1

Statistics

are like mini skirts , they reveal more than what they hide
Navjot Singh Siddhu

subject concerned with scientific method of collecting, summarizing, presenting and analyzing data as well as drawing conclusion or making predictions on the basis of such analysis. Helps in the study of variation in data for discovering patterns and drawing conclusions
3

 Statistics

are tools for seeing and telling a story from data.

 Descriptive Inferential

Statistics

Statistics

Defining Objective(s) Specification of the Population and its Characteristic(s) Planning for Collection of Data - Census Vs Sampling Collection of Data Compilation/Presentation of Data Statistical Analysis Drawing Conclusions, Testing Assumptions or Making Predictions

Statistics increases the field of mental vision just as a binocular increases the field of physical vision

Simplifies unwieldy and complex mass of data, and

present them in a form and manner that they

become intelligible. Conversion of data into information, makes it better suited for decision

making

Quantifies and measures uncertainty and variability, and thereby helps in decision making Discovers past and emerging patterns in a data. Using such analysis, it helps in forecasting. Sometimes, Statistics can even suggest possible reasons for such pattern. Helps in estimation and validating assumptions.

Changing definition of a variable to suit preconceived notion Inadequate sample or unrepresentative sample selection Manipulative collection of data Interpretation of association and correlation Inappropriate comparison Defective data definition confusing or not considering all possibilities

Marketing Economics Finance Insurance Operations Human Resource Management or Development Information Systems Data Mining

10

Illustrative List of Decision Situations and Corresponding Statistical Techniques

Area
Marketing

Decision Situation
Assessment/Forecast of Demand for the Product or a Service Customer Profiling

Statistical Techniques Applicable

Time Series Correlation and Regression Analysis Statistical Inference Cluster Analysis

Market Research

Sample Surveys Conjoint Analysis Multidimensional Scaling

Cluster Analysis Correlation and Regression Analysis Conjoint Analysis
11

Retail Management Identifying Customer Buying Behaviors and Patterns

Illustrative List of Decision Situations and Corresponding Statistical Techniques

Area
Finance and Banking

Decision Situation
Evaluation of Investment
Volatility of Stocks

Statistical Techniques Applicable

Regression Analysis, Decision Analysis
b Analysis

Predicting EPS
Derivatives Assessing Credit Worthiness Insurance Determining the Premium

Regression Analysis
b Analysis and Regression Analysis Discriminant Analysis Logistic Regression Correlation Analysis Probability. Time Series Regression Analysis
12

Illustrative List of Decision Situations and Corresponding Statistical Techniques

Area Decision Situation Statistical Techniques Applicable

Impact of Different Factors Regression Analysis on Health and Life Discriminant Analysis Operations Controlling and Improving Production Process and Quality Inventory Management HRD Retail Management Statistical Quality Control Six Sigma Sampling Inspections Statistical Inference ABC Analysis

Performance Appraisal and Normal Distribution Reward System Percentiles Identifying customer buying behaviors and patterns Cluster Analysis Correlation Conjoint Analysis
13