Statistics in Business Case

Statistics in Business

Katie Johnson

QNT/351

March 12, 2012

David Gualco

Statistics in Business

Statistics can be defined as “a collections of numerical information,” (Lind, Marchal,  & Wathen, 2011). Like for example would be the statistics that state how many people die from car accidents each year. The collection of numbers that state how often someone drowns in  a swimming pool. This are statistics that people might hear about. The statistics that businesses use are a little like that but in a business sense. Most often business’s use graphs to show types of statistics.

There are two different types of statistics descriptive and inferential statistics. “Descriptive statistics utilizes numerical and graphical methods to look for patterns in a data set, to summarize the information revealed in a data set, and to present the information in a convenient form (McClave, Benson,  & Sincich, 2011).”Like before companies use graphs to help illustrate the comparison and difference in the statistics in patterns of data that they have to present. “Inferential statistics the methods used to estimate a property of a population on the basis of a sample (Lind, Marchal,  & Wathen, 2011).” The types inferential statistics would be like when the government comes around and takes census polls on the different people or how many people that live in houses or areas.

There are four different levels of measurement nominal, ordinal, interval, and ratio level. “Nominal level of measurement observations of a qualitative variable can only be classified and counted. (Lind, Marchal,  & Wathen, 2011)” The ordinal level are able to be ranked or put into order. The interval level is the next level up to ordinal which means is carries the same characteristics of ordinal but it also has “equal differences in the characteristic are represented by equal differences in the measurements. (Lind, Marchal,  & Wathen, 2011)” The fourth and highest level is the ratio level it carries all the same characteristics of interval but it also has an extra characteristic being “the zero point is meaningful in the ratio between two numbers is meaningful.  (Lind, Marchal,  & Wathen, 2011)”

 “Statistical thinking involves applying rational thought and the science of statistics to critically assess data and inferences. Fundamental to the thought process is that variation exists in populations and process data.  (McClave, Benson,  & Sincich, 2011)” Business use statistics to show maybe differences in the different types of customers they might have and showing what one might like over another.

Some examples of ways that statistics can be used with cellphone companies using statistics showing how often certain age groups between the age of 18-35 buy new cellphones to help with when would be the best time to promote new devices to be most profitable. Statistics that could show during certain peaks of sells during the year the best time for promotions to be put out for the company. Or even using statistics to see the numbers of texts certain age groups use and during peaks of the day when texting is done the most could be a way a company could develop a new texting plan.