Research

Statistics.pptx

ANOVA and Regression for Business Decision-making

Name:

Institutional affiliations:

The topic in this presentation is ANOVA and Regression for Business Decision-making by(Name) in the university of ( University)

Introduction

ANOVA and regression are statistical methods that help in implementing successful business plans.

Regression purpose is to help a business to predict what the business will do in the future.

Furthermore, ANOVA combined with excel are vital tools for a business to succeed in analyzing how the independent variables are related with the dependent variables.

The essence of the analysis is to ensure that a business makes the best decisions in doing the business.

Statistical analysis help a business to know what the future of its business will be like.

The essence of this is to allow it to have a good financial make over and ensure that it utilizes all its fund in the right direction.

Therefore, the organization is able to have an Agenda that will make it successful.

The organization involves selling furniture in China.

There are a few businesses offering furniture in China and the labor is cheap.

The company will have penetrated the other Asian countries within the next three years profitably.

The business problem is important to predict how the business will unfold in the future.

The variables are the finances and the profit that the company will have.

ANOVA and regression are statistical methods that help in implementing successful business plans. Regression purpose is to help a business to predict what the business will do in the future. Furthermore, ANOVA combined with excel are vital tools for a business to succeed in analyzing how the independent variables are related with the dependent variables. The essence of the analysis is to ensure that a business makes the best decisions in doing the business.

Statistical analysis help a business to know what the future of its business will be like. The essence of this is to allow it to have a good financial make over and ensure that it utilizes all its fund in the right direction. Therefore, the organization is able to have an Agenda that will make it successful.

The organization involves selling furniture in China. There are a few businesses offering furniture in China and the labor is cheap. The company will have penetrated the other Asian countries within the next three years profitably. The business problem is important to predict how the business will unfold in the future.The variables are the finances and the profit that the company will have.

Agenda

The company agenda is to put a successful furniture business in China at the start.

The company plans to utilize the cheap and unlimited labor in the market.

Furthermore, the organization plans to utilize high quality products to overcome the market competition from the low quality product offered by the other market players.

The organization furthermore, plans to utilize the cheap raw materials found in the country.

Additionally the company plans to make its product cheap despite the fact that the product will be cheap.

The company furthermore, plans to expand its market outside China once it is embarrassed in the China market.

Therefore, the company will utilize it resources in the best way possible to expand and become more profitable.

The research and development team will use the3 regression and ANOVA to make its decision on the markets to penetrate successful.

The company agenda is to put a successful furniture business in China at the start. The company plans to utilize the cheap and unlimited labor in the market. Furthermore, the organization plans to utilize high quality products to overcome the market competition from the low quality product offered by the other market players. The organization furthermore, plans to utilize the cheap raw materials found in the country. Additionally the company plans to make its product cheap despite the fact that the product will be cheap. The company furthermore, plans to expand its market outside China once it is embarrassed in the China market. Therefore, the company will utilize it resources in the best way possible to expand and become more profitable. The research and development team will use the3 regression and ANOVA to make its decision on the markets to penetrate successful.

Company description

The company will sell furniture in China and slowly expand to other markets in Asia.

The company has been selling its product in the United States but the competition here has been overwhelming.

The company will utilize the cheap labor in China by restructuring its personnel.

However, the most experienced management team will be maintained to coach the incoming personnel.

The finances of the company will come from the organization profits in the United states.

Furthermore, it will request finances from investors and creditor who are willing to invest in the company and find the company worthy to be loaned.

The company will sell furniture in China and slowly expand to other markets in Asia. The company has been selling its product in the United States but the competition here has been overwhelming. The company will utilize the cheap labor in China by restructuring its personnel. However, the most experienced management team will be maintained to coach the incoming personnel. The finances of the company will come from the organization profits in the United states. Furthermore, it will request finances from investors and creditor who are willing to invest in the company and find the company worthy to be loaned.

