Phase 1 - Concepts and terminology of statistics applied to business decision-making 4-13 - Essay Example

Marketing Methodology Marketing means, an organizational function and a set of processes for creating, Communicating, and delivering value to customers and for managing customer relationship in ways that the benefit of the organization and its stakeholders. In marketing, changes are taking place in a speedy manner. According to the Research and Development Department, a detailed analytical review of necessary areas are essential from time to time. A new formula for one type of snack food is being developed instead of the old one.

The major qualitative attributes to snack food are-1. Providing a tasty feeling.2. It is not that much perishable.3. Improvement in productivity.A data should be collected about the opinion of the consumers regarding the innovative measures being put in the old pattern of snack food. For this, it is necessary to collect both nominal and ordinal data. “Nominal data are categorical data where the order of the categories is arbitrary. A good example is race/ethnicity has values 1=White, 2=Hispanic, 3=American Indian, 4=Black, 5=other.

Note that the order of the categories is arbitrary.” (Stats Definitions-Nominal data). Certain statistical concepts are meaningless for nominal data. “The data related to gender, race, religious affiliation, political affiliation etc; are the examples for Nominal data. In a more general form the data assigned with labels or names are considered as the data in Nominal scale.” (Peddinti, Sairam. 2006). In the nominal type of measurement, names are assigned to objects as labels. This assignment is performed by evaluating, by some procedure, the similarity of the labels are to be measured instance to each of a set of named exemplars or category definitions.

In ordinal measurement, numbers are assigned to the objects that represents the rank order to measure the entity. These numbers are called ordinals and the variables are called ordinal variables.. Scales and indexes have to be validated. Internal validation checks the relation between the individual measures included in the scale, and the composite scale itself. External validation checks the relation between the composite scale and other indicators of the variable, indicators not included in the scale.

Scientists can taken in to consideration the two quantitative attributes in relation to snack food are-to give stress on customers’ desires, taste, needs and wants and by observing and recording the stated goals or objectives of the responsible implementing agency or organisation or its curresponding consumers. Usage of widely different frequencies are most common in this regard.The population is the entire group of individuals that we want information about and the sample is the part of population that we actually examine in order to gather information.

An experiment, observational study or a survey selects a sample from the population of all individuals about which we desire information. We base conclusions about the population on data from the sample.For example, in an election, the entire voting population is counted. These are the results for the 1996 Presidential Election. AllBuchananDoleKeyesMale52%20%64%4%Female48%19%65%5%Interval and ratio data is also playing a vital role in this regard. Ratio data means, a quantity that denotes the proportional amount or magnitude of one quantity relative to another.

Intervel data means, a data which is occuring in a recurring nature.Works CitedStats Definitions-Nominal data. Retrieved 14 May, 2007, from http://www.childrens-mercy.org/stats/definitions/nominal.htmPeddinti, Sairam. (2006). Nominal Data. Six Sigma. Retrieved 14 May, 2007, from http://www.isixsigma.com/dictionary/Nominal_Data-1539.htm