2.

1 Create information for decision making by summarizing data using representative values
The questionnaire set out to seek for information from people on their view of Starbucks product. It sought to find out about peoples
perception of Starbucks product. That is why they tend to purchase it. 40 persons were interviewed with a structured question. The
information obtained are thus shown below. The representative values used here are the mean, median, mode and standard deviation.
Table 1 showing the mean, median, mode, Standard Deviation for each questionnaire response
Table 1. Statistics
Income
Level

How did you How do you

Do you prefer
Will you introduce
get to know judge Starbucks products of other
Starbucks product
about
Product?
companys apart
to everyone?
Starbucks?
from Starbucks even
though Starbucks?

40

40

40

40

40

40

40

Mean
Median
Mode
Std. Deviation
Variance
25

0
2.65
2.00
2
.802
.644
2.00

0
1.38
1.00
1
.628
.394
1.00

0
1.88
2.00
1a
.791
.625
1.00

0
1.25
1.00
1
.543
.295
1.00

0
1.53
2.00
2
.506
.256
1.00

0
1.70
2.00
2
.464
.215
1.00

0
1.33
1.00
1
.730
.533
1.00

Percentiles

50

2.00

1.00

2.00

1.00

2.00

2.00

1.00

75

3.00

2.00

2.75

1.00

2.00

2.00

1.00

Valid

What kind Why do you

of
buy Starbucks
Starbucks
product
product do
you use?

Missing

a. Multiple modes exist. The smallest value is shown

Source: Authors Construct. 2015

Table 2. Responses from Questionnaires

Personal Details

Age

Frequency

Percentage

Up to 18

15.0

18-30 years

14

35.0

31-50 years

20

50.0

Total

40

100.0

Male

14

35.0

Female

26

65.0

Total

40

100.0

Student

16

40.0

Teachers

11

27.5

Bankers

10

25.0

Sex

Occupation

Sales Attendant

Total

40

7.5
100.0

Primary

Level of

Senior High

13

Education

Undergrad

15

Postgraduate

11

2.5
32.5
37.5
27.5
100.0

Total

40

Average

10000-20000

22

55.0

Income

20001-30000

10

25.0

300001-40000

20.0

Total

40

100.0

Source: Authors Construct. 2015

Table 2. Shows the number of respondent who answered each questionnaire and these two tables
therefore give a representative values of the questionnaire.
Analyzing table 2., it can be realized that of the 40 respondent who answered the questionnaire,
15 percent were 18 years and below. 35 percent were between the age range 18-30 years and 50
percent were between the ages of 31-50 years. Accordingly there were more female than male.
Thus 14 were male and 26 were female. Moreover 40 percent were students, 27.5 percent were

teachers, 25 percent were Bankers and the remaining 7.5 were sales attendants. These were the
occupations of the respondents.
Additionally, the average income of the respondents were also analyzed and it came to light that
55.0 percent indicated that their average incomes is between 10000 and 20000 per annum.
Accordingly 25 percent indicated their average income is between 20001 and 30000. 20 percent
also said their average income was between 300001 and 40000
2.2 Analyse the results to draw valid conclusions in a business context
This section explains the table 1 which relates to the statistics obtained. The mean, median and
mode are thus explained.
From table 1. and considering the questionnaire that relates to the kind of Starbucks product they do
use, it showed a mean of 1.38, median of 1 and mode of 1.
The mean of 1,38 means that on the average respondents tend to use more of the coffee product of
Starbucks than any other product.
The mean sometimes is affected by outliers. These extreme cases therefore misrepresent the data been
analyzed. The medium therefore becomes a good measure. In this data, the median is 1 and this means
that 50% (that is half) of the respondents indicated they do use coffee products than any other

products of Starbucks
The mode is the most frequently occurring digit. The mode in this case is the 1. That is means
that customers of Starbucks product use the Coffee products more frequently than any of the
other products.
Additionally, if we consider the questionnaire that relates to the income level of respondents, it
showed a mean of 2.65, median of 2 and mode of 2.

The mean of 2.65 which means that the average income of respondents is between the income brackets of
200001 and 30000.
The median is 2 which is the middle number in the sequence of numbers and its used to inform capacity
planning. Here the middle income level of the respondent is 10000-20000
The mode in also 2 which means that the most frequently occurring income level of respondent is
between 10000 and 20000.

2.3 Analyse data using measures of dispersion to inform a given business scenario
Measures of dispersion refers to how spread out a set of data is. And the most commonly used
ones are the variance, standard deviation and percentiles.
From table 1 and considering the question that relates to how do you judge Starbucks product?
Standard deviation and the variance are 0.506 and 0.256 respectively. Accordingly, the 25th, 50th,
and the 75th percentiles are 1.00, 2.00, and 2.00 respectively.
The standard deviation which is 0.506 shows how spread out responses vary or deviate from
the mean. Since the mean is 1.53 for this question, then the deviation of responses from the mean
is two times. It is thus said that if observations vary greatly from the mean, the standard
deviation is big; and vice versa. In this case the standard deviation does not vary greatly from the
mean as such responses are not widely spread out.
The variance is 0.256 which also indicates how spread the responses are. It is the square root of
the standard deviation.
Percentiles are also good measures of dispersion. The 25th percentile is 1.00 which indicates
that consumers do judge or consider Starbucks product as very good. Accordingly the 50 th and
the 75th percentiles are all 2.00 which indicates that consumers judge or consider Starbucks
product as Good. This is also depicted in the table 3.

