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A statistical analysis on the temperature trends to determine whether or not a business is sustainable year-round.

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Overview of the Statistical Analysis

Purpose

The purpose of this analysis was to determine whether or not Surf and Ice Cream shop business is sustainable year-round. In order to reach a conclusion a statistical analysis has been performed on the temperature trends for the month of June and December in Oahu.

Results

The complete analysis can be accessed here.

A summary of the statistical results for June and December is presented below

June

Jun

December

Dec

Three key differences in weather between June and December

  1. The above results indicate that the average temperature for June is 75 degrees where as the average for December is 71 degrees. This is a difference of 4 degrees which doesn’t appear too big to cause an impact on ice cream sales.
  2. The temperature range in June is between 64 and 85, a rage of 21 degrees. The temperature range in Dec is between 56-83, a rage of 27. This shows that the temperature spread or temperature fluctuation in the month of December is larger. Hence, the day to day December sales may not be as consistent as the day to day June sales.
  3. There are a total of 1700 temperature observations recorded for June and a total of 1517 temperature observations recorded for the month of December. This makes the June observations relatively more reliable, however, the December obsarvations are still very reliable.

Summary

High-level Summary of the Results

Oahu would be an excellent location for the ice cream shop as the average temperature for June and December only differs by 4 degrees. The difference in summer and winter temperatures will not impact sales. There are less temperature fluctuations in June compared to December. This idicates that the June sales may be higher than December sales, however, overall temperature analysis above indicates that December temperatures on average are not much differernt compared to June, indicating year-round ice cream sales.

Two Additional Queries

  1. The precipitation trends in Oahu can be analyzed to get a sense of the month-to-month fluctuations that may impact instore traffic.
  2. The stations that contributed to the weather observations can also be taken into consideration when planning on where to setup the ice cream shops. Locations closest to the stations would be best.

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