Statistics In Business Essay

583 words - 3 pages

Statistics in Business

Statistics is used daily in business and is an important asset to the decision making process. There are two broad areas of statistics, one using known information the second asks for conclusions to be made from data collected. The role of statistics in the business decision-making process is inimitable. Examples can be found from the fortune 50 organization to the mom and pop shop on the corner.

Define Statistics
Statistics is the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information (McClave, Benson, & Sincich, 2011). Statistics can be broken down into two broad areas: descriptive statistics, and inferential statistics.
Descriptive Statistics is the utilization of numerical and graphical methods to look for patterns in a data set (McClave, Benson, & Sincich, 2011). Descriptive ...view middle of the document...

The inferential statistics uses data collected to form conclusions. After taking a sample of the students ages in the statistics class and asking are these ages what one would expect to see in the rest of the statistics class, would be an example of an inferential statistics question.
The Role of Statistics
Statistics play an important role in business and the decision making process. A businessperson has to make informed decisions to continue to be successful. The business manager should have an idea of what their target market is and what they want. Statistics provide this information. Using statistically based information to make informed and educated decisions. Conducting the research that provides the date to be processed and analyzed is paramount in a successful company.
Example 1. AT&T the communications giant uses statistics to decide when and where the new technology will be placed. There are samples taken, and from these samples it is determined the period of time it will take to recover the money spent placing the new equipment. If the sample meets the predetermined time deemed satisfactory the equipment is placed.
Example 2. In politics, politicians use statistics to determine where they will spend the majority of their campaign money. The numbers of electoral votes are weighed against the number of potential voters that may or may not vote in their favor. From this data sample a decision is made.
Example 3. The local donut shop uses statistics to decide how many chocolate and glazed donuts they will make each morning. They base their decision on information accumulated day-to-day of doing business.
In conclusion, statistics are an important part of business. Everybody from the insanely large to the very small company use statistics in the business decision making process. The role of statistics cannot be replaced or skipped. The research and data collection from which the statistics are pulled is imperative to business.
McClave, J. T., Benson, P. G., & Sincich, T. (2011). Statistics for Business and economics. Boston, MA: Pearson-Prentice Hall.

Other Papers Like Statistics in Business

Statistics Essay

578 words - 3 pages This paper will explain what statistics are. Statistics are used in so many ways, including business. This paper will thoroughly defining statistics, the types and levels of statistics, the role of statistics in a business and examples of how statistics may be used. The most common definition for statistics would be the collection of numerical data. Examples of numerical data could be the percentage of how many African-Americans passed

Statistics Essay

593 words - 3 pages , meaningful ratios can be made to represent the data at hand. For example, distance works on a ratio level. In business, statistics plays a vital role in the decision making process. Statistics help see the big picture, ensure quality, and reinforce proposals. Using statistics, management is able to see the company’s trends and determine which action to take to stay the course or right the wrongs. Management can also evaluate production and


3466 words - 14 pages descriptive statistics. Students will learn to apply business research and descriptive statistics in making better business decisions. Other topics include examination of the role of statistics in research, statistical terminology, the appropriate use of statistical techniques, and interpretation of statistical findings in business and research. Policies Faculty and students will be held responsible for understanding and adhering to all

Statistics - 1134 words

1134 words - 5 pages 1) The main purpose of descriptive statistics is to A. summarize data in a useful and informative manner B. make inferences about a population C. determine if the data adequately represents the population D. gather or collect data 2) The general process of gathering, organizing, summarizing, analyzing, and interpreting data is called A. statistics B. descriptive statistics C. inferential statistics D. levels of measurement 3) The

Statistics - 1168 words

1168 words - 5 pages . Bibliography Fry, P .C., Grobner, D.F., Shannon, P.W., & Smith K. D. (2008). Business statistics. (7th ed.). NJ: Prentice Hall. McClaver, J., & Benson, G. (1995). A first course in business statistics (6th ed.). NJ.: Prentice Hall. Anderson, T.W. & Stanley L. (1995). An introduction to statistical analysis of data. Boston: Houghton Mifflin and Co.

