Statistics in Business

Statistics in Business

Rebecca Quick

QNT/351

September 7, 2015

Mike Yensz

Statistics in Business

No matter how you look at it, or where you get the definition from, in general, statistics is nothing more than a branch of mathematics. That deals with the collection, classification, analysis, and interpretation of numerical facts, for drawing inferences on the basis of their quantifiable likelihood. They can interpret aggregates of data too large to be intelligible by ordinary observation because such data tends to behave in a regular, predictable manner (BusinessDictionary.com).

Statistics can be broken down into two categories descriptive and inferential. Descriptive statistics is said to utilize both numerical and graphical methods to look for patterns in the dataset. The information revealed in the data set is then summarized and presented in a convenient format. However, on the other hand, inferential statistics is opposite. In the fact that it utilizes sample data to make predictions, estimates, decisions or any other type of generalization about a much larger set of data. Businesses that use statistical data rather than guesswork are more likely to have a more profitable business because they will have the confidence, as well as the ability to make smarter decisions.

Statistics can be utilized in so many ways such as Election Day, homeowner's insurance, and even poverty levels. As for Election Day statistics are used to tally not only individual votes but state votes as well. The deciding factor it is not the total number of individual votes, but the number of states that, that candidate has won in. With homeowner’s insurance statistics can provide it at an affordable cost, by providing the probability of various incidents occurring like property loss. Another example would be that of poverty levels. Every state or federally funded program receives funding based on a household's gross income, which in turn makes up the poverty...