Week 2 Activity: Scatter Diagram Analysis
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Week 2 Activity Scatter Diagram Analysis The regional sales manager for American Toys, Inc., recently collected data on weekly sales (in dollars) for the 15 stores in his region. He also collected data on the number of salesclerk work hours during the week for each of the stores. The data are as follows: Store Sales Hours ,,,,,,,,,,,,,,, To complete this assignment: 1. Use Excel to develop a scatter diagram of the data, including dependent and independent variables on their correct axis. 2. In a Word document, analyze the relationship between sales and number of clerk hours worked. 3. Conclude, based on the scatter diagram, what adjustments the sales manager might make to address the relationship between sales and number of clerk hours worked. 4. Submit your work in a Word document with your Excel file attached.
Paper For Above instruction
The purpose of this analysis is to evaluate the relationship between weekly sales and the number of salesclerk work hours in American Toys, Inc. stores within a specific region. Understanding this relationship can aid sales managers in optimizing staffing levels to maximize sales performance. Using Excel, a scatter diagram was constructed with sales in dollars mapped on the vertical axis (dependent variable) and work hours on the horizontal axis (independent variable). This visual representation provides valuable insight into the correlation between these two variables.
The scatter diagram reveals several notable patterns. Initially, there appears to be a positive correlation between clerk work hours and weekly sales. Most data points trend upward, indicating that stores with higher clerk hours tend to achieve higher sales. This suggests that additional staffing might contribute to increased sales, supporting the hypothesis that labor investment correlates with revenue generation. However, some points deviate from this pattern, implying that other factors could also influence sales, or that the relationship may not be perfectly linear.
Further analysis of the scatter diagram suggests that increasing clerk hours could be an effective strategy to boost sales, particularly for stores with below-average sales figures. Nonetheless, overstaffing may lead to diminishing returns, and managers should consider balancing labor costs against potential sales increases. Optimal staffing levels could be identified by examining the trend line or line of best fit, which provides an estimated relationship between clerk hours and expected sales. If the trend line is steep, small increases in labor hours are associated with significant sales gains; if it is flat, additional hours might not substantially impact sales.
Based on the scatter diagram, the sales manager should consider adjusting staffing patterns at stores with consistently low sales. Increasing clerk hours during peak shopping periods or at stores with historically low performance could help improve overall sales. Conversely, stores that already operate at high sales levels with relatively fewer hours might not require further staffing increases. It is also advisable to monitor the efficiency of clerk hours, ensuring that additional staffing translates effectively into higher sales rather than unnecessary overhead.
In conclusion, the scatter diagram indicates a generally positive relationship between clerk work hours and weekly sales. Strategic adjustments in staffing could lead to improved sales performance across the region’s stores. To optimize results, the sales manager should target underperforming stores with increased clerk hours while maintaining or reducing staffing in high-performing stores where additional hours do not significantly impact sales. Continuous analysis and fine-tuning of staffing levels per store will enhance sales effectiveness and operational efficiency.
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