Statistics for Data Science and Business Analysis - Practical Example: Inferential Statistics

The video tutorial discusses inventory management issues at Al Bundy shoe shop, focusing on excess inventory. It introduces the use of confidence intervals to address these issues by analyzing sales data from 2014 to 2016. The tutorial explains the process of calculating confidence intervals for different shoe sizes and compares sales between two shops using statistical methods. It concludes with insights on shop performance and hints at future lessons on hypothesis testing.

What is a common problem faced by many shops, including Al Bundy shoe shop?

• Poor customer service

• Inventory management issues

• Excessive marketing costs

• High employee turnover

What are the three dimensions used to divide the sales data for analysis?

• Brand, color, and price

• Shoe size, country, and gender

• Material, style, and season

• Age group, occasion, and trend

Why is the Central Limit Theorem important in this analysis?

• It predicts future sales trends

• It allows the assumption of normality for large samples

• It helps in calculating the exact sales numbers

• It determines the best marketing strategy

What statistical method is used to estimate the number of shoes likely to be sold?

• Hypothesis testing

• Regression analysis

• Confidence intervals

• Correlation analysis

What is the T statistic value used for calculating the 95% confidence interval with 11 degrees of freedom?

• 1.96

• 1.64

• 2.20

• 2.07

What is the suggested solution to avoid running out of stock based on the confidence interval results?

• Order fewer shoes than the lower limit

• Order the closest number to the upper limit

• Order more shoes than the upper limit

• Order the exact number of shoes as the lower limit

What assumption is made about the two German shops when comparing their sales?

• Their samples are independent

• They share the same warehouse

• They have different customer bases

• They have different marketing strategies

What conclusion is drawn about the sales of the two German shops?

• One shop has a higher customer satisfaction rate

• Sales data is inconclusive

• One shop significantly outsells the other

• Both shops have identical sales

What is the implication of the confidence intervals starting in the negatives and finishing in the positives?

• One shop has a better location

• No significant difference in sales

• Sales data is unreliable

• One shop is clearly better

What strategy is suggested for the two shops based on their balanced sales?

• Compete aggressively with each other

• Increase advertising budget

• Share resources and collaborate

• Focus on different customer segments