Statistics - 1105 words

1105 words - 5 pages relied on the collection of data to make decisions that propel the human race into the next era of technical development and business growth. The type of data varies as it can either be quantified or qualitative to meet the needs and purpose of the research. The age old question has always been which of the two is the most preferred methodology, but the real question should be how both mirror the theme of statistics to provide the closest range to

Statistics - 1894 words

1894 words - 8 pages BUSINESS STATISTICS ASSIGNMENT Project Title: Employee retention at D&Y consulting firm Section E: Group 2:Anshul Garg (11FN-015)-Finance Gokul Sudhakaran(11DM-039)-Marketing Kaviya .A. (11DM-057)- Marketing Nikhil Gagrani(11DM-089)- Marketing Sheth Dharmil Nirupam(11DM-147)-Marketing Taru(11IB-061)-International Business Submission Date:- 9th September,2011

Statistics - 3532 words

3532 words - 15 pages by Forbes Magazine in 2001. ??The correlation coefficient between age and net worth: A. ?Is about 0.00. B ?Is greater than 0.5. C ?Is less than -0.5. D ?The answer cannot be determined from the information given. 7. The data in the Excel spreadsheet linked below gives the average monthly price of gold (in dollars per ounce) for the years 1980 to1983. ??Which of the following statistics measures gold price variation in the same units as

Business Statistics

1075 words - 5 pages “9 out of 10 says…” or “99 percent of the people” that statistics has been labeled as the science of stating precisely what we do not really know. In this paper, I will break down what statistics actually is and its daily application in our lives, business and personal. Statistics and Its Importance Statistics is more than just a complex branch of mathematics. It is the collection, classification, analysis, and interpretation of numerical

Business Statistics

3312 words - 14 pages 1. Introduction This report will investigate if there is a correlation between height and weight of the general male population of Shanghai. The best way to find out is by measuring every single male in the Shanghai population. However that is impractical and also impossible. With statistics, taking a random sample of the population can represent the whole population. The main difficulties of this report are finding a good sample size to

Statistics Paper

449 words - 2 pages describe well the background of the problem and each of the steps in solving the problem. The length of the article should be within 1500 words; visual aids, such as tables, charts, graphs should be included where necessary. Some business statistics applications example include • Select profitable stocks • Detect fraudulent claims • Score an applicant’s credit • Discover cross-selling opportunities for products • Quantify drug efficacy

Related Essays

Statistics In Business Essay

521 words - 3 pages Statistics in Business Kareem Kelly QNT/351 December 07, 2015 David Lantz Statistics in Business Statistics is a form of science where information learned from the collection of data. The data is involved in the application principle of quantitative interpretation and presentation for business purposes. Statistics are used for wide array of fields including business, education, marketing, economics, health, physics, sports, government

Statistics In Business Essay

612 words - 3 pages Statistics in Business Donnita Piggee QNT/275 January 25, 2016 Joshua West STATISTICS IN BUSINESS When you think about statistics, what comes to mind? A bunch of numbers, percentages, groupings? What are statistics? Statistics is the science of learning from data, and of measuring, controlling, and communicating uncertainty; and provides the navigation essential for controlling the course of scientific and societal advances (Davidian

Statistics In Business Essay

754 words - 4 pages Statistics in Business NAME:_________________________ Sections 4 and 5 Class 05 Assignment Due Wed February 1, 2012 1. (EMBS problem 19, page 260) The average amount of precipitation in Dallas, Texas during April is 3.5 inches (The World Almanac, 2000). Assume that a normal distribution applies and that the standard deviation is 0.8 inches. a. What percentage of Aprils do

Statistics In Business Essay

557 words - 3 pages Statistics in Business Antoinette Jones QNT/351 August 31, 2015 Garurank Saxena Group Behavior The beauty of having a diverse group is the pure ability to gather different ideas that would not be thought of by a uniform group of individuals. The issue with diversity is that there can be strong conflicts among a group that is not on the same page. This is the situation where the leader is supposed to step in and give the final decision