All language subtitles for 40 - Distribution V1 - lang_en

Let's look at this table for sale leads provided across the 10 regions.

We've also provided the average here.

The chart depicts the same information with

the average sale leads depicted in the dash line.

Now if you simply looked at the average sale leads across the 10 sales regions,

you would assume that your sales team got about 430 leads on average.

However, that is not the full story.

That is the reason why you examine the median and you find out that

actually 50 percent of your regions sell below the average.

The median here is depicted in this purple line here.

If you are presenting to your company executives,

that is not a convincing story as they would wonder,

"Well, what is a difference between a 100 leads?

That looks like a big difference between the average and the median."

That's why it's always important to look at the distribution.

You see when we crafted and compare the mean and the median,

you see that the region 10 did exceptionally well.

This type of negatively skewed data necessitates the use of measures of central tendency.

Looking at your measure of central tendency mean,

median are very important as you are missing

vital inflammation if you skip this part in your analysis.

In other words, what you're seeing in region 10 was what was pulling the mean up.

This revelation can lead to further investigation.

For example, why did region 10 have so many more leads than the other regions?

What was unique about it?

Is there an untapped market we don't know about or

maybe the sales manager in charge of that region did well? You get the drift.

Looking at the larger context and the distribution always gives you

more information than you can simply by looking at one number such as the average.

These are important pieces of information that you need to bring

back to your company and decision makers as a business analyst.