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Group-5 (Section-C)
Kishan Vora (167)
Navdeep Singh Oberoi (166)
Ankit Khullar (165)
Shikha Prasad (164)
Anurag Agarwal (163)
Rishabh Shah (162)
Submitted To:
Dr.Sandhya Makkar
Case Study
on Store24:
Increasing
Employee
Retention
INDEX
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1.0 Objectives of case study:
Correlations
Sales Profit
N 75 75
Profit Pearson Correlation .924** 1
Sig. (2-tailed) .000
N 75 75
• From the above table, it can be observed that there is strong correlation between sales and profit of
stores. The magnitude of the same is 0.924. Thus, increasing one variable would most probably
result in increase in other variable and vice versa.
• As exhibit 2 does not contain sales of the stores, for consistency, we will consider profit as
parameter for analysing financial performance of Store24.
CTenure Profit
N 7 7
Profit Pearson Correlation .897** 1
N 7 7
Correlations
Profit CTenure
N 68 68
CTenure Pearson Correlation .228 1
N 68 68
• Observing correlation table for, stores without managers we can observe that correlation
between crew tenure and profit is as strong as 0.897. correlation table for stores with mangers
shows correlation of 0.228 between crew tenure and profit.
• From this, we can infer that, in stores in which managers are not designated, with increase in
tenure of crew members, their skills and knowledge and management acumen also increases
which in turn increases financial performance of the store.
• Also, for stores in which managers are designated, there is no significant increase in profit
with respect to crew tenure. It can be assumed that manager’s influence may hinder crew
members professional growth in one way or another. However, this phenomenon needs to be
further analysed by Jenkins.
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3.2.2 Relationship between Profit and Mtenure:
• For this calculation only, those stores are considered in which Managers are designated.
• Range of tenure of mangers is 0-277. Moreover, Jenkins feels that, the relationship between
tenure and financial performance might not be that straight forward, as mangers with low level of
tenure may react differently from managers with high value of tenure.
• To prove this point, we will first consider all stores (68) for correlation and then consider
correlation with respect to following two cases:
o For managers having tenure greater than 30.82(median)
o For managers having tenure less than 30.82 (median)
Correlations
Profit MTenure
N 75 75
MTenure Pearson Correlation .439** 1
N 75 75
Correlations
MTenure Profit
MTenure Pearson Correlation 1 .333
N 34 34
Profit Pearson Correlation .333 1
N 34 34
Figure 5Correlation between Low level Mtenure and profit
Correlations
Profit MTenure
N 34 34
MTenure Pearson Correlation -.008 1
• As this case study and the chian store24 has been popular, there are severel research based
projects for the same set of objectives
• These projects have used programs such as Minitab, R, SPSS and MS Excel for analysis and
tools such as scatter plots, corrograms, Correlation Index and regression analysis
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5.0 Conclusion
• Following insights have been generated using both primary and secondary analysis:
o There will be an increase of 761(approx.) in profit value, if the Manager’s tenure i.e.
number of months of experience with Store24, increases by one month
o There will be an increase of 945 (approx.) in profit value, if the Crew’s tenure i.e. number
of months of experience with Store24, increases by one month
o Thus, when choosing between these two factors Ctenure should be given priority over
Mtenure
o Visibility is the only factor which is consistently having insignificant correlation
o Increasing in the management tenure and crew tenure can surely boost the financial
performance but priority should be given to the stores in which managers are not
designated
o Also, the company must consider the population criteria, as it sees more profit
margin. So, they must consider this site location factors, in case of a relocation.
Management skill (0.32) and Service Quality (0.36) also puts a load on profits to
certain extent. So, the company should surely take measures of implement new career
development programs, thereby improving the managerial skills.
o Manager skills play significant role in financial performance so various workshop
programs should be implemented to improve the same
o Managers with low tenure have potential to be efficient and maximize profit with
increasing tenure
Q1. (A) In what percentage of outlets did crew personnel stay for
As we can see from the above table that the Crew skill and Visibility is inversely
correlated hence change in one will have adverse effect on the other.
