Statistics for Decision-Making - Razor Blade - Assignment Example

STАTISTIСS FОR DЕСISIОN МАKING Table of Contents STАTISTIСS FОR DЕСISIОN МАKING 1 Table of Contents 2 Executive summary 3 Business problem 3 Statistical problem 3 Analysis 4 Q1; Descriptive statistics for the prices of male and female products 4 Q2. Descriptive statistics for prices for twin, 3-blade and 5-blade cartridges 5 Q3. Descriptive statistics for prices for different countries 6 Q4. Difference in the mean prices for different countries 6 Q5; mean price of twin, 3-blade and 5-blade cartridges 7 Q6; difference in the mean prices for different countries 8 Conclusion 9 Implications 9 Reference list 11 Executive summary From the research analysis, it was evident that, prices of the product for males were high as compared to price for females. Many of the products are sold in USA based on the frequency with which the price of the product is depicted in the histogram. The report focus on understanding the relationship between prices of the product based on the gender, country, number of blades and cartridge. The methodology for the study is to undertake a descriptive statistics based on excel data analysis tool pack and then undertake a hypothesis analysis in order to understand whether the test hypothesis depict any difference in prices. We will afterwards provide a conclusion of our forecast and analysis based on the excel data analysis tool pack that we used for study. Business problem The company is having an investment decision of venturing of whether to start producing a new product (Razor blade) or decline the new production line. To understand the viability of the new business idea, there is need to undertake an analysis in price of the new product (Razor blade) in order to provide an understanding of whether the company should manufacture a new product. The analysis will entail the forecast of the company’s product price based on gender, region and number of blades and cartridge in order to get an understanding of the best place and type of the product to be distributed in order to maximize profit. Statistical problem The analysis entails the use of data analysis tool pack to generate the descriptive statistic in terms of mean, mode, median,, range, maximum, minimum, skewness and kurtosis of the distribution and to develop an hypothesis testing to comprehend whether there is difference in price of the product in difference regions, gender and based on number of cartridge and blades and forming a conclusion based on the result of the descriptive statistics and hypothesis testing. Analysis Q1; Descriptive statistics for the prices of male and female products The result of the descriptive were generated using the excel data analysis tool pack for examination of the price of the product as explained below. . From the above histogram for the price of male and females, it is evidenced the price of females is low unlike the price for males. This implies that, there is high demand for razor blade from males and thus, the company needs to focus on supplying the razor blade many to males since, the company will realize more income from this gender group unlike females. Q2. Descriptive statistics for prices for twin, 3-blade and 5-blade cartridges From the two histogram above for 3 blades and for five blades, it can be observed that the price for five blades is high unlike the price for two blades. Given that there is more demand for five blades, it is an indication that more should be produced for five blade as much as for three blades. The company needs to have an optimal mix of razor blade production in order to meet the demand for the five blade as well as the demand for the three blade un-equivalently. Q3. Descriptive statistics for prices for different countries It can be observed from the above histogram that the price of the product is high in USA unlike in France. The price of the product is measured by the frequency of price distribution. In this regards, the company must therefore ensure that much of the product is supplied to USA in order to capitalize on the high demand of the razor blade in USA and to increase the sales level and the net profit to the company. Q4. Difference in the mean prices for different countries Test Statistic; Null Hypothesis; there is no Difference in the mean prices for different countries Alternative hypothesis; there is Difference in the mean prices for different countries Significance level;5% t-Test: Two-Sample Assuming Unequal Variances   13 1.2 Mean 6.7906 5.875 Variance 19.6659 7.618 Observations 64 16 Hypothesized Mean Difference 0 df 37 t Stat 1.0345 P(T Read More