My first impulse would be to use the net total profit, in other words, how
much money the salesman has made for the company. You can have a salesman
that makes one sale in which he "nets" a $1000 profit and another that makes
20 sales that "net" $20 each for at total net profit of $400...guess which
one I am going to keep, of course if the first salesman makes $5,000 a month
in salary and the second makes $3,000 it changes the equation as I would
expect the higher paid employee to bring in more money. In the real world
the per/unit net profit would not be as pronounced; however, the bottom line
is who brings in the most money to the company after all expenses and
overhead are taken out.

Javier Valencia, PE
President
Valencia Technology Group, L.L.C.
14315 S. Twilight Ln., Suite #14
Olathe, KS  66062-4571
(913)829-0888
(913)649-2904 FAX

-----Original Message-----
From: [EMAIL PROTECTED] [mailto:owner-rbase-l@;sonetmail.com]On
Behalf Of tellef
Sent: Thursday, November 07, 2002 8:36 AM
To: All
Subject: Statistics experts needed


I guess I was sleeping when they taught this...  I want to
know if there is an established business statistics theory
for what I want to do.  A client has a simple salesperson's
profitability report, and he wants it sorted from highest
profit margin to lowest.  We have an RBase report to do this,
and the report looks like this:

              #Sales   Sales$   Avg$      Profit%
   Salesman1      1      150     150         30%
   Salesman2     50    10000     200         25
   Salesman3     40    15000     375         20

Obviously sorting by Profit% is misleading.  Salesman1 isn't
exactly their 'best' salesman!  Salesman2 had the highest
number of sales and the highest profit% (after the loafer #1).
But Salesman3 had highest total sales$ and average$!

Is there a way to WEIGHT the profit%?  And what's the best
indicator of the 'best' salesman?  Is it the Total Sales$,
the Average$, the number of items sold?  I guess if there's
a formula to weight the profit% then I could ask my client
what other parameter is the most important to them.



Karen


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