Statistics for Financial Decisions Assessment
Learning Outcomes
1. Analyse and present data graphically using spreadsheet software (Excel).
2. Critically evaluate summary statistics against suitable benchmarks.
3. Apply judgement to select appropriate methods of data analysis drawing on knowledge of regression analysis, probability, probability distributions and sampling distributions.
4. Select and apply a range of data analysis tools to inform problem solving and decision making.
5. Conduct quantitative research both individually and as part of a team and articulate and present findings to a wide range of stakeholders, from accounting and non-accounting backgrounds.
Instructions:
You are required to apply your knowledge and draw links between the scenario and the learning resources. In your answers, reflect upon and analyse issues of the key discussion points of the module. Your answers should also effectively communicate and demonstrate that key concepts have been reviewed and that you can apply these concepts to the problems posted.
Assignment
The daily sales figures and prices for our Schmeckt Gut Energy Bars sold in the countries of Nockaragua, Macronesia and Industria are provided with the attached EXCEL file.
The board of directors of Schmeckt Gut is interested in investigating this data in more detail.
The board would like you to answer the following questions by using statistical methods and concepts that have been addressed in the modules.
a) What is the expected sale (number of energy bars sold) and what is the expected revenue on any given day in each of the three countries?
b) Based on the data, what is the probability that Schmeckt Gut:
(i) Sells at least the expected number of energy bars?
(ii) Reaches at least the expected revenue?
c) What are the average number of energy bars sold and revenues achieved for each week day (Monday's, Tuesday's, ... Saturday's and Sunday's) in each country?
(i) Create probability distributions of the average number of sales and the average revenues achieved over any given week (Monday to Sunday)?
(ii) Present your distributions for each country in graphs.
(iii) Given the probability distributions for every day of the week (Monday to Sunday), what are the expected sales and what are the expected revenues for each day of the week (Monday to Sunday) for each country?
(iv) On which day are we experiencing, on average, the highest sales (number of energy bars sold) and on which day the lowest sales?
(v) On which day are we experiencing, on average, the highest revenue and on which day the lowest revenue?
(vi) What is the expected number of energy bars sold on these specific days?
What is the expected revenue on these specific days? Knowing the actual data, what is the probability that we meet the expected sales and revenues on these days?
d) With the knowledge of the above, advise the board in which country we should invest in marketing our Energy Bars. Explain your rational.