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Business Statistics refers to the application of statistics in the workplace. Statistics involves the methods of gathering, analyzing, and interpreting data. If you have learned about statistics in the past, you may find some of the topics in Business Statistics familiar.
THE STUDY OF STATISICS IN BUSINESS
Statistics can be applied to any number of fields – from anthropology to hedge fund management. The reason why statistics is so widespread is that data is best interpreted when it is presented in an organized fashion (as it is with statistics).
Analyzing data depends on any number of forms. Summary statistics, for example, outline a data set, such as the average score achieved on an exam. However, the average does not always sum up the entire story.
For example, if the average score on an exam is 80, it may be because half of the students obtained 100s and the other half obtained 60s.
This would be contradictory if everyone in the class had obtained an 80, which demonstrates consistency.
To achieve consistency and accuracy in such ambiguous situations, statistics provides more than simple averages.
Business Statistics, on the other hands, helps students apply statistical tools. The statistical tools are used to analyze data, draw conclusions, and even make predictions of the future.
Business Statistics initiate topics on data distributions, followed by probability analysis, inferential statistics, sampling, and hypothesis testing, and, finally, regression. The Business Statistics course is mathematically intensive.
Therefore, much of what you learn from Business Statistics will deal with things people come upon every day. When you are learning Business Statistics, making use of spreadsheets is compulsory. Spreadsheets are an important tool for working with and fully understanding numerical data.
INTRODUCTION TO STATISTICAL ANALYSIS
Many may find statistics to be a difficult, even scary, subject. You may too find, but, that your numerous life experiences made you already familiar with the fundamentals of statistics.
For example, from your experience in life, you know that the majority of adult males wear the same shoe size. The is very close to the average size, and that there are a few adult males who are on both sides of the average (small and large size).
In statistics, this instance shown from the data pattern is termed as a variable that follows a normal distribution.
An introduction to statistical analysis will make you understand how it relates to business. For example, you may be able to extrapolate the average price of a 50-inch digital TV by gathering the current price for the product from 50 different stores.
You gather your 50 prices and then compute the average price, when considering that there are thousands of stores that are also selling that particular product.
The next question statistics wants you to ask is: Is your computed average data reflective of the real average? The real average would be computing from all the existing prices for that TV sold at all stores. You have to be confident when answering this question.
You may be familiar with the average of a data set. Statistical analysis course will refer to what most are familiar with the average as the arithmetic mean. The average is actually any single that may describe the middle of a data set.
The most common averages used in statistics are known as the arithmetic mean, the median, and the mode. Each average concerns the middle of a data set in unique ways. For instance, the median describes the numeric value that separates the upper and lower half of a data set.
The mean is obtained by adding all values, then dividing the sum by the number of values. The mode, however, describes most common value within the dataset.
In many instances, the median and the mean come very close, but this introductory unit will also include many examples where the two vary. The distinction between summary statistics remains an important factor in business statistics.
This unit will define various terms that you may not be familiar with. The terms are such as variance and outliers. When you are a beginners in Statistical Analysis, first you have to understand vocabulary. This will be vital for the successful completion of Statistical Analysis.
COUNTING, PROABILITY, and PROABILITY DISTRIBUTIONS
What is the possibility that an event will take place?
What are the odds that a given student will obtain a 60-69 score?
By studying distributions of data, the probability that a certain event will occur can be determined. By looking at how grades are distributed in a class, the probability that a student will receive between a 60 and 69 may also be determined.
In business, the range of application of statistics is infinite. The range can vary from predicting profits to determining the chances that a business model will impact regulation. Businesses rely on probability to make decisions frequently.
Before you can continue learning about probability, you must first learn how to count. You already know how to count, don’t you? But, this course are about techniques for counting the different ways that multiple events can occur together.
These are called “Combinations” and “Permutations.”
Businesses can benefit greatly if they apply statistics to their production, investment, resource management, etc. Learning Business Statistics is the first and major step toward making your objectives data-driven and educative.
Last Updated on April 28, 2019 by Magalie D.
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.