Reference no: EM133580471 , Length: word count:2500

Business analytics and Intelligence

Assignment Task

Task One-Business analytics concepts

a. Describe what you have learned about the Clustering. Give proper examples
b. Critically discuss and analyzefive published papers to explore how Clustering Analysis is used in businesses. They need to be interpreted properly

Task Two- Prescriptive Analytics
By analysing historical data for a headphone sale company, it can be seen that the sale volume has been changed according to its price in different periods. The values have been reported in the following table. This company is going to launch a new headphone and the price needs to be decided based on the market analysis. Determine the appropriate price for the newly developed electric bicycle with the aim of maximizing the company's profit. The demand forthe newly developed product has a direct relationship to its price.

Table 1- Demands of an electric bicycle based on a price level according to previous experiences

Price (£)	Demand
55	418
57	395
61	373
62	360
63	345
64	302
66	270
67	255
68	247
69	240
71	233
72	222
73	216
74	214
76	210
77	205

The main objective of the company is to maximize profit regarding the new product. It is assumed that the unit production and supply cost of each electric bicycle is £45, so the profit of each unit will be (the sale price - unit production cost).
a) Use Excel to determine the estimated demand quadratic equation function and describe why quadratic form is preferred.
b) Use Excel solver to find the optimal price which maximizes the company's profit.
c) Determine the optimal demand.
d) Compute the optimal profit.
e) Interpret the results.
f) If the supply cost of each electric Bicycle is £30 and then £61 determine the optimal price and interpret the results appropriately.
g) Suppose that the supply cost is £61 and the company has decided to set the price less than £71, then what will be the optimal price? Interpret the results

Task Three- Forecasting
Suppose that you have gathered sales data of a retail company from 2016-2022 in different quarters. You are going to consider the company sales value and to forecast the company amount of sales in 2023 in different quarters. Look at the gathered data of previous years related to the amount of sales in each quarter which have been reported in Table 2.

Table 2- Data of amount of sales among previous years

Year	Q	Revenue	Four Moving average	Baseline	Seasonality	Deseasonality	Trend	Forecast	Error	MAD Error	MSE	MAPE
2016	1	123
2016	2	192
2016	3	307
2016	4	163
2017	1	147
2017	2	208
2017	3	337
2017	4	170
2018	1	150
2018	2	216
2018	3	348
2018	4	176
2019	1	157
2019	2	229
2019	3	374
2019	4	192
2020	1	172
2020	2	252
2020	3	415
2020	4	210
2021	1	186
2021	2	273
2021	3	440
2021	4	221
2022	1	196
2022	2	285
2022	3	462
2022	4	229

a. Use the data of mentioned table to compute the four-period moving average and enter your values in the appropriate columns.
b. Plot the data and describe the main features of the series.
c. Calculate the Centred Moving Average (CMA)/Baseline. Interpret it.
d. Calculate the Trend and interpret the trend.
e. Determine the Seasonality (St) and interpret it properly .
f. Forecast the revenue for 8th year.
g. Calculate the Error, mean absolute percentage error (MAPE), Mean Square Error (MSE) and Mean Absolute Deviation (MAD).
h. Write a brief report to explain and evaluate and make comments on the error variables, the forecasted and actual revenues

Learning Outcome 1: Define and evaluate key concepts of business analytics.
Learning Outcome 2: Critically apply business analytics skills for decision making.
Learning Outcome 3: Critically analyse and interpret the outputs of data mining models and forecasting results for end-users.
Learning Outcome 4: Solve managerial problems and make systematic decisions by applying business data analysis techniques.
Learning Outcome 5: Have ability to apply business analytics to various international business contexts by selecting appropriate techniques.