Masters - Data Analysis

Introduction

Freedom is a chain of 72 stores in Australia and New Zealand which is operated by Steinhoff Asia Pacific Ltd . Its main business is to manufactures and sells furniture brands and household goods . Some of its stores are full-concept stores , while others only sell homeware . The furniture it sells include fabric and leather sofas , dining suites chairs , tables , beds , entertainment units , bookcases , desks , office furnishings and outdoor furniture . The homeware goods it sells include blinds , curtains , lighting , cushions , rugs , kitchenware , decorations dinnerware , storage and bathroom accessories

The manager of

Freedom Lucy Richardson expands its stores using franchise ownership . Each franchised store is free to decide a margin it includes on top of the price of the products it sells . Recently , she is interested in purchasing her own franchise store . This report utilizes current stores data to evaluate the potential success of franchising new stores

Data

Data from 25 different stores were collected . Each record contains six different attributes as follows : the variable Sales describes the gross sales of a store , the variable format describes whether the store sells furniture and homeware (denoted by 0 ) or it sells homeware only (denoted by 1 , the variable years describes the number of years the store has operated in its location , the variable margin describes the margin that specific store put on top of the charges for the products it sells , the variable advertising describes the expenses that specific store put out for the sake of advertising , the variable population describes the number of individuals living within 20 kilometers from the store location

Descriptive Analysis

Descriptive statistics is applied on the variables of the collected data as shown in appendix I . The mean of sales is shown to be 12 ,384 ,876 with the 95 confidence level within the range of 8 ,717 ,945 to 16 ,051 ,806 . The mean of the margin is 0 .13 with the 95 confidence level within the range of 0 .1 to 0 .15 . The mean of the years is 4 .2 years with the 95 confidence level within the range of 3 .1 to 5 .3 . The mean of the format is 0 .52 and the mode is 1 indicating that more stores sell homeware only as compared to stores who sell furniture and homeware . The mean of the advertising is 176 ,595 with 95 confidence level within the range of 100 ,058 and 253 ,132 . The mean of the population is 505 ,306 with the confidence level covering the range from 398 ,863 and 611 ,749 individual

Correlation between sales and other variables

Correlation between different variables is show in appendix II . The correlation table demonstrates that the highest correlation between sales and any of the variables exists with the population variable . The correlation between sales and population is strong positive of 0 .82 . The second highest correlation with sales exists with advertising as a strong positive correlation of 0 .71 . The third correlation with sales exists with store format with a positive moderate correlation...