MN4063QA Understanding and Managing Data NOV21

MN4063QA Understanding and Managing Data NOV21 covers topics such as ungrouped and grouped descriptive statistics, data types, networking, relationships, expected values, break-even analysis, and its advantages and disadvantages. The coursework also includes a critical path and duration analysis, correlation matrix, scatter graph, and regression equation. The coursework is based on books and journals such as Multivariate behavioral research, Telematics and informatics, International Journal of Research-GRANTHAALAYAH, and Central European Journal of Operations Research.

MN4063QA Understanding
and Managing Data NOV21

Table of Contents
MAIN BODY..................................................................................................................................3
PART – 1.........................................................................................................................................3
Task – 1: Ungrouped Descriptive Statistics.................................................................................3
Task – 2: Grouped Descriptive Statistics.....................................................................................3
Task – 3: Data Types...................................................................................................................4
Task – 4: Networking..................................................................................................................4
Task – 5: Relationships................................................................................................................5
Task – 6: Expected Values..........................................................................................................6
Task – 7: Reflection.....................................................................................................................7
PART – 2.........................................................................................................................................7
REFERENCES................................................................................................................................1

MAIN BODY
PART – 1
Task – 1: Ungrouped Descriptive Statistics
Expenditure (£) on Stand Mixers
Mean 224.00
Standard Error 6.58
Median 224.00
Mode 224.00
Standard Deviation 75.00
Sample Variance 5625.00
Kurtosis -0.49
Skewness -0.32
Range 301.00
Minimum 68.00
Maximum 369.00
Sum 29120.00
Count 130.00
Coefficient of Variation 33.5%
Analysing the above table, it is evident that averagely, consumers are willing to £224 for
a stand mixer and SD of 75 shows that the data is significantly dispersed from the mean i.e.,
£224.
Task – 2: Grouped Descriptive Statistics
Tables:
Table 1
Expenditure (£) Frequency
Frequency
(%)
Under 100 14 10.77
100 and under 200 35 26.92
200 and under 300 65 50.00
300 and over 16 12.31
Total: 130 100.00
Table 2
Expenditure (£)
Frequenc
y
Cumulativ
e
Frequency
Cumulativ
e
Frequency
(%)
Under 100 14 14 4.56

Under 200 35 49 15.96
Under 300 65 114 37.13
Under 400 16 130 42.35
Total: 130 307 100.00
Table 3
Expenditure (£) Class
Frequency
(f)
midpoint
(x) fx (x-mean) (x-mean)2 f(x-mean)2
Under 100 0 - 99 14 49.5 693 17 289 4046
100 and under 200 100 - 199 35 149.5 5232.5 117 13689 479115
200 and under 300 200 - 299 65 249.5 16217.5 217 47089 3060785
300 and over 300 - 399 16 349.5 5592 317 100489 1607824
Total: Total: 130 798 27735 668 161556 5151770
Mean 32.50
Variance 1242.74
Standard Deviation 35.25
Ogive:
As per the given ogive figure, for a customer to belong to the bottom 25% population in
relation to the expenditure, he needs to spend a minimum of £150 on a stand mixer.
Task – 3: Data Types
Data that has its primary focus on the analysis of an individual at varied and uniform time
intervals is referred to as Time series data. It shall be noted that in this series, data is collected on
same variable over a period of time like monthly or yearly (Epskamp and et.al., 2018). Whereas,
in the case of cross – sectional data, multiple type of data is collected for a particular point of
time. The retailer hereby is advised to opt for cross – sectional data as well time series data to
address the requirement of demographic profiles as well as lifestyle preferences.
Task – 4: Networking
Network Diagram:

Critical Path and Duration:
Critical Path = 1 (A) + 3 (C) + 5 (E) + 9 (I) + 10 (J) = 6 weeks + 4 weeks + 6 weeks + 5 weeks +
2 weeks = 23 weeks.
Duration = 45 weeks.
Distinction between Critical and Non-Critical Activities:
Activities whose delay will result into delay of the overall duration of the project are
called as critical activities whereas non – critical activities will not be delaying the overall
duration of the project (Targiel, Nowak and Trzaskalik, 2018).
Task – 5: Relationships
Correlation Matrix:
Gross Profit
(£)
Total Costs
(£)
Average Order Value
(£)
Sales Revenue
(£)
Gross Profit (£) 1 0.704668719 0.521457908 0.272376832
Total Costs (£) 0.704668719 1 0.170126118 0.54003673
Average Order Value (£) 0.521457908 0.170126118 1 0.58565127
Sales Revenue (£) 0.272376832 0.54003673 0.58565127 1
Best Predictor of Gross Profit:
As per the above correlation matrix, the best predictor of gross profit is total cost. This is
because of the correlation value of 0.704668719 which shows that change in total costs will lead
to 70.47% change in gross profit and vice versa.
Scatter Graph:

