Question

A retail analyst is comparing sales performance across three regional stores that opened in different years and had very different starting revenue levels. Leadership wants to fairly compare how much each store has grown relative to its own opening year, not which store has the highest raw dollar sales. Which analysis technique should the analyst apply to enable this comparison?

Accepted Answer

Index each store's sales to a base year (base = 100) and compare the resulting indexed values over time

Answer

Rank the stores each year by absolute revenue and report the rankings

Answer

Calculate the total combined revenue of all three stores per year

Answer

Compute the arithmetic mean of raw sales across the three stores for each year