Statistics for Management: Types, Sources, and Analysis

UNIT 31: STATISTICS FOR
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Types and sources of data and information that could be accessed by business........................3
Difference between sample and a population..............................................................................4
Value of employing statistical methods for meeting the business objectives and to achieve the
competitive advantage.................................................................................................................5
Difference between inferential and descriptive statistics and implications for business
intelligence...................................................................................................................................6
Example of analysis of given sample data sets used by organisation..........................................7
PART 2............................................................................................................................................8
Differences between the inferential and descriptive data on business ........................................8
Descriptive and inferential statistical data analysis.....................................................................9
Graphical analysis of data..........................................................................................................14
CONCLUSION .............................................................................................................................14
REFERENCES.............................................................................................................................16

INTRODUCTION
Statistics are the set of mathematical equations for analysing things. Statistics have
importance as today everyone is living in informative world and the informations are determined
with the help of statistics. Statistics allows in making smarter decisions for by the management
for the business. Statistical analysis provides with more accurate information to the management
on which they could rely. The statistical analysis provides company with data that will help in
avoiding future problems. In this report meaning and characteristics of statistics are explained. It
will give sources and types of business information that could be accessed (Adeniji, 2016).
Difference between sample and population and importance of employing statistical methods for
achieving the business objectives. The report will provide different methods for calculating
descriptive and inferential statistics.
PART 1
Introduction to statistics
Statistics refers to mathematical science that includes methods for collecting, organizing
& analysing information data in manner that provides for meaningful conclusions. Some people
consider statistics as separate mathematical science and not branch of mathematics. Statistics
have concern regarding the use of information in uncertainty context and decision making
process. When applying statistics to problem, practice starts with population or the process to be
studied. Descriptive statistics are used for summarizing the data of population. When census are
not feasible subset of population is studied called sample. When sample representing population
is determined, collection of data for the determined sample in experimental and observational
setting.
Characteristics of Statistics
Statistics are the aggregate of fact
Only facts that have the capability of being studied in connection with place, time
frequency could only be called as statistics. Single, individual or the unconnected figures could
not be termed as statistics as in relation with each other they could not be studied. Because of the
reasons, only collection of facts like student groups, data for IQ of students and like are statistics
and could be studied in each other's relation (Akbari and et.al., 2016).
Statistics are affected to mark extent through multiplicity of causes.
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Data of statistics is much more associated with social sciences and changes are being
affected because of combined effects of various sectors. It is not possible to study effects of
specific causes over a phenomenon. It is possible to trace the individual causes and their impact
could also be known physical sciences (Ames and et.al., 2016). In statistical studies of social
sciences combined effects of multiple causes could be known.
Numerical Expression of Statistics
Qualitative data that could not be expressed numerically, cannot be termed as statistics
like goodness, honesty, ability, etc.,If numerical expressions could be assigned to them they
could be termed as statistics.
Statistics are estimated or enumerate as per reasonable accuracy standards.
Accuracy and estimation standards vary from purposes to purposes or from enquiries to
enquiries. On uniform standard could not be there for all kinds of enquiries and all purposes.
While calculating 100 student's IQ single student could not be ignored in a group while
calculating IQ of all the soldiers of country 10 soldiers could be ignored.
Systematic collection of data
For having reasonable level of accuracy, it is essential that data of the statistics is
collected in systematic manner. Haphazard and rough methods of data collection are not
desirable that could lead to wrong and improper conclusions (Bowden and et.al., 2016).
Different methods of data analysis
There are 4 types of the data analysis :
 Descriptive Analysis
 Diagnostic Analysis
 Predictive Analysis
 Prescriptive Analysis
Descriptive Analysis – It is incurred at foundation of the data insights it answers what had
happened through summarizing previous data in form of dashboard. The are mainly used for
tracking KPI's.
Diagnostic Analysis - It takes insights from descriptive analysis and drill down for finding the
reason of outcome. It involves creating detailed informations.
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