Statistics is a branch of mathematics that involves the collection, analysis, interpretation, presentation, and organization of data.
Business Statistics is defined as the systematic practice of collecting, analyzing, interpreting, and presenting data, relevant to business operations and decision-making.
• It provides methods for making inferences and drawing conclusions about populations based on a sample of data.
• The main objectives of statistics are to summarize and describe data, identify patterns and relationships, make predictions, and test hypotheses.
Basic Vocabulary of Statistics:
The seven basic vocabulary terms of statistics are:
1.) Variable:
A characteristics of an item that can differ from one individual to the next and will be analyzed using statistics is called variable.
2.) Data:
The different values associated with a variable is called data.
• In the context of statistics, data can take various forms, such as numbers, measurements, or categorical observations. It serves as the raw material for statistical analysis.
3.) Operational Definition:
An operational definition defines a concept or term in terms of the specific operations or procedures used to measure or observe it.
• It provides a clear and unambiguous description of how a variable is measured or manipulated, ensuring consistency in research and experimentation.
4.) Population:
Population is a collection of all the items or individual under statistical investigation about which we are trying to draw some conclusion.
5.) Sample:
A small representative portion of the population selected for analysis is called sample.
• It is chosen to represent the larger population, and the goal is to draw conclusions about the population based on the analysis of the sample.
6.) Parameter:
A parameter is a numerical value that describes some characteristics of a population. For example, the population mean, standard deviation, or proportion are parameters.
7.) Statistics:
A numerical measure that describes some characteristics of the sample is called statistics.
Uses of Statistics in Business:
Statistics plays a significant role in better functioning of business. Uses of statistics in business and management are as follows:
- Market Research
- Financial Analysis
- Operations Management
- Sales Forecasting
- Supply Chain Management
