Business Analytics · Beginner level

Beginner level · Module 3: Data Quality and Comparison Analysis · Lesson 2 of 3

Fair Comparisons

Compare performance against targets, past periods and peers without misleading conclusions.

In this lesson you will

  • Compare actuals with targets and previous periods
  • Make like-for-like comparisons

Key concepts

actual vs targetperiod-on-periodlike-for-likerates vs totals

The lesson

Every number needs a comparison: against target, against the same period last year or last month, and against similar units.

Compare like with like: branches of different sizes are compared on rates (sales per customer, per staff member) rather than totals; seasonal businesses compare with the same season.

Watch for changes in definition or coverage between periods that create false trends.

Step by step

  1. Compare each branch with its target.
  2. Compare with the previous month and same month last year if available.
  3. Convert totals to rates for fair comparison.
  4. Rank branches fairly.

Practice activity

Complete the branch comparison from the practical activity.

Expected result: Comparisons that are fair, with conclusions that hold up.

Check your understanding

  1. Why compare branches on rates rather than totals?

    Show answer

    Totals depend on size; rates allow fair comparison.

  2. What can create a false trend?

    Show answer

    A change in definition or coverage between periods.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.