RISK: FREQUENCY DISTRIBUTION, PROBABILITIES, AND EXPECTED VALUE
Risk: Frequency Distribution, Probabilities, and Expected Value
In the Module 2 Case, you are again engaged on a consulting basis by Buddy’s Floor Barn. This time, in order to get a better idea of what might have motivated customers’ buying habits you are asked to analyze the ages of the customers who have purchased oak flooring over the past 12 months. Past research done by the Excellent Consulting Group has shown that different age groups buy certain products for different reasons. Buddy’s Floor Barn has sent a survey to 200 customers who have previously purchased oak premium flooring, and 124 customers have responded. The survey includes age data of past customers who purchased oak flooring in the past year.
Using Excel, create a frequency distribution (histogram) of the age data that was captured from the survey. You should consider the width of the age categories (e.g., 5 years, 10 years, or other). That is, which age category grouping provides the most useful information? Once you have created this histogram, determine the mean, median, and mode.
After you have reviewed the data, write a report to your boss that briefly describes the results that you obtained. Make a recommendation on how this data might be used for marketing purposes.
Data: Download the Excel-based data file with the age data of the 124 customers: Data chart for BUS520 Case 2 ( See attached below). Use these data in Excel to create your histogram.
- Accurate and complete analysis in Excel using the Histogram function.
- Length requirements: 4–5 pages minimum (not including Cover and Reference pages). NOTE: You must submit 4–5 pages of written discussion and analysis. This means that you should avoid use of tables and charts as “space fillers.”
- Provide a brief introduction to/background of the problem.
- Provide a written analysis that supports your Histogram age groups (bins).
- Based on your analysis of the histogram data, provide complete and meaningful recommendations as the data relates to Buddy’s Floor Barn marketing strategy.