* DQ#1: What is the importance of statistics in business decision making? Describe a business situation where statistics was used in making a decision.
1. Using statistics to evaluate the performance of your business. Taking all factors into account, determine whether you are making or losing money. In addition, determine the trend of your business. For example, determine whether, over time, you are making more or less profit (or loss). Track the share of the market that your business holds, and how this changes over time. Evaluate all these factors for each product type, even each model, in your company's line. The statistics to use here are simple line and bar graphs of data. These data can alert you to where you need to change aspects of your business, and how quickly you have to make that change.
Furthermore, statistics are an excellent way to determine how you should allocate your resources to increase sales. Sales in a given market are a result of a number of factors, such as pricing, the size of the sales force, and the type and number of advertisements placed. However, these factors will not be equally important for every product. You would use multiple regressions to determine which of these factors are most important, and how much changing your asset allocation (for example, the size of the sales force) will change sales.
2. Statistics: The science of collecting, organizing, and analyzing data.
Descriptive Statistics - Finding The Skew
16,15,18,118
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Median=15,16,18,118
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Median=17
Since the mean is greater than the median, the data set is “negatively skewed.”
3. Statistics is quite important in business decision making, because the collection of raw data and organizing the data is a prerequisite to presenting statistics
