Question

Discuss when inferential statistical techniques may not be applicable to business. In your answer, include the assumptions necessary for inferential statistics to be relevant and applicable as well as the beliefs and limitations underlying those assumptions. What does this imply about inferential statistics?

Answer 1

Usually in inferentil statistics, certain assumptions need to be assessed prior to analysis. Depending on the statistical analysis, the assumptions may differ. A few of the most common assumptions in statistics are Normality, linearity,and equality of variance. Normalty assumes that the continuous variables to be used in the analysis are normally distributed.Normalty is typical used in ANOVA and Prediction analsis and testing.L

Linearity refers to a linear, or straight line, relationship between independent variables and dependent variables.If the assumptions of linearity is not met, then prediction may be inaccurate.Linearity typically assessed in correlation coefficient and regression coefficient.Linearity can be assessed by the examination of scattor Plot .

Equality of variance refers to equal variance across different groupsor samples.

So in business Mostly equalti of variance, linearity and normalty not fallow so we we do not used inferencial statistics in business statistics.