Business problem and opportunity

The problem of the business is having stiff competition from the business offering cheap furniture in the United state market.

There has been an in flock of furniture business in the United State.

Furthermore, the business has not been customizing its product according to the needs of the company.

Therefore, by offering high quality furniture in the market will be an opportunity for the company to expand (Hair Jr, & Lukas, 2014).

The company will also have the chance to get a low labor resulting into cheaper product.

Additionally, the company has the chance to create a new market therefore, expanding its operations and increasing its profitability.

The company also has the opportunity of customizing its products according to the need of the clients.

The problem of the business is having stiff competition from the business offering cheap furniture in the United state market. There has been an in flock of furniture business in the United State. Furthermore, the business has not been customizing its product according to the needs of the company. Therefore, by offering high quality furniture in the market will be an opportunity for the company to expand. The company will also have the chance to get a low labor resulting into cheaper product. Additionally, the company has the chance to create a new market therefore, expanding its operations and increasing its profitability. The company also has the opportunity of customizing its products according to the need of the clients.

Hypothesis description

The company chance of success in the China market is expected to be more than 90%.

Therefore, the chance of not succeeding is less than 10%.

This shows that if the null hypothesis is true then the company will have more profits as opposed to the alternative hypothesis been true.

The null hypothesis predict that the future of the business is bright.

However, the alternative predicts the failure of the company in the future.

Therefore, there is need for the management to use the statistical tools such as regression and ANOVA to proof whether the hypothesis are true or not.

The company chance of success in the China market is expected to be more than 90%. Therefore, the chance of not succeeding is less than 10%. This shows that if the null hypothesis is true then the company will have more profits as opposed to the alternative hypothesis been true. The null hypothesis predict that the future of the business is bright. However, the alternative predicts the failure of the company in the future. Therefore, there is need for the management to use the statistical tools such as regression and ANOVA to proof whether the hypothesis are true or not.

Importance of the problem

The problem is important in predicting the future of the company.

Furthermore, it predict the financial cost of putting up the business.

Additionally, it assist the company to predict where to raise the fund needed to start running the company.

The company is able to predict where it will be at any given time whether it is in the short run or in the long run.

The statement of the problem also enable the company to understand the environment within which it is putting the business.

The statement of the problem also gives the company to see the opportunity within the market.

The problem is important in predicting the future of the company. Furthermore, it predict the financial cost of putting up the business. Additionally, it assist the company to predict where to raise the fund needed to start running the company. The company is able to predict where it will be at any given time whether it is in the short run or in the long run. The statement of the problem also enable the company to understand the environment within which it is putting the business. The statement of the problem also gives the company to see the opportunity within the market.

Variables

The variables that are important in this case are the costs, quality and labor.

The variables will all determine the level of success for the company.

The higher the cost the lower the sales and this gives a negative correlation.

The higher the quality the more the sales which gives a positive correlation.

If labor is available the company will produce more furniture and make more profits indicating that this is a positive correlation.

The three variables therefore are directly dependent on the amount of furniture the company sells.

The variables that are important in this case are the costs, quality and labor. The variables will all determine the level of success for the company. The higher the cost the lower the sales and this gives a negative correlation. The higher the quality the more the sales which gives a positive correlation.

If labor is available the company will produce more furniture and make more profits indicating that this is a positive correlation. The three variables therefore are directly dependent on the amount of furniture the company sells.

Statistical method of analyzing data

ANOVA is one of the statistical tool that is vital to analyze the data in this case.

Another important is the regression or correlating the variables stated in the problem.

Additionally, the business can use a resource like Microsoft excel to analyze the data.

These tools are essential in finding the dispersion and the distribution in any data.

They further assist to predict the result of a given data that helps in making decision in business.

The tools are vital in comparing the relation between the independent variables and the dependent variable.

