Statistics in Business

Topics: Statistics, Psychometrics, Data Pages: 2 (332 words) Published: October 13, 2014

Statistics in Business


Donald Lifke

Statistics in Business
Statistics is defined as the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information. (McClave, Benson, & Sincich, 2011, p. 3). . There are two different application process involved in statistics; descriptive and inferential. Descriptive statistics is the analysis that helps describe, summarize or show data in a way to allow patterns to emerge from the data. This can be captured numerically or graphically. Inferential statistics require the statistician to reach conclusions in way that extends beyond the immediate data alone, to draw an inference of the data. Our text states there are two general types of statistics; qualitative and quantitative. Qualitative data are measurements that cannot be measured on a natural numerical scale; they can only be classified into one group of categories. It is also sub classified as interval or ratio. Where quantitative data is the opposite, it only recorded on a naturally occurring numerical scale. It is sub classified nominal or ordinal. (McClave, Benson, & Sincich, 2011, p. 13). Statistics play a major role in business decision making on a daily basis. Statistics provide businesses with an assurance in dealing with doubt despite the amount of available data. This allows business manager to make more informed decisions and allow them to react quickly. Statistics provide a dependable method of making solid choices. There are many different situations in which statistical data is used. For instance, new product development. When new products are created, depending on the item, it is tested and surveyed for likability, effectiveness, attractiveness, taste, etc. The results are used to improve the product. I use statistical data daily. I have to run figures to validate workload and determine productivity. Once the figures are ran and...

References: McClave, J. T., Benson, P. G., & Sincich, T. (2011). Statistics for business and economics (11th ed.). Retrieved from the University of Phoenix eBook Collection database
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