Statistical Data Analysis Report: Applications in Business

Desklib provides solved assignments and past papers to help students succeed.

Statistics management
1

Table of Contents
Introduction....................................................................................................................................3
Key characteristics of statistics:...................................................................................................3
Benefits of statistical data:............................................................................................................3
Evaluating alternative scenarios or possibilities:........................................................................4
Research and development:..........................................................................................................4
Numerical evidence:......................................................................................................................5
Employing statistical methods:.....................................................................................................5
Suitability of data analysis............................................................................................................7
Conclusion......................................................................................................................................8
References.......................................................................................................................................9
2

Introduction
Statistics is not a new concept but is a traditional one that is widely used to solve various crucial
problems and issue that are generally face by the top level management of any business entity or
organization. These problems can only be resolved or addressed by the application of statistical
tools and techniques. Thus, it is important to note that statistics play a major and dominant role
in arriving crucial decisions. Not only statistics helps to solve the problem but also help to
formulate the business plan in the desired direction,
Key characteristics of statistics:
Following are the major characteristics of statistics that are included in almost every type of
statistical tool and techniques:
 There are various elements that are inherent in the application of every type of tools and
technique that are associated with the statistics.
 Statistics can be modified or modified as per the specific requirement of the purpose for which
intended tools have been applied.
 The outcomes of statistics can be expressed in quantitative terms and it can be denominated in
numerical terms.
 Statistics is tool that can be combined with various other tools so as to arrive at the better
outcome or result that can be derived on the application of two or more than two tools.
 There are certain assumptions that are involved in the application of statistics. These assumptions
help to solve the business problems in the most feasible manner (Waltenburg, 2012).
Benefits of statistical data:
Although there are certain benefits or advantages of statistical data that can be derived therefrom
on the application of statistical tools and techniques, it is quite difficult to list all the possible
advantages. However, an attempt has been made to list prominent advantages. Following is the
graphical presentation of the major advantages which has been explained afterwards:
3

Figure: Major advantages or merits of statistical data
Source: By author, 2019
Evaluating alternative scenarios or possibilities:
There are various options available to any business entity. However, due to certain constraints
(capital, labour, resources and likewise) all the available options can be selected. But, on
application of statistical tools, the most appropriate and feasible option can be selected that will
be beneficial for the overall organization. In this manner, the most desired benefit can be
obtained therefrom. Thus, it can be said that statistics help to solve the problem or difficulty of
choosing the best and optimum alternative out the options available (Waltenburg, 2012).
Research and development:
Statistics can be used in research and development phase. Conducting such research will help to
identify all the possibilities that can be availed of. Also it will assist in gaining the feedback from
the end consumers or customers ignoring which may the organization fail or lose it customers.
Such research will bring the most optimum output and not only increase the profitability but
assist in the accomplishment of the organizational goals and objectives. It indirectly fosters the
economic performance and tends to increase the long term performance of the concerned
organization.
4

There are various tests that are conducted in the statistics which help to draws a valid and
reasonable conclusion there from the application of these statistical tests. For conducting such
research, a reasonable hypothesis is firstly drawn on the basis of which the nature and type of test
depends. Such test is again dependent on the quantitative as well as qualitative characteristics of
the data on which these tests need to be performed. The research hypothesis can be categorized
into two parts, namely, null hypothesis and alternative hypothesis. While null hypothesis is a
positive assertion, the alternative or alternate hypothesis is a negative statement. The researcher
conducts the statistical tests to prove the null hypothesis. Thus, the basic objective of conducting
the statistical test is to accept the null hypothesis or the positive statement drawn. However, the
outcome of the research can be on the either side. As such, it can be either accepting the null
hypothesis or rejecting the null hypothesis (Harding, et. al., 2014).
Interesting feature of such research hypothesis is that on null hypothesis the alternative
hypothesis drawn gets automatically accepted. In other words, rejecting null hypothesis indicates
the acceptance of alternate hypothesis.
Numerical evidence:
Since, statistics is purely based on the numerical values and figures, the evidence collected or
derived from the statistical tools can be purely classified into numerical evidence.These
evidences help to form a single output on the basis of which relevant decisions can be taken. In
other words, it can be said that numerical evidence assists in summarizing the output obtained
from the application or implementation of statistical tools.
Employing statistical methods:
Statistical methods are basically mode or manner of applying the various available statistical
tools and technique. For applying such tool it is pertinent to note that these statistical methods
are easiest mode of employing statistical tools so that the sole purpose of applying statistics can
be accomplished or fulfilled.
Thus, the major purpose of employing statistical methods is that it helps to properly implement
and formulate the statistical tools and techniques in the intended or desired manner. Generally,
only one selected statistical method can be applied in the formulating statistical tools and
5

