Business Decision Making: Analysis of Demographics for Supermarket Sales

BUSINESS DECISION MAKING
STUDENT ID:
[Pick the date]

Introduction
Demographics tend to play a vital role with regards to the sales of the retail businesses
especially the supermarket chains. In order to determine the potential of sales that can be
generated from a region catchment area for a supermarket, it is imperative to consider the
purchasing power along with other crucial factors such as age, gender which tend to alter the
preferences of the customers. In this backdrop, the objective of the given analysis is to
analyse the demographics of the selected sample data using a host of descriptive statistics.
Additionally, using inferential statistics technique, conclusion about the underlying
population would be drawn from the sample. Besides, correlation and regression analysis
would be used as key enabling tools in order to highlight the relationship between selected
variables and thereby highlight the implications for the supermarket. Based on the analysis of
the sample data, recommendations would be offered to the supermarket chain which can be
used for enhancing business.
A population data has been offered which comprises various demographic aspects related to
1000 persons. The key variables that have been included are age, gender, marital state,
mortgage, children, salary, debt, location and amount spent during the given year. These
demographic variables as explained above are of essence for the supermarket chain. Instead
of using the population data for the statistical analysis, two samples have been selected
comprising of 25 people which would be deployed for conducting further research. The
random sampling method is used to obtain the two samples which are required in the given
case. However, one of the samples has been obtained by deploying simple random sampling
where from the given population of 1000 persons, a sample of 25 has been drawn using Excel
as the enabling tool. Another sample of 25 people has been obtained from the given
population of 1000 people and this has been obtained through the use of systematic random
sampling whereby samples are selected after equal intervals of observations.
Descriptive Statistics
The descriptive statistics of the various variables in the two samples are discussed below.
Zone
Sample 1

It is apparent that majority of the customers from sample 1 are from Zone C while the
distribution is even between the other three zones namely A, B and D.
Sample 2

Zone
A
B
C
D
It is apparent that majority of the customers from sample 2 are from Zone C while the
distribution is even between the other three zones namely A, B and D.
Children
Sample 1