MIS171 – Assignment 2

Student Name: Your full name

Student ID: Your Student ID

To: Taylor Johnson

From: Jordan Smith

Subject: Analysis of Recent Market Survey Data

Dear Taylor,

Introduction: The research for Superior Grocers focuses on our headquarters in New York
followed with California, Texas and Florida. The data analysis will show the overall sales
performance, the efficiency of store operational, employee performance and also the market
competition and our position in the market. We include 150 stores in our calculation, and
use the descriptive statistic to find the results of the analysis.

Q1: First, we evaluate the average revenue by store activity level, which divided into low,
medium and high activity. The result shows a positive relationship between the level of
activities and the average revenue. We are 95% confident that the low activity shows the
lowest average revenue in between $6,87 million and $7,7 million, where the high activity
gives us the highest average revenue of $13,1 million and $16,2 million.

Q2: Next, we determine if there are significant difference in the distribution of stores across
the states, and with 95% confidence interval, we confident that the proportion of the store in
Texas has the highest proportion followed with California, New York and Florida as the
smallest proportion of around 14% and 27%. However, Texas shows a proportionally higher
stores than the others in the upper and lower difference.

Q3: Third, we analyse the probability of profit of our stores in the four states whether there
is probability the profit exceeding $180,000, and the result shows that New York has the
highest probability of 30% that the profit can exceed $180,000 where Florida is the smallest
probability of 15%. However, California has the highest probability if the profit can be less
than $80,000 which shows a number of 28%. We also analyse the number of profits of the
top 20% store of each state can achieve, and New York has the highest number of $200,680
followed with California, Texas, and Florida.

Q4: Last, from the most recent meeting, that the average profit of the 4 states are now more
than $120,000, at 5% level of significance, California, Texas and Florida has confirmed that
the profits are less than $120,000, meanwhile for Texas, with 5% level of significance has the
probability of the profit is now more than $120,000. Also, there are sufficient evidence to
conclude that the proportion of sales in any California, Texas and Florida is below 35% but
not in New York.

Conclusion: The data provided show us that Superior Grocers still have room for
improvement, where the number of stores activity can be increase for some stores to
improve revenues, which will impact to profits, but has to be balanced with the training and
development for the employee performance so it would improve our position in the market
and from our competitors.

Kind regards,

Jordan