• LO1: Evaluate business and economic data/information obtained from published• • •sources.LO2: Analyse and evaluate raw business data using a number of statistical methods. LO3: Apply statistical...

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Answered Same DayJun 23, 2021UNIT 5

Answer To: • LO1: Evaluate business and economic data/information obtained from published• • •sources.LO2:...

Payal answered on Jun 28 2021
158 Votes
61022
HND BUSINESS
Statistics for Management
TABLE OF CONTENTS:
1. INTRODUCTION
2. LO1 & 2
D1 Critically evaluate the differences in application between methods of descriptive, exploratory and confirmatory analysis of business and economic data
P1 Evaluate the nature and process of business and economic data/information from a range of different published sources
M1 Critically evaluate the methods of analysis used to present business and economic data/information from a range of different published sources
P2 Evaluate data from a variety of sources using different methods of analysis
P3 Analyse and evaluate qualitative and quantitative raw business data from a range of examples using appropriate statistical methods
M2 Evaluate the differences in application between descriptive statistics, inferential statistics and measuring association
3. LO3 & 4
P4 Apply a range of statisti
cal methods used in business planning for quality, inventory and capacity management
M3 Evaluate and justify the use of appropriate statistical methods supported by specific organisational examples
D2 Make valid recommendations and judgements for improving business planning through the application of statistical methods
4. LO4 Communicate findings using appropriate charts/tables
P5 Using appropriate charts/tables communicate findings for a number of given variables
M4 Justify the rationale for choosing the method of communication
D3 Critically evaluate the use of different types of charts and tables for communicating given variables
1. INTRODUCTION:
Data acts as an oil in the 21st century. There are several sources where data is available in raw form which can be turned into useful information by applying various advanced analytical techniques to gain better insights about the business operations. These business insight brings the hidden opportunities of overall operations onto the surface for better decision making. During the past few years, it has emerged as one of the key activity for the smooth running of any business organisation.
In this report we will be looking at various aspects of Data collection, Data mining and Data interpretation in order to help in making meaningful business decisions. (Anderson, 2010)
2. LO1 & 2
D1 Critically evaluate the differences in application between methods of descriptive, exploratory and confirmatory analysis of business and economic data
P1 Evaluate the nature and process of business and economic data/information from a range of different published sources
Statistics is numerical information which is expressed in numerical terms. The numerical information which has been collected from different sources may be related to different fields like- Business, Economy, population, healthcare, etc. The nature & the specific fields define the domain of which the data is related to. After understanding the specific domain, various relevant techniques are applied to analyse and draw insights out of it. For e.g. we can apply what if analysis, customer segmentation and cohort analysis to the business data. These all aspects are concerned with the process of the data.
M1 Critically evaluate the methods of analysis used to present business and economic data/information from a range of different published sources
Basically, the field of statistics can be divided into two broad categories-
1) Descriptive statistics
2) Inferential statistics
1)Descriptive Statistics is concerned with the description of the data. It helps us to tell the situation of past. There are various statistical techniques which can be used for descriptive analysis. These are categorized into four type as below -
a) Measures of Central Tendency
b) Measures of Frequency
c) Measure of Dispersion or Variation
d) Measure of Position
a) Measures of Central Tendency - Mean, Median and Mode. They are used according to the nature of the data. For e.g. Both Mean and Median convey the same thing but Median gives the better picture of the data by excluding the Outliers and influential values.
b) Measures of Frequency- It is used to find the occurrence of an event or data. Measure of frequency is used to analyse measure of central tendency, dispersion, percentile
c) Measures of Dispersion or Variation- It is used to identify how the broadly the dataset is scattered.
d) Measures of Position- It is used to define the variation w.r.t base line. For example – Plan vs Actual quarterly sale targets.
2)Inferential Statistics - It is the branch which is concerned with making inference about the data in order to draw conclusions from the data and making the recommendations from the findings. Inferential statistics is further divided into two parts
a) Hypothesis Testing
b) Confidence Interval
a) Hypothesis Testing - Under this the particular subject is tested. For e.g., we want to test whether the tea is preferred more by male or by females
For this our Null Hypothesis (H0) - There is no difference in tea consumption between the two genders
Alternative H1- There is difference in the consumption habit between the two genders.
Then by setting the confidence interval we can test is there any statistical difference between the consumption habits of the two genders.
This in turn can help us to analyse the customer behaviour by gender wise and help in making the business strategy in order to derive maximum revenue from the business operations.
b) Confidence Interval – It is used to define the accuracy percentage in the set of data
Components of statistics
1) Domain of Data – It involves collecting the data for which the analysis needs to be done.
2) Population – It in involves considering the all factors of interest into account
3) Variable – This involves analysing the variables that are present in the data- numerical, character, ordinal.
4) Sample- It involves taking the part of the data, which fairly represent each dimension, in order to meaningful analysis.
The data which is to be used for the analysis can be obtained from two sources-
Primary Data Source- In this the data is collected by the researcher themselves through various means like- interview, questionnaire, and etc. but it takes a lot of time and efforts to collect the data via primary data source.
Secondary Data Source – In this data is collected by someone else, and it is simply used by the researcher for his analysis. It can reduce the time and effort required in collecting the data. These kinds of data can be obtained from different websites like data, world and etc.
Further the data collected can also be divided on the basis of Qualitative and Quantitative.
Qualitative data consists of variables in non-numerical form like gender, country, tweets, which can be analysed by using Text analytics.
Quantitative data consist of variables like sales, profits discounts – which are numerical in nature
Benefits of Statistical data
As discussed in the beginning, data is an Oil in the 21st century. The businesses are giving more importance their data and their competitor’s data for proper comparison of the business position, in order to make better strategic decisions for the businesses. The benefits of statistical data can be gauged from the fact that the Uber, Ola are managing their whole businesses operations solely on the customer’s past data available in the database. (Morris, 2012)
Numerical scale of measurement
The numerical scale of any data helps in measuring the variable in a much better and accurate way, in order to derive concrete conclusions out of it.
Nominal- Nominal data involves assigning the numerical value to any variable. For e.g. 1 for Male and 2 for Female or for that matter the diabetic can be indicated by 1 and non-diabetic patients can be denoted by 2.
Ordinal – The data which is denoted by rank is known as ordinal data. For e.g. assigning 1st, 2nd and 3rd rank. Or for e.g. the level of severity in patient can be ranked by assigning 1, 2, 3-meaning 1 high severity and 3 – Normal patient.
Interval - Interval data type is the one which is measured along the numeric scale and each point is at the equal distance from one another. For example, Celsius Temperature is a classic example of interval data as the difference between the 10 degree Celsius and 20 degree Celsius is the same as for 20 and 30 degree Celsius.
Ratio - Ratio are almost similar to intervals with the exception that ratios cannot be in negative, whereas interval can be both positive and negative. Ratio data type gives good picture of the data. For e.g. for knowing the profit per unit of output sold, we can use the ratio for knowing the per unit profit
P2 Evaluate data from a variety of sources using different methods of analysis
Business involves various operations of different aspects like marketing, production, sales and supply chain. There might be number of stake holders associated with each particular operation for e.g. sales operation considers customers, sales representatives and etc. But these operations are not in...
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