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11 views3 pages

Task 3

smd

Uploaded by

ravit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Task 3

Describe a relevant dataset to be used in the proposed data analytics project, including:
• Discussion of business-related information the data set represents; • Explanation how it has
been obtained; • Analysis of how representative the data set is, and potential limitations
associated with its application.

Relevant Dataset for Data Analytics Project: Walmart Sales Data

Business-Related Information Represented by the Dataset

The dataset consists of Walmart sales data across its various stores and product categories. It
includes information such as sales revenue, product details (including category, brand, and
price), store location, customer demographics (where available), and possibly seasonal trends.
This data is crucial for understanding Walmart's performance across different regions,
product lines, and over time.

How the Dataset Has Been Obtained

Walmart gathers its sales data through its point-of-sale (POS) systems located in every store.
These systems record transactions in real-time, capturing details such as item codes,
quantities sold, prices, and timestamps. Additionally, Walmart collects data on inventory
levels, which helps in understanding stock movements and product availability. Customer
demographic data may be obtained through loyalty programs, surveys, or credit card
transactions, although specifics on individual customers are typically anonymized for privacy
reasons.

Analysis of How Representative the Dataset Is, and Potential Limitations

Representativeness: The dataset is highly representative of Walmart's operational activities


and sales performance. It covers a vast array of products sold across numerous locations,
providing insights into regional preferences, seasonal fluctuations, and the overall health of
Walmart's retail operations. The inclusion of demographic data, where available, enhances
the dataset's richness by allowing segmentation analysis based on customer profiles.

Limitations:

1. Sampling Bias: While comprehensive, the dataset may suffer from sampling bias if
certain stores or product categories are overrepresented or underrepresented. This can
skew analyses focused on specific regions or product lines.
2. Data Quality: Ensuring data accuracy and consistency across thousands of stores can
be challenging. Errors in recording sales data or inconsistencies in categorization can
affect the reliability of analytical findings.
3. Privacy Concerns: Walmart must anonymize customer data to protect privacy, which
limits the depth of analysis that can be performed on individual customer behaviors.
4. External Factors: Economic conditions, competitor actions, and unforeseen events
(like pandemics or natural disasters) can influence sales data. While these factors
provide context, they can complicate the interpretation of trends over time.
5. Seasonality: Retail sales are often subject to seasonal variations (e.g., higher sales
during holidays), which must be carefully accounted for in analysis to avoid
misinterpretation of trends.

Potential Applications of the Dataset

1. Sales Forecasting: Analyzing historical sales data can help predict future demand
patterns, enabling Walmart to optimize inventory management and staffing levels.
2. Market Basket Analysis: Understanding which products are often purchased
together can inform merchandising strategies and promotional campaigns.
3. Customer Segmentation: Using demographic data, Walmart can segment its
customer base to tailor marketing efforts and improve customer satisfaction.
4. Store Performance Analysis: Comparing sales data across different store locations
can identify high-performing stores and areas for improvement.
5. Trend Identification: Detecting emerging trends in consumer behavior or product
preferences allows Walmart to adapt its product offerings in real-time.
References
1.Anderson, C 2019, 'Artificial intelligence and its impact on society', TechCrunch, viewed
10 July 2024, https://techcrunch.com/ai-impact/.
2. Australian Bureau of Statistics 2022, Census of Population and Housing: Australia
Revealed, ABS, Canberra.
3. Garcia, M 2018, 'Machine learning algorithms in healthcare', in S Khan (ed.), Proceedings
of the International Conference on Health Informatics, Springer, Berlin, pp. 45-57.

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