Statistics in Business
May 20, 2013
Statistics is defined as the science of data and it involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information. Statistics are useful in drawing conclusions about a set of data from a sample of data.
One type of statistic is descriptive statistics. Descriptive statistics is the analysis of data that helps describe, show or, summarize data in a meaningful way. An example is patterns may emerge from the data. Descriptive statistics do not allow you to make conclusions beyond the data that you have analyzed. This is a simply a way to describe data. Descriptive statistics enables you to present the data in a more meaningful way and allows simpler interpretation of the data. Inferential statistics is another type of statistic that uses sample data to make estimates, decisions, predictions, or other generalizations about a larger set of data. Inferential statistics are techniques that allow you to use these samples to make generalizations about the populations from which the samples were drawn and it is important that the sample accurately represents the population.
Statistics provide managers with confidence in dealing with uncertainty and enables managers to make smarter decisions and provide more stable leadership. In my current industry of manufacturing statistics is a toll that helps evaluate the performance of our machines and personnel.
A example of statistics being used is in marketing. In my last course marketing, they used customer surveys and estimates of various market sizes. Political campaigns consult voter polls to determine their campaign strategy. Stock analysts use statistical computer models, this helps them in forecasting the economy. Statistics are used in every industry and help in the decision making process.
Statistics for Business and Economics Ch. 1
Basic Statistics for Business...