...Statistics in Business Kathleen S. Power-Davenport QNT/351 May 25, 2015 Lance Milner Statistics in Business Introduction Statistics is "the science of collecting, organizing presenting, analyzing, and interpreting data to assist in making more efficient decisions" (Lind, Marchal & Wathen, 2011). This paper will summarize the types, levels, and the role of statistics in business decision making, followed by examples of statistics in action. Types, Levels, and the Role in Business Decision Making The two categories of statistics are descriptive and inferential. Descriptive statistics is the analysis of data that describes, or summarizes the data in a meaningful way (Laerd Statistics, 2013). Business leaders can organize large amounts of data into a comprehensive format utilizing descriptive statistics. But descriptive statistics do not make conclusions about the data. An inferential statistic is calculated by taking a sample of the data from the population, and drawing a conclusion about the whole based on the small amount (Lind, Marchal & Wathen). Decision makers move forward based on a conclusion drawn from statistical inference. The data gathered for statistics is classified into four levels of measurement: nominal, ordinal, interval and ratio (Lind, Marchal & Wathen). Data at the lowest level is nominal and has a qualitative variable divided into categories or outcomes. Ordinal data is qualitative and represented by sets of labels or names...
Words: 484 - Pages: 2
...Statistics in Business Statistics is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data. It also provides tools for prediction and forecasting based on data. It is applicable to a wide variety of academic disciplines, from the natural and social sciences to the humanities, government and business ("Statanalysis Consulting", 2013). Statistics is used in decision making that affects our everyday lives. The study of statistics is divided into two categories and has four levels of measurements. The two types of statistics are descriptive statistics and inferential statistics. Descriptive statistics is the organizing, presenting, and analyzing of data in an informative way. Inferential statistics is the methods used to estimate a property of a population on the basis of a sample. The four levels of measurements in statistics are nominal, ordinal, interval, and ratio. The first scale is nominal. The nominal level of measurement is the lowest level. Nominal data deals with names, categories, or labels. The next level is called the ordinal level of measurement. Data at this level can be ordered, but no differences between the data can be taken that are meaningful. The interval level of measurement deals with data that can be ordered, and in which differences between the data does make sense. The fourth and highest level of measurement is the ratio level. Data at the ratio level possess all of the features of the...
Words: 530 - Pages: 3
...Statistics in Business Joseph Giardino Qnt 351 November 20, 2013 Forrest Boyd Statistics in Business Webster’s dictionary (2013) defines statistics as “a branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data; a collection of quantitative data.” At its core, statistics is a mathematical process of crunching numbers and solving equations, just like all other math disciplines. Statistics separates itself by using the data and equations to interpret and influence business decisions. Statistics are commonly classified in one of two category types, descriptive and inferential. Descriptive statistics can be summarized as “the information revealed in a data set, and to present the information in a convenient form” (McClave, Benson, & Sincich, 2011). Inferential uses the data sample to allow individuals to predict or make decisions that will impact the larger data. Having accurate data plays a huge role in the decision-making process businesses go through on a daily basis. “Successful managers rely heavily on statistical thinking to help them make decisions” (McClave, Benson, & Sincich, 2011). Everyday issues that managers face are solved most efficiently when managers create a statistical question that can be solved by data. Collecting data and analyzing outcomes prior to implementing actions will allow the manager to make an informed decision and save time and money by avoiding trial and error. ...
Words: 406 - Pages: 2
...Statistics in Business Name QNT/351 Date Instructor Statistics in Business As defined by the text, “Statistics is the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information.” (McClave, Benson, & Sincich, 2011) Numbers, recorded as data, are gathered and then evaluated by professional statisticians who draw conclusions from the information. Two different types of statistics are descriptive and inferential. Descriptive statistics uses numbers and graphs to find patterns. The patterns presented in a form that is easy to read and understand to summarize the gathered data. In inferential statistics, decisions or predictions regarding larger data sets are done using sample data. There are four different levels to measurement in statistics: nominal, ordinal, interval, and ratio. In the first level, nominal measurement, numbers are used to classify data; words and numbers can also be used. In the second level, ordinal level, a type of relationships shows the compatibility between the numbers collected in the first level. In the third level, or the interval level, measurements are classified, ordered, and distances between each interval are defined. The fourth and final level, the ratio level, measurements can be a value of zero. It’s important to know that of the levels, the nominal level is the simplest where data is only classified. Levels of measurement in the interval and ratio levels are more...
