Statistics in Business Essay Example for Free

Statistics in Business EssayThe purpose of this see is to examine the purpose of statistics in task. Our text, Lind (2011) defines statistics as The science of collecting, organizing, presenting, analyzing, and interpreting info to assist in make more effective findings (p.5). Types and levels of statisticsThere atomic number 18 two major types of statistics, descriptive and inferential. Descriptive statistics is defined by Lind (2011) as methods of organizing, summarizing, and presenting data in an informative way (p.6). An example of descriptive statistics would be a mellow school report showing that it had 300 graduates in 1990 and 450 graduates on 1991. The information that they provided described the amount of graduates that they had for each year. Inferential statistics is defined by Lind (2011) as the methods used to estimate a property of a cosmos on the basis of a sample (p.7). If the same high school sent out a report showing the graduate tots for 1999- the pr esent to estimate the number of graduates that they would have for this school year, those statistics would be inferential because they are used to estimate future outcomes.There are four levels of statistical data nominal, ordinal, interval and balance. The nominal level deals with qualitative variables such as colors and blood types that can save be counted and classified. Ordinal data measurement is a variable rating system that ranks data concord to predetermined categories that have only relative values such as poor, middling, and good. Data can be ranked and ordered using this method. Interval data measurement adds to the ordered level by adding the peculiar(prenominal) of a consistently measured differential.A thermometer is an interval measurement tool. Differences in degrees of temperature are consistent in the midst of the level intervals. The last level of statistics is ratio-level data this is used for quantitative data recording. It builds upon the interval measur ement by adding that point 0 is meaningful and the ratio between two numbers is meaningful (p.13). Anexample of ratio level data would be weight. A scale is calibrated at 0 and is measured in increments of one pound or kilogram to determine a persons weigh or the difference of weigh between two individuals or products.The role of statistics in businessStatistics are the life line of a business. A business relies on good statistical data to determine its financial standing, intercommunicate future sales and projects, and to provide the management team with information to make sound business decisions. When we interpret at statistics in the business world we are primarily concerned with their bearing on profits, investments, hours worked, and wages. The decision making process is made easier by analyzing data to determine the best course of action or else of taking uneducated risks.An example of the importance of statistics in business would be forecasting. We recently hired speci al personnel based on historical data on first quarter sales and average call handle time of our phone staff. We took the archived data that showed how many calls were taken in our call center, the number of personnel on the phones, and the average time of each call. We used this historical information from the last three years to determine how many people we will need on the phones at any apt(p) time during first quarter. This data allowed us to be proactive in staffing and fund allocation to invite the needs of our customers and phone staff.ConclusionStatistics play a vital role in the business world. We are a smarter and more intuitive society of decision makers because of statistics. A business is more stable when the try work is taken out of the equation and replaced with data analysis that produces sound business decisions and planning.ReferencesLind, D., Marchal, W., Wathen, S. (2011). Basic statistics for business and economics (7th ed.). New York, NY McGraw-Hill/Irwin.