The Assignment Details

Task 1: 5 marks
Search through current (i.e. later than June 2006) newspapers or popular magazines to find an example of a
graph being used as evidence for a point of view.

Describe the type of graph being used.

Briefly outline the message that the graph is intended to convey.

Comment on the content and design of the graph, considering both:

-

any good features, and

any poor aspects of the design, or features which have been omitted.

Note: Include a clear copy of the graph with your submission and indicate its source. Take care to choose a
suitable graph and remember to focus on the graph and not on the accompanying article.
Task 2: 20 marks
Recently a survey of restaurants was undertaken by a Business Development Group in 21 selected metropolitan
centres around Australia. Random samples were taken in each of the 21 centres and the results combined to
form the data set Restrnt.xls. A summary of the data set is provided below with descriptions of the variables used
in the survey.
Variabl

Description

e
ID

Identification Number of Restaurant

1
0
Outlook

Business outlook from 1 = very unfavorable to 7 = very favorable

1
0
Sales

Gross 1979 sales in $1000s

1
0
NewCa
p

New capital invested in 1979 in $1000s

1
0

Value

Estimated market value of the business in $1000s

1
0
CostGo

od

Cost of goods sold as a percentage of the business

0
Wages

Wages as a percentage of sales

1
0
Ads

Advertising as a percentage of sales

1
0
1

TypeFo

od

1 = fast food, 2 = supper club, 3 = other

0
Seats

number of seats in dining area

1
0
Owner

1 = sole proprietorship, 2 = partnership, 3 = corporation

1
0
Ft.Empl

Number of full-time employees

1
0
Pt.Empl

Number of part-time employees

1
0
Size

Size of restaurant 1 = 1 to 9.5 employees, 2 = 10 to 20, 3 = over

20

(a part-time employee is 0.5)

Before you begin your analysis you must take a random sample of 60 from the 210 establishments surveyed. To
do this, use the random selection facility available in Excel. Dont forget to name the columns appropriately and
to save your file as Asst-1.xls.
You may notice that some of the variables are quantitative and some are qualitative. You know that the type of
data will influence which techniques you use to analyse the data. The main aim of this task is to gain a better
understanding of restaurants around Australia according to the variables mentioned above. You are required to
analyse the data statistically and graphically using Excel and write a brief report on your findings. Make sure
you follow the guidelines provided in lectures regarding the presentation of graphs and tables.
Your report should include the following:

An introduction that states the purpose of the report and carefully defines the variables of interest.
Statistical analysis that includes all the graphs, tables and numerical data.

There should be a

discussion of each graph and table used. This section will include

a graph of a qualitative variable;

a table comparing 2 qualitative variables;

a histogram and associated frequency distribution of an appropriate variable together with the
corresponding numerical descriptive statistics;

a scatterplot of 2 variables;

side-by-side boxplots of 2 variables ie. boxplots on the same scale;

comparative summary statistics of 2 variables (that is, compare the descriptive statistics of a
quantitative variable with respect to a qualitative variable).
Accompanying each graph or table you should make brief comments relevant to the output and in the
context as described above.

A conclusion that discusses any patterns or relationships that may be apparent from the statistical
analysis of the data, graphs, and tables.

Note:
Please refer to the unit description under the heading Assessment Criteria for information regarding late
assignments, extensions, and special consideration.

PART I. Chart analysis.

I have chosen an article with the title of Alinta-AGL Deal to Power Activity from The Financial
Review on Wednesday, 23 August 2006. This article is attached as an appendix.
The charts which are included in this article are: a line chart and three comparative smaller bar charts.
As can be seen from the line chart, the index of comparative returns for the Alinta and AGL
companies demonstrates entirely different situations from each other. They emphasise the changes of
comparative returns from Sep.9th 2005 to Jul.21st 2006. Clearly, the returns of Alinta ascended
gradually from a little lower than common base (Aug 22, 05) in Sep 9 th 2005 to 52 in Jul 21 st 2006.
Alternatively, the case of AGL is quite different from that of Alinta. Analysis shows that there will be
no significant changes in the comparative returns in AGL.
There are three relevant bar charts on the right hand side. These bar charts show yearly results in
different areas: Revenue, Net profit and Dividends, from April 2005 to May 2006. It is depicted
clearly from the charts that the situations in different areas are quite similar. For instance, AGL
appears to have achieved a much higher amount than Alinta, not only in revenue but also in net profit
and dividend. However, it is worth mentioning that the net profit decreased dramatically in the second
year. On the other hand, Alinta received a small amount of revenue, net profit and dividends which are
only 1 fourth of what AGL has obtained. Moreover, it shows a slight slow increase trend during the
period. Based on the analysis of these charts and statistics, it is important for Alinta to explore a more
effective way to improve their comparatively fragile financial state.
These charts are considered to be excellent because the author used the chart technology effectively in
several aspects. Firstly, the charts consist of a clear title Gas power and with other subtitles such as:
comparative returns, comparative result including significant items, which gives the readers clear
ideas of the main purpose of the charts. Secondly, they seem complicated, but the idea and the
relationships between those charts are easy to understand even without reading the article. Thirdly, the
structure of the charts is planned very well, which conveys a concise image to readers. However, there
is one thing that should be considered. The changes presented in the line chart are values not in
percentage form. Overall the charts are designed successfully with the aim to broaden a viewers point
of view through comparing the different charts. It is no doubt that they are informative, concise, and
offer clearly presented data to viewers.

