The purpose of this analysis is to determine the viability of operating a year-round surf and ice cream shop in Hawaii.
Querying historical temperature data for the months of June and December provides statistical insight into temperature variances for the target market. These insights and underlying stats will be used to bolster the pitch to potential investors of the surf shop venture.
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Mean temperatures are similar for the months of June and December. The mean temperature in June is less than 4 degrees higher than the December mean, with June having a mean temperature of 74.94 degrees and December 71.04 degrees.
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The standard deviation of temperatures increases slightly in December, but is still relatively low for both June and December at 3.26 and 3.75 degrees respectively.
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The count of December temperature readings is much lower than June despite December having more days. This is a result of 2017 data being incomplete and strategies to properly address this incomplete set of data should be considered.
Temperatures do not fluctuate much between summer and winter months which supports the hypothesis that a surf and ice cream shop is indeed a sustainable year-round business. The variance in top line temperature stats between June and December are negligible which provides significant potential business upside.
For example, the lack of temperature seasonality means product mix does not need to change as often as similar retailers in different locations. This lack of seasonality allows for various efficiencies and economies of scale which will translate to healthier margins.
In order to further validate the insights based on querying June and December temperature data, several addtional queries should be performed. Below are three suggestions for additional queries to ensure a robust analysis is presented to investors:
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Query precipitation data for June and December to ensure stable temperature conditions aren't offset by seasonality in the amount of rainfall.
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Query temperature and percipitation data for all months to better support the claim of year-round sustainability. Seasonal adjustments might have to be made if other months reveal higher levels of weather variance.
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Query by specific weather stations to drill down on the best site for year-round locations. With future expansion a concern of investors, it will be important to know if any potential store locations don't enjoy stable year-round weather conditions.