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Analysis of Financial Indicators - Lab Report Example

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The paper "Analysis of Financial Indicators" discusses that most of the customers (70 %) used discount coupons. 70 % of customers (both regular and promotional) use proprietary cards. Typically, the customer is a married woman. More than half of customers (56 %) bought 1 or 2 items…
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Analysis of Financial Indicators
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In the first stage, the maximum and minimum values are determined. Using the standard Excel function, the maximum and the minimum age are found (78 and 20 years respectively). Six bins may be defined: 20-30 years; 31-40 years; 41-50 years; 51-60 years; 61-70 years; and 71-80 years. The per cent distribution is found using the COUNTIF Excel function. The results are presented below.

As it is seen, the most of customers are between 31 and 50 years (58 %). The same percentage of customers are 20-30 years old and 51-60 years old (15 % and 18 % respectively). 9 % of the customers are older than 60.

The same approach is used to estimate the per cent frequency for the net sales. The minimum sale is 13.23 $, and the maximum sale is 287.59 $. Ten bins are defined and the COUNTIF Excel function was used to determine the per cent frequency distribution. The results are presented in Table 4. As is seen from the table for each sales region, the number of customers is greater for the group of promotional customers. The difference between the two groups increases with the increase in net sales amount. For instance, the net sales for the region 13-40 $ is 1.7 times greater for the group of promotional customers; more than two times greater for the regions 40.01-68 $ and 68.01-96 $; and three times greater for the range 96.01-180 $. Net sales greater than 180 $ are only in the group of promotional customers. Most of the sales were made for a sum less than 124 $. Within this range, two times more sales were made in the group of promotional customers.

The diagram shows that there is no apparent relationship between net sales and customer age. It supports the claim that most customers are within the age range of 30 to 50 years. The following conclusions can be made based on the results of the statistical analysis. Most customers are married women between 30-50 years and use Proprietary Card as a preferable payment method. More than half of customers buy 1-2 items, and, typically the purchase amount is less than 124 $. As the promotional coupons were not sent to the regular clients, the promotion attracted more clients that are new. The amount of net sales for the group of promotional customers is more than 2 times greater than for the group of regular customers. Discounts also attracted the customer that made purchases in the sum of more than 180 $. The management of Pelican Stores can expect that the promotional customers will continue to shop at its stores.

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