techniques. But, as discussed earlier, there are certain factors on the basis of which selection of
employing statistical methods totally depends. Thus, it can be said that there can be combination
of two or more than two statistical methods (Prajapati, 2012).
Data set
For performing various statistical calculations, following data pertaining to Netflix and Amazon.
Netflix
12/31/2018 12/31/2017 12/31/2016 12/31/2015
Total Revenue 15,794 11,693 8,831 6,780
Cost of Revenue 9,968 8,033 6,257 4,591
Gross Profit 5,827 3,660 2,573 2,188
Research Development 1,222 954 780 651
Selling General and
Administrative
3,000 1,867 1,413 1,231
Total Operating Expenses 14,189 10,854 8,451 6,474
Operating Profit or Loss 1,605 839 380 306
Interest Expense 420 238 150 133
Profit Tax Expense 15 74 74 19
Net Profit 1,211 559 187 123
Amazon
12/31/2018 12/31/2017 12/31/2016 12/31/2015
Total Revenue 232,887 177,866 135,987 107,006
Cost of Revenue 139,156 111,934 88,265 71,651
Gross Profit 93,731 65,932 47,722 35,355
Research Development 28,837 22,620 16,085 12,540
Selling General and
Administrative
52,177 38,992 27,284 20,411
Total Operating Expenses 220,466 173,760 131,801 104,773
6

Operating Profit or Loss 12,421 4,106 4,186 2,233
Interest Expense 1,417 848 484 459
Profit Tax Expense 1,197 769 1,425 950
Net Profit 10,073 3,033 2,371 596
Suitability of data analysis
There are different methods of data analysis that are used for analysing and interpreting the data.
There is no universal method that can be applied in analysing the each and every type of data.
This is because every data analytical method has certain limitations which make it inappropriate
in every situation.
7

Conclusion
Thus, it can be observed that Statistics has inherent advantages and thus can be applied in every
field of business organization. This importance is increasing with the passage of time. Not only
theoretical but practical implication of the statistical tool has been discussed in this report. This is
because of the fact that statistics is a pure practical aspect. Apart from that, interpretation of
calculations has been thoroughly discussed.
8

References
 Gamst, G., Meyers, L.S., 2014. Confirmatory Factor Analysis of the Acculturation Rating Scale–
II Scale 2: The Case for Measurement of Marginality. Hispanic Journal of Behavioral Sciences
.36(4).Pp.52-78.
 Harding, B., Tremblay, C., Cousineau, D., 2014. Standard Errors. School of Psychology,
Universitéd’ Ottawa, vol. 10, no. 2, 1-17.
 Loeb, S., McFarland, D., 2017. Descriptive analysis in education: A guide for researchers.
Institute of Education Sciences. 12(7). Pp. 1-40.
 Mukattash, A., Fouad, R.H., 2012. Statistical Process Control Tools: A Practical guide for
Jordanian Industrial Organizations. Jordan Journal of Mechanical and Industrial Engineering.
8(10).Pp. 693-700.
 Prajapati, D.R., 2012. Implementation of SPC Techniques in Automotive Industry: A Case
Study. International Journal of Emerging Technology and Advanced Engineering. 3(2).Pp. 227-
240.
 Waltenburg, E., 2012. Exploratory Data Analysis: A Primer for Undergraduates. Department of
Political Science Faculty Publications. 6(4).Pp.1-69.
9