Qnt 351 Week 1 Paper
Statistics in business
The purpose of this essay is to examine the purpose of statistics in business. Our text, Lind (2011) defines statistics as “The science of collecting, organizing, presenting, analyzing, and interpreting data to assist in making more effective decisions” (p.5).
Types and levels of statistics There are two major types of statistics, descriptive and inferential. Descriptive statistics is defined by Lind (2011) as “methods of organizing, summarizing, and presenting data in an informative way” (p.6). An example of descriptive statistics would be a high school report showing that it had 300 graduates in 1990 and 450 graduates on 1991. The information that they …show more content…
The role of statistics in business Statistics are the lifeline of a business. A business relies on good statistical data to determine its financial standing, projecting future sales and projects, and to provide the management team with information to make sound business decisions. When we look at statistics in the business world we are primarily concerned with their bearing on profits, investments, hours worked, and wages. The decision making process is made easier by analyzing data to determine the best course of action instead of taking uneducated risks. An example of the importance of statistics in business would be forecasting. We recently hired additional personnel based on historical data on first quarter sales and average call handle time of our phone staff. We took the archived data that showed how many calls were taken in our call center, the number of personnel on the phones, and the average time of each call. We used this historical information from the last three years to determine how many people we will need on the phones at any given time during first quarter. This data