Statistics in Business

QNT-275
Shannon Laing
September 12, 2016
Grondal

Statistics are used in several aspects of business. From tax preparation, to proposals and data
mining. Statistical techniques are also used, for a significant amount of business practices. A
couple of techniques that are applied in business, are data sampling and analysis. The use of
statistics and statistical techniques, are to help make decisions about potential business ventures
and company policies.
Define statistics with citation and reference: According to Dictionary.com (n.d.), the science
that deals with the collection, classification, analysis, and interpretation of numerical facts or
data, and that, by use of mathematical theories of probability, imposes order and regularity on
aggregates of more or less disparate elements. The numerical facts or data themselves.
Contrast quantitative data and qualitative data: Qualitative data is data that can be observed
but not measured. This is data that deals with descriptions, colors, smells, tastes, appearances,
and textures. This data can involve words, pictures, and/or objects. This is but a minute amount
of examples of qualitative data. Quantitative data, is data that can be measured. It is data that
deals with numbers, areas, lengths, heights, speeds, and times. This data can also be measured in
terms of sound levels, age, and humidity. These are just a few examples of quantitative data.
People do not realize the amount of quantitative and qualitative data that we process in our heads
on a daily basis. Prior to taking this course, I really did not know how much the average person
utilizes data and statistics (simple), in an ordinary day.
Evaluate tables and charts used to represent quantitative and qualitative data: Tables and
charts are used to further explore the data that was collected. Different tables, charts, and graphs
are used to represent different types of data. In general, tables are better than graphs for giving
structured numeric information. Graphs are better for demonstrating trends, making comparisons
or showing relationships.

Describe the levels of data measurement: There are four levels of data measurement.
Nominal, Ordinal, Interval, and Ratio. In nominal measurement, we are just simply naming the
attribute. Nominal and ordinal are qualitative (categorical) levels of measurement. Interval and
ratio are quantitative levels of measurement. Nominal level of measurement classifies data into
names, labels, or categories in which no order or ranking can be imposed. Ordinal levels of
measurement divide data into categories that can be ranked or put in order, but exact differences
between the ranks do not exist. Interval levels of measurement is another ranking of order
measurement, however, this one does offer a slight difference between ranks, and there is no
meaningful zero (if one exists). Ratio level of measurement, looks very similar and has the same
characteristics of Interval levels of measurement but a true zero exists.
(Levels of measurement, 2006)
Describe the role of statistics in business decision-making: The role of statistics in business
decision-making is considerable. Business statistics are used to make reasonable and sound
decisions for a company or a business. Often times, these decisions must be made even if the
financial consequences of the decision are uncertain. Understanding business statistics gives an
employee a distinct advantage. Marketing departments use statistics in virtually all of the
decisions they must make. Marketing researchers have increasingly used qualitative statistical
techniques to describe observations that are not easily measured, but can be described and/or
classified into relevant categories (Anthony, 2016). In medical research, investigating the effects
of a new drug, the statistics collected are solid evidence of the amount of research being done.
For a college student, statistics are the marks made on all of their tests, quizzes, and assignments
for the semester. In todays world, statistics and statistical techniques are used in practically

every profession and industry. For business managers in particular, statistics have become a tool
that they cannot do without.
Provide at least two business research questions, or problem situations, in which statistics
was used or could be used: One example of an ongoing (or used to be ongoing) problem in the
travel industry, is when a budget minded traveler wanted to find the cheapest flight from point A
to point B on a Friday night in November, waiting until the last minute for the deals, but had to
be sure he/she would be on time for that business meeting in the morning. Normally, a travel
agent will use a search request and a response transaction. However, as of late, the travel agents
are starting to use the booking transactions, which used to be thought of as bits of useless
information taking up space on a disk. Now, however, it is being seen as a gold mine, especially
to the airlines themselves. Taking all of that data, and evaluating the most heavily searched
destinations, an airline can use this data to expand its fleet of services to destinations that it
doesnt serve and increase its market share value. Another example of a business problem being
solved by statistics is when a major water bottle manufacturing company hired a statistical
consulting firm to analyze bottle weight data from a variety of product lines and compare to
those of its competitors. They conducted the analysis and found a statistically significant
difference in bottle weights, which the company then used in a new marketing campaign.

References:
Advameg. Statistics - levels, examples, advantages, manager, company, business. Retrieved
September 13, 2016, from http://www.referenceforbusiness.com/management/ScStr/Statistics.html
Anthony, M. (2016). The usefulness of statistics. . Retrieved from
http://www.academia.edu/8270578/The_Usefulness_of_Statistics

Carr, D., & Jaffe, K. (2012). The psychological consequences of weight change trajectories:
Evidence from quantitative and qualitative data. Economics & Human Biology, 10(4),
419430. doi:10.1016/j.ehb.2012.04.007
Gerdes Jr, J., Stringam, B. B., & Brookshire, R. G. (2008). An integrative approach to assess
qualitative and quantitative consumer feedback. Electronic Commerce Research,8(4),
217-234. doi:10.1007/s10660-008-9022-0

Levels of measurement. (2006). Retrieved September 12, 2016, from

http://www.socialresearchmethods.net/kb/measlevl.php