The paper “ Relationship between Product Ranges Sold and Profit Made in Different Parts” is a brilliant example of a statistics project on business. In order to investigate the relationship between the variables, a correlation test was done with the results being as shown in table 1. It can be seen that the pair with the strongest significant correlation value is the product range variable and profit with a Pearson correlation value of 0.653. This is an indication that higher profits are associated with stations with a higher product range.
The other pair with a significant correlation is between the number of items and profit with the Pearson value of 0.592. There is no significant correlation between time in business and any other variable. Also from the table, it can be seen that there is no significant correlation between the number of items and product range. TABLE 1Profit and items soldIn order to investigate further the relationship between profit and items sold the two variables were modified so as to come up with profit group and items group variables. The two new variables were then used in cross-tabulation and chi-square analysis with the results being as shown in table 2 and table 3.
From the table, it can be seen that the profit of < 100 seems to be more associated with item groups of < 200, 200-300 and 400-500. The expected value of shops with a profit of < 100 and having items < 200 is expected to be 2.2 but the actual count is 4 which is far much more than the expected. The count of 4 represents 18.2% of all the shops within the < 100 profit group and 40% of scores within the items group.
Within the same profit group of < 100 the expected score for items group 200-300 is 6.6 with the actual count is 13. The score of 13 is 59.1% of all the shops with a profit of < 100, 43.3% of shops within items group 200-300, and 13% of all the shops. Looking at the row of profit group 30-400 which is the highest margin profit group it is observed that the largest score in the group is 17 which is under the > 600 items group.
The expected score for this cell is 3.6.