Store 24 Analysis
Y Hemanth Teja
19 December 2017
Reading the data set
setwd("C:\\Users\\saihe\\Documents")
store.df <- read.csv(paste("Store24.csv", sep=""))
View(store.df)Summary statistics generated
library(psych)
describe(store.df)## vars n mean sd median trimmed mad
## store 1 75 38.00 21.79 38.00 38.00 28.17
## Sales 2 75 1205413.12 304531.31 1127332.00 1182031.25 288422.04
## Profit 3 75 276313.61 89404.08 265014.00 270260.34 90532.00
## MTenure 4 75 45.30 57.67 24.12 33.58 29.67
## CTenure 5 75 13.93 17.70 7.21 10.60 6.14
## Pop 6 75 9825.59 5911.67 8896.00 9366.07 7266.22
## Comp 7 75 3.79 1.31 3.63 3.66 0.82
## Visibility 8 75 3.08 0.75 3.00 3.07 0.00
## PedCount 9 75 2.96 0.99 3.00 2.97 1.48
## Res 10 75 0.96 0.20 1.00 1.00 0.00
## Hours24 11 75 0.84 0.37 1.00 0.92 0.00
## CrewSkill 12 75 3.46 0.41 3.50 3.47 0.34
## MgrSkill 13 75 3.64 0.41 3.59 3.62 0.45
## ServQual 14 75 87.15 12.61 89.47 88.62 15.61
## min max range skew kurtosis se
## store 1.00 75.00 74.00 0.00 -1.25 2.52
## Sales 699306.00 2113089.00 1413783.00 0.71 -0.09 35164.25
## Profit 122180.00 518998.00 396818.00 0.62 -0.21 10323.49
## MTenure 0.00 277.99 277.99 2.01 3.90 6.66
## CTenure 0.89 114.15 113.26 3.52 15.00 2.04
## Pop 1046.00 26519.00 25473.00 0.62 -0.23 682.62
## Comp 1.65 11.13 9.48 2.48 11.31 0.15
## Visibility 2.00 5.00 3.00 0.25 -0.38 0.09
## PedCount 1.00 5.00 4.00 0.00 -0.52 0.11
## Res 0.00 1.00 1.00 -4.60 19.43 0.02
## Hours24 0.00 1.00 1.00 -1.82 1.32 0.04
## CrewSkill 2.06 4.64 2.58 -0.43 1.64 0.05
## MgrSkill 2.96 4.62 1.67 0.27 -0.53 0.05
## ServQual 57.90 100.00 42.10 -0.66 -0.72 1.46The mean and standard deviation of Profit, MTenure and CTenure
apply(store.df[,3:5], 2, mean)## Profit MTenure CTenure
## 276313.61333 45.29644 13.93150apply(store.df[,3:5], 2, sd)## Profit MTenure CTenure
## 89404.07634 57.67155 17.69752The top 10 most profitable stores
attach(store.df)
prof <- store.df[order(-Profit),]
prof[1:10,1:5] ## store Sales Profit MTenure CTenure
## 74 74 1782957 518998 171.09720 29.519510
## 7 7 1809256 476355 62.53080 7.326488
## 9 9 2113089 474725 108.99350 6.061602
## 6 6 1703140 469050 149.93590 11.351130
## 44 44 1807740 439781 182.23640 114.151900
## 2 2 1619874 424007 86.22219 6.636550
## 45 45 1602362 410149 47.64565 9.166325
## 18 18 1704826 394039 239.96980 33.774130
## 11 11 1583446 389886 44.81977 2.036961
## 47 47 1665657 387853 12.84790 6.636550The bottom 10 least profitable stores
least <- store.df[order(Profit),]
least[1:10,1:5] ## store Sales Profit MTenure CTenure
## 57 57 699306 122180 24.3485700 2.956879
## 66 66 879581 146058 115.2039000 3.876797
## 41 41 744211 147327 14.9180200 11.926080
## 55 55 925744 147672 6.6703910 18.365500
## 32 32 828918 149033 36.0792600 6.636550
## 13 13 857843 152513 0.6571813 1.577002
## 54 54 811190 159792 6.6703910 3.876797
## 52 52 1073008 169201 24.1185600 3.416838
## 61 61 716589 177046 21.8184200 13.305950
## 37 37 1202917 187765 23.1985000 1.347023To draw a scatter plot of Profit vs. MTenure
library(car)##
