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Statistics Also Identify Various Types As Well Essay

¶ … statistics also identify various types as well as levels of the same. Further, the role statistics plays in business decision making will also be explored. Later on, a number of examples will be presented in an attempt to identify situations in which statistics can be put to use. A review of literature demonstrates that over time, different authors have given varying definitions of statistics. According to Siegel (2011), "statistics is the art and science of collecting and understanding data." However, a more common and realistic definition of statistics is that given by Webster's Third New International Dictionary. In this case, statistics according to Black (2011) is defined as "a science dealing with the collection, analysis, interpretation, and presentation of numerical data."

There are various levels and types of statistics. In general, statistical methods can be categorized into two i.e. inferential statistics and descriptive statistics. In the words of Black (2011), "if a business analyst is using data gathered on a group to describe or reach conclusions about that same...

It is however important to note that descriptive statistics largely limits itself to the group being studied. However, "if a researcher gathers data from a sample and uses the statistics generated to reach conclusions about the population from which the sample was taken, the statistics are inferential statistics" (Black, 2011). Here, the predictions made about a population are derived from the observation as well as analysis of the sample. Thus unlike in descriptive statistics, results in this case can be generalized to a larger population.
The relevance of statistics in business decision making cannot be overstated. According to Siegel (2011), statistics enhances the ability of individuals to come up with good decisions. To remain relevant in a highly competitive marketplace, businesses must be able to make wise and informed decisions. However, the highly uncertain business environment in which businesses operate makes decision making difficult.…

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References

Black, K. (2011). Business Statistics: For Contemporary Decision Making (7th ed.). Hoboken, NJ: John Wiley & Sons.

Siegel, A.F. (2011). Practical Business Statistics (6th ed.). Burlington, MA: Academic Press.
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