Starbuck’s 2019 Annual Report shows the Sales growth across 2015-2019 is: What is the average Americas change in ticket from 2015-2019? If the Americas change in ticket follows a Normal distribution with a mean of 3.2% and SD of 0.5 %, fore years 2015-2019, which year(s) have a cheering change in ticket (2SD above average sales growth)? which year(s) have a depressive change in ticket (2SD below average sales growth)? What is the average International change in ticket from 2015-2019?
Continuous Probability Distributions
Probability distributions are of two types, which are continuous probability distributions and discrete probability distributions. A continuous probability distribution contains an infinite number of values. For example, if time is infinite: you could count from 0 to a trillion seconds, billion seconds, so on indefinitely. A discrete probability distribution consists of only a countable set of possible values.
Normal Distribution
Suppose we had to design a bathroom weighing scale, how would we decide what should be the range of the weighing machine? Would we take the highest recorded human weight in history and use that as the upper limit for our weighing scale? This may not be a great idea as the sensitivity of the scale would get reduced if the range is too large. At the same time, if we keep the upper limit too low, it may not be usable for a large percentage of the population!
- Starbuck’s 2019 Annual Report shows the Sales growth across 2015-2019 is:
- What is the average Americas change in ticket from 2015-2019?
- If the Americas change in ticket follows a
Normal distribution with amean of 3.2% and SD of 0.5 %, fore years 2015-2019,- which year(s) have a cheering change in ticket (2SD above average sales growth)?
- which year(s) have a depressive change in ticket (2SD below average sales growth)?
- What is the average International change in ticket from 2015-2019?
- If the International sales growth follows a Normal distribution with a mean of 1.8% and SD of 0.3 %, for years 2015-2019,
- which year(s) has a z score equal or larger than 1(hint: 1SD above average)?
- Which year(s) has a z score equal or smaller than -1(hint: 1SD below average)?
- If both American change in ticket and international change in ticket for 2020 is 1.5%, which one has worse change in ticket in terms of its own distribution?
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