Statistics in Business

Statistics in Business

Statistics refers to the use of numerical information in everyday life to calculate facts and figures in limitless circumstances such as, batting averages, market share, and changes in the stock market. Statistics involves describing data sets and drawing conclusions based on sampling about the data sets (McClave, Benson & Sincich, 2011).

Different Types of Statistics

In statistics there are two types, descriptive and inferential statistics. Descriptive statistics are procedures used to describe and organize the basic characteristics of the data studied. Inferential statistics are used to draw conclusions, interpret data, and make predictions or decisions beyond the immediate data. Also, there are four levels of measurement: nominal, ordinal, interval, and ratio (Lind, Marchal, & Wathen, 2011).

Role of Statistics in Business Decision Making

Statistics provide managers with the data necessary to make informed decisions instead of making decisions based on instinct or intuition. Statistics provide managers with a cost-effective approach to gather unbiased data they can use to determine if adjustments to the business should be pursued. The analysis of the data can provide managers with theories and predictions to direct decision-making and improve business operations.

Statistic Examples

One example of statistics in a situation is when starting a weight loss program. To measure the progress of the weight loss over time the individual would measure their weight on the same day and time every week then plot the results on a chart for six months. Another example is in baseball. In baseball, scouts use batter statistics to know the batter strengths and weakness to see the probability of hitting certain types of pitches. A third example is when network channels use inferential statistics to determine when to cancel a program.

In conclusion, statics was defined. The two types of statistics, descriptive and inferential statistics were also defined. Finally, three examples weight loss measurement, baseball hits, and program ratings were presented to provide situations were statistics are applied.

References

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2011). Basic statistics for business and

economics (7th ed.). New York, NY: McGraw-Hill/Irwin.

McClave, J. T., Benson, P. G., & Sincich, T. (2011). Statistics for business and economics (11th

ed.). Boston, MA: Pearson-Prentice Hall.

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