Business Statistics: Analysis and Results for Retail Surge

Business statistics
Business analytics and statistics
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Business statistics
Table of Contents
1.0 Introduction...........................................................................................................................................3
2.0 Problem definition.................................................................................................................................3
3.0 Analysis and results...............................................................................................................................5
3.1 Which product categories are making the most profit?....................................................................5
3.2 Which product category costs the most (COGS)?..............................................................................6
3.3 Is there a difference in payments methods?.....................................................................................7
3.4 Are there any differences in the user groups on all of the customer attitudes? (6 outcomes)..........7
3.5 Test for the difference in means of user groups between different customer attitudes.................11
3.6 Are there any differences in gender on all of the customer attitudes? (6 outcomes).....................15
4.0 Discussion and recommendation.........................................................................................................20
Reference...................................................................................................................................................21
Appendix...................................................................................................................................................22
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1.0 Introduction
Businesses have faced various challenges especially during the past global inflation. This has
in turn heightened the level of competition in the market thus making smaller businesses to go
under. Retail surge is an online retail company that deals in various types of wears. It has also
been facing a lot of competition from other companies that are offering the same products. The
retail company deals in clothes and footwear for both men and women and boys and girls. To
be able to fight the competition and remain stable in the market, it sought to collect information
from their operations including their customers. The aim of collecting these information was to
better understand the market trend and hence their customers. The results from this data would
form the basis of their various decisions making.
2.0 Problem definition
 Which product category is making the most profit?
To be able to establish the products that make the most profit, a graph of total profit per product
is suitable. This is because the products and their amount of profit will be visualized hence easy
interpretation.
 Which product category cost the most?
To be able to establish the products that cost the most, a graph of total cost per product is
suitable. This is because the products and their amount of profit will be visualized hence easy
interpretation.
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 Is there a difference in payment methods?
To establish whether there is a difference in the payment methods, an independent sample t-test
is employed. This type of test statistic is employed since there are only two variables involved;
PayPal and credit card.
 Are there any differences in the user groups on all of the customer attitudes? (6
outcomes)
To establish whether there is a difference in the user groups, an ANOVA test is employed. This
type of test statistic is employed since there are more than two variables involved; light users,
medium users and heavy users.
 Are there any differences in gender on all of the customer attitudes?
To establish whether there is a difference in gender on customer attitudes, an independent sample
t-test is employed. This type of test statistic is employed since there are only two variables
involved; males and females.
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3.0 Analysis and results
3.1 Which product categories are making the most profit?
Figure 1
The figure above shows the mean profit total for nine products as observed in the bar graph
above. The product categories that are making most profit are the customised products. The
customised products are making a mean profit total of 25 dollars. This is followed by men’s
shoes. These make a mean profit total of about 16 dollars. The third best product category was
the girls’ shoes. The girls’ shoes category made a mean profit total of 7 dollars.
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3.2 Which product category costs the most (COGS)?
Figure 2
The simple bar graph above is of the mean cost of various goods. The goods vary from
customised goods to boys’ clothing. Again, it can be observed that the product category that
costs the most among the nine products is the customised products. They cost about 9.9 dollars.
The next class of product that also cost more is the girls’ shoes. These products cost 8 dollars.
The third costly product is the women’s shoes. This category of product costs 5 dollars.
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