The research firm LL Research collected data from 200 client businesses. They want to determine how the businesses compare among four variables:
2015 Profit in millions of dollars
2016 Profit in millions of dollars
2015-2016 Two-Year Change in Daily Average Customer Visits Two-Year Average Number of Employees
Data collected for the sample of 200 businesses is contained in the file named Businesses, linked at the bottom of the page. Use all 200 data points.
REQUIRED:
Managerial Report
Prepare a report (see below) using the numerical methods of descriptive statistics presented in this module to learn how each of the variables contributes to the success of a client business. Be sure to include the following three items in your report.
1. Find descriptive sample statistics (mean, median, two quartiles Q1 and Q3, minimum, maximum, range, sample standard deviation, and coefficient of variation) for each of the four variables along with an explanation of what the descriptive statistics tell us about the client businesses.
2. Compute the percent change in profit from 2015 to 2016 for each business. Then use the z-score to determine which businesses were outliers with respect to percent change in profit.
3. Compute the sample correlation coefficient, showing the relationship between percent change in profit and each of the other two variables (2015-2016 Two-Year Change in Daily Average Customer Visits and Two-Year Average Number of Employees). Explain what the correlation coefficients tell us about the three pairs of relationships. Use tables, charts, or graphs to support your conclusions.