Words: 313 - Pages: 2
...Statistics in Business Statistics is the collection of numerical information. Statistics collect and analyze the numerical information in large amount. There are many different types and levels of statistics. Statistics is separated into two groups’ descriptive statistic and inferential statistics. Descriptive statistics is the methods of classifying, summarizing, and giving information in an informative way. Inferential statistics method is used to estimate a property of a population on the basis of a sample. Statistics is a major factor in businesses decision making, statistics in business give them an idea of what customer they are trying to target and the amount of services and products that they will need to meet their goal Lind, Marchal, & Wathen (2011). There are many examples where statistics are used. For example when the census bureau sends out documents to fill out about your house they are gathering information to analyze the numbers to get a figure of what is going on with the population. Another example of statistics is when a certain amount of population tune in Sunday to watch the super bowl it was one of the most watch game in NFL history it was also a commercial that catch the eye of most of the viewers they went on social media to view their opinions about the commercial some find that it was not fit for that moment and some on the other hand find that it was ok. Another example of statistics is when the University of Phoenix takes a survey at the end of each...
Words: 372 - Pages: 2
...Statistics in Business QNT/275 June 29, 2016 Statistics in Business According to "Define Statistics At Dictionary.com the science that deals with the collection, classification, analysis, and interpretation of numerical facts or data, and that, by use of mathematical theories of probability, imposes order and regularity on aggregates of more or less disparate elements. Quantitative vs. Quantities There are two general types of data. Quantitative data is information about quantities; that is, information that can be measured and written down with numbers. Some examples of quantitative data are your height, your shoe size, and the length of your fingernails. Speaking of which, it might be time to call Guinness. You've got to be close to breaking the record. Qualitative data is information about qualities; information that can't actually be measured. Some examples of qualitative data are the softness of your skin, the grace with which you run, and the color of your eyes. However, try telling Photoshop you can't measure color with numbers. Here's a quick look at the difference between qualitative and quantitative data. The age of your car. (Quantitative.) The number of hairs on your knuckle. (Quantitative.) The softness of a cat. (Qualitative.) The color of the sky. (Qualitative.) The number of pennies in your pocket. (Quantitative.) Remember, if we're measuring a quantity, we're making a statement about quantitative data. If we're describing qualities, we're making a...
Words: 1380 - Pages: 6
...What I’ve Learned about Statistics Statistics is all around us that, in fact, it would be difficult to go through the day without being flooded with some sort of statistics or statistical information. It is so commonly used in everyday conversations – be it regarding customer surveys, weather forecasts, political polls, or sports statistics – that we find it difficult to differentiate flawed from actual valid claims. So many times we hear “9 out of 10 says…” or “99 percent of the people” that statistics has been labeled as the science of stating precisely what we do not really know. In this paper, I will break down what statistics actually is and its daily application in our lives, business and personal. Statistics and Its Importance Statistics is more than just a complex branch of mathematics. It is the collection, classification, analysis, and interpretation of numerical facts from data (Dunn & Fahey, 2005) that businesses use to evaluate trends and make estimates or forecasts critical to its success and/or failure. When done correctly, the use of historical data or trends can help make future business decisions leading to the success of your organization (Carden, 2013). In economics, for instance, relationships between supply and demand are found using statistical information. In this paper, I will use the Air Force Reserve Officer Training Corps (AFOQT) cadet life cycle information to explain some of the basic facets of statistics. Types of Statistical Data ...
