Statistics for Management

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This presentation provides an overview of statistics for management, including its characteristics, methods, and importance. It explains the difference between descriptive and inferential statistics and their implications for business intelligence. The presentation also includes data analysis examples and a forecast of share price patterns for Apple and Microsoft.

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Statistics for Management

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PART 1
Defining statistics, its characteristics and methods
Statistics is defined as a practice of mathematical analysis which makes use of quantified
models, types and methods for analysing the given set of data in some meaningful manner.
With the help of statistics, every business organisation can draw conclusive meaning about
their business operations. Thus, statistics is a study which is related to the methodology as
used by the company or any other researcher in collection, reviewing, analysing, evaluating
as well as interpreting data so as to make relevant decisions.
With the help of statistics means, it assists many company to make better informed
decision about the business.
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Characteristics of Statistics
Following are the important characteristics features of the statistics which has to be
understand:
Aggregate of facts and figures
Affected to marked extent because of multiplicity of causes
Numerically expressed
Estimated as per Reasonable Standards of Accuracy
Statistics are gathered in systematic manner with predetermined purpose
Should be comparable in nature
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Methods of statistics
It encompasses of two statistical methods viz.
Descriptive statistics – is related with a method of summarizing data from the sample
with the help of indexes such as median, mean, standard deviation etc.
Inferential statistics Is a type of statistical method which derives conclusive
interpretation with the help of data which are subjected to variation on the random basis
such as error made during observation, variation in between sampling factors etc.

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Sources of data collection
Data collection is a process which is related with the most essential part of every research
study as it helps the researcher in completing its research study in an effective as well as
efficient manner.
The process of data collection starts with finding out the most relevant as well as
appropriate data type as required in the research study, which is accompanied by gathering
of sample out of such large part of population. After selecting sample, with the help of
appropriate tool data has to be gathered out of chosen sample.
There are two methods of collecting data:
Primary
Secondary
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Difference between Sample and Population
The main difference in between sample and population is defined as below:
Sample Population
The term sample is defined as a subset of large number of
people, item or of a specific events which has been
selected from large section of population.
The main of selecting a sample is make in depth analyses
of the data as collected so as to make proper inferences.
With the help of sample, the researcher can represent the
population in better manner as it is selected on the random
basis.
A sample usually consists of more than one or more
observations which has been drawn from the population
related to the subject matter.
Sample is considered as one of the measurable quality
which is called as statistics. It consists of data set which
contains a specific part or subset of the population
selected for the sample purpose.
Population is a term which is related to the process of
collection of people, events as well as items of which
inferences has to be made.
Population denotes to a large section of which study to be
made by the researcher is a difficult task on a specific
research topic.
With the help of population, researcher can make selection
of the most appropriate sample type as per the requirement.
A population basically includes all the elements factors
which are considered as essential from the perspective of
the given set of data.
Population is thus known as a complete set which helps the
researcher in gaining true representation of the opinion of
all the members of the particular group.
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Statistical methods value for business
Statistics is considered as one of the crucial business process on the basis of which
discoveries can be made in the field of science as well as technology. Statistical methods
are related with the mathematical formulas, tools, models as well as techniques which can
be used in making proper analysis of statistical data, figures of raw nature.
Also, it assists most of the business organization in making their business related decisions
in an effective as well as efficient manner. Following are the benefits with the help of
which every business organisation can make profits:
With the help of statistical research, it provides the management of the company with
most useful information as requisite in making useful decisions in case of uncertain
business situation.
By making use of correct statistical means and techniques, the management of the
company can make accurate as well as correct predictions about the future happening of
the business operations.
Statistical methods assist in producing most reliable data related to the subject matter of
the phenomenon. It also helps the researcher in making the process of data analysis in
appropriate manner by taking in to account the most relevant method of statistics.

