1 Statistical project

1.1 Purpose
The purpose of this report was to conduct statistical analysis on given data of US and Non-
USA beers. This Statistical analysis includes the comparative descriptive analysis of the
caloric and alcoholic content and analysis about the normality of the data for USA and Non-
USA beers. Formal statistical tests to describe the difference in mean calories and in mean
percentage alcohol content for US and Non US beers.

1.2 Background
This report relates to beverage industry. Data has been provided by the boss in Brewery
Company. Comparative descriptive analysis and probability distribution test is conducted to
determine the characteristic of data about US and non us beers. Alcoholic beverages are
consumed for different reasons that include psychological and physiological effects. Social
context and religious practices are other cases of beverage consumption. These beverages
often affect the behavioural aspect of individuals and societies so government regulates the
devouring of beverage. Alcoholic beverage includes wines, beers and spirits. Beers contains
alcohol as little as 2% to as much as 8% (keller 2013). According to PR newswire (05
September2013), after the recovery of US economy and increase in per capita disposable
income will augment the beverage industry growth around USD 991.8 billion in
2018.Adertising campaigns have direct effect in the expansion of the beverage industry.
However few challenges include safety, rise raw material and transportation costs.in survey
of Canadians exclusive panel of 144 global beverage firms executives, respondent describes
the China as among developing market with India and Brazil. Eastern Europe and Middle
East are other emerging markets for beverage industry (PR Newswire 2012). Beverage
industry is expanding in United States and all over the world so it is crucial to know the
behaviour of the consumers toward the beer choices. While low-alcohol in beverage is not
new concept and neither it is revolutionary for the industry. It has been occurred during
different time period by choices of consumers. In some countries like United Kingdom
government polices also affected this behaviour by abolishing taxes on alcohol drinks with
less than 1.2 per cent alcohol by volume (Howley & Young 1992). All these factors
contributed in growth and diversification of beers according to the needs of consumers and to
comply with regulation requirements.

1.3 Method
Statistical analysis was conducted to describe the data. Descriptive statistical analysis has
been used to compare the data. Descriptive analysis includes mean, median, mode, standard
deviation, variance, count, rang, maximum and minimum value for each data set. All
descriptive measures were taken on X-axis for both US and Non-US which were taken as
categorical variables. While the level of measurement for the categorical variables were
depicted on Y-axis of the comparative Graph().
Probability tests to show whether data for caloric and alcoholic beers of US and Non US was
normally distributed. Normal distribution test was conducted by using data analysis function
in Microsoft excel. Normal distribution curve shows the distribution of data in excel. Range
was taken on X-axis and relevant frequency of data occurrence has been shown on Y-axis of
normal distribution curve graph ().

Test to determine whether mean calories and percentage alcohol in US and Non US beer was
same, was conducted through PHstat function. Pooled variance test under two tail
hypothesis tests by assuming the equal variance was run by entering the mean, standard
deviation and number of values of both samples.

2 Results:
Firstly, comparative descriptive analysis of both caloric and alcoholic content of US and Non
US beers has been shown as in following table which represent mean, median mode and other
descriptive figures of data for descriptive analysis. Graphical description of this data has been
shown in appendices()

Secondly, normality tests for caloric and alcoholic beers of US and Non US.
Frequency distribution of the alcoholic and caloric content US and Non US beers
are as

Alcoholic and caloric contents frequency distribution for US beers is represented

in following tables.
Following normal distribution graphs for US beers are also provided in
appendix().

Frequency distribution of the alcoholic and caloric contents in Non US beers is

following

The mean calories of US and Non USA beers have no significance difference as
evident from the two tail hypothesis tests.
Test to determine the mean percentage of alcoholic content of USA and Non USA
beers is the same. The result of two hypothesis tests that shows no evidence of
significance difference in mean percentage of US and USA beers is presented
below
2.1 Discussion
Statistic is scientific method of collecting, describing, analysing, interpreting the numerical
data to extract inferences from the available data. These inferences are then used for
planning, and forecasting in managerial accounting. Descriptive statistical analysis shows the
comparative values of US and Non US beers for alcohol and calories. Mean, median and
mode portray the central tendency of the data. Mean represent the average value of the data.
Mean value of alcohol percentage in Non US beers were higher than US beers. But the
difference is too slight with value of 0.179 %.Median represent the central value of the data.
If the data was organized in ascending order then median would be central value. If central
value was odd number then central two numbers would be added and divided by two. Median
for the US and Non US beers were 5% and 4.53% .mode depicts most repetitive value in the
data. In non US beers, data have 0.1% as most repetitive alcohol percentage in beers which is
lower than the US beers that was 4.53%.these three measurements are used for same purpose
and use of each measurement is depend on purpose of analysis. Median and mode are more
useful for skewed data. Variation of alcohol percentage was higher in non US beers that were
1.852 as compared to US beers which was just 1.397. These statistical values also describe
the normality of data. If the mean, median, mode and variance of data have less difference
than we can say data is normally distributed or approximately normally distributed. In this
case alcohol percentage of US beers has less difference in mean, median and variance values.
Mean value of 4.388, 4.53% for median, mode with 4.82% and 1.397 for variance. Only
variance has less value than other because of the less variation in data. It could be due to
small sample size and less range value of data that was only 6.87% as compared to Non US
data that has range value of 9.4%.descriptive values for calories/100ml US beers were more
relative to each other like mean with 37, median 40,mode 43 and variance 89.

Normal distribution is family of distribution. Mean value of the normal distribution is central
value of the data. As we can see the mean and median values for the alcohol percentage of
US beers is 4.388 percent and 4.58 percent as compared to Non US that was 4.56 percent and
5 percent respectively. In normally distributed data mean value of data would be equal to
median. Mean and median values for caloric content of US beers were 37.12ml and 40ml as
compared to Non US which was 40ml and 43ml respectively. Although the mean and median
difference was almost similar for calories of US and Non US beers but variance was 89ml
and 135ml respectively. Non US beers data for alcohol percentage and calories possess more
variations than the US beers. This variation could distort the symmetric shape of data which
represents the normal distribution of data.

2.2 Reference:
Keller, M 2013, alcohol consumption, encyclopaedia Britannica, viewed on 20 October
2013, via OneSearch Database < http://www.britannica.com/EBchecked/topic/13398/alcohol-
consumption >.

PR Newswire 2008, 'United States Out-of-Home Food and Beverage Market Forecast &
Opportunities 2018, 05 September, viewed 22 September 2013, via ProQuest database.
PR Newswire 2012, Global Beverage Survey 2012-2013: Market Trends, Marketing Spend
and Sales Strategies in the Beverage Industry, 30 July, viewed 22 September 2013, via
ProQuest database.

Howley, M & Young, N 1992, Low-alcohol wines: The consumers chice? International
Journal of Wine Marketing, vol. 4, issue 3, viewed 10 October 2008, via ProQuest.

2.3 Statistical Appendix

2.3.1 Comparative descriptive analysis of US and Non US

beers

2.3.1.1 Comparative descriptive analysis of alcohol

content of US and Non US beers
2.3.1.2 Comparative analysis of Calories/100ml in US
and non-US Beers

2.3.2 Normal distribution Graphs

2.3.2.1 Distribution graph for alcohol content in US

and Non US beers
2.3.2.2 Distribution graph for calories content in US
and Non US beers