Definition, Types and Role of Statistics in Business Decision Making
“Facts are stubborn things, but statistics are pliable (Mark Twain).” This summary will address the definitions of statistics, types and levels, the role of statistics in business decision making, and lastly give a few examples in which statistics was used.
Statistics
According to Investopedia, the definition of statistics is “a type of mathematical analysis involving the use of quantified representations, models and summaries for a given set of empirical data or real world observations. Statistical analysis involves the process of collecting and analyzing data and then summarizing the data into a numerical form (2014).”
Types and levels of statistics.
There are diverse types and levels of statistics identified. For instance, a descriptive statistic “utilizes numerical and graphical methods to look for patterns in the data set, to summarize the information revealed in the data set, and to present the information in a convenient form (McClave, Benson, & Sincich, 2011).” Second, inferential statistic “utilizes sample data to create estimates, predictions, decisions or other generalizations about a larger set of data (McClave, Benson, & Sincich, 2011).”
Role of statistics
Statistics role in decision making is imperative as it allow you to focus on the vast picture, back judgments, make connections, and ensure quality, and considerations. “Statistics provide managers with more confidence in dealing with uncertainty in spite of the flood of available data, enabling managers to more quickly make smarter decisions and provide more stable leadership to staff relying on them (Williams, 2014).”
Examples
Statics are functional and analyzed in everyday lives. Three examples or problem situations in which statistics is used are weather forecasting, medical studies, and last political campaigns. Weather forecasting uses a computer model that are constructed using statics to compare previous weather conditions to existing weather conditions to predict
Statistics
According to Investopedia, the definition of statistics is “a type of mathematical analysis involving the use of quantified representations, models and summaries for a given set of empirical data or real world observations. Statistical analysis involves the process of collecting and analyzing data and then summarizing the data into a numerical form (2014).”
Types and levels of statistics.
There are diverse types and levels of statistics identified. For instance, a descriptive statistic “utilizes numerical and graphical methods to look for patterns in the data set, to summarize the information revealed in the data set, and to present the information in a convenient form (McClave, Benson, & Sincich, 2011).” Second, inferential statistic “utilizes sample data to create estimates, predictions, decisions or other generalizations about a larger set of data (McClave, Benson, & Sincich, 2011).”
Role of statistics
Statistics role in decision making is imperative as it allow you to focus on the vast picture, back judgments, make connections, and ensure quality, and considerations. “Statistics provide managers with more confidence in dealing with uncertainty in spite of the flood of available data, enabling managers to more quickly make smarter decisions and provide more stable leadership to staff relying on them (Williams, 2014).”
Examples
Statics are functional and analyzed in everyday lives. Three examples or problem situations in which statistics is used are weather forecasting, medical studies, and last political campaigns. Weather forecasting uses a computer model that are constructed using statics to compare previous weather conditions to existing weather conditions to predict
References: Investopedia. (2014). Retrieved from http://www.investopedia.com/terms/s/statistics.asp10 Everyday Reasons Why Statistics Are Important. (). Retrieved from http://www.mathworksheetscenter.com/mathtips/statsareimportant.htmlMcClave, J.T., Benson, P.G., & Sincich, T. (2011). Statistics for Business and Economics (11th ed.). Retrieved from The University of Phoenix eBook Collection database. Quotes About Statistics. (2014). Retrieved from http://www.goodreads.com/quotes/tag/statistics