Describe a real-world business situation that could be addressed by collecting and analyzing a set of data.
The situation that will be addressed will be the change in sales for a grocery store in the face of a coming winter storm. Through collecting and analyzing data I will determine the increase in sales and which items specifically were the causes for increased demand.
Summarize one question or decision relevant to the real-world business situation you will answer by collecting and analyzing a set of data.
The question I will seek to answer is which items should the store stock extra of when a winter storm is in the upcoming forecast?
Explain why the situation or question would benefit from a data analysis.
The grocery store would benefit by being able to take advantage of weather emergencies through increased revenues that would come from increasing the number of items they find customers want to buy the most in the ...view middle of the document...
10. Profit margin on most popular items.
11. Customer traffic pre-storm forecast.
12. Customer traffic post-storm forecast.
13. Specific inventory items sold.
14. Percentage increase in specific inventory items sold.
15. Dollar increase in specific inventory items sold.
16. How certain items relate to each other (e.g. increase in bread sales compared to increase in milk sales).
17. Amount of snowfall forecasted in relation to sales percentage increase.
18. Sales percentage increase in non-perishable inventory (e.g. Batteries, toilet paper).
19. Sales percentage increase in perishable inventory (food).
20. Brands that sold the best.
21. Brands that sold the worst.
22. Timing of the increase in sales in comparison to storm forecast.
23. Number of employees on hand.
24. Number of cash registers open.
25. Number of managers on duty.
26. Number of stockers on duty.
27. Deli sales.
28. Snow removal salt sales.
29. Gas/fuel sales
30. Percentage increase of toiletry item sales.
Describe the data gathering methodology you will use to collect data.
The method of data gathering I would use would be through observation of historical review based on past instances of storms and their effect on store sales. I would gather data from inventory records, and store sales as well as from multiple weather services.
Identify the appropriate data analysis technique you will use to analyze this data (e.g., linear programming, crossover analysis, t-test, regression).
I will use the regression analysis method to analyze the data.
Explain why the data analysis technique you chose is an appropriate technique to analyze the data collected.
According to the course material, regression analysis is the statistical method to measure the average amount of change in a dependent variable associated with a unit change in one or more independent variables used when multiple variable relate to each other (1). In this case, the dependant variables are the change in inventory levels and the independent variable is the storm itself and the study will show how they relate to one another.
Sources Used (if applicable)
1. Data Driven Decision Making, WGU online textbook. https://wgu.mindedgeonline.com/