Question

Discuss why it is important for business to understand why datq is concentrated, or the shape of data.

Answer 1

Not only for business study it is very important to know about the shape of the given data for statistical analysis. In business study or marketing research if we plot the data graphically that gives an overall idea of the data. In most of the cases we assume the data are normally distributed. Sometimes it might not be true but for our convenience we assume normal distribution. But it is not statistically meaningful. As a result your analysis may be very poor. So , always you shold draw a histogram of the data to check whether the data is coming from normal or any other skewed distribution. On the other hand if you plot data you can get an idea about ups and downs of a product i,e the general trend. Regression analysis is a method of data analysis which is very important in business study. For such analysis you have to plot data . For data analysis in business study it is the 1st step to know about the shape of the data.