Statistics in Business

Topics: Decision theory, Decision making, Scientific method Pages: 1 (294 words) Published: June 21, 2013
Statistics in Business
Quantitative Analysis for Business
University of Phoenix
Tanya Bailey
April 22, 2013

Statistics can sometimes be difficult for some individuals. Understanding the concept of statistics, which is known as the science of data, may help a person in the business world. This involves classifying, summarizing, analyzing, collecting, and interpreting numerical information. The information gathered from statistics can help startup companies, and even average the age of customers a company would like to target for a product. Statistics has different types and levels. Two types of statistics are descriptive statistics and inferential statistics. Descriptive statistics uses graphical and numerical methods to form patterns in sets of data. Inferential statistics uses sample data to predict, generalize, and estimations about large sets of data.

Statistics is very important in the business decision making. It provides the basis for arriving at a decision on all matters that pertain with operations of business. Statistics can also be used as a tool of management. It can evaluate personnel so management can judge performance. Statistics helps business efficiently judge new items, new production methods, and products.

An example where statistics can be used could be people with disabilities. Another example is the insurance business. It is important to this company statistically to know how long people will live so they can determine how likely a person will have an accident. This can help with the evaluation of cost of a policy. Finally political campaigns that lead to elections because polls are taken and the information gathered can be calculated to indicate the results on the margin of the running candidates. There are so many ways statics can be used in all industries. Understanding and utilizing the methods provided in statistics and help any and all businesses grow.
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