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Interpretation of Descriptive Statistics

The document analyzes various descriptive statistics - mean, median, standard deviation, standard error, variance, kurtosis, skewness, and range - for sales data of three companies: Nike, Adidas, and Puma. The key findings are: 1) Nike has the highest mean and median sales, indicating its sales are higher than the other two companies. 2) Puma has the lowest standard deviation, variance, standard error, and range, showing its data is more clustered and consistent compared to Nike and Adidas. 3) Nike and Adidas data is negatively skewed and has lighter tails, while Puma's data is more symmetric and positively skewed.

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Priya Sharma
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70 views3 pages

Interpretation of Descriptive Statistics

The document analyzes various descriptive statistics - mean, median, standard deviation, standard error, variance, kurtosis, skewness, and range - for sales data of three companies: Nike, Adidas, and Puma. The key findings are: 1) Nike has the highest mean and median sales, indicating its sales are higher than the other two companies. 2) Puma has the lowest standard deviation, variance, standard error, and range, showing its data is more clustered and consistent compared to Nike and Adidas. 3) Nike and Adidas data is negatively skewed and has lighter tails, while Puma's data is more symmetric and positively skewed.

Uploaded by

Priya Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Interpretation of descriptive statistics

Mean : Mean can be termed as the average value of the entire data set. Its symbol is.
Nike : 23.844
Adidas : 15.784
Puma : 3.368
Interpretation : the average value of nike is higher than the other two companies which
means that its sales are also higher.

Median : Median is the middle value of the data set, arranged in ascending order.
Nike : 23.87
Adidas : 14.705
Puma : 3.22
Interpretation : the middle value of nike varies a lot when comparing with other brands
specially puma. So, from the results its very obvious that nike’s sales are higher than others.

Standard deviation : Standard deviation defines how closely the data gathers around the
mean. It can also be called the square root of the variance. Its symbol is σ. It is a quantity
which exhibits that by how much value the data fluctuate from the mean value for the data
set.
Nike : 5.703
Adidas : 3.805
Puma : 0.622

Interpretation : the more the data deviates from the mean, the less normal it is. The
standard deviation of puma is more clustered around its mean so the it is comparatively
normal than others. low standard deviation of puma indicates that the data points tend to be
very close to the mean. A high standard deviation nike indicates that the data points are
spread out over a large range of values.

Standard error : The standard error is a statistical word that calculates the precision with
which a sample is representing a population. In statistics, the deviation of the sample mean
from the actual mean of a population is the standard error.
Nike : 1.803
Adidas : 1.203
Puma : 0.196
Interpretation : the smallest standard error is of puma. The smaller the standard error, the
less spread is the data and it is more likely that any sample mean is close to the population
mean. Small standard error is called good for the business.

Sample variance : Sample variance mentions the variation of interpretations (the data points)
in a single sample. Variance measures variability from the average. To investors, variability
is unpredictability, and unpredictability is a measure of risk. So, the variance statistic can
help conclude the risk an investor assumes when buying a particular security.

Nike : 32.52
Adidas : 14.48
Puma : 0.387
Interpretation : A large variance indicates that numbers in the set are far from the mean.

Here, large variance is of nike which means that it varies a lot from the mean. Adidas also
varies but the variation of puma is lesser. A small variance means that number in the data are
near the mean.

Kurtosis : Kurtosis is defined as the degree of thickness or heaviness of the specified


distribution for the random variable alongside its tail. In other words, it can be defined as the
degree of “tailedness” of the distribution.
Nike : -1.663
Adidas : -0.746
Puma : 0.743

Interpretation : distributions with big kurtosis display tail data beyond the tails of the
normal distribution (e.g., five or more standard deviations from the mean). Distributions with
little kurtosis display tail data that are normally less extreme than the tails of the normal
distribution. Distribution of nike and ADIDAS are in negative indicating that the distribution
has lighter tails and a flatter peak than the normal distribution. The distribution of puma is
more towards the right side.

Skewness : Skewness is called the asymmetry in a statistical distribution, where the curve
seems biased or skewed either to the left or to the right. Skewness can be computed to define
the level to which a distribution varies from a normal distribution.
Nike : -0.0499
Adidas : 0.450
Puma: 1.08
Interpretation :
.
Nike has a negatively skewed data which an indication that the data is not normally
distributed and is moderately skewed. The positive skewness of adidas and puma mean that
its tail is on the right side of the distribution. The data of adidas is highly skewed and of puma
is approximately symmetric.

Range : In statistics, the range of a set of data is the difference between the maximum and
minimum values. .
Nike: 14.88
Adidas: 11.54
Puma: 2.04

Interpretation : nike and adidas have larger range than puma. If the range is huge, the
central tendency is not as demonstrative of the data as it would be if the range was minor.

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