Statistics for Management: Nature, Process, and Evaluation of Data

Statistics
For
Management

Table of Contents
INTRODUCTION...........................................................................................................................1
ACTIVITY 1....................................................................................................................................1
Activity 2.........................................................................................................................................8
Activity 3.......................................................................................................................................12
ACTIVITY 4..................................................................................................................................14
CONCLUSION..............................................................................................................................17
REFERENCES..............................................................................................................................19

INTRODUCTION
Statistics for management is a investigation of information and practical application to
interpret the dynamics of management by using statistical tools and techniques. Statistical
analysis is a elements of analytical data. It is used to collect and scrutinize all sample of data in a
unit of items from where the samples are drawn (Abdelhak, Grostick and Hanken, 2014). This
report covers nature and process of business and economical data obtained from published
sources. Analysis and evaluation of raw business data by using different statistical methods are
mentioned. Statistical methods are applied in business planning. Along with this data and
information are presented in a tabular and charts form are also mentioned in this report.
ACTIVITY 1
P1. Nature and process of business and economical data from different published source
Business data is a information of things, people, place, rules of business and activity
related to business operations. Economic data is a quantitative measures that shows accurate
report of past and present economy.
Consumer Price Indices
Consumer price index (CPI):
CPI is a comprehensive measures which is used to estimate the change in retail price of
goods and services which represents consumption of expenditure in economy. This is an
essential economic indicator as it analyse economy according to weighted average price of
goods. It is measured by taking change price of every items in preset basket of goods. Any
occurrence in CPI is used to evaluate the price changes that is related to cost of living. It is
mostly used statistics to identify inflation and deflation periods. It gives ideas about change price
of economy to businesses, citizens and governments.
1

CPIH:
CPIH is a new method that is used to analyse inflation of consumer price considering
evaluation of owner occupiers housing costs(OOH). It is comprehensive measures which
comprises the appraising process of management and consumer inflation for improved findings
and transactions. It is considered as a better evaluator for Different type of inflation rate and
analysis for ascertaining an understanding budgets case (Qiu, Qin, and Zhou, 2016).
Retail price index(RPI):
RPI is one of the essential index that evaluate inflation of consumer produced by UK's
office for national statistics. It is generally used to measure the inflation rate and like GNP
deflector. This examine annual rate promulgated on basis of tax allowances, salaries and wages.
This index is mostly used to handle many requirements that happen because of various RPI's. It
represents the expenses position of living reportt according to changes rate of goods and
services.
2

Differentiate between indices.
Basis CPI CPIH RPI
CPI was firstly CPIH measures the RPI was introduced in
3
29/06/1905
30/06/1905
01/07/1905
02/07/1905
03/07/1905
04/07/1905
05/07/1905
06/07/1905
07/07/1905
08/07/1905
09/07/1905
0
50
100
150
200
250
300
RPI

established in
European union in the
year 1996.
inflation of consumer
price including cost of
house owned by
owners.
united kingdom in
year 1956.
aim It aim is to analyse
euro countries for
evaluating the
utilisation capacity on
salary basis (Gaynor,
and Muir, W, 2014).
It aim is to assess the
abstracted charge on
residential rents.
The aim of RPI is to
monitor living cost on
the basis of
government planning
and various consent.
Exclusions In this indices, price of
houses, cost of
purchase house ,
council tax and
interest payments of
mortgage are
excluded.
In this indices, people
from private or
businesses sectors are
excluded because of
their own agency of
evaluation.
In this indices, life
insurance charges,
national insurance ,
pension charges and
income tax are
excluded.
d. use of data collected from consumer price index to elaborate
Consumer price index plays a crucial role for evaluating annual rate of inflation of
company. There is a appropriate examination of information for developing the living index
cost. It effects the fluctuation and differences that are occurs due to changes incurred during
annual inflation rate. CPI assist to merge the group with generating division changes for small
reasons. Many factors are accountable for evaluating the annual rate of inflation and CPI. Bureau
of Labor statistics facilitates information according to annual expenditure by consumers for
specified time period. There are some sections that are examined to ascertain the increase price
because of inflation cost and cost of energy (Coolican, 2017). For deciding the annual rate of
inflation it is necessary to have data associated with utilisation for a for specific time periods.
e. Importance of inflation rate.
It is necessary to examine the rate of growth and CPI of company of an economy.
Inflation rate is an elements according to performance of industry and output of GDP is
4