CASE DESCRIPTION:
Report 16.1 A grocery store manager wants to analyze customer spending data by product categories: fresh baked goods, meat and dairy, produce, and frozen food. For each shopping trip, about 30% of shoppers purchase baked good items, and the spending in this category tends to follow a uniform distribution between $3 and $19. For the meat and dairy products, 70% of shoppers make regular purchases from this category, and their spending is normally distributed with a mean of $21 and standard deviation of $5.27. Eighty percent of the shoppers spend an average of $15 on produce, and their spending follows a normal distribution with a standard deviation of $2.31. Sixty-five percent of shoppers purchase at least one item from the frozen food aisles; the spending amount in this category follows a uniform distribution between $7.25 and $28.50 On average, approximately 220 customers make a trip to the grocery store each day. Develop a Monte Carlo simulation and risk analysis model to analyze the customer spending and the fluctuation in daily revenue.
ADDITONAL REQUIREMENTS
Explain the best, worst and most likely scenario for spending in each category and for combined spending across all 4 categories
Research current average grocery store profit margins for the listed 4 categories and cite the source
Using the information from your research on the profit margin for each category, identify which category in the data set (linked below) has the best upside potential and the category with the worst downside potential, why would you want to know this information?
Conduct a descriptive analysis of this data set Customer_Spending_Data.csv Download Customer_Spending_Data.csvand compare those descriptive statistics (mean, range, SD) against the ones provided in the case description
Assemble this information into a 2 page maximum (single spaced, 12pt font, grammatically correct) report complete with 2 different data visualizations. The report should explain what you analyzed, what question(s) you were seeking to answer and what insights your analysis generated. You should use a short business report template something akin to the below:
Business Report Template
Title: [Insert Report Title]
Prepared by: [Your Name or Team Name]
Date: [Insert Date]
Executive Summary
[Provide a concise overview of the report. Summarize the purpose, key findings, and recommendations. This section should be no longer than a few paragraphs.]
Introduction
[State the purpose of the report, background information, and the scope of the analysis. Define the objectives and outline the structure of the report.]
Analysis
Section 1: [Insert Section Title]
- Key Findings: [Summarize the main findings related to this section.]
- Supporting Data: [Include relevant statistics, charts, or graphs.]
- Discussion: [Provide an analysis of the findings and their implications.]
Section 2: [Insert Section Title]
- Key Findings: [Summarize the main findings related to this section.]
- Supporting Data: [Include relevant statistics, charts, or graphs.]
- Discussion: [Provide an analysis of the findings and their implications.]
[Repeat as necessary for additional sections.]
Conclusion
[Summarize the main findings and their implications. Reinforce the importance of the results and connect them to the overall purpose of the report.]
Recommendations
[List actionable recommendations based on the analysis. These should be specific, measurable, and realistic.]
Appendices
[Include any supplementary information, such as raw data, detailed calculations, or additional charts and graphs. Each appendix should be clearly labeled.]
References
[List all sources cited in the report, formatted according to a consistent APA style.