Question

For this assessment I would like you to write a 1-2 page summary/outline and connecting statistics and data to business economics and management situations. Specifically, I will assess your ability to communicate via your writing on your ability to properly incorporate the following areas: (a) sampling (b) descriptive statistics (c) ability to formulate statistical inferences and alternate/null hypotheses in correlation with management real-world management issues and solutions. In short, I would like you to explain how these areas are applicable in today's business? An example may be how in the real world you may incorporate statistical inferences or generate hypothesis. Try to cover all of these, but it is okay if you only cover a couple in depth.

Answer 1

The use of statistical tools and techniques has been increasing tremendously in different areas of human business activities, economics, management, banking, finance,agriculture, medicine and other disciplines in social and natural sciences. It is accepted that study of modern business, economics and management is incomplete without statistics. Economics is concerned with the allocation of limited resources among the unlimited wants in an optimal manner. Statistical information and data helps us to know more about the economic problems and it also helps in the formulation of economic policies. Here we will see some of the methods that are covered under business statistics and management

(a) Sampling:

Sampling is a method used in statistical analysis in which a smaller set of data is chosen from a larger popolation. It is not always possible to contact every member of the population. So a small set of data that represents the larger population is taken to conduct a statistical research.Samplin is used for various purposes in business like market research, new product development and customer satisfaction.

Market research:

Today's market research involves large number of people and it is not possible to know about all the people in the group. So the method of sampling is used to konw about the market conditions. Market research involves the process of gathering information about hte customers like age group, gender etc. Thus use of sampling methods helps to know who are customers for their product. This helps them to expand their market in such areas where their customer base is strong and also helps them to decide whether a product should be pursued or not.

New product development:

New prodduct development involves two ascpects. One is inventing a new product and finfing a market for it. The other one is identifying the main problems of the society and finding products that solves the problem of the society. Both can be done with the help of sampling. For example, If a business invented a new product they can use sampling techniques to know the customers who are using the product and develpo the business in those areas. If a business wants to succeed in their product then they can identify the need of the society by taking survey. This survey can be taken using sampling methods. Once they have identified the need of the society then they can devevlop a product related to the need of the society.

Customer satisfaction:

Small businesses can ask all its customers about the quality of its products. But large businesses cannot ask all of its customers about the product. So the technique of sampling is used. Using sampling the business can know how the customer feels about the product. This helps them to improve the areas where the customer is not satisfied about the product.

(b) Descriptive statistics:

Descriptive statistics is used to describe the characterisitics of data. It provides summaries about the data. Mean and median are methods of descriptive statistics. It helps us to know an average of the data. Descriptive statistics is different from inferential statistics. Descriptive statistics just describes and summarizes the data while inferential statisitics is used to derive conclusions.

For example, To know about the incomes of 1 million people we can use this method. We will not be able to read the incomes of all 1 million people so instead we can take the mean of all the people to know their average income.

(c) Statistical hypothesis:

Statistical hypothesis is a statement about the nature of population. It is stated in terms of population parameter.A statistical hypothesis test is a method of statistical inference. Statistical inference is the process through which conclusions about a population is made based on certain statistics.Hypothesisi testing has many business applications. Hypothesis testing in disguied used in quality control, marketing and other business applications.

Null hypothersis:

It is a statement that is assumed to be true unless there is any opposed evidence.

Alternative hypothesis:

It is a statement that will be accepted in place of the null hypothesis if it is rejected.