Statistics for Managers - Assignment Example

? Statistics for managers s Proposal Statistic is an important field of study as it is also a fundamental aspect in our day to day lives. Statistic is everywhere despite the different careers pursued by different individuals. Statistics for managers is of significance since it is the foundation on which precise, accurate and informed decisions are made. The main objective is to critically analyze the different aspects of statistics learnt throughout the course in relation to management. It is an in depth explanation of ethical and managerial traits one has to possess through acquiring statistical knowledge. This study is also important in helping students aspiring to be future managers to take the study of statistics seriously so as to avoid future dilemma when it come to making and implementing decisions. Introduction Statistics is an interesting field of study that refers to the study of collection, organization, analysis, interpretation and presentation of data (Levin, 1987). Generally statistics improve the quality of data through the use of specific sample surveys and experimental designs It provides the tools necessary for making predictions based on the data collected through statistical models. There are two types of statistics basically qualitative and quantitative or inferential and descriptive statistics. Qualitative methods deal with description in which data is observed and not measured. On the other hand, quantitative method uses numbers. For instance the data measured say length, height, area, volume etc. Therefore statistics is a very fundamental field of study that is applied in our everyday lives (Broster, 1972). Furthermore it is very significant in managerial positions to help managers make informed and accurate decisions while running their business. There are different fields of statistics and below is a deep analysis of how they assist managers in operating their business ventures. Descriptive statistics Descriptive statistics are used to describe the basic features of the data in a study and do not involve generalizing the data that has been collected. The use of graphical techniques and numerical descriptive measures is facilitated by the use of descriptive statistics. Although descriptive statistics measures seem straightforward they should not be underestimated. Managers are frequently exposed to large masses of data but before the data can be put into use, must be organized, summarized and critically interpreted. Therefore this is one of a very important aspect of statistics. Research has clearly shown that top managers reach to a consensus 25% more quickly when responding to graphical presentations. This importance of descriptive statistics is thus a key strategy for managers. It is advisable for the management to posses analytical skills necessary to interpret graphs and computations on the same. Inferential statistics It can also be defined as making inferences about a population from a random sample. On the other inference refers to the art of reasoning involved in making conclusions and logical judgement based on the evidence from the collected data. Management revolves around decision making and thus inferential statistics come into place because the manager has to analyze the trend of the business operation (Broster, 1972). Based on the competitors or generally the market fluctuations such as change in consumer demands, the management is able to observe clearly the trend and from the given observations, logical judgements or inferences are made on the same. This is a very important aspect for a successive manager hence a better understanding of inferential statistics is important because it is a driving force to a positive growth of a business. Hypothesis development and testing A hypothesis is some testable believe or opinion while hypothesis is the process of formulating and coming up with hypothesis. On the contrary, hypothesis testing is the process by which they believe is tested through statistical means (Levin, 1987). This aspect of hypothesis testing and development is very important to businesses and above all of the managers. While developing hypothesis, we either accept or reject the results of the hypothesis (Keller, 2000). This concept enables managers to develop models for boosting the growth of their company or business they are operating. The models created are based on probability techniques which apply the levels of significance and confidence limits. Furthermore, managers need the knowledge of developing hypothesis so as to come up with precise and accurate models that further enhance critical thinking and informed decision making (Broster, 1972). Selection of appropriate statistical test Selection of appropriate statistical test is a very important but challenging aspect in statistics. Many statisticians fail to make accurate predictions when the wrong statistical procedure and a test is carried out. In relation to management, for accurate plans in decision making to be implemented, proper and appropriate statistical tests need to be carried out (Levin, 1987). For instance, based on the data collected for carrying out hypothesis testing, the method should be known whether to use a one tail or a two tail test. It is also important to know the significant levels and confidence limits to be used in tackling a certain statistical undertaking. Therefore the knowledge of using appropriate tests is vital for a manager to lead a successful career (Keller, 2000). Evaluating statistical results. This is the most crucial aspect of applying statistical knowledge. All the above aspects of statistics important to a manager are of no use if the manager cannot evaluate statistical results. A good manager should possess analytical skills to guide in making proper decisions. Managers rely on statistical results to know the next course of action in implementing future plans and decisions (Levin, 1987). Conclusion Statistics plays a vital role in management through the decision making process. A manager has to apply different aspects of statistical knowledge in order to make informed decisions and continue to prosper. The role of statistics cannot be replaced neither can it be underestimated because it is very useful to managers and improving their analytical and interpretive skills based on data collected. Moreover, no manager can be successful without statistical knowledge thus a very important aspect in the art of management. References Levin, R. (1987). Statistics for management. Englewood Cliffs, N.J.: Prentice-Hall. Keller, G. and Warrack, B. (2000). Statistics for management and economics. Pacific Grove: Duxbury Press. Broster, E. (1972). Management statistics. [London]: Longman. Read More