Random Sampling Technique Assignment
Added on - 11 May 2020
Executive SummaryWe use random sampling to get 60 observation on number of parameters pertaining toorders of Hardware and Garden Supplies. We can use this data to answer various questionsas mentioned below, along with answers that this report findsWhat determines sales? It is clear that order quantity is a poor predictor of sales.Are orders focused on a particular region? No there is no difference in sales across East andWest.Do critical orders need higher shipping costs? Again we find no such differences in costs fororders with different levels of criticality.Estimates of shipping cost so that customers can be provided with a rough idea about costs.We show that 95% of all orders will incur shipping costs between $10.057 and $19.625Average Sales for a particular segment. We show this for Home segment only.Is a particular shipping mode preferred, which can be targeted in advertisements and bythe sales team? We find that air route is most preferred based on actual data.How is other data like sales spread? Does this company get most orders of high value orlow value? We find that sales are skewed positively which means that most orders are oflower value. 50% of orders are of less than $428.Shipping costs are also skewed, so that 50% of these are below $6.685. Average costs arehigher at $14.8, showing scope for lowering them to control costs and boost profits.Order quantities average at 25.7, with 50% of orders below 24.5.
IntroductionThis report looks at a sample of office supply sales, provided by the ‘Hardware and GardenSupplies’. We use a sample of 60 out of 20002 data entries given to us pertaining todifferent information captured through - order priority and quantity, shipping mode( regularair/delivery truck/express air), shipping cost, region (East /west), consumer segment(Corporate/ Home Office/ Consumer/Small Business) and number of days taken to ship theorder. We use this set to derive a sample of 60 observations based on random samplingtechnique.We use Excel to answer a variety of questions pertaining to this data. We use concepts likemeasures of central tendency, dispersion, correlation, confidence intervals , hypothesistesting, regression. We use visual charts that include pie chart, bar chart, scatterplot, andpivot charts to aid in our analysis. Using Excel tools and statistical concepts we canunderstand the distribution of quantitative data like shipping cost, sales, and order quantity.We can check the share of orders in terms of priority, share of different shipping modes,customer profile and the average days taken to ship an order. We also look into relationbetween sales and order quantity, along with differences in orders with respect o priorityand customer segment. The regional imbalance in orders across East and West is also underlens here.AnalysisWe divide this section into 5 parts , each of which deals with a separate question andstatistical tool.Part 1:We use the RAND function to derive a random number for each of the 2002 points given indataset. These are then arranged in ascending order based on the random number allottedto each. The first 60 data points are taken as the sample set in this report.Here is a snapshot of the first 5 datapoints in the sample chosen.OrderPriorityOrderQuantitySalesShipModeShippingCostRegionCustomerSegmentDays toship145$75.391$0.70WCorporate4342$451.321$5.16ECorporate0239$616.501$8.40ESmallBusiness1024$6,408.302$35.67EConsumer1442$4,373.83$7.69ECorporate1
5Part 2:We now show descriptive statistics for a few variables.West region dominate sour sample with 36/60 data points for this region.Most orders ( 74%) are for regular air delivery( = 1on the scale) .