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CABINAS - M1 - Performance Task 1 Making Sense

The document is an instruction sheet for a marketing manager analyzing two potential products - Product A and Product B - to improve company profits. It provides the mean and standard deviation for the estimated profits of each product. Product A has a mean profit of PHP 100,000 and a standard deviation of PHP 2,000, while Product B has the same mean profit but a higher standard deviation of PHP 2,500. The document explains that while the mean can show average outcomes, the standard deviation reveals the risk and variability in data. A lower standard deviation means profits are closer to the mean and less dispersed, so Product A would be the better choice to improve profits as it has less risk.

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Joshua Cabinas
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62 views

CABINAS - M1 - Performance Task 1 Making Sense

The document is an instruction sheet for a marketing manager analyzing two potential products - Product A and Product B - to improve company profits. It provides the mean and standard deviation for the estimated profits of each product. Product A has a mean profit of PHP 100,000 and a standard deviation of PHP 2,000, while Product B has the same mean profit but a higher standard deviation of PHP 2,500. The document explains that while the mean can show average outcomes, the standard deviation reveals the risk and variability in data. A lower standard deviation means profits are closer to the mean and less dispersed, so Product A would be the better choice to improve profits as it has less risk.

Uploaded by

Joshua Cabinas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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University of San Jose-Recoletos

School of Business and Management


Statistical Analysis with Software Application

CABINAS, JOSHUA JAMES R. 6497: STAT


BSA-3

Instruction:

1. A marketing manager plans to market and sell a certain product to improve company’s profit.
Which of the following can be a better choice for the manager? Justify your answer. (15 points)

Product A: Product A with Mean profit of Php 100,000; standard deviation of Php 2,000

Product B: Product B with Mean Profit of Php 100,000; standard deviation of Php 2,500.

Averages may be useful in showing marketers promising programs and forecasting their outcomes.
However, averages do not reveal the risk and variability in the data. A higher average sales number
might not show a huge range of variability, and ultimately, risk. While standard deviation has long been
used in finance to assess risk of stock portfolios and help professionals determine where to invest or
what to expect for ROI, marketers can also benefit from using this statistical analysis in their own work.
Together, averages and standard deviations can offer a comprehensive look at a dataset, so marketers
can make the best decisions based on all of the information at hand. (Bennett,2021).

In my opinion Product A would be the best choice to improve company’s profit. The standard deviation
of Product A means that it has less dispersed profit. Having a lower standard deviation means that the
profit is closer to the mean. If we’re going to make a business decision we must rely on the most
probable data, product B had a greater standard deviation which means that the profit is dispersed far
away from the mean profit, worst it can be lower from the mean.

2. Reflect
a. If all the data in a given sample are the same, what is the standard deviation of the
sample? Justify your answer. (7.5 points)
If all the data in a given sample are the same, the standard deviation will be 0.
Standard deviation measures the spread of a quantitative data set. Having an
equal data in a given sample indicates that there is no spread at all in our data
set. Following the steps on computing the standard deviation, for example four
students took the exam and got the same score of 10, mean would also be
equal to 10. Now when we proceed to step 2, finding each score’s deviation
from the mean we subtract the mean from the score which will give us 0 (10-
10). From step 2 the following steps will already give us 0.
b. If the given two sample data sets have the same standard deviation, are these
samples necessarily identical? Justify your answer (7.5 points)
Based on my research the answer is no if the number of values in data set or the
size of the set, which is represented by “n” is more than two. For example n=3,
the first set of data are 1,2 and 3 will give me a standard deviation of 1. On the
other hand the second set of data are 5,4 and 3 will also give me a standard
deviation of 1. Therefore if the standard deviation is the same, it is not
necessarily means that the samples are identical.

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