Statistics Essay

621 Words May 8th, 2013 3 Pages
Describe the role of statistics in business decision making.
Provide at least three examples or problem situations in which statistics was used or could be used.
Statistics plays a significant part in successful business decisions. Any successful entrepreneur has to be especially sharp and correct when making business decisions. The entrepreneur should have a feeling for the market demand for the company's products and should therefore be able to identify what to produce products or services that will sell. The volume of sales may also be accurately estimated. Statistics will help entrepreneurs to align production according to the market demand. Utilizing business statistics the quality of the products may also be verified in a more
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 The correlation between car weight and car reliability is -0.30.
 The correlation between car weight and annual maintenance cost is 0.20.
Which of the following statements are true?
I. Heavier cars tend to be less reliable.
II. Heavier cars tend to cost more to maintain.
III. Car weight is related more strongly to reliability than to maintenance cost.
(A) I only
(B) II only
(C) III only
(D) I and II only
(E) I, II, and III
Solution
The correct answer is (E). The correlation between car weight and reliability is negative. This means that reliability tends to decrease as car weight increases. The correlation between car weight and maintenance cost is positive. This means that maintenance costs tend to increase as car weight increases.
Problem 1
For boys, the average number of absences in the first grade is 15 with a standard deviation of 7; for girls, the average number of absences is 10 with a standard deviation of 6.
In a nationwide survey, suppose 100 boys and 50 girls are sampled. What is the probability that the male sample will have at most three more days of absences than the female sample?
(A) 0.025
(B) 0.035
(C) 0.045
(D) 0.055
(E) None of the above
Solution
The correct answer is B. The solution involves four steps. olly earned a score of 940 on a national achievement test. The mean test score was 850 with a standard deviation of 100. What proportion of students had a higher score than Molly?
(A) 0.10
(B) 0.18
(C)

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