Bus520 Module 4

Risks: Frequency Distribution, Probabilities, and Expected Value

Randy Smith

BUS520 Business Analytics and Decision Making

Dr. David Fogarty

Module 2 Case Assignment

Trident University International

Abstract

The purpose of this paper is to prepare a report for my boss analyzing the different ages of our customers in order to gain a better idea of the products they buy. This report will include the analysis of the different age groups by using a histogram chart that charts the frequency distribution as well as the mean, median, and mode of the customer’s different ages.

By using the histogram analysis, we will summarize the company’s main target and create a marketing plan that, in theory, should increase the sales by focusing the

As we know, outside research has shown that different age groups buy products for different reasons, and, that different age groups buy different kinds of products. The rate of the response from the survey was 124/200, or 60% which is not too bad for a customer survey.

Findings

By using the functions in Excel, we were able to calculate descriptive statistics and prepare several histograms with the age data provided. The mean age is 45.49; the median and modal ages are both 45. We created three different histograms and used charts to display the findings.

The first chart represents the age distribution in five year groups. Since the mean and median are both 45, this suggests that there should be more or less an equal number of customers on either side of the 45-year age group, thus making it divisible by five, suggesting five year intervals: Looking at this chart, it suggests that the distribution of the customers is normal, although skewed slightly to the older customer. However, the twelve groups are too many to serve as a basis for an effective marketing plan due to some of the groups being quite

It represents that the customers are more or less equally distributed across all three generation groups. Each group is large enough to have the marketing department target each one specifically. In addition, using the generation groupings allows us to incorporate much data that is available based on this categorization from other sources, particularly including other marketing surveys. It is worth noting that Millennials constitute a relatively smaller proportion of the total than do the other two generations. This might indicate that specific further attention should be given to issues and products identified as being of particular interest to the Millennial generation, in the interests of looking toward the future.

Recommendation/Conclusion

I recommend that the development of marketing plans and recommendations be based on a four group categorization of customers, grouped according to age into the widely used demographic categories of Millennials, Gen X, and Boomers. Each of these groups tends to have fairly well identified preferences and priorities, and there are lots of other data that can be drawn upon to match these categories. Histogram analysis shows that our customers are more or less equally distributed across the three groups, so it makes sense to attend to interests and needs of each of