## Attaching package: 'car'## The following object is masked from 'package:psych':
##
## logitscatterplot(store.df$MTenure, store.df$Profit, main = "Scatterplot of Profit vs MTenure", xlab = "MTenure", ylab = "Profit", pch=10)
To draw a scatter plot of Profit vs. CTenure
scatterplot(store.df$CTenure, store.df$Profit, main = "scatterplot of Profit vs Crew Tenure", xlab = "Crew Tenure", ylab = "Profit", pch=16)
To construct a Correlation Matrix for all the variables in the dataset. (Display the numbers up to 2 Decimal places)
round(cor(store.df),2)## store Sales Profit MTenure CTenure Pop Comp Visibility
## store 1.00 -0.23 -0.20 -0.06 0.02 -0.29 0.03 -0.03
## Sales -0.23 1.00 0.92 0.45 0.25 0.40 -0.24 0.13
## Profit -0.20 0.92 1.00 0.44 0.26 0.43 -0.33 0.14
## MTenure -0.06 0.45 0.44 1.00 0.24 -0.06 0.18 0.16
## CTenure 0.02 0.25 0.26 0.24 1.00 0.00 -0.07 0.07
## Pop -0.29 0.40 0.43 -0.06 0.00 1.00 -0.27 -0.05
## Comp 0.03 -0.24 -0.33 0.18 -0.07 -0.27 1.00 0.03
## Visibility -0.03 0.13 0.14 0.16 0.07 -0.05 0.03 1.00
## PedCount -0.22 0.42 0.45 0.06 -0.08 0.61 -0.15 -0.14
## Res -0.03 -0.17 -0.16 -0.06 -0.34 -0.24 0.22 0.02
## Hours24 0.03 0.06 -0.03 -0.17 0.07 -0.22 0.13 0.05
## CrewSkill 0.05 0.16 0.16 0.10 0.26 0.28 -0.04 -0.20
## MgrSkill -0.07 0.31 0.32 0.23 0.12 0.08 0.22 0.07
## ServQual -0.32 0.39 0.36 0.18 0.08 0.12 0.02 0.21
## PedCount Res Hours24 CrewSkill MgrSkill ServQual
## store -0.22 -0.03 0.03 0.05 -0.07 -0.32
## Sales 0.42 -0.17 0.06 0.16 0.31 0.39
## Profit 0.45 -0.16 -0.03 0.16 0.32 0.36
## MTenure 0.06 -0.06 -0.17 0.10 0.23 0.18
## CTenure -0.08 -0.34 0.07 0.26 0.12 0.08
## Pop 0.61 -0.24 -0.22 0.28 0.08 0.12
## Comp -0.15 0.22 0.13 -0.04 0.22 0.02
## Visibility -0.14 0.02 0.05 -0.20 0.07 0.21
## PedCount 1.00 -0.28 -0.28 0.21 0.09 -0.01
## Res -0.28 1.00 -0.09 -0.15 -0.03 0.09
## Hours24 -0.28 -0.09 1.00 0.11 -0.04 0.06
## CrewSkill 0.21 -0.15 0.11 1.00 -0.02 -0.03
## MgrSkill 0.09 -0.03 -0.04 -0.02 1.00 0.36
## ServQual -0.01 0.09 0.06 -0.03 0.36 1.00To measure the correlation between Profit and MTenure. (Display the numbers up to 2 Decimal places)
round(cor(store.df$Profit, store.df$MTenure),2)## [1] 0.44To measure the correlation between Profit and CTenure. (Display the numbers up to 2 Decimal places)
round(cor(store.df$Profit, store.df$CTenure),2)## [1] 0.26To construct a Corrgram based on all variables in the dataset
library(corrgram)
par(mfrow = c(1,1))
corrgram(store.df,order = FALSE,
upper.panel = panel.pie,
lower.panel = panel.shade,
text.panel = panel.txt,
main = "Corrgram of store variables",
)
Run a Pearson’s Correlation test on the correlation between Profit and MTenure
cor.test(Profit,MTenure)##
## Pearson's product-moment correlation
##
## data: Profit and MTenure
## t = 4.1731, df = 73, p-value = 8.193e-05
## alternative hypothesis: true correlation is not equal to 0
## 95 percent confidence interval:
## 0.2353497 0.6055175
## sample estimates:
## cor
## 0.4388692The p-value is 8.193e-05 which is less than 0.05, hence there is a significant correlation between Profit and MTenure.
