An angel investor is interested in financing a Surf & Shake shop in O'ahu, Hawaii. The investor is primarily concerned that the weather, however, as he wants the shop to be open all year rather than seasonally. Specifically, he wants temperature data for the months of June and December in O'ahu, in order to determine if the surf and ice cream shop business is sustainable.
The temperature and precipitation difference in O'ahu in June and December is very small.
• There is a 4°F change in the mean temperature (8°F change in minimum temps, 2°F difference in high temps), and just under .1" difference in precipitation when comparing June and December.
• The median temperature for June is 75°F compared to 71°F in December.
• The median precipitation amount in June is 2/10", compared to 3/10" in December
• As you can see in the charts that follow, there is a consistent pattern between June & December, in both temperature and precipitation.
• The count of temperature is higher than the count of precipitation in both months, with December having fewer counts than December.
With such a slight difference in weather in summer & winter, the data illustrates to the investor that Surf & Shake will be able to stay open all year without weather worries. Based on the data we have I would advise the investor that Surf & Shake could be a portfolio-boosting investment, however I would caution him to seek out more data before he makes his final decision.
• Tourism data should be incorporated into the analysis. Is each month more dependent on tourists or locals? This will be helpful in determining if the store will need to shut down during "slow" months.
• As many people visit O'ahu to surf, we should consider using surfing-related weather such as high surf & extreme weather trends.
• The max precipitation for June is 4.5", 6.5" in December. Our limited sampling tells me that perhaps two months of data isn't enough to make a truly informed decision.
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