PART B-----Report on the Australian Restaurants

Introduction
This report deals with the specific perspective of investing a restaurant in Australia. The purpose of
doing this report is mainly to have a better understanding of Australian restaurants, which will be
helpful to make a decision for establishing a restaurant in Australia.
Through analysing the data from 60 local restaurants statistically and graphically, it will become
possible to gain several important ideas such as the influence of outlook value or advertisement
expenditure and the type of restaurants which are considered to generate higher potential to create
revenue. In addition, it is also effective to compare the number of full-time and part-time employees
and wage ranges among those restaurants.
Compare outlook with respect to the type of food.
Type food
Outlook

Corporatio
Fast food

Supper club

Please note: business outlook value various from 1=very unfavourable to 7=very favourable.

The table above demonstrates the outlook value variability according to the types of food in 60
Australian restaurants. The most unfavourable outlook (1 point only) largely appears in fast food
restaurant, which accounts for over 27%; while the corporation food does not seem to have any
negative results. On the other hand, there are around 36% of the people unsatisfied (2 point) with the
supper club outlook. In contrast, there are only half of the amount of people unsatisfied with the
corporation outlook. It is interesting to observe that there are no big differences between 4 and 5 point
value of outlook in various types of food. Additionally, only one restaurant selling fast food is
believed to have the most favourable outlook throughout the research.

The relationship between ownership and size of restaurants.

Please note - Size of restaurant:

Small=1 to 9.5 employees; Median=10 to 20 employees; Big=over 20 employees (a part-time employee is 0.5)

This is a bar chart showing the relationship between the size of restaurants and the type of ownership,
namely, solo, partnership and corporation. From the chart above we can see that the size of
restaurants, in the ownership, mentioned is quite different. It can be seen from the chart that there is a
largest percentage of solo ownership which employs less than 10 people. For instance, there is not an
existing solo ownership which has over 20 employees. However, both small and large size restaurants
play a minor role in partnership which accounts for 13% and 8% respectively. Furthermore, no single
partnership has an amount of employees between 10 and 20 people. Compared with the former
ownership, corporation ownership has a variety of employees. There appears to be that more than
20% of corporation restaurants are smaller. The larger sizes of restaurants are less likely to be
operated in corporation ownership.
As indicated above, the sole ownership tends to employ fewer employees, while the partnerships are
likely to employ either less amounts or bigger amounts of employees. Additionally, the corporation
has a different size restaurant, but it is seems more popular to run small size restaurants.
The analysis wages among different type of restaurants.
Wages

Frequency

Cumulative %

5%

10

12%

15

18%

20

13

40%

25

14

63%

30

11

82%

35

93%

40

98%

More

100%

The histogram is created at the same time as the cumulative percentage table. As is indicated clearly
from the histogram, the shape is symmetrical. There are about half of the employees who receive a
6

wage from 20 to 30% of sales.

An equal amount of employees are given a comparative low wage either around 5 % to 15 % or a
relative higher wage of more than 30% of sales. The histogram below gives us quite a clear view of
the way wages are distributed.

The influence of advertisement

In order to find out the relationship between the advertisement expenditure and sales level, we can set
up a scatter diagram as is illustrated below.

The pattern of the scatter diagram demonstrates the non-linear relationship between the advertisement
expense and sales level. This scatter diagram is not a straight line which depicts the two variables are
unrelated. It means that the larger amount of advertisement expense does not help to accelerate sales
revenues. It is more useful to draw an ellipse, which provides us with the information the majority of
restaurants spend only less than 10% of the sales on advertising. Among those restaurants, the sales
levels are various. However, it can be observed from the diagram that the sales tend to focus in the
range of less than $500,000. Few restaurants gain an amazing level of sales which is over $800,000.
In brief, the sales levels do not depend on how much money you spend on advertisements. There
should be some other reasonable way, for instance, enhance food value, decrease cost of goods sold,
introduce beneficial suppliers.
7

Number of full-time and part-time employees

From the box plots below, we can grasp several points concerning the number of full-time and parttime employees. It can be observed from the chart that the number of full-time employees appear to
be lower with the ranges from 0 to 40. About half the amount of the restaurants employs less than 3
workers and about half employ more than 3 workers. Nearly 50% of the restaurants employ between 1
to 8 full-time workers. As is shown in the box plots, the part-time value is much more spread and
consistent, in contrast to a higher level of mean and standard deviation. It can be seen from the
graphical analysis above, the large proportion of restaurants in Australian are occupied by part-time
workers. It can be assumed that the restaurants favour young workers and comparative lower payment
are the main reasons for this situation.

(Please note: V1=full-time employees, V2=part-time employees)

Compare the cost of good sold for both sole and corporation ownership

V1

V2

Mean

46.84

41.79

Median

44

40

StDev

16.5521

10.9426

Max

99

65

Min

25

Q1

39

40

Q3

51

50

IQR

12

10

25

29

(Please note: V1=sole ownership of cost of good, V2=corporation ownership cost of good).

The table conveys the information about the relationship between the cost of goods sold in two types
of ownership, namely, solo and corporation.
8

It is shown from the data that solo ownership receives higher level of Mean, Median and Standard
Deviation. Therefore, it indicates that sole ownership average selling expense is relatively higher than
corporation ownership. However, it is normally the case that the lower cost of goods sold the higher
the sales revenue will be. There might be some reasons for the diversity.

The histograms above show the shapes of different value. Cost of goods sold in solo ownership on the
left hand side illustrates a positive, while corporation costs of goods sold show a symmetric shape.

Conclusion
Based on the graphical interpretation of the data above, some insight into running a restaurant may be
successfully gained. Generally, it is more important to consider the type of ownership before starting.
It is only because ownership has significant influence on many aspects, such as cost of goods sold,
size of the restaurant. Moreover, the use of advertisements only has a positive effect on sales to a
certain extent. Overall, it is not a thorough study for this topic, there is a great deal more to be
investigated. It is more likely that a further study should focus on setting up a proposal for
establishing a restaurant in Australia.