• Regarding requirement #2:
• Regarding requirement #2: How can this information be used to benefit the business?
Q.)What does the mean and standard deviation mean in terms of expected sales?
A.) The current value of the standard deviation can be used to estimate the importance of a move
or set expectations into the case study we were instructed to determine the rate the appeal of the
phrase people. This assumes that Not sweet like wine coolers, not filling like beer, and more
refreshing than wine or mixed drinks changes are normally distributed with a classic bell curve.
Even though the appeal of the phrase changes from customer to customer are not always
normally distributed, chartists can still use normal distribution guidelines to gauge the
significance of a price movement. In a normal distribution, most of the observations fall within
one standard deviation, while majority fall within two and the minority falls within three. Using
these guidelines, we can estimate the significance of a price movement. A move greater than one
standard deviation would show above average strength or weakness, depending on the direction
of the move. The standard deviation is a statistical measure of volatility. These values provide
chartists with an estimate for expected selection of the phrases. Phrases moves greater than the
Standard deviation show an average strength or weakness
Q.) How can this information be used to benefit the business?
