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Business and Finance

Scatter Diagram Analysis of American Toys Inc.

The given data for fifteen stores of American Toys, Inc. provides information about the clerk’s work hours and sales for one week. Using the scatter diagram we can see the data trend for the given values. The independent variable in the given information is the sales clerk’s work hours or the time. The independent variable is plotted on the x-axis. The unit for the time used is hours. The dependent variable in this information is ‘sales’ which is plotted on the y-axis. the unit for the variable of ‘sales’ is dollars.

The scatter diagram trends are interpreted from left to right. The diagram shows an upward trend which means that there is a positive relationship between the two variables of clerk’s work hours and sales. This means that when the sales clerk’s work hours are increased the sales also increase. The plotted points are also close to each other which means that there is a strong correlation between the two variables.

With the scatter diagram, the regional sales manager of American Toys, Inc. can see that the stores where weekly hours of sales clerks are high, the sales are also high. However, the data also shows some outliers as we can see that store 3 with 96 hours has a sales figure of $19200 but even with increased hours of 102 by store 4, their sales are lesser valuing at $10211. The same can also be seen for stores 8 and 11. This means that there may be other factors that need to be considered before a generalization of the trend is made. However, the larger trend of the data reveals a positive relationship between the sales clerk’s work hours and the value of sales. The sales manager, if increased the work hours of sales clerk staff could get increased sales value as well.

Figure American Toys, Inc



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