Statics in Business Essay

307 WordsJan 10, 20152 Pages
Statistics in Business Statistics is used in everyday life. It is a type of mathematical analysis that utilizes quantifiable models, representations and summaries. It also involves the process of not only just collecting data but also analyzing the data and hen summarizing it into a numerical form. A statistician will apply statistical thinking to a variety of scientific, business, social, and scientific endeavors such as: education, astronomy, marketing and many more. “The best thing about statistics is that you get to play in everyone else’s backyard.” (John Turkey, Princeton University) It is important to know and understand the different types of statistics, which can be broken down into two categories. Descriptive statistics is utilized to organize and summarize a particular set of measurement. In inferential statistics it utilizes gathered data from a sample to make inferences in regards to a larger population from which the sample is drawn from. In statistics it also requires measurement, which are ratio, ordinal nominal, and interval. Nominal is categorical data and numbers that are used as identifiers or names that represent a nominal scale of measurement however an ordinal measurement an ordered series of relationship or a rank order. Another statistical measurement is interval, which represents a quantity but zero simply represents an additional point of measurement. Ratio is the final scale of measurement, which has its similarity to interval in that it represents quantity and equal units but the difference is that ratio measurement scale contains has an absolute zero. An example of statistics would be new product development and marketing. A company may conduct surveys and collect data to determine the demand for a particular product. The results of the survey may be the deciding factor on product development. Reference: •