
Table 2Measure of dispersion
1 20000
2 30000
3 35000
4 50000
5 57000
STDEV 15009.9967
Interpretation
There are number of important tools in the statistics and standard deviation is one of
them. It is the tool that basically compare two values and on that basis performance of the
variable is measured (Buzón and et.al., 2010). Standard deviation value is 15009 and it can be
assumed that there is large gap between the median value and final value of the variable. This
means that over the past time period in comparison to mean sales current sales increased which
reflects that firm give excellent performance in its business.
2.4 Percentile and correlation coefficient
Table 3Calculatio of correlation and percentile
Sales Profit
1 20000 2000

2 30000 3000
3 35000 3500
4 50000 5000
5 57000 5700
Correlation 1
Q1 30000
Q2 38400
Q3 50000
Interpretation
 Correlation: In the real practical world when any situation comes in existence it is
important to explore the relationship between the variables. This is because cause and
effect relationship is observed among the variables and due to same specific outcomes
comes in existence (Plonsky 2015). Thus, it is very important to identify the relationship
among the variables. On the basis of identification of magnitude of relationship among
the variables business decisions can be made by the managers in proper manner. Results
revealed that correlation value is one which means that sales and profit are highly linked
to each other and slight variation in sales will bring same change in the profit.
 Quartile: Quartile is the method that is used by the researchers when they are analyzing
the huge data set. The scope of operation of quartile is greater than median because it
classify set of figures four parts relative to median that divide data set in to two parts. It
can be said that value of quartile is Q1, Q2 and Q3 is 30000, 38400 and 50000. Facts are
revealing that sales value is increasing consistently. Thus, it can be said that quartile is
the tool that helps that in analyzing the data in better manner then median.
TASK 3
3.1 Graphical representation
Frequency reflects a lots of things about the customers. As per your estimate what is the
frequency of your visit to our restaurant?
Table 4Freqwunecy of people visit to restaurant
2 28
3 13

4 2
5 7
Total 50
Figure 14Freqwunecy of people visit to restaurant
Interpretation
Chart that is give above is reflecting that there are 28 people out of 50 who state that they
visit Murano restaurant 2 times in a month. Apart from this, there are 13 respondents who state
that they visit mentioned restaurant 3 times in a month. There are 2 and 7 respondents who state
that they visit mentioned restaurant 4 and 5 times. It can be said that most of respondents visit
mentioned restaurant 2 times in a month.
Service of excellent quality is provided to the customers in our restaurant. In your opinion is it
right statement?
Table 5People opinion on service quality
Strongly agree 23
Agree 10
Neutral 5
Disagree 7
Strongly disagree 5
Total 50

Figure 2People opinion on service quality
Interpretation
It can be seen from the image that most of people think that are strongly agree on the fact
that firm is making available excellent quality service to the people. There are 10 agree, 5
neutral, 7 disagree and 5 strongly disagree with same statement. It can be said that firm is
providing good services to the customers.
3.2 Trend analysis chart
Figure 3Trend analysis chart

Interpretation
Trend analysis is reflecting that sales of the firm is increasing consistently and in next
year it will remain at same level. Means that in the upcoming time period sales value will remain
in range of 57000. It can be said that firm perform well but growth rate of sales will remain
unchanged to great extent in next year.
3.3 Covered in PPT
3.4 Formal business report
To
The Directors of Murano restaurant Date: 13-04-2017
Subject: Business performance and analysis of primary data
Introduction
In the current report data that is collected from the primary data is analyzed. Along with this,
performance of the business firm is also analyzed and in this regard statistical tools are used in
the present research study.
Research methodology
In order to analyze the data statistical tools like mean, median and mode is used. Apart from this,
stratified sampling method is used to take sample units from the population. In this way entire
research is carried out.
Analysis and findings
It is identified on analysis of data that firm give good performance but its sales will not grow at
fast pace in the upcoming time period. It is also identified that people have positive perception
about the business firm.
Conclusion
It is concluded that sales will not grow at rapid pace in the next year and due to this reason firm
must prepare appropriate advertising and marketing strategy to accelerate sales in its business.
TASK 4
4.1 Information processing tools in the business Management information system: This system is one under which day to day business
information is stored and processing of same is done. Data is presented and arrange in

meaningful way to make business decisions. This information say stem is used by all type
of companies in their business. Excel: It is another tool that is used for processing of data. In this tool data can be entered
from the multiple sources and by using different tools varied sort of calculations can be
done to take business decisions. DBMS: It is the information system under which online data is created and saved on
internet. By using programing language like processing of data can be done and required
information is obtained from the huge data set. It can be said that there is importance of
DBMS for managers.
4.2 Project network diagram
Figure 4 GANTT chart

Figure 1: Network diagram
Interpretation
Network diagram is the one of the main method that is used for evaluation of the project.
Mentioned method reflect the path that must be followed to perform all tasks in the specific
sequence (Bernard, 2011). It can be seen from the table that critical path is 1+5+8+9+10 which
means that project must be completed in 22 days. The activities that are not in critical path can
be delayed and this will not affect entire project cost. It can be said that network diagram is the
one of the most important method that is used by the managers in the project management.

4.3 Project evaluation method
Figure 4Calcualtion of NPV
Interpretation
NPV is the method that reflects the value of the project that is in the present time period
(Sugihara, 2010). Value of NPV is negative and it means that project must not be undertaken by
the firm for investment purpose.
Figure 5Calculation of IRR

Interpretation
In order to compute the actual gain in the percentage terms that can be made in the
project IRR method is used by the analysts (Internal rate of return method, 2015). There is a
very less percentage of IRR and due to this reason available option cannot be considered best
investment opportunity for the firm.
CONCLUSION
On the basis of above discussion it is concluded that business firms face number of problems
and it is very important to identify solution of same. It is the statistics by using which situation
can be analyzed and decisions can be taken by implementing which problem can be solved in the
business. Analysts must use descriptive and advanced analytic tool for data analysis and
identifying solution of the problem. It is also concluded that there is due importance of the
project evaluation methods and wise decisions can be taken on the basis of results that are
obtained on application of relevant technique.

REFERENCES
Books and journals
Bernard, H.R., 2011. Research methods in anthropology: Qualitative and quantitative
approaches. Rowman Altamira.
Bock, H.H. and Diday, E., 2012. Analysis of symbolic data: exploratory methods for extracting
statistical information from complex data. Springer Science & Business Media.
Buzón, M.J. and et.al., 2010. HIV-1 replication and immune dynamics are affected by raltegravir
intensification of HAART-suppressed subjects. Nature medicine. 16(4). pp.460-465.
Kantardzic, M., 2011. Data mining: concepts, models, methods, and algorithms. John Wiley &
Sons.
Mertler, C.A. and Reinhart, R.V., 2016. Advanced and multivariate statistical methods:
Practical application and interpretation. Routledge.
Plonsky, L., 2015. Statistical power, p values, descriptive statistics, and effect sizes: A" back-to-
basics" approach to advancing quantitative methods in L2 research. Routledge.
Stawarczyk, B. and et.al., 2012. Evaluation of flexural strength of hipped and presintered
zirconia using different estimation methods of Weibull statistics. Journal of the
mechanical behavior of biomedical materials. 10. pp.227-234.
Sugihara, M., 2010. Survival analysis using inverse probability of treatment weighted methods
based on the generalized propensity score. Pharmaceutical statistics. 9(1). pp.21-34.
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Internal rate of return method, 2015. [Online]. Available through :<
http://www.accountingformanagement.org/internal-rate-of-return-method/>. [Accessed on
13th April 2017].