The paper "Critical Analysis of the Various Determinants of Annual Gross Revenue" is an outstanding example of a micro and macroeconomic report. This report intends to offer a critical analysis of the various determinants of annual gross revenue. The determinants that will be assessed in this paper include people, income, competitors, price, and distribution. The analysis will entail the regression of annual gross income on the aforementioned determinants of annual gross revenue. Summary statistics Based on the descriptive statistics above, the average population analyzed in the case study is 59703. However, the data values deviate from the given mean by 9834.
These residents earn an average income of $72665 with other data values deviating from the given mean by 7203. On the question of competitors, there is an average of 3 competitors. The descriptive statistics above further indicates that the mean price of a brand new model of a mid-size family sedan is $29,207.20 while other observations deviate from the given mean by 3584.57. It is important to note that the distribution of income and competitors is skewed to the right with a long tail stretching rightwards.
This implies that most values are intense on the left side of the mean whereas extreme values are to the right. While the minimum income earned by the population is $54,248, the maximum income is $92095. In the same line, there is a minimum of 1 and a maximum of 5 competitors in the provided data. Given the skewed distribution, the best measure of central tendency is the median. Mean is usually dragged in the direction of skewness under skewed distribution hence median ought to be used because it is unaffected by extreme values.
From the statistics above, the median income and number of competitors are $74,035 and 3 respectively. On the other hand, the distribution of people and price are negatively skewed. This suggests that most values are intense on the right side of the meanwhile extreme values are to the left. Median, as well, will be used as a measure of central tendency. In this case, the median number of population and price is 60320 and $28,650 respectively. The maximum and a minimum number of the population facing the showrooms is 31720 and 79990 correspondingly.
Works CitedBluman, Allan. Elementary Statistics: A Step by Step Approach. Boston: McGraw-Hill, 2014.