Statistical Hypothesis Testing and Key Performance Indicators

1242 Words Mar 9th, 2014 5 Pages
Executive summary
The following report aims to analyse and interpret the data set of 200 records regarding the CCResort. The given information includes booking identification number, income, number of people per booking, length of stay, age and overall expenditure.
From the booking ID it can be assumed that the selection of data is random, however as it is only partial information and not the population, the period of time in which the data is selected from would affect the end results of analysis.
The report is divided into two sections outlining the statistical analysis of data and hypothesis testing to observe if CCResort have met their 2 major key performance indicators (KPIs)
1 More than 40% of their customers stay for a full week
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Further analysis of the histogram and the skewness of the data shows that the customers’ age distribution is positively skewed, from which we can conclude that CCResort is visited by families and in general those in the older age groups.

4. Number of people per booking
The number of people per booking of the sample data is analysed with the following statistical indicators:
Mean 3.51
Median 4
Mode 4
Range 4
Standard Deviation 1.314741
Variance 1.728543
Skewness 0.333199

The analysis gives the business a general understanding of which type of customers, in groups or as families, it is attracting. From the table above, the average number of people per booking is 3.51 while the mode and median is 4 which suggest that the resort mainly attracts families usually with 1 to 2 children.

Further examination of the data through the histogram as shown below showing that 69 out of the 200 bookings studied, that is 34.5% of the data is made out of 4 people groups. Moreover, a total of 33.5% (67 bookings) of the bookings are made for 2 people which gave an indication that the resort is also popular with couples. In comparing the data set with the age distribution of the customer base, it can be argued that the CCResort mainly attracts families with children as well as couples with no children

5. Length of stay: distribution
The length of stay of the sample data is analysed with the following statistical indicators:
Mean 4.785