The paper "Investment Decision of Whether to Produce the New Product Razor or Not" is a perfect example of a finance and accounting assignment. The research analysis focuses on making an investment decision on whether to produce a new product (Razor) or not. The investment decision is based on the result of the excel output generated. The output of the excel data provides that the price of razor for females are high on average since it depicts a median of 6.5 unlike a median of 6 for men. The result further reveals that there will be high demand for the product in the USA.
The report will, therefore, centre on providing analysis and comprehend the link between the price and the product in term of gender, regions and types of the razor to be manufactured. The research analysis employed the use of descriptive statistics and single-factor ANOVA in understanding the need for the new product in the market and recommend on the best alternative to undertaking in order to maximize return and profit to the company within the shortest time and cost. Business problem The company is facing the problem of whether adding a new production line of producing the new type of razor blades and the need for the product in the market.
To provide the best investment decision, there is a need to understand the product viability which will entail both internal and external factors (William Petty, 2015). The external factors entail the analysis of the demand, the effect of competition and supply of the product to various regions and gender. Internal factors will comprise understanding of whether the current production capacity efficient or whether there is need to add new production line, the current level of skills labors and availability of the finance to fund the new product. Statistical problem The analysis entails the use of data analysis tool pack to generate the descriptive statistic in terms of mean, mode, median, range, maximum, minimum, skewness and kurtosis of the distribution and to develop a hypothesis testing to comprehend whether there is the difference in the price of the product in different regions, gender and based on a number of cartridge and blades and forming a conclusion based on the result of the descriptive statistics and hypothesis testing (Wang, 2014). Analysis Q1; Descriptive statistics for the prices of male and female products The outcome for the de3scripotive statistics from the excel data analysis tool pack is explained in details as follows. From the histogram above, it is evident that the price for a male is high but on average as depicted by the median; the price of the females is high since the median for the females is 6.5 while for the males it is 6. This means that the demand for the razorblade is high for females Q2.
Descriptive statistics for prices for twin, 3-blade and 5-blade cartridges It is evident from the above graph of price frequency by a cart that, the price of the razor will be high for the three blades. This would imply that the demand for the three-blade razor should be met by producing more of the three razor blades. Other than this, there is need to have an optimal mix with the remaining product of twin blade and 3 blade razor since, both depict high demand with twin blade being on high demand as compared to 3 blade razor (Schuster, 2015).
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