ANOVA is one of the statistical tool that is vital to analyze the data in this case. Another important is the regression or correlating the variables stated in the problem. Additionally, the business can use a resource like Microsoft excel to analyze the data. These tools are essential in finding the dispersion and the distribution in any data. They further assist to predict the result of a given data that helps in making decision in business. The tools are vital in comparing the relation between the independent variables and the dependent variable.

Here the best method is to use both qualitative and quantitative data analysis.

This give the probability of the furniture business succeeding in China.

The qualitative analysis will tell where the business will be in future given certain conditions.

The quantitative analysis is in terms of numbers and this analyzes the company finances, and number of products (Salkind, 2016).

Therefore, for this problem the best statistical technique is using the probabilistic analysis.

This involve comparing the various data to determine the probability of success of the furniture business in China.

Data analysis technique

Here the best method is to use both qualitative and quantitative data analysis. This give the probability of the furniture business succeeding in China. The qualitative analysis will tell where the business will be in future given certain conditions. The quantitative analysis is in terms of numbers and this analyzes the company finances, and number of products. Therefore, for this problem the best statistical technique is using the probabilistic analysis. This involve comparing the various data to determine the probability of success of the furniture business in China

Solution

The company has to borrow finances from external sources to supplement what it already has.

The company also has to decide whether it has to have one manufacturing plant or a number of them.

According to the analysis the business has to ensure that it locate its business in regions that will profit its operations (Hickson, & Khemka, 2013).

The company also has to ensure that it has several branches in the country to make it accessible.

The company also has to use advertisement techniques that will make its product known to the clients.

The labor also has to be available for the business to satisfy its market demand.

The company has to borrow finances from external sources to supplement what it already has. The company also has to decide whether it has to have one manufacturing plant or a number of them. According to the analysis the business has to ensure that it locate its business in regions that will profit its operations. The company also has to ensure that it has several branches in the country to make it accessible. The company also has to use advertisement techniques that will make its product known to the clients.The labor also has to be available for the business to satisfy its market demand.

Data implementation to find the solution

The company can use the data collected in the market to determine its performance in the future.

The data collected can also be utilized to determine the number of laborer the company need to satisfy its clients.

The company may use the data to determine how many plants it needs to satisfy the company clients.

The company is also able to determine how many branches and where to set up the branches to make it more accessible.

Furthermore, the data is useful in determining the financial costs that the company needs to start and run the company.

Therefore, the data is very important in predicting the future of the company.

The company can use the data collected in the market to determine its performance in the future. The data collected can also be utilized to determine the number of laborer the company need to satisfy its clients. The company may use the data to determine how many plants it needs to satisfy the company clients. The company is also able to determine how many branches and where to set up the branches to make it more accessible. Furthermore, the data is useful in determining the financial costs that the company needs to start and run the company. Therefore, the data is very important in predicting the future of the company.

Conclusion

In conclusion the company stands a chance of succeeding if it uses statistical method to analyze the data collected.

The company will have to use the statistical tools such as ANOVA and regression to predict its future.

The company has to state its problem to know how it will overcome it.

The problem in this case is the stiff compensation in the America market.

The company has the opportunity of expanding its market in the China market due to the low cost of production as a result of the cheap labor and availability of cheap raw materials.

In conclusion the company stands a chance of succeeding if it uses statistical method to analyze the data collected. The company will have to use the statistical tools such as ANOVA and regression to predict its future. The company has to state its problem to know how it will overcome it. The problem in this case is the stiff compensation in the America market. The company has the opportunity of expanding its market in the China market due to the low cost of production as a result of the cheap labor and availability of cheap raw materials.

References

Hair Jr, J. F., & Lukas, B. (2014). Marketing research (Vol. 2). McGraw-Hill Education Australia.

Hickson, L., & Khemka, I. (2013). Problem solving and decision making. The Oxford handbook of positive psychology and disability, 198-225.

Salkind, N. J. (2016). Statistics for people who (think they) hate statistics. Sage Publications.