Manager skill and Ped-count are directly related but that too in very low value which
implies that there won’t be much variability between the two.
Q2. (A) What is an outlier? What is the significance of an outlier? Is there any outlier
present in the data given under the parameter of Pop?
Ans. An outlier is an observation point that is distant from other observations. An outlier may
be due to variability in the measurement or it may indicate experimental error. Outliers are
important to keep in mind when looking at pools of data because they can sometimes affect
how the data is perceived overall. Because if outliers are not detected and dealt properly the
analysis of data can be in insignificant manner.
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No, as seen from the box plot for the data of the population, there is no outlier present in
dataset of population.
(B). How many stores are open for 24 hours? Of all the stores which are open 24 hours,
what is the probability of stores with visibility 2?
Ans. Total no of stores open for 24 hours are 63,
Total no of stores which opens for 24 hours with visibility rating 2 are 14
Therefore, probability of stores which are open for 24hrs with visibility rating 2 is
= 14/63= 0.22
(C). In how many ways can I select 2 stores with Ped count 3? What is the probability of
selecting 2 stores with ped-count 3 as against selecting 2 stores with ped-count 1, 2, 3, 4
or 5?
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Q.3 (A) What is the probability that the candidate selected has a managerial skill of less
than 3, considering that the data converge to a normal distribution?
Ans. Here, the formula for z score for Manager skill < 3 used will be
(3 − 𝑚𝑒𝑎𝑛)
𝑧=
𝑆𝑡𝑑. 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛
The value is obtained from z table thus shows that 5.94% of the candidates has a managerial
skill of less than 3.
(B). Suppose profit data converges to a normal distribution. What is the probability
that a crew member selected to give bonus has a skill more than 4? How many such
members are there?
Ans. Let’s assume that company provides bonuses to the managers of top 20% profiting
outlets.
Then we can find the value of the profit by using z score approach as we have considered
that profit data converges to normal distribution.
Here, probability p = 0.8 = 0.5 + 0.3
Hence z score of 0.3 from the z table is 0.84
Hence the value of profit we can get as
𝑥 = 0.84 ∗ 𝑆𝑡𝑑. 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 + 𝑚𝑒𝑎𝑛
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PROFIT
MEAN 276313.6
STANDARD
DEVIATION 89404.07
(C). Which of the parameters given satisfies the criteria to be tending towards a binomial
distribution?
Hence, in the given data, Hours24 and Resident are the data sets which tend to show binomial
distribution as they can have only two values i.e. “1” or “0”.
Q.4 (A) A researcher has taken a sample of size 70 from a population with a sample mean
as 35 and population standard deviation of 4.62. Construct a 90% confidence interval to
estimate the population mean.
Ans. Here, we are going to find the range +/- from the sample mean that can give us
90% confidence that our population mean also lies in this range.
For that, we consider that sample is normally distributed. Hence, 90% will be divided
equally along the mean.
And, the equation for finding the range for confidence interval is,
𝒔
𝒙 = 𝑺𝒂𝒎𝒑𝒍𝒆 𝑴𝒆𝒂𝒏 ± 𝒁 ∗
√𝒏
Where,
s = sample standard deviation,
n =sample size.
Hence, we can find 2 values of x as,
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x1 = 34.092
x2 = 35.908
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(B) Installation of a certain hardware takes a random amount of time with a standard
deviation of 5 minutes. A computer technician installs this hardware on 64 different
computers,
with the average installation time of 42 minutes. Compute a 95% confidence interval for
the
mean installation time.
Ans.
• Here, we are going to find the range +/- from the sample mean that can give us 95%
confidence that our population mean also lies in this range.
• For that, we consider that sample is normally distributed. Hence, 95% will be
divided equally along the mean.
Hence, the equation for finding the range for confidence interval is
𝒔
𝒙 = 𝒔𝒂𝒎𝒑𝒍𝒆 𝒎𝒆𝒂𝒏 ± 𝒛 ∗
√𝒏
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7.0 Exhibits
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