Essay about Bus 308 Statistics
BUS308: Statistics for Managers
Instructor: Gary Withers
November 23, 2015
Data analysis is done to convert the raw data into meaningful information. Statistics is all about this data analysis. Before actually working on data analysis in real world, it is important that the basic knowledge is possessed by everybody involved in this process. The following paper seeks to provide basic knowledge in some specific areas of statistical data analysis.
As the name suggests, descriptive statistics means analysis of data to describe or summarize data in a meaningful manner. The analysis helps in determination of patterns that exist in the data. Descriptive …show more content…
This means that simple measures of mean and standard deviation can be used to describe the whole data of stock returns of 100 stocks.
In descriptive statistics, it is beneficial to use tables (tabulated description), graphs, charts (graphical description) and discussion of the results (statistical commentary) to summarize the group of data (Laerd statistics).
Often, a person does not have access to the whole population needed for investigation. For example, an investor may want to know and compare the returns of all the securities in the United States stock exchange. It will almost be impossible for the investor to do so; hence using a sample of say 100 securities will be better, which are representative of all the other securities. This sample can be used to make generalizations about the whole population’s parameters. Inferential statistics makes available the techniques used for the same. This means that the sample characteristics are used to infer about the population parameters. So, it is of utmost importance that the sample selected is an accurate representation of the