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statisticscomparevarianceperiod

Tests to Compare Sales Mix Percent between Periods


Background

I wish to compare menu sales mix ratios for two periods.

A menu is defined as a collection of products. (i.e., a hamburger, a club sandwich, etc.)

A sales mix ratio is defined as a product's sales volume in units (i.e., 20 hamburgers) relative to the total number of menu units sold (i.e., 100 menu items were sold). In the hamburger example, the sales mix ratio for hamburgers is 20% (20 burgers / 100 menu items). This represents the share of total menu unit sales.

A period is defined as a time range used for comparative purposes (i.e., lunch versus dinner, Mondays versus Fridays, etc.).

I am not interested in overall changes in the volume (I don't care whether I sold 20 hamburgers in one period and 25 in another). I am only interested in changes in the distribution of the ratios (20% of my units sold were hamburgers in one period and 25% were hamburgers in another period).

Because the sales mix represents a share of the whole, the mean average for each period will be the same; the mean difference between the periods will always be 0%; and, the sum total for each set of data will always be 100%.

Objective:

Test whether the sales distribution (sales mix percentage of each menu item relative to other menu items) changed significantly from one period to another.

Null Hypothesis: the purchase patterns and preferences of customers in period A are the same as those for customers in period B.

Example of potential data input:

[Menu Item]  [Period A]  [Period B]
Hamburger      25%          28%
Cheeseburger   25%          20%
Salad          20%          25%
Club Sandwich  30%          27%

Question:

Do common methods exist to test whether the distribution of share-of-total is significantly different between two sets of data?

A paired T-Test would have worked if I was measuring a change in the number of actual units sold, but not (I believe) for a change in share of total units.

I've been searching online and a few text books for a while with no luck. I may be looking for the wrong terminology.

Any direction, be it search terms or (preferably) the actual names appropriate tests, are appreciated.

Thanks,

Andrew

EDIT: I am considering a Pearson Correlation test as a possible solution - forgetting that each row of data are independent menu items, the math shouldn't care. A perfect match (identical sales mix) would receive a coefficient of 1 and the greater the change the lower the coefficient would be. One potential issue is that unlike a regular correlation test, the changes may be amplified because any change to one number automatically impacts the others. Is this a viable solution? If so, is there a way to temper the amplification issue?


Solution

  • Consider using a Chi Squared Goodness-of-Fit test as a simple solution to this problem:

    H0: the proportion of menu items for month B is the same as month A

    Ha: at least one of the proportions of menu items for month B is different to month A

    There is a nice tutorial here.