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Wal-Mart: mean, median, mode, frequency distribution

Please see attachment for Wal-Mart's data.

1.) Calculate Mean Median and Mode.
2.) Generate a frequency distribution of the data using Microsoft Excel.
3.) Compare the mode median and mean of the data.
4.) Compare the range with the standard deviation of the data.

Once these first 4 items are complete, we can start to answer the following:

1.) How the frequency distribution might be used to better understand and improve the inventory system?
2.) How the normal distribution might be used to better understand and improve the inventory system?
3.) Which measure of central tendency most accurately depicts the inventory data?
4.) Which measure of dispersion most accurately depicts the inventory data?

Attachments

Solution Preview

See excel attached for analysis of the data and the frequency diagram.

1.) How the frequency distribution might be used to better understand and improve the inventory system?

Walmart's inventory balances have a seasonal pattern with the traditional measures of central tendency (Mean, Mode, Median) do not reveal. The frequency distribution (bar chart) in excel shows a pattern of higher counts in the fourth quarter of each year (see red circles in Excel on the graph). This seasonality is visually apparent by inspecting the frequency diagram but is not detectable with the statistical measures of central tendency.

2.) How the normal distribution might be used to better understand and improve the inventory ...

Solution Summary

Your tutorial arranges the data in a format that permits excel to compute mean, median and mode. The standard deviations, variance and z-scores are computed for each inventory data point. A frequency diagram is created.

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