Analytic Methods Proposal: Case of Moving Company
Uploaded by CaseyP on Feb 28, 2019
This paper is a proposal and justification of an appropriate inferential statistical technique in an attempt to solve a business problem faced by a moving company. The project analyzes two states based in the US. The moving company has been established in the US and is trying to find the best business potential state in which to move its headquarters. The analysis covers the current company’s state of residence Mississippi and the California State where it intends to shift its headquarters. The paper identifies the migration, years and population estimates from the economic research service to facilitate the research. Additionally, prediction and test inferential statistical techniques are preferred to address the business problem. Thus, simple linear regression is proposed for the prediction. Linear regression is distinguished from the t-test hypothesis testing due to its outstanding match for the business problem. Moreover, the tool has been supported by experiences and examples that prove its reliability.
Keywords: inferential statistical techniques, moving company, headquarters, states, linear regression, t-test hypothesis, and proposal.
Analytic Methods Proposal: Case of Moving Company
An inferential statistical technique is one of the two branches of statistics. The technique uses a random sample of the population to make predictions of its properties. According to Lowry (2014), the use of inferential statistics is valuable when examination of the properties of every member of an entire population is impractical. This paper aims to select the appropriate inferential technique by proposition and support to recommend the U.S founded company to move its headquarters to the best state with significant business opportunities. The most appropriate inferential technique to address the problem of moving the company’s headquarters is a simple linear regression.
Business Problem
The executive leadership of a newly opened moving company in the US is faced with the challenge of deciding the best state that has significant potential business in which to move their headquarters. Therefore, the manager has asked the analyst to conduct a research process by comparing the current state of residence, Mississippi, to another state of choice, California, and make recommendations based on the findings.
Data Used
The data used for the research will include the population estimates for Mississippi and California states for the years between 2010 and 2017 (Economic Research Service, 2017). The data related to the Mississippi State is identified by labeling all the state’s records as ‘MR’ while those relating to California are identified by labeling the state as ‘CR.’ It...