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Difference between descriptive and inferential
statistics with implications for business
intelligence.
Descriptive statistics Inferential statistics
Is a term with the help of which data collected can be analysed
thereby describing, showing as well as summarizing of given
data set in some useful manner.
It doesn't allow the researcher in making conclusion beyond the
data which has been analysed or of any hypotheses made.
The descriptive statistics is considered as one of the simplest
manner of describing the whole data set as collected by the
researcher.
The data can be presented in more better as well as meaningful
manner along with simple interpretation of data as collected.
It is generally of two types named as:
1. Measure of Central Tendency – It includes mean, mode and
median.
2. Measure of spread – which includes range, quartiles, variance,
standard deviation etc.
It is a techniques or methods which authorizes to make use of
sample so as to make generalization about the population from
which sample has been taken.
It assists the researcher in examining the relationship in between
different variables within the sample selected.
It is considered as one of the most time consuming process as the
calculation related to the sample are derived from complex
mathematical techniques.
Predictions are made so as to determine how these sample
variables will be related to the larger section of the population.
Researcher has following methods:
1. Chi – square
2. t - test
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Implications in relation to the business
intelligence
Descriptive statistics -
It includes the process of collecting, organizing, summarizing as well as presenting the
whole data set in correct manner so as to provide better understanding to the management
of the company.
It is mostly useful in clinical research study thereby providing proper communication
flow of results related to the experiments made.
The most common methods which is used includes preparation of tables, graphs, charts,
excels, measuring central tendency and determining variation of the data collected from the
actual mean value.
Inferential statistics -
Business organisation by making use of inferential statistics can make conclusion,
formulate hypotheses for conducting test, making estimation and relation identification of
the data as gathered.
Companies can make effective decisions related to their business operations with the help
of inferences made out of data analysed with the help of descriptive statistics.
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Data analysis
For example: the sales and profit amount of Apple for the period of 4 years is as
follows:
Year Total revenue (in $) Net Profit (in $)
26 / 9 / 2015 233715 53394
24 / 9 / 2016 215639 45687
30 / 9 / 2017 229234 48351
29 / 9 / 2018 265595 59531

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Data analysis
Total revenue (in $) Net Profit (in $)
Mean 236045.75 51740.75
Standard Error 10572.866 3049.03707
Median 231474.5 50872.5
Mode #N/A #N/A
Standard Deviation 21145.7321 6098.07414
Sample Variance 447141985 37186508.3
Kurtosis 2.1384436 -1.0482968
Skewness 1.19683337 0.63644619
Range 49956 13844
Minimum 215639 45687
Maximum 265595 59531
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CONTD…
Data analysis of Microsoft is enumerated below:
Total Revenue Net Profit
6/30/2015 93,580 12,193
6/30/2016 91,154 20,539
6/30/2017 96,571 25,489
6/30/2018 110,360 16,571
Total Revenue Net Profit
Mean 97916.25 18698
Standard Error 4293.286433 2833.521
Median 95075.5 18555
Mode #N/A #N/A
Standard Deviation 8586.572866 5667.043
Sample Variance 73729233.58 32115372
Kurtosis 2.703979553 -0.73622
Skewness 1.615045162 0.126531
Range 19206 13296
Minimum 91154 12193
Maximum 110360 25489
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Forecast pertaining to share price pattern of
Apple and Microsoft
Trend analysis

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CONTD…
Sales revenue analysis
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CONTD…
Profit forecasting (Apple v/s Microsoft)
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REFERENCES
Books and Journals
Alan, J., 2016. StatsNotes: Some Statistics for Management Problems. World Scientific.
Chandrasekaran, N. and Umaparvathi, M., 2016. Statistics for Management. PHI Learning Pvt. Ltd..
Keller, G., 2015. Statistics for Management and Economics, Abbreviated. Cengage Learning.
Khyade, V. B. and Eigen, M., 2018. Key Role of Statistics for the Fortification of Concepts in Agricultural Studies.
International Academic Journal of Innovative Research. 5(3). pp.32-46.
Miah, A. Q., 2016. Applied statistics for social and management sciences. Springer.
Richard, I. L., 2018. STATISTICS FOR MANAGEMENT. PEARSON EDUCATION INDIA.
Rivera, J., 2017. Applied Statistics for Management and Economics (MTH).
Sotirchos, E. S., Fitzgerald, K. C. and Crainiceanu, C. M., 2019. Reporting of R2 Statistics for Mixed-Effects Regression
Models. JAMA neurology. 76(4). pp.507-507.
Sudit, I. and Morita, N., LOC - AID TECHNOLOGIES Inc, 2016. System and method for generating use statistics for
location-based applications. U.S. Patent 9,462,065.
Online
Statistics for management. 2019. [Online]. Available through: <
http://www.yourarticlelibrary.com/education/statistics/statistics-meaning-characteristics-and-importance/91697>.
Statistics for management and its importance. 2019. [Online]. Available through: <
https://thefactfactor.com/facts/management/statistics/statistics/562/>.

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