Business Data Analysis Essay Example | Topics and Well Written Essays - 2750 words

Business Data Analysis - Essay Example Besides, there is wide variation in the performance of different profit centers and therefore, there is a need to strengthen the operation and revenue of center 2 and 3 so that these centers can stand on their own and do not become burden on center 1 in days to come. Analysis of the cost of different options for the frequently faltering copiers have helped in taking the decision that it is better to acquire a new copier which is much more reliable even though it service cost per call is much higher. Analysis of number of calls per hour has helped in deciding the number of sales representatives Stan needs to ensure that no representative has to handle more than eight calls per hour. Further analysis of the active customers’ account size has helped in better understanding of the same. Introduction: Handy Hydraulic Industries is doing well after many changes in the corporate and operating structure. However, the managers know that one needs to excel to sustain in the current envi ronment of cut-throat competition. For excellence a business needs to evolve and execute a multipronged strategy targeting different aspects of performance and customer relationship. The aim is to become leaner on operating size to cut cost without compromising the expectations of customers. For this the managers of business need to take informed decisions and the information has to be derived from nowhere but from the data relevant to the business. It is here that statistics and probability comes to help them. Statistics is the branch of knowledge that processes data to discern hidden information, reveal patterns and extract executable results [1]. One can get lot of information by simply arranging data in frequency and relative frequency tables [2]. One can get a good idea of central tendency and dispersion of the data set. The organized dataset can also be represented pictorially as histograms, line charts etc. It is said that a picture is worth thousand words. This is because; e ven a person with common sense can see the patterns and trends in the data if the same is presented pictorially using suitable chart. Besides, statistics provides different parameters like mean, median, mode etc. to measure central tendency of data [3, 4]. But knowing merely central tendency of data is not good enough to describe a data set; one needs to quantify the dispersion of the data points around the central value [5]. This is done by means of different parameters that quantify dispersion of data points around the mean like variance, standard deviation, coefficient of variation etc. After describing a data set comparing different data set is also important. For this one needs to compare the values of mean and standard deviation etc. Using these values one can calculate value of a suitable statistics and then this value is compared with the critical value of statistics for a given significance level. This exercise helps in testing hypothesis on mean, variance etc. and hence in making decisions [6]. The concept of probability is very much the part and parcel of statistics. It relies on the assumption that