Introduction to Statistics Every minute of working day, decisions are made by business around the world that determine whether companies will be profitable or not. Most of these decisions are made by the gathered information from market place, the economic & financial environment & also from other fctors.
Cont… Business statistics provides the tool through which such data are collected, analyzed, summarized & presented to facilitate the decision making process.
What is Statistics? “Statistics is a science dealing with the collection, analysis, interpretation & presentation of numerical data.”
Basic use of Statistics Gathering, analyzing, interpreting & presenting data. Course of study. Measurement taken on a sample. By analyzing the data, can make decisions easily.
Branches of Statistics Statistics can be divided into two branches: Statistics Descriptive statistics Inferential statistics
Descriptive statistics If a business analyst is using data gathered on a group to describe or reach conclusions about that same group, the statistics are called descriptive statistics. E.g. The instructor can use these statistics to discuss class average, range of class scores etc.
Cont…. Techniques are used: Mean, standard deviation & graphical methods like charts & graphs.
Inferential statistics If a researcher gathers data from a sample & uses the statistics generated to reach conclusions about the population from which the sample was taken, the statistics are inferential statistics.
Cont… E.g. Suppose a soft drink company creates an advertisement depicting & market researchers want to measure the impact of the new advertisement on various age groups. They want to determine the effectiveness of the advertisement for the various age groups in the population by the use of statistical methods.
Statistics in Business Every area of business uses statistics in decision making. Best way to reach to the market: survey, direct mail, catalogs etc… Reducing the stress on job: conducting various types of survey by using various statistical techniques.
Cont… Taking various types of financial decisions such as, expansion, Merger & acquisitions, new product or service launch, technology upgrade etc.. Economic decisions such as calculating the GDP rate, unemployment rate, predict the future business climates.
Cont… Impact of Technology such as, Internet survey, Graph analysis, Inexpensively analysis of data.