Words: 1058 - Pages: 5
...Statistics in Business Meg Armen QNT/275 01/14/2016 James Malachowski Statistics in Business Statistics plays a big role in business. Businesses use statistics to improve their different business related problems. Statistics measures probability, hence without profit a business is almost pointless. Because statistics is important in business, we first understand the two branches of statistics, the four levels of data measurement, the role of statistics in decision making, and last, the implementation of statistics is problem solving. Statistics According to Jaggia and Kelly, the definition of statistics is a method of the collection, organization, and interpretation of data. In a broad sense, statistics is the communication of numerical information into written form. The authors discuss the breakdown of statistics; first, finding the right data, second, using the right tools to display the data, and finally, to communicate the numerical data into a written language (2014). Qualitative data Qualitative data such as, labels or names are used to identifying different characteristics of variables on a set of people, objects, or events (Jaggia & Kelly, 2014). Qualitative derives from the word quality. As an example, if we examine a latte, the qualitative description/data would be; the robust aroma, the frothy appearance, the strong taste and the beige ceramic cup it is poured in. Quantitative data Quantitative variables are described with numerical values (Jaggia...
Words: 1110 - Pages: 5
...Statistics Statistics is used more often than people realize. They are used for many reasons such as to help one make a difficult decision in their personal or professional life. Statistics is also used to help companies promote their merchandise. Have you ever seen a commercial that used numerical information to show viewers that their product is preferred over their competitors’ product? That is just one of the many times one has probably seen statistics used without even realizing it. Statistics is the result of numerical information that is collected, classified, summarized, organized, analyzed, and interpreted. Once the data is collected and compared, one can draw a conclusion otherwise known as the statistic. There are two types of statistical applications in business, descriptive statistics, and inferential statistics. Descriptive statistics uses methods of organizing, summarizing, and presenting data in an informative and convenient form. Inferential statistics uses sample data to make estimates or predictions about a larger set of data (McClave et al. 2011). In business decision-making, statistics is used both internally and externally. Internally, business owners and managers use statistics to help them make important decisions such as wages, merchandise, operating hours, and the future of the company. For example, a company may view statistics between employees earning hourly and salary wages verse employees earning commission wages. The company can use their findings...
Words: 456 - Pages: 2
...Statistics in Business Statistics is used daily in business and is an important asset to the decision making process. There are two broad areas of statistics, one using known information the second asks for conclusions to be made from data collected. The role of statistics in the business decision-making process is inimitable. Examples can be found from the fortune 50 organization to the mom and pop shop on the corner. Define Statistics Statistics is the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information (McClave, Benson, & Sincich, 2011). Statistics can be broken down into two broad areas: descriptive statistics, and inferential statistics. Descriptive Statistics is the utilization of numerical and graphical methods to look for patterns in a data set (McClave, Benson, & Sincich, 2011). Descriptive statistics takes known information about a phenomenon and organize it in a more convenient manner. A sample from a population is taken and this data is organized. An example of this would be taking a sample of student ages from the statistics class. Asking what age is the most common age would be an example of a descriptive type question. The second area of statistics is inferential statistics. The text defines inferential statistics as the utilization of sample data to make estimates, decisions, predictions or other generalizations about a larger set of data (McClave, Benson, & Sincich...
Words: 569 - Pages: 3
...Statistics in Business QNT/351 LaShawn Smith University of Phoenix JONTE LEE 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. In addition, statistics refers to the scientific collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical data. Statistics involves describing data sets and drawing conclusions based on sampling about the data sets (McClave, Benson & Sincich, 2011). Statistics are divided into two areas: descriptive statistics and inferential statistics. Descriptive statistics are procedures used to describe and organize the basic characteristics of the data studied. Descriptive statistics provide simple summaries about the sample group and the measures. This application of statistics is used to present quantitative data in manageable forms such as charts, graphs, or averages. Descriptive statistics differ from inferential statistics in that they are simply describing what the data indicates. Inferential statistics are used to draw conclusions, interpret data, and make predictions or decisions beyond the immediate data. Inferential statistics are used to infer from the sample population data what a larger population may think or to predict future behaviors. Therefore, inferential statistics are used...
