Statistics in Business
November 5, 2013
The meaning of statistics refers to scientific numerical information collected for various purposes in both our professional and personal lives. Statistics is used every day to collect, organize, present, analyze, and interpret information to make wise decisions. There are many examples of why we collect data. Statistics helps in making decisions by investigating what the business needs, and then collect pertinent information needed to resolve problems or issues. Statistics can help with collecting various information for example; collecting information on purchasing or selling stocks, testing new products, and making a decision on the quality of a product. Studying these scientific numbers will allow organizations to determine where there business needs improvement.
There are two categories of statistics one is known as descriptive, and the other is known as inferential statistics. Descriptive statistics is the process of organizing, displaying and describing information with the use of tables, and graphs. With inferential statistics it is the method of estimating the population based on the sample results. Aside of the two categories of statistics, there are four levels of statistics. The levels include nominal data, ordinal data, interval date, and ratio data. The various levels serve a specific purpose in reference to a survey. When conducting surveys researchers may or may not use all four of the levels.
The role of statistics is an important part of the decision making process of an organization. This information allows businesses to analyze data collecting properly, and will allow proper research of a specific market. Once data is complete the results will provide the company with information necessary to make decisions based on the research. This helps organizations to prepare for future needs in order for the company to grow.
There are numerous reasons why statistics is useful for a...