Write a 300-word summary that addresses the following criteria:
– Define statistics.
– Identify different types and levels of statistics.
– Describe the role of statistics in business decision-making.
– Provide at least two examples or problem situations in which statistics was used or could be used.
Format your summary consistent with APA guidelines.
Statistics in Business – Sample Paper
Statistics in Business
Statistics is a science of decision making to eliminate uncertainty. Statistics is a widely used method in business. Statistics is quantitative in nature and deals with getting the most precise data to use for decision-making purposes. Statistics is also described as “the science of learning from data”.
There are different types of statistics. Inferential and descriptive statistics are the main types used. Inferential statistics also called inductive statistics is a type that draws its conclusion from data that possess random variations and is subject to change. The variations could be sampling variations or observational errors. The data changes in an unpredictable manner.
The other type of statistics is descriptive statistics. This kind of statistics summarizes data from samples using defined indexes such as mean, mode, and standard deviation. Descriptive statistics usually deal with two sets of properties in a sample or population distribution.
There are four different levels of statistics, nominal, ordinal, interval and ratio. The first level is nominal and uses numbers to classify data. Words and letters can also be used. The ordinal level is the second one, and here data has order, but the interval between measurements is not equal. Interval level classifies and orders data, has meaningful intervals between data, but there is no true starting point. The fourth level is ratio, data has ratios between measurements, has meaningful intervals and a starting point (Kundu, n.d.).
In business, statistics is used in predicting sales, controlling quality and for market research in decision making. Statistics could be applied in different situations. A manager can try to determine the productivity of workers by observing and recording the amount of work they deliver. From the data, they can analyze the data and understand the performance of each employee. Another example of how statistics can be used is when a trader wants to know what will happen in business. The trader can look at past statistics and predict how the business will be.
Buseco.monash.edu.au,. (2013). What is Business Statistics? – Department of Econometrics and Business Statistics. Retrieved 9 July 2015, from http://www.buseco.monash.edu.au/ebs/about/busstats.php
Kundu, S.(n.d.) An Introduction To Business Statistics, 1-506.