Download Task 2 2.1 Summarising Data Using Mean, Median, and Mode

Task 2
2.1 Summarising Data Using Mean, Median, and Mode
You must be able to carry out suitable calculations using spreadsheet
software to calculate the mean, median, mode, range, interquartile range,
standard deviation and the correlation coefficient.
Open an excel workbook and enter the sales and expenditure data and use
the formulas ribbon to carry out the calculation.
Use the following formulae to carry out the calculations
Mean
=Average(Data range)
Put the curser in the cells where you want to place the results of Mean.
Go to ‘Formulas’ in the main menu, then select ‘More functions’ for the
menu that appears. Select ‘statistics’ from the drop down menu that
appears and look for ‘Average’ and click. Enter the range of the required
sets of data in the dialogue box that opens up and click OK. The result will
be displayed in the cell chosen at the beginning.
Mode
=Mode(Data range)
Put the curser in the cells where you want to place the results of Mode.
Go to ‘Formulas’ in the main menu, then select ‘More functions’ for the
menu that appears. Select ‘statistics’ from the drop down menu that
appears and look for ‘Mode’ and click. Enter the range of required sets of
data in the dialogue box that opens up and click OK. The result will be
displayed in the cell chosen at the beginning.
Median
=Median(Data range)
Put the curser in the cells where you want to place the results of Median.
Go to ‘Formulas’ in the main menu, then select ‘More functions’ for the
menu that appears. Select ‘statistics’ from the drop down menu that
appears and look for ‘Median’ and click. Enter the range of required sets
of data in the dialogue box that opens up and click OK. The result will be
displayed in the cell chosen at the beginning.
Copy and paste the excel worksheet to your word document. (Your lecturer
will let you practice this in class.)
2.2 Analyse data using representative values
You must analyse the results to draw useful and realistic conclusions
and provide valid recommendations to support the board in decision
making.
Briefly explain the mean mode and median as measures of location.
Compare the mean median and mode and also comment on their merits
and demerits.
Interpret the results of the mean median and mode calculated above.
-Compare the results with the last year’s sales and advertising expenditure.
Is advertising expenditure above or below the average?
-Are last year’s sales above or below average? What are the implications
for the business?
-Are their any extreme values in the data set?
Conclude which is the most ideal to analyse the data given for you?
-Explain the relation between mean and median data.
2.3 Analyse data using measures of dispersion
Calculate 1 ) range 2 ) interquartile range and 3 ) standard deviation
Open an excel workbook and enter the sales and expenditure data and use
the formulas ribbon to carry out the calculation.
Use the following formulae to carry out the calculations
First find the maximum and minimum values using the sort functions in
excel.
Range
Type in the formula bar
=Cell containing Max value- cell containing Min value
Inter-quartile range
First find Q1 and Q3 using the following steps:
Put the curser in the cell where you want to place the results of Q1 and
Q3.
Go to ‘Formulas’ in the main menu, then select ‘More functions’ for the
menu that appears. Select ‘statistics’ from the drop down menu that
appears and look for quartile-Inc and click. Enter the range of data in the
dialogue box that opens up and enter 1 or 3 for quartiles 1 or 3 respectively
and click OK. The result will be displayed in the cell chosen at the
beginning.
Standard deviation
=STDVA(Data range)
Put the curser in the cells where you want to place the results of Standard
Deviation.
Go to ‘Formulas’ in the main menu, then select ‘More functions’ for the
menu that appears. Select ‘statistics’ from the drop down menu that
appears and look for STDEVp and click. Enter the range of data in the
dialogue box that opens up and click OK. The result will be displayed in
the cell chosen at the beginning.
.
2.4 Quartiles percentiles and correlation coefficient
Quartiles
Describe briefly what are quartiles 1 , 2 and 3 and explain what information
they provide for decision making. Relate it to the values of different
quartiles you have calculated.
Percentiles
Describe briefly what percentiles and explain what information they provide
for decision making. Relate it to the values of different quartiles you have
calculated.
Correlation coefficient
-Calculate Correlation coefficient using the excel spread sheet. It follows
the same process as for mean, median and standard deviation. –
Put the curser in the cells where you want to place the results of
Correlation Coefficient.
Go to ‘Formulas’ in the main menu, then select ‘More functions’ for the
menu that appears. Select ‘statistics’ from the drop down menu that
appears and look for ‘Correl’ and click. Enter the range of both sets of data
in the dialogue box that opens up and click OK. The result will be
displayed in the cell chosen at the beginning.
-Interpret the result of correlation coefficient between advertising
expenditure and food sales.
- Explain its implication to the business.
- Give recommendations to the business for the way forward.