Statistics for Management

Statistics for Management

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1............................................................................................................................................1
1. Introduction to statistics, with key characteristics and overview of methods....................1
2. Sources and types of data or information, that business can access to achieve competitive
advantages..............................................................................................................................3
3. Difference between a sample and a population..................................................................4
4. Value of statistical methods that Samsung can employ to meets its business objectives. .4
5. Difference between descriptive and inferential statistics, with implications for business
intelligence.............................................................................................................................4
TASK 2............................................................................................................................................5
CONCLUSION..............................................................................................................................18
REFERENCES..............................................................................................................................19
.......................................................................................................................................................19

INTRODUCTION
Statistics refers to a mathematical science, that pertains to collect, organise, analyse and
interpret a data. It provides a number of tools to predict and forecast a data to organisation, that
helps in taking important decisions regarding with finance, marketing and other services. The
present report is going to collect an in-depth knowledge of statistical management, including its
usage in resolving the business challenges. Samsung is chosen for this analysis, that deals in
electronic products, as designer, manufacturer and distributor in UK. It includes different sources
and types of data, that business can access like past and current performance of competitors, for
developing better strategies to enhance own performance. For this purpose, value of employing
statistical methods are also discussed in present report, to meet business objectives of respective
firm. Furthermore, key difference between inferential and descriptive statistics, with implications
for business objectives are highlighted.
MAIN BODY
TASK 1
1. Introduction to statistics, with key characteristics and overview of methods
Statistics can be defined as a tool to collect, analyse and interpret the large numerical
data, by using a number of methodologies. It includes index, correlation and regression, trend
forecasting and more, which are majorly classified into two forms of statistics as inferential and
descriptive. According to Prof. Bowley, statistics can be defined as a branch of mathematics that
mainly deal with counting and interpreting a numerical information.
Key characteristics of statistics: Statistics are aggregate of facts: Information that is collected by statistical methods never
includes the single or isolated figures, because such data cannot be compared, to drawn
specific conclusion. Therefore, statistical data is aggregate of facts, that are capable to
offer meaningful information. Data must be expressed in numerical form: As statistical methods can only be applied on
information which is numerically expressed. Therefore, qualitative data like intelligence,
beauty and judgemental information that cannot be expressed in numerical form, then
statistical methods cannot be employed on the same.
1

 Statistical information must be collected in systematic manner: To take business
decisions or draw a valid conclusion, data must be gathered systematically, by following
a suitable plan. Information must gather with definite purpose: Before collecting any business
information, it is essential for a company to determine specific and well-defined purpose,
so that relevant statistical information can be collected.
 Standard of accuracy should be maintained while collecting statistical information:
Statistics deals mainly with large number of information, therefore, accuracy of same
depends highly upon nature of enquiry, which may mislead the result, if not taken
appropriately.
Overview of statistical methods:
According to John Dillard, in information age, to analyse a data and conclude relevant
result, it is essential to take right statistical tools. It includes -
 Mean: This methods helps in determining the average value of large information, to
identify the overall trend of a data set. But employing this method on data having skewed
distribution, may provide inaccurate information, that highly affects the decision taken
for achievement of business objectives.
 Standard deviations: It is mainly applied on data which is highly spread for mean, that
helps in determining the dispersion of data points, in quick manner. But if data with
strange patter like large amount of outliers or non-normal curve, than desired information
cannot be obtained by applying standard deviation method.
 Correlation and Regression: Both methods are used to determine the interdependence
or relationship between two data, through which trends over specific time can be
analysed.
 Sample size determination: When measuring a large population data like business
information regarding with revenues, customer base and more, it is difficult to obtain
accurate result. Therefore, it is essential to take a sample of data with right size, so that
accurate result can be obtained. But if sample fails to include defined variables then it
might creates errors also.
 Hypothesis testing: This method also known as t-testing that helps in testing if a certain
hypothesis is true for a data set, otherwise alternative hypothesis will accept.
2

2. Sources and types of data or information, that business can access to achieve competitive
advantages
In order to achieve competitive advantages, an organisation like Samsung which operates
its electronic business in various countries, can use a number of sources. It includes statistical
sources which is used to collect data for official purpose like census report and non-statistical
sources that employ for gathering administrative purpose of information.
Sources of gathering statistical information: Survey: This method is also called sample survey which is used to estimated the
characteristics of a large population data. Using this method, gives advantage in to a
company in determining the current and previous trend more easily, but it can cause error
also. Samsung can use this source to collect feedback of customers and other stakeholders
about quality of products and services, so that further improvement can be made. Census: It is based on each and every item of population to analyse data. Advantage of
using this method is getting accurate and more relevant information. But it includes high
cost and time, for analysing and interpreting the information.
 Government and Semi-government sources: These sources provide data about current and
past performance of business of an organisation, through which a purpose behind
collecting the data can easily achieved. To collect data about competitive position of own
business and other competitors that deal in same market, managers of Samsung can use
this non-statistical source.
Types of statistical data: Primary data: It includes quantitative business raw data i.e. information without
fabrication which can be collected from primary sources only, such as questionnaire,
survey and more.
 Secondary data: It consists information which may undergone in a statistical treatment
and can be collected through government and semi—government organisation, journals
and other published sources.
3. Difference between a sample and a population
3

4. Value of statistical methods that Samsung can employ to meets its business objectives
5. Difference between descriptive and inferential statistics, with implications for business
intelligence
4