Run a Pearson’s Correlation test on the correlation between Profit and CTenure
cor.test(Profit,CTenure)##
## Pearson's product-moment correlation
##
## data: Profit and CTenure
## t = 2.2786, df = 73, p-value = 0.02562
## alternative hypothesis: true correlation is not equal to 0
## 95 percent confidence interval:
## 0.03262507 0.45786339
## sample estimates:
## cor
## 0.2576789The p-value is 0.02562 which is less than 0.05, hence there is a significant correlation between Profit and CTenure.
Run a regression of Profit on {MTenure, CTenure Comp, Pop, PedCount, Res, Hours24, Visibility}
reg <- lm( Profit ~ MTenure+CTenure+Comp+Pop+PedCount+Res+Hours24+Visibility,data=store.df )
summary(reg)##
## Call:
## lm(formula = Profit ~ MTenure + CTenure + Comp + Pop + PedCount +
## Res + Hours24 + Visibility, data = store.df)
##
## Residuals:
## Min 1Q Median 3Q Max
## -105789 -35946 -7069 33780 112390
##
## Coefficients:
## Estimate Std. Error t value Pr(>|t|)
## (Intercept) 7610.041 66821.994 0.114 0.909674
## MTenure 760.993 127.086 5.988 9.72e-08 ***
## CTenure 944.978 421.687 2.241 0.028400 *
## Comp -25286.887 5491.937 -4.604 1.94e-05 ***
## Pop 3.667 1.466 2.501 0.014890 *
## PedCount 34087.359 9073.196 3.757 0.000366 ***
## Res 91584.675 39231.283 2.334 0.022623 *
## Hours24 63233.307 19641.114 3.219 0.001994 **
## Visibility 12625.447 9087.620 1.389 0.169411
## ---
## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1
##
## Residual standard error: 56970 on 66 degrees of freedom
## Multiple R-squared: 0.6379, Adjusted R-squared: 0.594
## F-statistic: 14.53 on 8 and 66 DF, p-value: 5.382e-12From above, the variables whose beta-coefficients are statistically significant (<0.05) are MTenure,CTenure,Comp,Pop,PedCount,Res,Hours24 and that which is not statistically significant (>0.05) is Visibility.
The coefficients:
reg$coefficients## (Intercept) MTenure CTenure Comp Pop
## 7610.041452 760.992734 944.978026 -25286.886662 3.666606
## PedCount Res Hours24 Visibility
## 34087.358789 91584.675234 63233.307162 12625.447050The expected change in the Profit at a store, if the Manager’s tenure i.e., number of months of experience with Store24, increases by one month is 760.992734 dollars and if the Crew’s tenure i.e. number of months of experience with Store24, increases by one month then the expected change is 944.978026 dollars.
Executive Summary
We can infer that the profit of a store depends upon both the manager’s tenure and the crew’s tenure. The population and also the pedestrian density near the location of the store have a significant impact on the profits of the store. The 24/7 open stores have lesser profits the strong correlation between the crew skills and manager skills with their tenure suggests that investment in the development and training programs for crew members or managers would be highly beneficial for the firm. The lesser the number of competitors for the firm, the more the profit. The above model can be used to make good decisions because the p value < 0.05 which means the model is good.