Northwind Company Findings

Business Case:

Northwind Company is a food import/export company.

Northwind Company would like a thorough analysis of their data (provided by Northwind) conducted to determine possible insights and trends in order to help them grow their business, and focus their efforts in the most efficient and effective manner.

After reviewing Northwind Company's data, and speaking to them in a kick-off meeting, there are 4 questions in particular that are important for them to have further knowledge on:

1. Does the discount amount have a statistically significant effect on the quantity of a product in an order? If so, at what level(s) of discount?

2. Does the region of Northwind's suppliers have a statistically significant effect on the unit price of products?

3. Does the region customers live in have a statistically significant effect on the amount of money they spend on their orders?

4. Is the quantity sold for produce products and dairy products statistically different?

Conclusions:

Performing various hypothesis tests and reviewing effect sizes, p-values and power the following conclusions and recommendations have been determined:

1) Does the discount amount have a statistically significant effect on the quantity of a product in an order? If so, at what level(s) of discount?

The discount rate has a statistically significant effect on the quantity of a product in an order, Northwind Company should continue to offer discount rates to customers to increase the quantity of products sold in an order. In particular, Northwind should offer 5% or 15% discount rates to customers as they produce the largest statistically significant effect on the mean quantity of a product ordered.

2) Does the region of Northwind's suppliers have a statistically significant effect on the unit price of products?

There is no statistically significant effect on the unit price when considering the region the supplier resides in for all supplier regions. Therefore, we recommend that Northwind Company does not worry about the region of their suppliers as it does not appear to effect the unit price of products.

3) Does the region customers live in have a statistically significant effect on the amount of money they spend on their orders?

It appears that each region a customer lives in has a statistical significance on the cost they spend on their orders. Western Europe, followed by North America spend the most on the products they order, while Southern Europe spends the least. It is recommended that Northwind focus their efforts more on Western Europe and North America to continue to increase their revenue and perhaps stop providing business to Southern Europe to help support these efforts.

4) Is the quantity sold for produce products and dairy products statistically different?

There is a statistical difference between the quantity of a product ordered when considering dairy vs produce products. There is a higher quantity of dairy products sold, so if Northwind is considering dropping one of the two products it is recommended they decide to focus their their efforts more towards selling dairy products instead of produce products.

Location of Analysis

The location of the analysis can be found here: dsc-mod-3-project-online-ds-ft-081219/Module 3 Final Project.ipynb