Exploring Statistical Methods in Business: Semester 1 Report

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Statistics for Management

Table of Contents
Introduction......................................................................................................................................3
The different sources and types of data...........................................................................................4
Importance of Statistics methods.....................................................................................................5
Deductive and inductive approaches...............................................................................................6
Analysis of given example...............................................................................................................7
Suitability of data analysis...............................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
Statistics is a method of data interpretation which is also analyzed the data according to get some
knowledge about something. The term data in the business statistics can be defined as a group of
different information that is gathered for some purpose. The statistics contain factual data in the
information which can be a prime feature of statistics the statistics is a tool of numerical
representation through which the business takes their business decisions, so statistics is also
beneficial for the corporate world. The business is always set different objectives for the business
to improve the growth of the company so statistics present data about the activities and
profitability aspects of the business. The statistics is a tool of taste and preference identification
of customers, through the help of statistics the businesses can customize their product according
to the demand of customers.

The different sources and types of data
There are a lot of sources to gather data, these are as follows.
 Statistics survey: Statistics is a type of simple survey in which companies conduct a
survey into different places to identify the demand of customers. The sample survey is
the best policy to identify the taste of customers and most of the companies use statistics
survey (Toby et. al., 2013).
 Census: census is the second best option of gathering data in which information remains
the same for a specific time period such as 5 years or 10 years. The business use census
as a tool of product sales identification, they simply analysis the sales of the company
with the overall sales of the industry for a specific time period to know about the growth
of the decision making. The census is also useful in the decision-making process of the
company by providing actual information of a time period.
So these are two important sources of data collection that are used by the companies to identify
the taste of customers.
Basically, there are two types of data primary data and secondary data, the below a brief
explanation provided about the types of data.
 Primary data: the primary data is collected from self-efforts of an individual and a
researcher, the collection of primary data is dependent on the own knowledge of
something. The collection of primary data is based on the observation of census which is
useful for the business in decision making.
 Secondary data: the secondary data can be found in the publications, magazines, and
books, which is a person can easily assess. The businesses use secondary data for the
identification of brand value and the demand of the customers.
So these are some types of data in Statistics.

Importance of Statistics methods
There are two types of statistics method is used in the business such as descriptive method and
inferential method which provides many benefits to companies so these are some importance of
statistical methods in the business objectives and in achieving the competitive advantage of the
company.
 The methods of statistics are useful in the goal achieving, the business can easily achieve
their goals through methods of statistics because the statistics present a fair picture about
the performance of the company in the market (Brown and Weber, 2013). The methods
of statistics indicate the strength of a company in the market which helps companies in
the development of the strengths and focus on the strength to get a comparative
advantage so through this they company can easily achieve their short term goals as well
as long term goals.
 The methods of statistics also help companies in the running operations because if the
data of customers come on a periodical basis then the company can customize their
products according to the demand of the customers. The actual information about the
business can improve the decision making of a company through analysis of actual
business positions.
So these are some ways through which the methods of statistics can be helpful in getting a
comparative advantage and in achieving the goal of the companies.

Deductive and inductive approaches
The deductive approach is based on the existing theory which is already made by someone and
someone already developed that hypothesis. The deductive approach is a kind of scientific
approach which is work on an existing hypothesis and creates something extraordinary from
existing information about a product.
The inductive approach is a completely different approach is begun with the collection of data
and goes out to the development of theory. The inductive approach is the first time a researched-
based approach in which an individual needs to collect important data about something then need
to critically analyze the data to develop a theory from that. The inductive approach is propelling
an individual into thinking through which they can develop a new theory which ultimately
creates a significant effect on the society or market (Abelló et. al., 2013).
So these are some implications of the deductive approach and inductive approach in business
intelligence.
 The deductive approach is very useful in business intelligence because business
intelligence is a technology-driven decision-making process in which data is critically
analyzed. If some theories and important information put in business intelligence than
they come up with something innovative information which is useful for product
development.
 The inductive approach is creating a significant effect on the business intelligence of a
company through the help of an inductive approach and business intelligence, a company
can develop an innovative product in the market which is completely changing the
perspective of the market. Inductive approach is always a game changer approach and if
it is used with business intelligence than it can really develop something good in the
market.
So these are some important things which can be made through combination of business
intelligence as well as deductive approach or inductive approach.

Analysis of the given example
Apple Microsoft Netflix Amazon
Mean
236045.
75 Mean
97916.2
5 Mean
10774.
31 Mean
163436
.5
Standard Error
10572.8
66 Standard Error
4293.28
643 Standard Error
1953.2
1 Standard Error
27339.
62
Median
231474.
5 Median 95075.5 Median
10261.
69 Median
156926
.5
Mode #N/A Mode #N/A Mode #N/A Mode #N/A
Standard
Deviation
21145.7
321
Standard
Deviation
8586.57
287
Standard
Deviation
3906.4
19
Standard
Deviation
54679.
24
Sample
Variance
4471419
85
Sample
Variance
7372923
3.6
Sample
Variance
152601
12
Sample
Variance
2.99E+
09
Kurtosis
2.13844
36 Kurtosis
2.70397
955 Kurtosis
-
0.5496
2 Kurtosis
-
0.8153
9
Skewness
1.19683
337 Skewness
1.61504
516 Skewness
0.6283
92 Skewness
0.5611
66
Range 49956 Range 19206 Range
9014.8
3 Range 125881
Minimum 215639 Minimum 91154 Minimum
6779.5
11 Minimum 107006

Maximum 265595 Maximum 110360 Maximum
15794.
34 Maximum 232887
Sum 944183 Sum 391665 Sum
43097.
23 Sum 653746
Count 4 Count 4 Count 4 Count 4
The above chart presents a clear view about a range of techniques of statistics such as mean,
standard error, median, mode, standard deviation, sample variance and range on the data of
Apple, Microsoft, Netflix, and Amazon company (Wicherts and Bakker, 2014).

Suitability of data analysis
The suitability of data analysis is dependent on the requirement of information; it's always
dependent on the management of the company which method of statistical analysis they choose
to make business decisions. The different methods of statistical analysis are defining the different
positions of a company in various aspects of the business but these are some basic types of data
analysis (Van Boeckel et. al., 2014).
 Descriptive analytics
 Diagnostic analytics
 Predictive analytics
 Prescriptive analytics
So these are some common types of data analysis, a company can also use other types of data
analysis according to the requirement of the company.

Conclusion
This study had provided a brief explanation about the types of data and the different sources of
data that are used in the statistical analysis. The study had provided a brief overview of the
different methods of the statistics which is useful for a company in their decision-making
process. The inductive and deductive approaches of statistics had briefly discussed in this study
to take an idea of how these approaches help in the innovation of a product for the company. The
statistical analysis also did in this given case study on the given data of the companies. The
statistics analysis can create a lot of benefits for the company so a company must use statistics in
their decision making.