Measures of Central Tendencies Report- Georgia Tselikis.pdf...

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Coffee or Tea Specialty Shops Jim Thorton’s Executive Team Georgia Tselikis March 28, 2020 Overview The following analysis explores collected data on the market for coffee and tea from the past 23 years. Measures of central tendency, measures of spread, distribution of both histograms and box-plots, linear correlation, and correlation type will all be analyzed to provide a basis of recommendation for whether coffee or tea is the best option to invest in a specialty shop. Measures of Central Tendency The mean represents all values of the data set, it is also referred to as the average . From the data set for Tea (L per person), the mean is 70.94478261, thus representing all of the Tea values from the data set. From the Coffee (L per person) data set, the mean is 100.1286957, again this number represents all the values of the Coffee data set. Looking at both means, it is evident that the mean for the data set of Coffee (L per person) is greater than the mean for the data set of Tea (L per person). This indicates that the Coffee dataset is slightly more spread out. The median is the data point that lies in the middle of a data set when ordered, and is also referred to as the 50th percentile. From the data set for Tea (L per person), the median is 68.31, the mean from this data set, recall, is 70.94478261. It is greater than the median thus the data is positively skewed. From the Coffee (L per person) data set, the median is 101.31, it is greater than the mean, recall, 100.1286957, thus the data is negatively skewed. The modal interval is the interval of data points that shows up the most. From the data set for Tea (L per person), the modal interval is 55 - 70. This indicates that the most years from the data set, have 55 - 70 litres of tea per person. From the data set for Coffee (L per person), the modal interval is 100 - 105. This indicates that the most of the years from the data set have 100 - 105 litres per person. Measures of Spread Measures of spread help to describe the variability in a data set by summarizing the extent to which data is clustered around the center. There are three measures of spread, range, interquartile range (IQR), and standard deviation.
The range is the difference between the maximum data point and the minimum data point. The range for the data set of Tea (L per person) is 69.2. The range is not extremely small, but not extremely large either, this indicates that there is a moderate/medium amount of variability. From the Coffee (L per person) is 18.68. This is a small range thus indicating that in the data set there is low variability. Comparing the ranges from both the Tea data set and the Coffee data set, it can be seen that the Tea data set has a higher level of variability than the Coffee data set.

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