Economic prospect and growth potential of Durham Industries Inc.
The challenges of a firm’s business expansion influence its growth potential. Thus, Durham Industries must analyze the business potentials of a geographical location before expansion. As a result, we will analyze sample data from Oceana and Eastasia. Thus, the statistical analysis will facilitate the recommendations for Durham’s business expansion.
Data analysis
Oceana’s average income is $1000 per household, with a variation of $300. As a result, Oceana’s disposable income has a higher variation compared to Eastasia. Thus, the gap between rich and poor is higher in Oceana than in Eastasia. The frequency distribution table revealed that Eastasia households earned between $831and $883(max). Consequently, the histogram showed that household disposable income is skewed.
The analysis revealed that the average disposable income (mean) per household was $894.96, with a variation (standard deviation) of 88.5912. The coefficient of variance (0.098989) showed that mean household income depends on the unit change in disposable income. Consequently, analysis to test the significant level of Eastasia’s disposable income showed compelling evidence to support the hypothesis (Ho).
The research findings revealed that poverty levels in Oceana were 0.1495. However, the poverty level in Eastasia was 0.0162. Thus, the GDP of Eastasia is stable compared to Oceana. The confidence interval describes the difference between two means. Thus, we express a 96% confidence interval of the sample population. The p-value of 0.05 describes the probable result if the experiment is repeated five times. However, t value is a statistical technique for hypothesis testing. The one-tail t model was used in the analysis
Recommendations
From the analysis, I recommend that business expansion be carried out in Eastasia. The research finding showed that the gap between rich and poor is less in Eastasia compared to Oceana.