Descriptive Statistics - Essay Example

Descriptive Statistics 15th May Descriptive statistics are the various ways and techniques that qualitative sets that are large in numbers can be summarized into numerical information. Bajpai N. (2009, Pg. 7) states that descriptive statistics is an essential process in describing data that try to reach a conclusion based on the data. An individual with large measurements can make a graph with possible score available along the x-axis and number of times that score appears along the y-axis, and this will be in the form of a bar; such bar is usually hard to carry out statistical analysis; therefore, other numerical ways of analyzing the data are available.

Descriptive statistics usually include the use of number, graphs, table, charts and these tools are used for the purpose of describing, organizing or summarizing and presenting data that are raw. The very important things that descriptive statistics examine include central tendency or location of the data i.e. the mean, mode and median. This technique is most appropriate when describing the central measure especially when the sample is distributed in a normal way. Use of descriptive statistics is important because it will examine data variability.

Dispersion shows how data is spread and is usually measured using the variance, and the square root dispersion is known as the standard deviation. Variation of score present in distribution is the feature present in dispersion. Standard deviation is usually appropriate in business when estimating variability in a distribution. Furthermore, Beri G. states that descriptive statistics includes an analysis that is designed to describe or summarize data and bring out only the important features (p. 8). The description of a data usually examines dispersion, kurtosis, skew, dispersion and central tendency.

It is not sufficient to appropriate to consider only the mean median, mode and even dispersion as the only tools in standard deviation because they are not sufficient. In addition, use of descriptive statistics is important in examining the skew or symmetry of a specific data. The symmetry of data involves the showing the amount of concentration a data is on the scale, and this is measured using skew scale. Kurtosis or peakness of data is another thing that is examined by descriptive statistics.

This describes how concentrated a data is around a specific single value, and is usually measured by the use of kurtosis index. Businesses can use descriptive statistics when carrying market out research. The objective of using descriptive statistics can be to discuss data set at a more general and convenient way than possible using data that are raw. Descriptive statistics is used in reports that contain a significant amount of qualitative and quantitative data because it helps to summarize and support assertions of various facts.

Moreover, in business descriptive statistics can be used to give credible argument. For instance, business executives make constant decisions under intense pressure, and they do this with the availability of information. Statistical information is a part that is used in the decision making because if gives allowance to statistical techniques to be used as a part of the decision process. There will be a powerful combination of decisions in a firm if the use of statistical information is included in the decision-making.

Finally, when carrying out research, it is essential to understand descriptive statistics because it is an essential analysis tool, which is effective in summarizing data collected. This is because unlike the inferential statistics that relies on probabilities descriptive statistics is outright, and thus, enables researcher to summarize their findings in easy to understand statistics or simpler interpretations. However, it usually of no much importance as it only gives general information and one cannot make conclusions from descriptive statistics.

Works Cited Bajpai Naval . 2009. Business Statistics. New Delhi: Pearson Education India. Beri G. C. 2010. Business Statistics 3E. New Delhi: Tata McGraw Hill.