Statistical Business Analysis
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Additional Applications:

This business wanted to better understand the market potential for one particular category within the grocery industry. This is a control chart with a compound growth average (green line) which convinced this organization this category had very consistent and high growth at 11.3% for the past 3 years.

Profit per case has been stable for the last two years. This company could forecast profit by simply taking the volume forecast and multiplying it by the stable average profit per case. When this was done for the fiscal year 02/03, the actual profit was compared to the forecast created using this technique and there was only a .1% error. Most of this error was due to the error in the volume forecast! This would generate tremendous savings in the forecasting section of accounting by reducing effort hours in forecasting.

This chart of actual share clearly shows that the share has dropped 2 points or 7%. The software aids in finding those changes in average that are statistically relevant, using F and t Tests from statistics (see lower left corner).

This is a graph of the index month ago of the share data above, which would indicate no change in share since there is NOT a run of 7 below the grand average. The average index over this three year period was 1.00 suggesting that the share is not growing. Again the hazard of using index rather than the actual data being evaluated, in this case share.

This is an example of a simple study of marketing effectiveness where some 60 different variables were studied from pricing to competitor activity (remember common cause definitions?). In the chart above, the text between the two graphs indicates there is not a statistical correlation between media spending and shipments since the “variation explained: 2.9%” is not highlighted.

All of the results from this study are summarized in the table to the right. The figures are the strength of the correlation between each entry and shipments. Figures in red indicate an inverse relationship. These findings caused significant changes in the media and promotion spending for this brand.

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