Interpretation:
Correlation coefficient of the above data is 0.704668719 which shows the direction of
movement of the variable with respect to each other (Kompen and et.al., 2019). Whereas,
coefficient of determination i.e., R square shows the variation in percentage in gross profit due to
variation in total cost which came to 0.4966 or 49.66%.
Regression Equation:
Regression equation comes to y = 2.5356x + 2.0054.
Value of gradient i.e., 2.5356 indicates that change in x i.e., total cost the value of gross profit
will increase by 2.5356.
Task – 6: Expected Values
Coefficients of Variation:
Net EV Standard Deviation Coefficients of Variation
Venture A 700 30.08 4.30
Venture B 400 13.32 3.33
Project:
Since the retailer is risk averse, Venture B shall be chosen since SD of venture B is
lesser. Although average return is also lower but primary focus shall be on risk which is lower in
venture B.

Task – 7: Reflection
In the present coursework, I think I did particularly well in the analysis of the grouped
and ungrouped descriptive statistics i.e., understanding and interpretation of mean, mode,
median, standard deviation, variance, range, minimum, maximum, sum, coefficient of variation,
etc. Apart from this, the most challenging part of this coursework was to obtain the equation of
the regression and then subsequently, interpreting the values of the gradient and the intercept.
Learning from the current mistakes, I understood the need to focus more on the basic concepts
and remembering their formulas rather than searching for their significance in the data given.
PART – 2
Highest Activity
Cost
Lowest Activity
Cost
Highest Activity
Units
Lowest Activity
Units
Sales (units) - - 34000 14000
Total Cost (£) 400000 195000 - -
Variable Cost per unit and Fixed Cost:
VC pu (Highest Activity Cost – Lowest Activity Cost) /
(Highest Activity Units – Lowest Activity Units) £ 10.25
Fixed Cost Highest Activity Cost – (Variable Cost Per Units *
Highest Activity Units) £ 51500
Breakeven Point:
Break-Even analysis
Particulars Formula Figures
Selling price per unit 20
Variable cost per unit 10.25
Contribution per unit
Selling price per
unit - variable cost
per unit
9.75
Fixed cost 51500
BEP (in units)
Fixed cost /
contribution per
unit
5282
Units need to sell for attaining desired profit margin
Particulars Formula Figures
Fixed cost or expenses 51500
Desired profit 60000

Contribution per unit 9.75
Number of units required to sell
Fixed cost +
desired profit
margin /
contribution per
unit
11435.9
0
Margin of Safety:
Particulars Formula Figures
Actual Sales 680000
Breakeven Sales
105641.0
3
Margin of Safety (in amount)
actual sales -
breakeven sales
574358.9
7
Margin of Safety (in units)
(actual sales -
breakeven
sales)/selling price
per unit 28717.95
Advantages and Disadvantages of Breakeven Analysis:
Advantages –
1. Possibility of showing variations in costs and revenues through diagram.
2. Changes via diagram can be shows in the profits earned (Sintha, 2020).
3. Easy interpretation of the data and the diagram.
Disadvantages –
1. It is assumed that entire produce is sold.
2. Economies of scale is ignored.
3. Allocation of costs to the activities is very complicated.

REFERENCES
Books and Journals
Epskamp, S. and et.al., 2018. The Gaussian graphical model in cross-sectional and time-series
data. Multivariate behavioral research. 53(4). pp.453-480.
Kompen, R. T. and et.al., 2019. Personal learning Environments based on Web 2.0 services in
higher education. Telematics and informatics. 38. pp.194-206.
Sintha, L., 2020. Importance of Break-Even Analysis for the Micro, Small and Medium
Enterprises. International Journal of Research-GRANTHAALAYAH. 8(6).
Targiel, K. S., Nowak, M. and Trzaskalik, T., 2018. Scheduling non-critical activities using
multicriteria approach. Central European Journal of Operations Research. 26(3). pp.585-
598.
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