April 27, Business statistics project Statistical analysis is important to managerial decisions as it offersinsights into data. Its results include summaries of trends and analysis of possible differences in variables and their significance for informed decisions. This discussion offers analysis of data on age, household income, and years of education of customers for five major motor vehicle companies in North America. The discussion is based on the hypothesis that Cadillac has retained control of the segment of older men and has lost the other segment to its competitors and that this is a possible factor to decline in the company’s market control.
Table 1: Mean, median, mode, and standard deviation for age
Company
BMW
Lexus
Lincoln
Mercedes
Mean
45.28
61
50.96
59.5
52.24
Median
45
61
51
60
52
Mode
46
62
55
60
53
Standard deviation
4.725
3.753
6.214
4.626
7.919
Summary statistics on customers’ age identifies highest statistics with Cadillac whose mean is for example 61 and Lincoln’s mean follows this at 59.5 years. Median and mode values follow the same trend across the organizations and this supports the hypothesis that Cadillac has retained control of the older population. Cadillac also reports the lower standard deviation for the customers’ ages to show that the ages are concentrated around the mean, 61 years. Ages for other companies’ customers however have higher standard deviations, with Mercedes and Lexus reporting the highest respectively, to indicate that the companies command a wider customer base in terms of age.
Table 2: Mean, median, mode, and standard deviation for household income
Company
BMW
Lexus
Lincoln
Mercedes
Mean
136634.1
108095.7
156134.8
111971.6
182387
Median
138390.5
107017
152924
110639
178710.5
Mode
N/A
N/A
N/A
N/A
N/A
Standard deviation
32537.94
15436.95
32397.04
21929.22
41933.76
Customers for Mercedes have the highest mean for household income (182287) and mean for Lexus’ customers (156134.8) follows this while Cadillac reported the lowest mean (108095.7). The trend is further consistent with medians to establish reliability. Standard deviation for Cadillac is further the lowest (15436.95) and this shows that its products are limited to households with lower incomes that the other companies.
Table 3: Mean, median, mode, and standard deviation for years of education
Company
BMW
Lexus
Lincoln
Mercedes
Mean
15.92
12.86
15.98
13.22
17.2
Median
16
13
16
13
17
Mode
16
13
17
13
17
Standard deviation
1.8277
1.578
2.4619
1.595
1.948
Descriptive statistics for number of years of education also identifies Cadillac with the lowest mean (12.86) and Mercedes with the highest mean (17.2). Modes and medians follow the same trend to establish reliability. Further, Cadillac reported the lowest standard deviation and this shows that its customers are limited to lower number of education years.
The following graphs shows distribution of age, household income, and years of education for the customers for the five motor vehicle companies and are consistent with the descriptive statistics’ results.
Graph 1: Distribution of age for customers of the companies
Graph 2: Distribution of household income for customers of the companies
Graph 3: Distribution of number of years of education for customers of the companies
Data analysis shows that Cadillac’s market is limited to older people, people with low household income, and people with lower education years. Unlike its competitors that transverse across market segments, by these variables, Cadillac appears restricted to its majoe segments under the variables. This could explain the company’s diminishing market control and strategies for expanding market base such as conducting research into customer’s utility needs and adjusting its products are recommended.
(Mann 80- 84).
Reference
Mann, Prem. Introductory statistics. Hoboken, NJ: John Wiley &amp. Sons, 2010. Print.