DATCB/565: Data Analysis And Business Analytics
Competency 1 – Assessment
Competency Assessment Title: Competency 1 Assessment
Total Number of Points: 100
Assessment Directions
Assessment Details
Scenario:
Pastas R Us, Inc. is a fast-casual restaurant chain specializing in noodle-based dishes, soups, and salads. Since its inception, the business development team has favored opening new restaurants in areas (within a 3-mile radius) that satisfy the following demographic conditions:
- Median age between 25 and 45 years old
- Household median income above national average
- At least 15% college-educated adult population
Last year, the marketing department rolled out a loyalty card strategy to increase sales. Under this program, customers present their loyalty card when paying for their orders and receive some free food after making 10 purchases.
The company has collected data from its 74 restaurants to track important variables such as average sales per customer, year-on-year sales growth, sales per sq. ft., loyalty card usage as a percentage of sales, and others. A key metric of financial performance in the restaurant industry is annual sales per sq. ft. For example, if a 1,200 sq. ft. restaurant recorded $2 million in sales last year, then it sold $1,667 per sq. ft.
Executive management wants to know whether the current expansion criteria can be improved; evaluate the effectiveness of the loyalty card marketing strategy; and identify feasible, actionable opportunities for improvement. As a member of the analytics department, you’ve been assigned the responsibility of conducting a thorough statistical analysis of the company’s available database to answer executive management’s questions.
Part 1: Descriptive Statistics Analysis
Conduct the following descriptive statistics analyses using the PastasR Us, Inc. data set in Microsoft Excel. Answer the questions in the spreadsheet or a separate Microsoft Word document.
Insert a new column in the database that corresponds to AnnualSales. AnnualSales is the result of multiplying a restaurant’s SqFt by Sales/SqFt.
Calculate the following:
- mean
- standard deviation
- skew
- 5-number summary
- interquartile range (IQR) for each of the variables
Create a box-plot for the AnnualSales variable and answer the following questions:
- Does it look symmetric?
- Would you prefer the IQR instead of the standard deviation to describe this variable’s dispersion? Why or why not?
Create a histogram for the Sales/SqFt variable and answer the following questions:
- Is the distribution symmetric? If not, what is the skew?
- Are there any outliers? If so, which one(s)?
- What is the SqFt area of the outlier(s)? Is the outlier(s) smaller or larger than the average restaurant in the database? What can you conclude from this observation?
- What measure of central tendency is more appropriate to describe Sales/SqFt? Why?
Cite references to support your assignment.
Continue to Part 2: Report.
Part 2: Report
Write a 750- to 1,000-word statistical report with the following sections:
- Section 1: Scope and Descriptive Statistics
- Section 2: Analysis
- Section 3: Recommendations and Implementation
Section 1: Scope and Descriptive Statistics
- State the report’s objective.
- Discuss the nature of the current database. What variables were analyzed?
- Summarize your descriptive statistics findings from Part 1. Use a table and insert appropriate graphs.
Section 2: Analysis
Using Microsoft Excel, create scatter plots and display the regression equations for the following pairs of variables:
- BachDeg% versus Sales/SqFt
- MedIncome versus Sales/SqFt
- MedAge versus Sales/SqFt
- LoyaltyCard(%) versus SalesGrowth(%)
In your report, include the scatter plots. For each scatter plot, designate the type of relationship observed (increasing/positive, decreasing/negative, or no relationship) and determine what can be concluded from these relationships.
Section 3: Recommendations and Implementation
- Based on your findings above, assess which expansion criteria seem to be more effective. Is there any expansion criterion that could be changed or eliminated? If so, which one and why?
- Based on your findings above, does it appear as if the loyalty card is positively correlated with sales growth? Would you recommend changing this marketing strategy?
- Based on your previous findings, recommend marketing positioning that targets a specific demographic. (Hint: Are younger people patronizing the restaurants more than older people?)
- Indicate what information should be collected to track and evaluate the effectiveness of your recommendations. How can this data be collected? (Hint: would you use survey/samples or census data?)
Cite references to support your assignment.
Resources
Note: Please ensure that when citing or referencing an outside resource or external entity that proper attribution is made to that source. An example of a method for citing outside resources can be found in the APA 7th edition manual. Although you will not be graded on your ability to format citations in a specific format, it is expected that all learners submit work that is representative of their own original thoughts and work, and clearly attribute when referencing outside sources or entities when completing competency assessments.
Assignment / Performance Criteria Mastery 100%
1. 1. Part 1: “AnnualSales” mean, standard deviation, skew, 5-number summary, and interquartile range (IQR) for each of the variables (weight 5%) Accurately inserted new column in the database titled “AnnualSales” and correctly calculated all of the following: the mean, standard deviation, skew, 5-number summary, and interquartile range (IQR) for each of the variables
2. 2. Part 1: “AnnualSales” box-plot (weight 5%) Accurately created a box-plot for the “AnnualSales” variable; clearly and correctly answered all of the given questions
3. 3. Part 1: “Sales/SqFt” histogram (weight 5%) Accurately created a histogram for the “Sales/SqFt” variable; clearly and correctly answered all of the given questions
4. 4. Part 1: “Sales/SqFt” central tendency (weight 5%) Thoroughly analyzed what measure of central tendency is more appropriate to describe “Sales/SqFt” and clearly explained why
5. 5. Part 2: Scope (weight 10%) Thoroughly stated the report’s objective and thoroughly discussed the nature of the current database
6. 6. Part 2: Descriptive statistics (weight 10%) Thoroughly summarized descriptive statistics findings using a table and graphs
7. 7. Part 2: Scatter plots (weight 10%) Accurately created scatter plots and regression equations for given variables
8. Part 2: Analysis of scatter plots (weight 10%) Thoroughly designated the type of relationship observed from scatter plots and thoroughly determined what to conclude from these relationships
9. Part 2: Recommendation (weight 20%) Thoroughly assessed which expansion criteria seem to be more effective in order to recommend marketing positioning that targets a specific demographic
10. Part 2: Implementation (weight 20%) Thoroughly outlined what information should be collected to track and evaluate the effectiveness of the recommendations.
Additional Note:
FOLLOW Assignment / Performance Criteria Mastery 100%
This needs to pass ZERO GPT and plagiarism checks.
Need, scholarly references and intext citations.
Excel needed, word needed etc