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Competency 1 Assessment: Using Data to Support Business Decisions

Kendall Jordan

University of Phoenix

DATCB/565: Data Analysis and Business Analytics

Dr. Samantha Bietsch

December 29, 2023

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Competency 1 Assessment: Using Data to Support Business Decisions

Section 1: Scope and Descriptive Statistics

Pastas R Us, Inc. is a fast casual growing restaurant chain that specializes in the Noodle-

based dishes soups and Salad. The Restaurant chain has considered opening a restaurant tat

satisfy the conditions such as median age between 25 and 45 years old, Household median

average above the national average and at least 15% of College Adult educated population. This

statistical report aims at evaluating the effectiveness of the loyalty card marketing strategy for

Pastas R Us. In this case, the report incorporates a statistical approach is applicable in the

identification of feasible actionable opportunities in the particular strategy. The key variable in

the restaurant database includes the sale growth over the past five years, the percentage loyalty

card net sales, the median income per household for the studied population, and percentage of

the Bachelor’s degree holder within three miles. The data obtained the annual sales after

calculation of the product of sales per square feet and the coverage of area per square feet.

The descriptive statistics on table 1 suggests the summary of the various variables to

determine mean, standard deviation, skewness, quartile ranges, maximum and minimum values.

The descriptive summary for the table suggests that $1,059,381.31 worth of Annual sales were

made across the 74 restaurants of Pasta R US. On the other hand, the average sales per square

feet was $420.31 with a standard deviation of $137.24. Also, the data set presented a minimum

median age for the recorded customers was 24.70 y4ars while the maximum median age was

43.50 years which falls within the targeted age bracket of 25 to 45 years. In particular, the

average percentage of College Educated adults was 26.31% which falls within the targeted 15%.
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Table 1:Descriptive Statistics

SqFt Sales/Person SalesGrowth% LoyaltyCard% Sales/SqFtMedIncome MedAge BachDeg% Annual Sales

Mean 2580.47 7.04 7.41 2.03 420.31 62807.70 35.20 26.31 1059381.31
Standard Deviation 374.92 0.30 6.62 0.55 137.24 17904.27 3.65 7.00 280423.45
Skewness 0.53 0.90 0.49 -0.76 1.24 0.30 -0.17 0.14 0.36
Median 2500.00 7.00 7.03 2.08 396.01 62757.00 35.00 26.50 1035749.21
Maximum 3799.00 7.97 28.81 3.38 987.12 114353.00 43.50 40.00 1746600.00
Minimum 1251.00 6.54 -8.31 0.29 178.56 32929.00 24.70 14.00 499968.00
Q1, 1st Quartile 2400.00 6.83 3.98 1.86 332.85 46953.00 32.53 20.25 877477.58
Q3, 3rd Quartile 2735.25 7.18 11.42 2.33 483.56 76194.25 37.53 30.75 1228866.96
Interquartile Range 335.25 0.35 7.44 0.47 150.72 29241.25 5.00 10.50 351389.39

The further examination of the annual sales was conducted through the use of a Box Plot.

The Box Plot in figure1 suggests that the annual sales data distribution is skewed towards the

right, suggesting that the mean sale is greater than the modals sale (Potter, 2006). Also, the

interquartile range on the box plot effectively illustrate the annual sales dispersion, depicting the

distribution of sales within the two quartiles.

Figure 1:Box Plot for Annual Sales

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Figure 2 illustrate a Histogram of Sales per square feet showing that skew is towards the

right. There is one outlier as depicted by the histogram in the upper quartile of 1251 ft2 which is

lower than the restaurant average area of $2580.57ft2.

Figure 2: Histogram of Sales Per Square Ft

Section 2: Analysis

The relationships between variables can be determine though the use of linear regression

models. The adequate analysis of the effectiveness of the marketing strategy at Pasta R US Inc.

requires establishment of relationships between the percentages of the educated college

population for the restaurants against the sales per square feet. Figure 3 is a scatter plot that

depicts linear relationship between Bachelor’s Degree graduate in percentage and sales per

Square Feet in the targeted population. The Scatterplot presented an R2 of 11.69% which is

lower for Bachelor’s degree percentages to explain Sales per Square Feet. The analysis suggests
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that the educated population with bachelor’s degree are the major consumers of the Noodle based

dishes, soups and salads offered by the chain of restaurants.

Figure 3:Scatterplot for Bachelor’s Degree against Sales Per Square Ft.

The effects of Median household income on the sale per square feet is prevalent in the

dataset. There is an inverse relationship between the middle income and sales per feet. The

relationship is weak with a coefficient of determination, R2 of 0.0005.The value suggests that

targeting households with median income higher than the national average could lead to the

decline in the sales.

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Figure 4:Scatterplot for Midian Income vs Sales/SQFT

Figure 5 illustrates a scatterplot to depict the relationship between Median age and Sale per

Square Feet. The findings from the scatterplot suggests that an increase in the median age led to

a decrease in the sales per square feet. However, there is no evidence of the effects of age beyond

the targeted range in the study.

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Figure 5Scatterplot of median Household Age versus Sales per Square Feet

There is an existing weak negative relationship between the percentage of loyalty card in a

restaurant and growth of sales per square feet as depicted in figure 6. The graphical suggests that

the increase in the loyalty card per restaurant results in the decline of the sale growth for the

company.
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Figure 6:Scatterplot for Loyalty Card (%) verses Sales Growth

Section 3: Recommendations and Implementation

The findings from the study suggests that targeting the population with more college

educated persons is more effective. The main parameter for measuring performance for the 74

restaurants is based on the aspect of sales per square feet. Opening a new restaurant in areas

with more individuals with bachelor’s degree holders will be profitable for Pastas R Us. Inc.

secondly, there is a negative correlation between loyalty card and sales growth and hence loyalty

cards should be issued to loyal customers with purchase record of at least 10 meals a month to

facilitate reduction of the restaurant’ running costs. Thirdly, the target for age brackets pf 25 to

45 years suggests a need to focus on people in their late 20s and early 30’s, who form an

essential market for the restaurant’s Pastas Products. The market stability for the restaurants can

be achieved through the target of more young people who contribute to the largest market

segment. It is important to note that older median age approaching 45 years do not contribute to

low sales per square feet.

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References

Potter, K., Hagen, H., Kerren, A., & Dannenmann, P. (2006, January). Methods for presenting

statistical information: The box plot. In VLUDS (pp. 97-106).

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