Data Analyst

by Paul
(UK)

Should a BA have access to SQL ?


Answer

One of the hats that some Business Analysts wear is as a Data Analyst. It depends on the talents of the Business Analyst and the job requirements Almost all companies have data stored on their computers that hold valuable information about the flaws and strengths of the company. The problem lies in turning that data into useful information. Using SQL with programs like SAS or SPSS along with the ingenuity of the Data Analyst can result in rich rewards from the data mining efforts.

Dee Reavis

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Analysis of the Data

by Kingsley
(Ghana)

What is the role of standard deviation in relation to data analysis?

Comments for Analysis of the Data

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Feb 13, 2010
Standard Deviation of Data
by: Dee Reavis

When you have a mass of numbers as your data, it is hard to understand those numbers without creating some measures that represent what the data means.

The first step is to calculate the average or mean. This measure gives you some idea of what to expect from an individual piece of data. I will assume you know how to do that.

The second step to understanding your data is to determine its central tendency or how close the data points stay to the average. This where standard deviation comes in. If you were to average 1 and 99 you would get 50. However, you would get the same average for 49 and 51. The standard deviation (also called the root mean square) measures that variability from the mean.

To get a better understanding of this important concept of data analysis go to What Is Standard Deviation or Standard Deviation Calculator

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Project Analysis

by James
(Murfreesboro, Tennessee)

Lets say I have a company that wants to sell a new line of golf clubs. The clubs will sell for $750 per set and have a variable cost of $300 per set. The company has already spent $150,000 for a marketing study that determined the company will sell 51,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 11,000 sets of its high-priced clubs. The high-priced clubs sell at $1,200 snf have a variable cost of $650. The company will also increase sales of its cheap clubs by 9,500 sets. The cheap clubs sell for $420 and have a variable costs of $190 per set. The fixed costs each year will be $8,100,000. The company has also spent $1,000,000 on research and development for the new clubs. The plant and equipment required will cost $22,400,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,250,000 that will be returned at the end of the project. The tax rate is 40 percent, and the cost of capital is 10 percent. Can you calculate the payback period, and the NPV, along with the IRR?

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Nov 16, 2010
Wrong...
by: Anonymous

This analysis is wrong. Fixed Costs each year are not incorporated. Also in the answer, Depreciation is added and taxed. It should be deducted as an expense, then taxes taken to get to Net Income. Once you have NI, then add back depreciation.

Mar 24, 2010
Cash Flow Analysis
by: Dee Reavis

Here is the analysis:

Capital Costs

R & D 1,000,000
Market Study 150,000
Working Capital 1,250,000
Plant & Equipment 22,400,000

Total 24,800,000

Annual Revenue

New Clubs 51,000 x (750-300) = 22,950,000
Expensive Clubs 11,000 x (1200-650)= -6,050,000
Cheap Clubs 9,500 x (450-190) = 2,470,000
Depreciation 24,800,000/7 = 3,542,857
Taxes 40% x 22,912,857 = -9,165,143

Total 13,747,714

Salvage = 1,250,000

Break Even = 1.8 years

NPV = 83,973,707

IRR = 52.7%


The one possible problem with the analysis is whether to take depreciation of the working capital.

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