The Z-chart Simplified - A step by step guide
About this Video
This comprehensive video tutorial demystifies the process of constructing the Z-chart. In this video, I give a clear explanation of the meaning and scope of the z-chart and follow this discussion with a step by step guide. on how to construct the z-chart. I conclude the discussion with the interpretation and analysis of the prepared z-chart.
Whether you're tackling homework, preparing for exams, or analyzing market research, my clear explanation and practical examples will guide you through each stage of the Z-chart method and construction. Tune in to elevate your understanding and proficiency in statistics and Quantitative Techniques.
Download a copy of the question, solutions and notes here;
The Z-Chart
The Z-chart is a graphical charting of values over a period (frequently one year) and showing simultaneously monthly figures (or weekly or daily), cumulative totals and the moving averages.
It normally takes a Z shape, hence its title and is of use in clarifying the trends present in the data displayed.
The z-chart is a main feature of inter-firm comparisons.
Steps in construction of z-chart
Step 1: Gather data on a regular basis for a given activity such as the sales per month.
Step 2: . Identify the major review period to be considered. When you are gathering data on a monthly cycle, then this is likely to be 12 months
Step 3: For each minor review period (e.g. one month), build the longer-term view by totaling the data for the past major review period (12 months)
NOTE:
The rolling total for 12 months ago will require data from 12 months previous to that. Thus the longer-term view really does look back over a longer period.
Step 4: For the current review (e.g. month), sum the previous values over the past major review period (e.g. 12 months).
Step 5: Build the z-chart using the data in steps 1 – 4 above
Illustration of the Z-chart
CPA Innocent MUGISHA
Apr 10, 2024
