Business Decision Making: Statistical Tools and Techniques

BUSINESS DECISION
MAKING

TABLE OF CONTENT
INTRODUCTION...........................................................................................................................................4
TASK 1.......................................................................................................................................................4
1.1 Plan for doing primary research...................................................................................................4
1.2 Sampling techniques....................................................................................................................4
1.3 Questionnaire for research...........................................................................................................5
TASK 2.......................................................................................................................................................6
2.1 Information for decision making.......................................................................................................6
Table 1Calculation of mean, median and mode......................................................................................6
2.2 Analysis of data using statistical tools...............................................................................................7
2.3 calculation of standard deviation.......................................................................................................7
2.4 Calculation of quartile, percentile and correlation.............................................................................8
TASK 3.......................................................................................................................................................9
3.1 Graphs on data collected from primary research................................................................................9
3.2 Trend line........................................................................................................................................13
3.3 Covered in PPT.................................................................................................................................14
3.4 Formal business report.....................................................................................................................14
TASK4......................................................................................................................................................15
4.1 Information processing tools...........................................................................................................15
4.2 Project evaluation techniques..........................................................................................................16
4,3 Use of financial tools for decision making.......................................................................................17
CONCLUSION.........................................................................................................................................19
RFEFRENCES..............................................................................................................................................20
Books & journals........................................................................................................................................20
No index entries found.

INTRODUCTION
In today business environment it is very difficult to take decisions. In such a situation
analysis of facts gives a specific direction to the manager in relation to decisions making. In
respect to this, statistical tools are widely used by the managers. In this report an attempt is made
to apply statistical tools on the firm cash flows. Along with these results of statistical tools like
mean, median, mode, quartile and correlation are also interpreted in the report. Projects play a
vital role in growth of an organization. Without these projects it is not possible to survive in a
highly competitive market. There are many techniques of project appraisal like payback period,
ARR, IRR and NPV and all these four techniques are widely used in the business firms. In this
report an attempt is made to create broad understanding about application of these tools on the
firm cash flows. After calculation results are also interpreted in the report. It is necessary to
complete project on time. In this regard PERT and CPM technique is used by the firms. In this
report network diagram is prepared and interpreted in detail. In this way entire project is
completed by the researcher.
TASK 1
1.1 Plan for doing primary research
Primary research refers to collection of data that is not collected by any one. Whereas,
secondary data is a data that is already collected by someone. Primary data can be collected
by conducting surveys. On other hand, secondary data can be collected through books,
journals, newspapers etc. So data collection method is different in both primary and
secondary sources of data collection. In research it is necessary to collect both primary and
secondary data (Dan, , 2006). By collecting and analyzing secondary data researcher comes
to know about past scenario. If researcher wants to know about consumer behavior of the
people regarding juice. Then he will collect secondary data and by analyzing that data he
will come to know about consumer behavior of the people in previous days. On the basis of
input researcher will draft a questionnaire. Hence, secondary data play a supportive role in
collection of primary data (Thomas and Harden, 2008). In order to collect data respondents
will be taken from London. Sample size for research will be 50 people. In respect to this
entire city will be divided in to several parts. Hence, entire sample size will be divided in to
these areas. In this way data will be collected from several areas and data collected will be
reliable in nature. So this plan will be followed in order to collect data for primary research.
1.2 Sampling techniques
In order to collect sample size is determined but in order to collect data in proper manner a
researcher needs to determine the way in which sample will be taken from the population. In
this regard sampling techniques are used by the researcher. Some of the commonly used
sampling techniques are given below.

 Simple random sampling – Under this technique samples are randomly collected
from population. If this technique is applied in research then all samples in London
will be taken randomly from its entire population (Lieth and Whittaker, 2012).
 Cluster sampling- In this technique entire population is divided in to several parts.
From these parts unit of sample is taken. This method of sampling is quite popular
among researchers because in this method wide geographic area is covered and data
is collected from different people. Hence, data collected by applying stratified
sampling technique has high reliability. For research this sampling technique will be
used.
 Convenience sampling- In this sampling technique samples are taken according to
convenience from population. However, this technique is rarely used by the
researchers. This is because main target of every researcher is to collect reliable data.
So they do not look after their convenience (Whittemore and Knafl, 2005). Due to
this reason there is less chance of using this sampling technique.
 Stratified sampling- In such kind of technique population is break in to several parts
and strata are formed. Strata are a group of people sharing common attributes. This
technique is widely used by the researchers in order to cover people with different
attributes in research.
1.3 Questionnaire for research
Name
Age
Marital status
 Married
 Unmarried
 Widow
Do you consume juice?
 Yes
 No
In a month how many times you consume juice?
 1-3 times
 4-6 times
 7-9 times
 10-14 times
Your consumption of juice increased, decline or remain stable?
 Increase
 Decline