This paper is going to discuss statistics in business. One will be able to understand there are different levels of statistics along with the importance statistics are in business decision making.
Statistics in Business
Statistics are a mathematical analysis of data collected. The data collected can in turn be used to show statistics in a number form. With the data collected, the analysis of the data, along with the financial reports from a business, one can make a better informed decision. Statistics in business is useful when making business decisions. The statistics can show important information to help judge what may happen in the future for a product or the need of a type of business. There are levels of measurement to help when data is gained to obtain the statistics. The levels of measurement include nominal, ordinal, interval, and ratio. Examples of these levels include the following:
Nominal – Numbers on sports players jerseys for identification purposes.
Ordinal – The letter grade students receive on homework assignments.
Interval – This level does not have a true zero point.
Ratio – When one number of measurement can be divided by another nonzero number and there is meaning to that number.
At the ratio level of measurement the number “0” has meaning as it represent there is nothing to show.
In conclusion one can see there are different levels of statistics and how important they are when making business decisions.
McClave, J. T., Benson, P. G., & Sincich, T. (2011). Statistics for Business and Economics (11th ed.). : Pearson Education. (McClave, Benson, & Sincich, 2011) Lind, D. A., Marchal, W. G., & Wathen, S. A. (2011). Basic Statistics for Business & Economics (7th ed.). : McGraw-Hill Company. (Lind, Marchal, & Wathen, 2011)