Statistics for Management: Characteristics, Methods, and Importance

Statistics for Management

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.

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

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.