Statistics in Business Essay Example | Topics and Well Written Essays - 500 words - 2

Statistics in Business - Essay Example ii. Inferential statistics is the second type that deals with the collection of samples from a large statistical set of data and deducing general conclusions. Therefore, descriptive statistics summarizes business data while inferential statistics computes the same information in the form of representative samples. i. Nominal statistics. It is the categorical discrete data for example names that represent the units being measured. In business such names may include examples like the types of cars being sold or the organizational department involved in a particular transaction ii. Ordinal or Rank. Refers to the ordering or ranking of the quantities being measured. A business empire may choose to rate its departments in a particular order of merit when conducting statistical analysis iii. Interval data. It is similar to ordinal in terms of ranking except for the fact the intervals between statistical values are split on an equal basis. Financial information appertaining to a business can be split orderly to create equal intervals to aid in statistical analysis iv. Ratios. Show statistical relationships between various sets of data. Therefore, comparison of financial and other statistical business information is made possible. Examples of business ratios are liquidity, profitability and efficiency Statistics gives a scope of the market and enable the managing body of a business to plan appropriately for the customers. When statistical analysis is conducted on a representative sample of customers, the process becomes cost-effective because not every customer has to be involved. Therefore, the organization is able to formulate a cost-effective financial plan in relation to the target market. Leaders in business organizations make vital decisions for the business. Such decisions should be supported by an accurate and substantive basis. Statistical