Words: 629 - Pages: 3
...Statistics in Business Amy Lawrence Qnt/275 04/04/16 Cynthia Roberts Statistics in Business Statistics - a science of producing useful results from data that is manipulated in specific ways. An example of this would be to keep a count of how often a red bear sold over a blue bear and after a specific amount of time, use the data to eliminate the bear that sold less so that space in the store could be used for a better selling item. “Statistics is the science of learning from data, and of measuring, controlling, and communicating uncertainty; and it thereby provides the navigation essential for controlling the course of scientific and societal advances” American Statistical Association. (2016). What is Statistics?. Retrieved from http://www.amstat.org/careers/whatisstatistics.cfm Quantitative data – Simply put this type of data is expressed as numbers or can be measured. They can be found by using the ordinal, interval or ratio scales. The numbers used in this way is manipulated statistically with equations. Qualitative data is representative of people’s culture, gender, economics or religion or just general groups of people. The qualitative data can be shown as ordinal which have three or more categories in a set order, dichotomous which mean only two categories such as male or female or nominal which have no order and three or more categories. Quantitative data are numbers that reflect what has been seen or tracked such as how many times...
Words: 799 - Pages: 4
...Statistics in Business Michael Foster QNT/351 September 16, 2015 Henry Jacobs Statistics in Business The definition of statistics is the logic science of gathering data. The application of statistics is a systematic procedure of collecting, classifying, summarizing, organizing, analyzing, and communicating numerical information's (Lind, Marchal, & Wathen, 2011). There are two categories of statistics; descriptive and inferential statistics. The identity of descriptive statistics is a certain method of organization, summarizing, and presenting data in an informative way (Lind, Marchal, & Wathen, 2011). The identity of inferential statistics is classified as a method implemented to estimate a property of a certain population on basis of a sample (Lind, Marchal, & Wathen, 2011). There are four type and levels of statistics in the business and industry. The four types and levels of statistics are classified as (level 1) nominal-data is classified information. Ordinal-data (level 2) is date of rank of information. Interval-data ( level 3) is the difference in value. Ratio-data (level 4) is meaningful 0 points and ratio between values ("Data Levels Of Measurement", 2015). The role that statistics play in the business world is describe as a insightful communication tool to resolve key issues in modern-day business, through decision-making (Hahn, 2015). Today's statistics allow supervisor to encourage their employees to be proactive and productive in...
Words: 419 - Pages: 2
...Statistics in Business Lula Mae Blake QNT/351 May 4, 2015 Sara Skowronski Statistics in Business According to dictionary definition it is “the science that deals with the collection, classification, analysis, and interpretation of numerical facts or data, and that, by use of mathematical theories of probability, imposes order and regularity on aggregates of more or less disparate elements (2015).” Identify different types and levels of statistics Types and levels of statistics include: Descriptive statistics: numerical and graphical methods that observe patterns in data set to give a summary of the information so it can be presented in an understandable format. Inferential statistics: is sample data that comes up with estimates, decisions, predictions, or other general particulars about a larger set of data. Experimental unit: is a fundamental element – an object (person, thing, transaction, or event). Another fundamental is Population: which is a set of units including people, objects, transactions, or events used in a study. A sample is the subject of the units of a population. Variable: describes the character or property of an individual experimental unit. It is known as univariate data which is a study the looks at only one variable, and bivariate data that deals with the study or relationship of two variables. Measurement: is an important factor of studying variables, as is qualitative and quantitative variables. Describe...
Words: 443 - Pages: 2
...head: Statistics in Business Statistics in Business Define Statistics Statistics is "the science of data. It involves collecting, classifying, summarizing, organizing, analyzing, and interpreting numerical information" (). Different Types and Levels of Statistics The types of statistics are descriptive and inferential. Descriptive statistics looks for patterns in data sets and it does so by using numerical and graphical methods. It is also used to summarize the information found in a data set and allows the information to be shown in a more convenient form that is easier to read and understand. Inferential statistics' goal is to make estimates, decisions, predictions or other generalizations about a larger set of data. It does so by using sample data. There are four levels to statistics. Those are nominal level, ordinal level, interval level and ratio level. Nominal level is information that cannot be arranged in any particular order but that is classified into categories. Ordinal level is similar to nominal however, the data can be arranged into some type of order however, the differences between the values cannot be determined or is seen as meaningless. Interval level is similar to the ordinal level however, there are intervals between each set of data and the measurement can be defined and is obvious and there is no natural zero point. Ratio level is the same as interval level with the only difference being that there is a natural zero. Role Statistics has in...
Words: 552 - Pages: 3
