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BUS5PB - Principles of Business Analytics Solved

Referencing Styles : Harvard | Pages : 20
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This analysis techniques is usually categorized into two major groups Measures of Central tendencies, and Measures of Dispersion. The Measures of Central Tendencies are further branched to Mean, Median, and Mode. The Measures of Dispersion are further subdivided into Range, Variation and Standard Deviation.

Purpose: Determining the Central tendency of a given set of number

Functionality: Sums up all set of number and divides by the count of the numbers

Assumptions: The set of numbers are from a normal distribution.

Method of validation: Calculate the mean of another sample and plot the numbers in a histogram to check for normality in distribution.

Sample use case: Find the mean sales made by a business in a year

Technique: Median

Purpose: Describe the middle of a set of data that does not have an outlier.

Functionality: Numerically sorts all numbers then picks the middle value for an odd data set, and sums the two middle values divided by two, for an even dataset.

Assumptions: The frequency distribution of the data is skewed.

Method of validation: Calculate the median of another sample and plot the numbers in a histogram to check for skewness in frequency distribution.

Sample use case: Determining the value closest to the average salary of the office workers without including the CEO’s salary or the cleaners’ salary.

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