Essays on Business Decision-Making Issues Assignment

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The paper 'Business Decision-Making Issues' is a great example of a Business Assignment. Advantages of mean – mean make use of every value in the data and hence is considered a good representative of the data (Foster 2001). In addition, mean is the only measure of central tendency that best resists the fluctuation between different samples and is the most common measure of dispersion. Disadvantages of mean-mean are sensitive to extreme values/outliers especially where the sample size is small. As such, it cannot be a good measure of central tendency for skewed distribution. Advantage of the median – the advantage of the median is that it is not affected by very big and very small values. Disadvantages of the median- median may take a long time to calculate for a relatively large data set. The advantage of mode-this is the only average that can be used when the data is not numerical. The disadvantage of mode- there may be more than one mode while at other times, there may be no mode at all.

The mode may also not be an accurate representation of the data. c) Analysis of the data calculated above-both the mode and median of the net income was £ 45,000.

On the other hand, the mean of the net income was £ 47,055.56. This is an implication that mostly HMV earns an income of between £ 45,000 and £ 47,000. d) Conclusion about net income- HMV mostly earns an income $45,000-$47,000. Thus, the company ought to plan with these figures in mind. 2.3 a standard deviation   16632.61 b) Standard deviation is important in showing how individual year’ s incomes deviated from the mean income for the business. As such, the business will use this information to establish reasons why income in some years deviated more than the standard deviation (Josphine 2011).

This will help establish the risks that the business is exposed to and hence take steps aimed at reducing the risk and solving the causes of deviation hence ensuring that the business performs better in the future. c) The range about the mean within which approximately 95% of the net income values fall. We use excel for this calculation The range is46, 809.72- 47,301.39 The interquartile range of the net income data       22000               25000               30000               35000               34000   Lower quartile 34,000         38000               40000               45000               45000   Median 45,000         45000               50000               52000               55000               56000   Upper quartile 56,000         60000               62000               65000               90000               Interquartile range   22,000         80th percentile               Total numbers 18           80th percentile 14.4 is 14th number which is 56000 2c) Explain how HMV may use quartiles, percentiles, and correlation coefficient to draw useful conclusions for the business. The business may use the correlation coefficient to determine whether there is any relationship between the company’ s revenue and advertising costs.

If it is established that such a relationship exists, then the company can increase the allocation of its resources to advertising in a bid to increase revenue. On the other hand, the percentiles and quartiles will help the company in increasing its revenue generation efforts so that it can perform a certain level of profitability.

References

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Wisnewiski, M2010, Qualitative methods for decision makers, Taylor & Francis, New York.

Alvin, C2013, Marketing research, Prentice Hall, Sydney.

Foster, D2001, Basic business statistics, Springer, New York.

Josphine, B2011, Business and economics statistics, Rutledge, London.

Paurav, S2011, Essentials of marketing research, Oxford University Press, Oxford,.

Keith, O2011, Principles of business forecasting, Cengage Learning, Western Australia.

Rob, H2007, Forecasting: Methods and applications, John Willey & Sons.

Jared, B2010, Forecasting: Principles and practice, Rutledge, London.

.Nick, G2015, Project management for dummies, John Willey & Sons, New York. .

Kerzner, R2013, Project management, John Wiley & Sons, New York.

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