Verified Document

Statistics Business Model Business Plan

¶ … assist the Nyke Shoe Company in determining what size shoe to produce at the most efficient cost and highest value. The Company has decided that it would be a more profitable company if it was able to produce one shoe for the marketplace instead of a variety of sizes. The one shoe that the company produces will have to provide the opportunity for the greatest amount of people to purchase and therefore will have to (statistically speaking) appeal to the largest audience. There are a number of statistical methods that would help in determining just what that audience is and who would fall into that category. According to Charles Wheelan, author of Naked Statistics; "Many businesses must assess the risks associated with assorted adverse outcomes" (Wheelan, 2013, p. 7). One can hardly imagine a more adverse outcome than to go out of business, and it would seem on the face of it that a shoe company that decides to only produce one size of shoe, no matter what the gender, or size of the consumer, would essentially be courting disaster. That is where statistics comes in. Wheelan states however that "statistics cannot be any smarter than the people who use them" (p. 95). Therefore it behooves this paper's author to ensure that the statistics used in evidence herein are as easy to understand as possible. Will they show that the Nyke Company can be profitable by producing (en masse) just one size of shoe, no matter the gender or size of the person buying them? Perhaps.

The first thing to do is determine what the most common shoe size is. This can be done by collecting data (see Appendix A).

It's important to understand that the data gathered is certain to contain certain biases. Since this is only a preliminary study it was not necessary to gather a vast amount of data, and in most cases, at least according to Wheelan, "we conduct statistical analysis using the best data and methodologies and resources available" (p. 14). The...

The data, like all data, contains a bias, in this case the shoe store was one that catered to a population looking for inexpensive shoes. This type of population is not necessarily looking for high quality shoes, instead they may oftentimes be looking for shoes that are made to look good for a relatively low expense.
The data gathered in this case included gender, size of the person in inches, and regular shoe size (the individual's size of a normal purchase of an athletic shoe). There were 35 individuals who participated in the survey. 17 individuals were male, and 18 were female. No ages were asked, although a future study might wish to incorporate that variable.

The data shows that the most common size shoe purchased by females ranges between 6.5 and 7.5. There were four 6.5's and four 7's and four 7.5's. Out of 18 individuals, 12 purchased either 6.5, 7 or 7.t sized shoes. That's a percentage of almost 66%. The male side was a little more diverse. The most common size purchased by men was 11 and 12. Three men purchased 11's and three men purchased 12's. The percentage of purchases for the most common size on the men's side is approximately 35%. That thirty five percent is a far lower percentage of common purchases than on the female side of the equation.

One method for comparing data is using a paired comparison experiment. As one recent study showed "for each pair of objects, the judge decides which of the two objects is preferred (or judged to be bigger, better, faster, etc.); the aim is to estimate the desirability or worth of each object and this to rank the objects in preference order" (Dittrich, Francis, Hatzinger, Katzenbeisser, 2012, p. 118). In this case, the comparison can be made that men will purchase larger sizes than women (on the whole part) but that they are also more diverse…

Sources used in this document:
Works Cited

Dittrich, R.; Francis, B.; Hatzinger, R.; Katzenbeisser, W.; (2012) Missing observations in paired comparison data, Statistical Modeling: An International Journal, Vol. 12, Issue 3, pp. 117 -- 143

Lee, Y. & Noh, M.; (2012) Modeling random effect variance with double hierarchical generalized linear models, Statistical Modeling, An International Journal, Vol. 12, Issue 6, pp. 487 -- 502

O'Neill, B.; (2012) Binomial prediction using the frequent outcome approach, Mathematical Scientist, Vol. 37, Issue 2, pp. 106 -- 121

Peterson, I.; (1998) The Jungles of Randomness: A Mathematical Safari, New York: John Wiley & Sons, Inc.
Cite this Document:
Copy Bibliography Citation

Related Documents

Business Model and Healthcare
Words: 1055 Length: 4 Document Type: Term Paper

Financial Plan Carolinas Healthcare System, a non-profit self-sustaining public organization, is the largest healthcare system in combined North and South Carolina. It is a multi-disciplinary, integrated healthcare system that provides an extensive range of health and human services to the general public of Carolina. The organization owns, leases and manages hospitals, nursing homes, physical therapy facilities, home healthcare agencies, as well as other healthcare associated operations (Carolinas Healthcare System, 2016). The

Google Business Models Google and Microsoft Are
Words: 1857 Length: 6 Document Type: Essay

Google Business Models Google and Microsoft are competitors in two different businesses, search engines and mobile operating systems. Google is the industry leader in search engines, garnering massive amounts of traffic on its different sites. Google has a number of different search sites (maps, scholar, images, translate) that are in line with its mandate to make information more freely accessible. The company's Android mobile operating system has become a major product for

Google/Microsoft Business Model Google Is,
Words: 1904 Length: 7 Document Type: Research Paper

Additionally, the risk factor is something to take into consideration. Firms that have very high debt ratios are not only closer to insolvency, but because they are riskier will also have higher borrowing costs. There is little to choose form in terms of solvency between these companies, but the higher debt ratio at Microsoft will ultimately be better for investors because more of their money is returned in the

Business Scenario Type the Document
Words: 17664 Length: 45 Document Type: Dissertation

This means that you must continually monitor and communicate about possible changes, pertaining to the overall scope of the threat. Once this occurs, is when an entity will have an effective security procedure that will adapt to the various changes that are taking place. This is significant, because this information can be used to corroborate the overall nature of security threats that could be faced by the SME. Where, this

Business Plan Funeral Services Business
Words: 1140 Length: 4 Document Type: Business Proposal

. One tactic which has made the John Doe group unique in the industry is its recognition of the importance of community in the viability of individual enterprises. Its damaged relationship with the communities in which it has sought to operate can be rectified by aspects of its model which are already in place. Though the company operates thousands of funeral service establishments from a centralized point of authority, its

Business Creativity and Literature Review
Words: 2072 Length: 5 Document Type: Research Paper

What is the issue or problem that your research will investigate? The issue that our research will investigate is how the thoughts and ideas of an individual will have an impact on their levels of achievement. This will allow us to determine the impact that formal education will have on success. At the same time, we can see how: common sense, ability to work well with people and other attributes will

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now