CHAPTER 1 Flashcards
auditing and cost estimation (Accountants use statisticsto forecast consumption, earnings, cash flow, and book value. Considered accounting for the future, forecasting involves an amount of guesswork about the future — and when people guess, they frequently make errors)
Accounting
regional, national, and international economic performance
(Statistics plays a major role in economics. Statisticshelps in the study of market structure and understand the different economic problems. After a better understanding of the economic problems, statistics also help in solving those issues by formulating appropriate economic policies)
Economics
investments and portfolio management (Actuarial science deals with probabilities and future events with the help of statistical methods. Statistics help define, analyse and solve financial scenarios or risks that firms and companies need to manage or avoid. For example, with the help of statistics, insurance companies are capable of forecasting the probabilities of an event or anomaly occurring, thus being able to prepare the funds for paying claims.
Finance
human resources, compensation, and quality management (Knowledge of statistics helps a manager to describe the problem, identify and evaluate alternative courses of action, estimate error, monitor processes and take appropriate corrective actions to achieve optimum results.
Management
market and demographic analysis (Statistical research in businessenables managers to analyze past performance, predict future business practices and lead organizations effectively. Statistics can describe markets, inform advertising, set prices and respond to changes in consumer demand
International Business
performance of systems which
gather, summarize, and disseminate information to various managerial levels (This is important for the management team to decide whether they have to make changes to the existing strategies or offerings. Statistical analysis can also be used to evaluate the performance of employees and provide training for them to improve the performance of the team.
Management Information Systems
market analysis and consumer research (statistics are usedto identify market trends, measure and evaluate marketing programs, and assess their effectiveness. In order to be successful in a campaign, it’s important to identify the target market accurately as well as use effective marketing communication channels.
Marketing
A branch of Mathematics that examines and
investigates ways to process and analyze
the data gathered.
It provides procedure in data collection,
organization, presentation, analysis and
interpretation to have meaningful idea that
is useful to decision-makers.
Statistics
“to reduce large masses of data to some meaningful values”
Task of Statistics
“to tell something about a particular group of observation”
Descriptive Statistics
“there is an intent of predicting what the large population is like out of the sample size“
Inferential Statistics
The totality of methods and treatments employed in the collection, description, and analysis of numerical data.
To tell something about a particular group of observation.
Usually represented by Greek letters
Descriptive
The logical process from sample analysis to a generalization of conclusion.
Also Statistical Inference or Inductive Statistics
Usually represented by Roman letters
Inferential
Consist of all the members of the group about which to draw conclusion.
Population
Portion or part, of the population of interest selected for analysis.
Sample
Numerical index describing a characteristic of a population.
Parameter
Numerical index describing a characteristic of a sample.
Statistic
Data that come from original source.
Examples:
Interview
Survey
Mail-in questionnaire
Experimentation
Primary Data
Data that are taken from previously recorded data.
Examples:
Information in research
Financial statements
Business periodicals
Government reports
Secondary Data
Characteristics of objects, people, or events that does not vary.
Example:
Boiling temperature in °C
Constant
