Quantitative Analysis for Business

Quantitative Analysis for Business
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Statistics is defined as the science or practice involving collection, process, and analysis of numerical data with the aim of predicting the occurrence of events. Statistics also entails planning and development of schemes to facilitate the entire process of decision-making (Dodge, 2006). This entails the course of actions to be taken as well as their objectives in order to understand the methodologies and analytical procedures to be taken.
Statistics consists of four main levels namely; nominal measurement, ordinal measurement, interval measurement, and ratio measurement. Nominal measurement entails naming and labeling of objects. This level of statistics facilitates remembrance. Examples of nominal level include, yes/no responses, favorites, and colors as they appeal to the eye. Ordinal measurement is the second level where data is arranged in an orderly manner and ranked, but the differences are not meaningful. An example of ordinal measurement can be an athlete’s competition where they are ranked first, second, third and so on. This is determined on who came before whom and no more judgment can be made at this level. Interval level of measurement entails on the data that can be ranked and in which the meaning between the differences in value can be derived. Averaging and subtraction are applicable, whereas addition is not because this data do not have a starting point. A good example of this level of data is Fahrenheit and Celsius scales of temperatures. Ratio measurement is the highest level of statistics. This is where the ratio between two measurements is meaningful. This means there is a starting point hence there is zero value, therefore, enabling comparison between two measurements (Box, Hunter, and Hunter 1978).
Statistics plays a major role in business decision making. During planning, the statistics collected during the normal business operation is well interpreted and analyzed. This enables the business to identify the crucial tools necessary for good performance and predict the future of the organization (Bowerman, 2011).
There are instances of examples of application of statistics. First, it has been used to identify levels of poverty and ways of averting the vice. Secondly, statistics has been used to develop good strategies that could be used to create employment for the disabled. By evaluating the total number of the disabled, it is possible to involve them in economic development to reduce the level of dependence within the society (Bowerman, 2011). In addition, insurance companies have mostly used statist...