**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