Business Statistics - Assignment 1

Report Submission

Group Members:

B Division Group B10 - 20264 to 20270

20264 UNHALE KUSHAL KISHOR

20265 KHARADE SHUBHAM DEEPAK

20266 ABU BAKER KHAN

20267 QAREENA MUZAFFAR NORE

20268 TAUFIQ AHMAD SAFI

20269 MOHMAND FERDAWS

20270 BEDMUTHA ANMOL SUNIL

Introduction of Assignment & Data:

Statistical Analysis for sale of coffee’s considering different

game types and on basis on different temperature.

Statistical analysis is the collection and interpretation of data

in order to uncover patterns and trends. It is a component of data
analytics. Statistical analysis can be used in situations like
gathering research interpretations, statistical modeling or
designing surveys and studies. It can also be useful for business
intelligence organizations that have to work with large data
volumes.

In the context of business intelligence (BI), statistical analysis

involves collecting and scrutinizing every data sample in a set of
items from which samples can be drawn. A sample, in statistics,
is a representative selection drawn from a total population.

The goal of statistical analysis is to identify trends. A retail

business, for example, might use statistical analysis to find
patterns in unstructured and semi-structured customer data that
can be used to create a more positive customer experience and
increase sales.
Steps of statistical analysis

Statistical analysis can be broken down into five discrete steps,

as follows:

 Describe the nature of the data to be analyzed.

 Explore the relation of the data to the underlying population.

 Create a model to summarize an understanding of how the

data relates to the underlying population.

 Prove (or disprove) the validity of the model.

 Employ predictive analytics to run scenarios that will help

guide future actions.

 Overview :

Mean / Median /Mode/ Variance /Standard Deviation are all very

basic but very important concept of statistics used in data
science. Almost all the machine learning algorithm uses these
concepts in data preprocessing steps. These concepts are part of
descriptive statistics where we basically used to describe and
understand the data for features in Machine learning
1) Mean :

Mean is also known as average of all the numbers in the data

set which is calculated by below equation.

2) Median :

Median is mid value in this ordered data set.

3) Variance :
Variance is the numerical values that describe the variability of
the observations from its arithmetic mean and denoted by sigma-
squared (2)

Variance measure how far individuals in the group are spread

out, in the set of data from the mean.

Where

Xi : Elements in the data set

mu : the population mean

4) Standard Deviation :

It is a measure of dispersion of observation within dataset

relative to their mean. It is square root of the variance and
denoted by Sigma (σ) .

Standard deviation is expressed in the same unit as the values in

the dataset so it measure how much observations of the data set
differs from its mean.
Relevance of Case Study:

When analysts use statistical procedures correctly, they tend

to produce accurate results. In fact, statistical analyses account
for uncertainty and error in the results. Statisticians ensure that
all aspects of a study follow the appropriate methods to produce
trustworthy results. These methods include:

 Producing reliable data.

 Analyzing the data appropriately.

 Drawing reasonable conclusions.

Following the detail box plot summarizing the demand and

decision making tool:
 In the given problem, the demand for coffee keeps rising
according to the fall in the temperature. As a business
organization, manager must take into consideration about the
schedule and area of the matches held which will directly be in
sync with the deployment of material required by the manager
for making of coffee.

Subsequently if the matches are held in the duration of

summers or late winters then accordingly the supply would
decrease resulting in accumulation of inventory directly
increasing the cost of material and cost of storage.

(Please find the excel attachment for calculations)