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Statistics in Business

Adam Cavkic

QNT/351

12/15/2014

Mark Alsakka

Statistics in Business

Statistics can be defined as the science of data; statistics consists of collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical data. The different types and levels of statistics are descriptive and inferential statistics. Descriptive statistics are numerical and graphical methods used to look for patterns in a data set so that the information in the data set can be analyzed so that the information can be summarized in a convenient form for others to clearly understand the presented information. Inferential statistics are estimates, decisions, and predictions based on the study of sample data to summarize a larger set of data. The role of statistics in business decision making is crucial as statistics can give companies an idea of what the consumers want simply by observing the different goods and services that the company put out to see how much money was made and how much of a demand is there still for that particular good or service.

Statistics in business decision making also consists of comparing present statistics with older previous statistics to see what area could be improved. Some examples or problem situations in which statistics were used or could be used would be Microsoft using earlier sale records of previous Xbox consoles released to make a prediction or to estimate how well a new platform can expect to do upon its release. Another situation could be if a famous book was being turned into a movie, if the book showed statistically that it was successful then big budget film corporations will get wouldn’t mind throwing more money into the movie. Statistics would help stores such as Macy’s where taking advantage of the seasonal patterns

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