Statistics for Management: Analyzing Data and Making Informed Decisions

Statistics for management
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Table of Contents
Scenario 1....................................................................................................................... 3
Task 1..............................................................................................................................3
Introduction.................................................................................................................... 3
Conclusion......................................................................................................................4
Scenario 2....................................................................................................................... 6
Task 2..............................................................................................................................9
Conclusion....................................................................................................................10
References....................................................................................................................11
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Scenario 1
Task 1
Introduction
The given report is prepared to explain the analysis and interpretation of the given fact
and information. It also depicts the various statistical calculations performed on the data
relating to sales expenses and net income. Thus, it aims to identify the relationship
between the given two variables. Also, it explains and depicts the analysis of both
quantitative as well as qualitative types of data.
Year Sales Expenses Net Income % of net
income
(£) (£) %
2009 £15,000 £20,000 75.00%
2010 £20,000 £25,000 80.00%
2011 £24,000 £30,000 80.00%
2012 £20,000 £40,000 50.00%
2013 £18,000 £35,000 51.43%
2014 £25,000 £50,000 50.00%
2015 £20,000 £45,000 44.44%
2016 £30,000 £65,000 46.15%
2017 £24,000 £45,000 53.33%
1 2 3 4 5 6 7 8 9
£0
£10,000
£20,000
£30,000
£40,000
£50,000
£60,000
£70,000
Sales Expenses (£)
Net Income (£)
There are different methods of analysis and interpretation through which data can be
correctly evaluated. This indirectly helps to take correct decisions. The above pictorial
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chart explains the graphical presentation of the tabular data and information. It can be
observed that in the beginning years the sales expenses forms a major part of the total
income. However, from the last 4-5 years, the proportion of sales expenses has
decreased indicating a positive response for the overall company.
Sales expenses Net income
Mean 21777.78 Mean 39444.44
Standard Error 1479.28 Standard Error 4598.04
Median 20000.00 Median 40000.00
Mode 20000.00 Mode 45000.00
Standard Deviation 4437.84 Standard
Deviation
13794.12
Sample Variance 19694444.44 Sample Variance 190277777.78
Kurtosis 0.31 Kurtosis 0.13
Skewness 0.42 Skewness 0.42
Range 15000.00 Range 45000.00
Minimum 15000.00 Minimum 20000.00
Maximum 30000.00 Maximum 65000.00
Sum 196000.00 Sum 355000.00
Count 9.00 Count 9.00
The above table explains the computation of descriptive statistics. As such, it explains
the most widely used statistical parameters. The given data is not showing major
fluctuations in the given data. This indicates that there is not a much wider fluctuation.
The client is also planning to outsource the courier firm for the deliveries of their
products and for this purpose it is proposing to hire Hermes UK. However, it needs to
take an honest review of the concerned company so that it can be assured of the quality
of services being provided by the Hermes UK. The Managing director has obtained
reviews from Trustpilot.co.uk and the majority of the review indicates that the existing
customers of Hermes UK are not satisfied with the services since the major drawback is
that the company is not concerned about the timely delivery of services.
Thus, it is advisable to consider another delivery service provider. Otherwise, it might
face financial crisis.
Conclusion
From the discussion throughout the report, it can be concluded that suitable and
appropriate conclusions can be drawn if the data is presented in a tabular and graphical
form since it helps and assists the reader or the user to correctly take the crucial
decisions as a result of which even non-technical users can understand and accordingly
take the decisions.
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