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Statistics in Business

Statistics in Business
Statistics is considered art and science of collecting, analyzing, presenting, and interpreting data (McClave, Benson, & Sincich, 2011). Four scales of measurement are available for obtaining data on a exacting variable: nominal, ordinal, interval, and ratio (Lind, Marchal, & Wathen, 2011). The scale of measurement for a variable is nominal when the data are labels or names used to identify an attribute of an element (McClave, Benson, & Sincich, 2011). The scale is ordinal if the data have the properties of nominal data the order or rank of the data is meaningful. The scale is interval if the data have the properties of ordinal data the interval between observations is expressed in terms of fixed unit of measure (Lind, Marchal, & Wathen, 2011). Finally, the scale of measurement is ratio if the data have all the properties of interval data and the ratio of two values is meaningful. For propose of statistical analysis, data can be classified as qualitative or quantitative (Lind, Marchal, & Wathen, 2011).
Qualitative data are labels or names used to identify an attribute of each element. Qualitative use either the nominal or ordinal scale of measurement and may be non-numeric or numeric. Quantitative data are numeric values that indicate how much or how many. Quantitative data use either the interval or ratios scales of measurement (Lind, Marchal, & Wathen, 2011). Ordinary arithmetic operations are meaningful only if the data are quantitative. Therefore, statistical commutations used for quantitative data are not always appropriate for qualitative data. Descriptive statistics are the tabular, graphical, and numerical methods used to summarize data. Statistics can provide managers with a better understanding to make smarter decisions in different aspect of the company (McClave, Benson, &

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