Outline – Essay Example
and Section # of Outline Business statistics is a discipline that makes uses of the statisticaltools that allow the business managers to make the best possible decisions at the time of ambiguity. It is widely used in many areas of business administration such as forecasting, productions and operations, research and financial analysis (Weiss, 1998).
Therefore, this paper will first discuss the importance of the business statistics and the statistical tools in the business environment especially good decision making. I will then further identify and discuss three important business statistical tools that are most commonly used in the organizations.
First, I will discuss ‘Linear Regression’ as one of the most valuable techniques that is used in business environment. I will relate it to its importance as the line of best fit. I will also discuss its importance in accounting, forecasting and identifying complex relationships (Victor, 2010).
Second, I will discuss the significance of the ‘descriptive statistics’ in the organizations. It is used to describe the data obtained from a particular research. It is most commonly used to make comparisons and analysis and then present them using graphs of different sorts. Therefore, I will discuss its relevance with particular examples (Weiss, 1998).
Third, I will discuss the importance of ‘correlation’ as one of the most common and useful statistical technique that is used. It describes the extent of relationship between the two identified variables. I will put more emphasis on the investments in the stock markets using this technique (Creative Research Systems, 2010).
In the end, I will further identify further two more areas that need to be worked upon through more extensive and thorough research.
Amemiya, T. Introduction to Statistics and Econometrics. Harvard University Press. (1994)
Weiss, N. A. Introductory Statistics. Addison Wesley Publishing Company. (1998)
Creative Research Systems. “Correlation” Creative Research Systems. Accessed on April 15th 2010 from http://www.surveysystem.com/correlation.htm
Victor, D. “The Role of Linear Regression Analysis in Costing” Ezine Articles. Accessed on April 15th 2010 from http://ezinearticles.com/?The-Role-of-Linear-Regression-Analysis-in-Costing&id=3878932