Ska Brewing

PROBLEM 1

Situation:

Ska Brewing Company is a producer of fine craft beers located in Durango, Colorado. With its flagships Ale and Lager, they have enjoyed double-digit growth for more than a decade with no signs of allowing down.

Ska was founded in 1995, and through hard work and laser-like focus on brewing great beer continued to grow. In 2012, Ska brewed more than 25,000 barrels of beer (1 barrel = 2 standard kegs = 4,032 ounces) with sales exceeding $6.5 million.

Action:

Using the attached MS Excel Workbook, use the methods of descriptive statistics analytics to summarize the Ska annual data listed in table 1. Discuss your findings.

1. Include a summary of each variable (number of barrels sold and gross annual sales) in the data set. Use histograms, descriptive statistics, and Empirical rule to gain insight and detect data patterns.  Your answer should refer to histograms, Empirical rule, and descriptive statistics (mean, median, mode, standard deviation, skewness, and kurtosis) to explain detected data patterns (i.e. increasing/decreasing/stable trends, whether the data is normally distributed based on Empirical rule, …).

USING RED FONT SHOW YOUR ANSWER FOR PART a HERE.

THE FOLLOWING INSTRUCTIONS APPLY TO ALL SECTIONS OF THE CASE STUDY REPORT WHERE ANSWER TO QUESTION IS REQUIRED:

• LABLE EACH EXCEL/MINITAB OUTPUT USED TO ANSWER EACH QUESTION AND PLACE THE TABLES/GRAPHS AT THE END OF THE REPORT IN THE “APPENDIX – EXCEL/MINITAB OUTPUT DATA”. SEE THE SAMPLE TABLE IN THE APPENDIX.
• HERE IS WHAT A TYPICAL ANSWER COULD LOOK LIKE” BASED ON DESCRIPTIVE STATISTICS PROVIDED IN TABLE 1, THE MAXIMUM AND MINIUM AGE OF SUBSCRIBERS ARE 45 AND 22, RESPECTIVELY. FURTHERMORE, THE MEAN, MEDIAN, AND MODE FOR THE AGE OF THE SUBSCRIBERS ARE 33.2, 33, AND 32, RESPECTIVELY. THIS DATA SUGGESTS THAT DISTIBUTION OF THE DATA IS SYMMETRICAL. THIS IS ALSO SUPPORTED BY LOW SKEWNESS VALUE OF 0.16.”
• USE “ENTER” KEY TO ADD MORE LINES IN THE ANSWER SECTIONS TO CREATE MORE SPACE FOR YOUR ANSWERS AS APPROPRIATE
• DELETE THE ABOVE INSTRUCTIONS SHOWN IN RED FONT WHEN SUBMITTING YOUR CASE STUDY REPORT FOR GRADING. ONLY SHOW YOUR ANSWER FOR EACH QUESTION AS THE ABOVE INSTRUCTIONS ARE NOT NEEDED FOR GARDING CASE STUDY REPORTS.

For the next two parts of this problem, use the descriptive statistics to summarize the Ska monthly data listed in table

1. Discuss your findings with respect to the appropriate measures of central tendency (mean, median, and mode), measures of dispersion (range and standard deviation), skewness, and kurtosis of the data. Refer to Empirical rule as a part of interpretation of the monthly data patterns.

USING RED FONT SHOW YOUR ANSWER FOR PART b HERE

1. One concern at Ska is seasonal variation. The brewery is much busier during summer months than during winter months. Two possible explanations for this phenomenon are that 1) people simply buy more beer during summer, and 2) Ska releases two very popular seasonal beers, Mexican Logger and Euphoria Pale Ale at the beginning and end of summer season. To get a better handle on the seasonal variation at Ska, your task is to draw clear picture of what’s happening (data visualization such as histogram and trend lines). Make sure to include in your answer, based on descriptive statistics, whether there appears to be seasonal variation present in the monthly number of barrels sold and monthly gross sales comparing warm summer months to cold winter months.

USING RED FONT SHOW YOUR ANSWER FOR PART c HERE

1. For this part of problem, note that two pieces of data is provided, namely, number of barrels and monthly gross sales. Considering that there is obvious increasing trend in annual gross income, is this increase due to increase in number of barrels sold or price increase per barrel? Justify your answer based on descriptive statistics. Hint: you would need to calculate price per barrel based on gross income and number of barrels sold based on data provided.