Statistics in Business
Statistics are used every day to analyze what’s happening around the world. We live in the informational age where it’s imperative to understand the why, when, and how the world is operating. Throughout this paper we will define statistics, identify different types and levels of statistics, describe the role of statistics in business decision making and also will provide three examples in which statistics was used.
According to Mclave, Benson, and Sincich (2011), (Statistics is the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information). There are two types of statistical methods that are commonly used to analyze data. Descriptive and inferential are the two main categories statistics typically falls into. In a nutshell, descriptive statistics are generally used to summarize data. For example, imagine the anxiety of kindergarteners first day of school. We have eleven kids rate their anxiety level on a scale one to ten. One being no anxiety and ten being extremely anxious, to figure out the ratings, we would use descriptive statistics to summarize the data. If we surveyed kids that had a backpack on, it would be useless however, it’s useful to know the range of anxiety rating of the kindergartener. In addition, inferential statistics reaches a conclusion that expands beyond the data itself. For instance, we use inferential statistics to perceive decisions of the probability that an experiential variance among groups is a reliable one or one that might have come about by chance in the study.
Statistics plays an important role in all businesses and also the future of businesses to be successful. Businesses relies on analyze data and statistics to insure a positive strategic plan of action. This way they can learn what is working for the company and what is not. In addition, determine what immediate needs to be addressed throughout the company. For example, statistics are used for