I was familiar with descriptive statistics before this course. We all are acquainted with mathematical calculations and descriptive statistics is based on calculations. In statistics, the data are clustered around a given set of observations so to analyze we use the measure of center, variability and shape . These are common methods of statistical calculations that are used in day to day life. For example ,we are familiar with the calculation of average of numbers. This is mean in statistics which is a part of measurement of central tendency (Triola,80).
How often do you report all three measures when you report any one of them?
As there is a relationship between the measure of central tendency along with measure of variability as variability gives us idea how the mean of the data is dispersed. Measure of shape also shows the distribution of the mean , median and mode (Triola,81).
Even if other people do not understand them, should these measures be reported anyway? and why?
When we get or collect data we tend to analyze it in order to make a sense by using the statistical methods then the importance of measurement of data with large and complex variables comes into play. These measures are used to bridge the gap between the real world complexity and set of data given. After calculations we derive some inference from a given set of observations (Triola, 80).
Please explain these measures here, in writing to a typical 12-year-old.
Measure of central tendency is calculated with finite set of values and the data clusters around some central value. The three measures of central tendency are mean, median and mode. Measure of variability shows how the data is spread out or dispersed within a given set of values. It means that variability shows how far the data are spread out from each other. The four main measures of variability are range, interquartile range, standard deviation and variance. The data when plotted in a graph gives a shape. The distribution of the data that forms a shape is the measurements of shape. The data distribution can be symmetrical or asymmetrical (Triola, 83).
Please explain them here, in writing to a typical boss.
The measure of central tendency describes the value within the data set which represents the middle or center of the distribution. The common measures of central tendency are mean or average, median or the middle value, mode or the most frequent value. Measure of variability shows the degree at which the scores in a distribution are spread out. The common measures of variability are range, interquartile range, variance and standard deviation. Measure of shapes is the distribution of data .Histogram gives a general idea of shapes but the amount of skewness and the direction of skewnesss and kurtosis is shown in the measurement of shapes (Triola,85).
Probability
The classical approach to assigning probability is not common in business, whereas the empirical approach and the subjective approach are very common. The subjective approach must often be used by entrepreneurs and intrapreneurs because there are often little or no empirical data upon which to assign probabilities. What danger accompanies the successful use of the subjective method?
Subjective probability is the degree of belief in the mind of an individual in regard to some proposition. As the subjective method of probability depends on the subjective judgment of a person's feeling but not on some concrete mathematical calculation and varies from person to person so it can be dangerous(Triola, 136).
What is your preference as a business person for calculating conditional probabilities, Bayes' Theorem or contingency tables? and why?
Bayes' theorem is preferred than the contingency tables in business as the Bayes' theorem helps to recalculate the method of probability of a hypothesis when a new evidence is introduced (Triola,184).
References
Triola, Mario F. Essentials Of Statistics. Boston: Pearson Addison Wesley, 2008. Print.
