Contents

2.3 Analyze data using measures of dispersion to inform a given business scenario.......... 2

2.4 Explain how quartiles, percentiles and the correlation coefficient used to draw useful
conclusions in a business context ............................................................................................. 5
2.3 Analyze data using measures of dispersion to inform a given business scenario.
The following is the level of satisfaction of those who have been asked about Money Milk Tea

Satisfy level of 30 customers:

Satisfy level Frequency

Very satisfied – 5 2

Satisfied – 4 5

Normal – 3 3

Dissatisfied – 2 16

Very Dissatisfied - 1 4

Satisfy level of 30 neighbors:

Satisfy level Frequency

Very satisfied – 5 0

Satisfied – 4 0

Normal – 3 3

Dissatisfied – 2 11

Very Dissatisfied - 1 16

Range = Highest Value – Lowest Value = 5 – (-1) = 6

 Level of satisfaction (x) Frequency (f) fx

Very satisfied – 5 2 10

Satisfied – 4 5 20

Normal – 3 3 9

Dissatisfied – 2 16 32

Very Dissatisfied - 1 4 4

30 75

The satisfaction of 30 customers

of Money Milk Tea

75
Mean = 30 = 2.5

Deviations:

5 – 2.5 = 2.5 2 – 2.5 = - 0.5

4 – 2.5 = 1.5 1 – 2.5 = - 1.5

3 – 2.5 = 0.5

Square deviations:

(2.5)2 = 6.25 (−0.5)2 = 0.25

(1.5)2 = 2.25 (−1.5)2 = 2.25

(0.5)2 = 0.25

Total squares deviations:

Σ = 6.25 + 2.25 + 0.25 + 0.25 + 2.25 = 11.25

11.25
Variance = = 0.375
30

Standard Deviation = √0.375 = 0.61

 Level of Satisfaction (x) Frequency (f) fx

Very satisfied – 5 0 0

Satisfied – 4 0 0

Normal – 3 3 9

Dissatisfied – 2 11 22

Very Dissatisfied - 1 16 16

30 47

The satisfaction of 30 neighbors

of Money Milk Tea

47
Mean = 30 = 1.6

Deviations:

5 – 1.6 = 3.4 2 – 1.6 = 0.4

4 – 1.6 = 2.4 1 – 1.6 = - 0.6

3 – 1.6 = 1.4

Square deviation:

(3.4)2 = 11.56 (0.4)2 = 0.16

(2.4)2 = 5.76 (−0.6)2 = 0.36

(1.4)2 = 1.96

Total squares deviations = 11.56 + 5.76 + 1.96 + 0.16 + 0.36 = 19.8

19.8
Variance = = 0.66
30

Standard Deviation = √0.66 = 0.8

 30 customers 30 neighbors

Range 4 4

Mean 2.5 1.6

Standard Deviation 0.6 0.8

This table shows Range, Mean and Standard Deviation. In this table it can be deduced that the
satisfaction level falls between 1.9 and 3.1 in the customer group, while the satisfaction rate in the
neighbor group is between 0.8 and 2.4.

2.4 Explain how quartiles, percentiles and the correlation coefficient used to draw useful
conclusions in a business context
Quartiles: One of the three points that divide a range of data or population into four equal parts.
The first quartile (also called the lower quartile) is the number below which lies the 25 percent of
the bottom data. The second quartile (the median) divides the range in the middle and has 50
percent of the data below it. The third quartile (also called the upper quartile) has 75 percent of the
data below it and the top 25 percent of the data above it. See also interquartile range and percentile
(quartile, 2017).

Formula:

k.N
− Fi−1
4
Qk = Li + . ai k = 1,2,3
fi

Percentiles: centile is a value or number that represents a percentage position on a range or list of
data – the person or thing at that number of value is above that number in percentage (Market
Business News, 2017).

Formula:

(P−cfb )
kth percentile = L + [ · (U – L)]
f
Correlation coefficient: it is a measure that determines the degree to which two variables'
movements are associated. The range of values for the correlation coefficient is -1.0 to 1.0. If a
calculated correlation is greater than 1.0 or less than -1.0, a mistake has been made. A correlation
of -1.0 indicates a perfect negative correlation, while a correlation of 1.0 indicates a perfect positive
correlation (Investopedia, 2017).

Formula:

𝑛Σ𝑥𝑦−Σ𝑥Σ𝑦
r=
√[𝑛Σ𝑥 2 −(Σ𝑥)2 ][𝑛Σ𝑦 2 −(Σy)2 ]
Bibliography
Investopedia. (2017). Correlation Coefficient. Retrieved from Investopedia:
https://www.investopedia.com/terms/c/correlationcoefficient.asp

Market Business News. (2017). What is percentile? Definition and meaning. Retrieved from
Market Business News: http://marketbusinessnews.com/financial-glossary/percentile-
definition-meaning/

quartile. (2017). quartile. Retrieved from Business Dictionary:

http://www.businessdictionary.com/definition/quartile.html