Statistics plays a crucial role in daily life of every individual. Every decision made by an individual or a group often apply statistics. However, most people apply it unknowingly. It is essential to understand the statistical concepts used as well as their applications in daily life. This paper is set to define statistics, highlight the key differences between qualitative and quantitative data, evaluate the use of charts or tables, as well as the application of statistics in business decision-making. Additionally, daily life application of statistics is analyzed.
Definition of Statistics
Statistics refers to the ways or techniques in which data is collected, analyzed, and disseminated. It is described as a body of principles for collection, analysis, as well as interpretation of data (Landers & Nelsen, 2013). Scientists use tools and procedures from statistics to answer certain questions that affect individuals in their daily life. The importance of statistics in culture cannot be underestimated. Any job that deals with the collection, analysis, and dissemination of data is regarded as statistical.
Qualitative and quantitative data
In statistics, there are two different types of data. These data are collected, analyzed, and interpreted differently (Landers & Nelsen, 2013). They include quantitative and qualitative data. Quantitative data provides information on quantities. The information provided can be measured, as well as written regarding numbers. For instance, information of height, age, and size are regarded as quantitative data. The qualitative data gives information on qualities. This information cannot be measured regarding numbers but can only be described. These descriptions provide information that can be used in decision-making. Information such as the color of the eye, skin softness, and attitudes are regarded as quantitative.
Evaluation of tables and charts used to represent qualitative as well as qualitative data
The use of visual representation in presenting data makes them easier to integrate and understand. These visual representations have the potential to condense large amounts of data into sizeable ones that can easily be analyzed and interpreted (Utts, 2014). When these charts and tables are used, it is essential to ensure that all information is available on the charts as well as the tables. Tables and charts are always regarded as one of the simplest methods of presentation of data. When using the charts and the tables, categorical data must be in a way that they do not overlap. This would avoid any cases of confusion between the variables.
Role of Statistics in Business
Various managers face several issues in their managerial duties. These issues arise from their daily operations including an introduction of a new product into the market and redesigning the existing product (Anderson, Sweeney, Williams, Camm, & Cochran, 2014). When they apply statistics, they can confirm that they are operating within the confines of their powers and boundaries. Statistical methods provide the managers with the adequate information required to make smarter decisions. When a faster and cheaper analysis of market trends is required, a representative group can be taken to represent the whole population. It is cheaper to use statistical tools of sampling rather than taking the total number of people against their preferences. This can assist the leaders in making decisions on the market trends.
Apart from that, statistics is essential when a manager wants to compare the qualities of given products. Data collected, analyzed, and interpreted is used in the comparison of various goods within the markets. Instead of attempting to question all customers, a representative sample can be taken, and their preferences and quality issues analyzed. These can provide a backing of opinions or assertions. Through this, the leadership of a given organization can provide an unbiased data regarding the market.
Ways in which statistics can be used.
Statistics has various uses in the contemporary world. Some of the ways in which it could be used include forecast and political campaigns. During political campaigns, it is essential for candidates to apply statistics. The candidates will always calculate their chances of winning. When the probability of winning is low, the candidate may opt out of the race. When an individual wakes up in the morning, s/he forecasts on the weather of the day. When there is a higher probability of raining, s/he will have to dress differently to avoid the effects of that particular cold weather. This represents another way in which statistics is applied in daily life.
Statistics is essential for almost all the daily activities conducted by individuals as well as business organizations. Therefore, the study of statistics as an art and science is crucial for everyone involved in the operations of any business. This would allow them to make decisions with statistical backing.
References
Anderson, D., Sweeney, D., Williams, T., Camm, J., & Cochran, J. (2014).Essentials of statistics for business and economics. Boston: Cengage Learning.
Boslaugh, S. (2012). Statistics in a nutshell. Boston: " O'Reilly Media, Inc.".
Landers, R. N., & Nelsen, P. J. (2013). A Step-by-step Introduction to Statistics for Business. California: Sage.
Utts, J. (2014). Seeing through statistics. Boston: Cengage Learning.