Table 3. How do you judge Starbucks Product?

Very
Good
Good
Total

Frequency

Percent

19

47.5

21
40

52.5
100.0

Source: Authors Construct. 2015

From table 3 it could be seen that when respondents are asked to judge Starbucks product, 47.5
percent indicated that Starbucks product are very good and 52.5 percent indicated that their
products are good. None of them said Starbucks product are bad.

2.4 Explain how quartiles, percentiles and the correlation coefficient are used to draw
useful conclusions in a business context
Quartiles are useful concept in statistics. Quartiles describe a division of observations into four
defined intervals based upon the values of the data and how they compare to the entire set of
observations. From table 1 and based on the question that relates to why people buy Starbucks
product, we thus calculate the lower, upper and the interquartile range.
Thus the lower quartile (Q1) is given as

Since n is 40, per calculations we get Q1 = 10.25th position. And this corresponds to product
quality. This therefore means that the first 25% of an ordered set of data tend to purchase
Starbucks product based on the quality of the product.
The upper quartile (Q3) is the median of the upper half of the data set. This is also calculated as

So per calculations, Q3 = 30.75th position. This corresponds to Price of the product. This therefore
means that the 75% of an ordered set of data tend to purchase Starbucks product based on the
price.
The interquartile range (IQR) is the spread of the middle 50% of the data values. It is
calculated as Q3-Q1 and this gives us
20.5th position which also means that the purchase of Starbucks product are as a result of Brand
Image.
The 25th Percentile is 1 and it means that people buy products of Starbucks do to its quality.
The 50th Percentile is 2 which shows that other people buy their products due to the brand image
The 75th Percentile is 2.75 which could be approximated to3 meaning that people purchase
Starbucks products due to the price.
Correlation describes the degree of relationship between two variables. Correlation is therefore
calculated as

So per calculations the correlation is -0.091 which means that there is a weak negative
relationship between respondents age and the type of Starbucks they use. Thus as people
increase in age they tend to purchase more of Starbucks coffee and a bit less of Starbucks food.
This is again shown in table

Table 4. What is your age? * What kind of Starbucks product do you use?
Crosstabulation

What is your
age?
Total

What kind of Starbucks product do you

use?
Coffee
Food
Nutrition
up to 18
3
3
0
18-30
10
4
0
31-50
15
2
3
28
9
3

Total

6
14
20
40

From the table, it could be realized that people between the age bracket of 31 and 50 tend to
purchase more of coffee whiles those between the ages of below 18 and up to 30 purchase more
of Starbucks food.

3.1 Produce graphs using spreadsheets and draw valid conclusions based on the
information derived

From the figure, the horizontal axis show the income level and this has been denoted as 1, 2 and
3 to represent the income levels 10000-20000, 20001-30000 and 30001-40000 respectively. The
figure shows that those with income level between 10000 and 20000 tend to purchase Starbucks
product because of quality. Accordingly those within the income bracket of 20001 and 30000
tend to focus on brand image to make their buying decisions. And those within the 30001 and
40000 also tend to focus on quality of the product.

Figure 1. Level of Income and Reasons why people buy Starbucks product

Authors Construct, 2015

3.2 create trend lines in spreadsheet graphs to assist in forecasting for specified business
information
Figure 2

Authors Construct, 2015

EXPLANATION OF THE TRENDS- Does Ones income level affect his buying behavior.
The trend in this figure is in relation to the price. It shows that as peoples income increases they tend to
focus less on price when buying Starbucks product. Thus in trying to forecast, Starbucks Ltd. should
however focus not so much on the price in areas where incomes levels of households are high. However
prices should also not be raised too much in order for competitors to take advantage.

3.3 Prepare a business presentation using suitable software and techniques to disseminate
information effectively

3.4 produce a formal business report

Appendix
1. What is your age?
a] Up to 18

b] 18 - 30

c] 31- 50 d] 50 above e] other

2. What is your sex?

a] Male

b] Female

3. What is your education level?

a] Primary education b] High school c] Undergraduate d] Postgraduate e] other
4. What is your occupation?
a] Student
b] Teacher c] Nurse/Doctor d] Electrician e] Other (Please specify)
5. What is your annual income level?
a] Below 10000 b] 1000-20001 c] 20001-30001 d] 30001-40000 e] other (Please specify)
6. What kind of Starbucks category of product do you use?
a] Coffee b] Food c] Nutrition d] Other
7. Why do you buy Starbucks product?
a] Quality
b] Brand image c] Good Customer Service d] Less Expensive
8. How did you get to know about Starbucks?
a] Family and Friends b] Internet (Please specify) c] Advertisement d] other
9. How do you judge Starbucks product?
a] Very good b] Good
c] Normal d] Very Bad
10. Do you prefer products of other companys apart from Starbucks even though Starbucks sells
the same product?
a] Yes
b] No
11. If Yes why do you prefer products of other companies to Starbucks?
a] Price b] Quality
c] Good Customer Service d] Closeness to Office e] Other (Please
Specify)

12. Again, if Yes which companies do you buy from?

a] McDonalds b] Nestle
c] Dunkin d] Other (Please specify)
13. What do you think about the price of Starbucks product you buy?
a] Very Expensive b] Expensive c] Reasonable d] Cheap
14. Will you introduce Starbucks product to any other person??
a] Sure b] Maybe c] Uncertain d] Never
15. What do you think Starbucks should do to get more customers
a] Reduce Price b] Employ more workers c]