Gregory Lee - Business Statistics Made Easy in SAS

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Business Statistics Made Easy in SAS

Table of Contents

The correct bibliographic citation for this manual is as follows: SAS Institute Inc. 2015 . Business Statistics Made Easy in SAS Cary , NC: SAS Institute Inc.

Business Statistics Made Easy in SAS

Copyright 2015, SAS Institute Inc., Cary, NC, USA

ISBN 978-1-62959-841-3 (Hardcopy)

ISBN 978-1-62960-044-4 (Epub)

ISBN 978-1-62960-045-1 (Mobi)

ISBN 978-1-62960-046-8 (PDF)

All rights reserved. Produced in the United States of America.

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U.S. Government License Rights; Restricted Rights: The Software and its documentation is commercial computer software developed at private expense and is provided with RESTRICTED RIGHTS to the United States Government. Use, duplication or disclosure of the Software by the United States Government is subject to the license terms of this Agreement pursuant to, as applicable, FAR 12.212, DFAR 227.7202-1(a), DFAR 227.7202-3(a) and DFAR 227.7202-4 and, to the extent required under U.S. federal law, the minimum restricted rights as set out in FAR 52.227-19 (DEC 2007). If FAR 52.227-19 is applicable, this provision serves as notice under clause (c) thereof and no other notice is required to be affixed to the Software or documentation. The Government's rights in Software and documentation shall be only those set forth in this Agreement.

SAS Institute Inc., SAS Campus Drive, Cary, North Carolina 27513-2414.

October 2015

SAS and all other SAS Institute Inc. product or service names are registered trademarks or trademarks of SAS Institute Inc. in the USA and other countries. indicates USA registration.

Other brand and product names are trademarks of their respective companies.

Preface

About the Author

Professor Gregory Lee is currently the Research Director and an Associate Professor in Research Methodology and Decision Sciences at the AMBA-rated Wits Business School.

He has published prior books on human resources (HR) metrics, and has many article publications in the international arena such as the Human Resource Management Journal , European Journal of Operational Research , Scientometrics , Journal of Business-to-Business Marketing , The International Journal of Human Resource Management , International Journal of Manpower , Review of Income & Wealth , Journal of Human Resource Costing & Accounting and many others.

He focuses on issues in human resource management, notably HR metrics (in which he has established himself as a leading expert) and other areas such as training, employee turnover and the employee-customer link.

He has served in many capacities within the international academic field. He has sat on the Graduate Management Admissions Council (GMAC) advisory council, the editorial boards of the Journal of Organizational and Occupational Psychology , and engages in frequent reviewing for many journals.

In addition, he is a well-known consultant, writer and speaker in the corporate and practical management arenas, notably in the area of HR metrics, but extending to other areas such as human resources strategy and foresight.

Acknowledgments

Thank you to my wonderful wife Sayora whose steadfast patience and support makes her a midwife to this project. Further thanks go to Murray de Villiers of SAS South Africa for brokering the book and supporting the courses through which the material arose. As with all such books, the constant probing and constructive inputs of my students has been the books canvas. Further thanks go to my editorial team at SAS Publishing, and my family who helped in many ways.

Chapter 1: Introduction to the Central Textbook Example

Introduction

This book begins with a fictional example that will be used as an illustration throughout the text. The following sections discuss the case and introduce some of the data, which will become familiar to the reader as we navigate many different business analysis examples through the book.

The Company

Your company is Accu-Phi, a new but burgeoning player in the corporate accounting software space.

Accu-Phi started out with a software offering that launched with a widely popular freeware version which attracts advertising revenue. Later, the company produced a premium version for an annual fee, which offers enhanced features and support. Initially, marketing the software and running a sales and support call center was a big focus for the firm.

The latest evolution in the company is a plan to offer consulting and training to existing customers, which we will generally call services. So far, the company has instituted a pilot services offering in one of its territories. The intention of the pilot program is to assess the potential of making consulting and training a major part of the overall business plan, with a nationwide rollout. This strategy comes with a substantial increase in costs, taking the company from a relatively small development firm with centralized staff to a multi-city, full services offering.

Various research projects will help the company in the coming period. One of these is explained next.

Current Research Needs of the Company

The Companys Current Research Project

Introduction to the Companys Project

In the book, we will focus on one major research project for Accu-Phi. Accu-Phi has now been selling services to the pilot group for over a year. Some 279 customers have bought services from the pilot territory. Among this group, you are interested in explaining and even predicting first year services sales in dollars, largely because as a business you want to maximize sales.

Based on your studies or business background, you have used theory and experience to choose other things that you think might explain, predict or at least associate with sales. The next sections discuss these.

Other Variables that Explain, Predict or Associate with Sales

We also have data on the following:

• License - is a description of what license the customer has, where the data would either be Freeware or Premium. You believe that premium software customers should buy more services.
• Size - is a description of the size of the customer by turnover. You categorize this description into three broad levels, namely Small, Medium, or Big based on certain thresholds. Your initial belief is that bigger customers will buy more services.
• Trust - refers to the trust the customer has in your product and company. You have measured trust through four questions in an online survey that you sent to the key account holder at the client. Various areas of management theory, past research and your experience suggests greater trust may lead to greater sales, all else being equal.

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