Statistics in Business

642 Words Jan 21st, 2015 3 Pages
Statistics in Business
Debbie Masterson
University of Phoenix
Statistics for Decision Making
QNT/275
Charlene Dunfee
December 13, 2014
Statistics in Business In today’s very competitive and global economic climate, it is ever more important for businesses to have reliable data to predict and plan.
Definition of Statistics and Role in Decision-Making Statistics are the collection, presentation and interpretation of data. Statistics is a branch of mathematics and is a mathematical analysis of data or observations. Statistics also provide tools to predict and forecast based on the data collected and is applicable to not only businesses but to science, health and government (Stine & Foster, 2014). The use of statistics will
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These are nominal, ordinal, interval and ratio. In the nominal level of measurement numerical values name the attributes with no order. In the ordinal level of measurement that attributes can be ranked or ordered but the distances between them do not have meaning. In the interval level there is meaning in the distance between the attributes and this can be interpreted. Absolute zero or no number less than zero is meaningful in ratio measurements in order to construct a ratio or fraction (Stine & Foster, 2014).
Examples
I am considering selling my house and need some data to support the price. I will gather data about homes that have sold within the last two years or are currently listed in my neighborhood such as their list price, square footage, number of bedrooms, outdoor amenities such as a pool or kitchen, and, if sold, how much and what was the variance between list price and actual sale price. The analysis of this data will allow me to make an informed decision on what to list my home for and even what time of year to list it. A restaurant owner is considering expansion. He will collect data on his occupancy rates at various times of day, the wait times of customers before they are seated and served, conduct a survey of his current customers, research his competitors, and conduct a financial analysis. These statistics will enable him to make business decisions about how big his expansion should be, how many more booths and

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