Beltway Shoe Company monitors its sales numbers bycollecting data from random stores around the country.
Three variablesof the eastern and western region of Beltway Shoe Company are to be analyzed.It includes the original selling price, the selling price and the days to sellof Western Region and Easter Region. For this purpose, the data of 50 pairs of each location have beenselected. The descriptive statisticssuch as mean, median, range and standard deviation has been used. AnalysisMean,Median, STD Deviation and Range Western Region Eastern Region Original Price Sale Price Days to Sell Original Price Sale Price Days to Sell Mean 109.78 80.44 62.
68 108.62 85.24 62.36 Median 113.5 79 58.5 103 86 56 Range 96 109 188 76 101 187 Standard Dev 27.
92 26.96 44.78 20.90 23.72 40.55 Minimum 54 34 1 73 40 2 Maximum 150 143 189 149 141 189 The above analysis shows thatthe average original price of Western Region for 50 pairs is $109.78 withmedian of $113.
50 and standard deviation $27.92, with a range of $96. The sale price average for the same region is$80.
44 with median of $79 and standard deviation of $26.96 with a range of$109. The average days to sell for Western Region are around 62.68 days, withmedian of 58.
5 days, with standard deviation of 44.78 days with a range of 188days. The average original price ofEastern Region for 50 pairs is $108.62 with median of $103 and standarddeviation $20.9, with a range of $76. The sale price average for the same region is $85.
24 with median of $86and standard deviation of $23.72 with a range of $101. The average days to sellfor Western Region are around 62.
36 days, with median of 56 days, with standarddeviation of 40.55 days with a range of 187 days. OutliersThe higher value of eachvariable has been determined by adding twice of standard deviation to mean andthe lower value of each variables has been determined by deducting twice ofstandard deviation from mean. Original Price Sale Price Days to Sell Original Price Sale Price Days to Sell Outlier Higher No 137, 143 189 No 137, 139,141 145, 166, 189 Lower NO No No No No No There is no outlier fororiginal price for both regions; the sale price has outlier of $137 and 143 forWestern Region and $137, 139 and 141 for Eastern Region. The days to sell for Western region hasoutlier of 189 days and for Eastern Region the outliers are 145, 166 and 189days. 90% Confidence IntervalThe confidence interval for sales price for WesternRegion is 50.44 +/- 6.
27 and for Eastern Region it is 85.24 +/- 5.52. The confidence interval for days to sell forWestern Region is 62.68 +/- 10.42 and for Eastern Region it is 62.
36 +/- 9.43.Sample SizeThe sample size for Western Region is 40 and for EasternRegion it is 43 if the margin of error is 5% and 6%, respectively.Estimate of Sales PriceThe mean of sales price to original price shows that itis around 73.27% and 78.48% for Western Region and Eastern Region respectively,therefore the estimated sales price for Western Region will be $88 for originalprice of $120 and for Eastern Region it will be $98 for original price of $125.ConclusionThe above data will help themanagement in estimating the future figures related to sales price and days tosale based on the original price for a region. It will also help the managementin finding the well performing pairs and underperforming pairs.
In this way the management will be able toconcentrate on strong areas and will be able to remove the weak areas toachieve the objective of management of maximization of profit.