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Application of inferential statistics in managerial decision making?
cenus investigation sampling analysis of past trends
What jobs use confidence intervals?
Any kind of decision making - which means all managerial jobs.Any kind of decision making - which means all managerial jobs.Any kind of decision making - which means all managerial jobs.Any kind of decision making - which means all managerial jobs.
How does the use of statistics affect people's decision making?
Numbers are powerful. This is one of the reasons why statistics can be such persuasive pieces of evidence. We too often accept them, without ever questioning their veracity or appropriateness.
What are the scope of statistics?
Scope and importance of Statistics:1. Statistics and planning: Statistics in indispensable into planning in the modern age which is termed as "the age of planning". Almost all over the world the govt. are re-storing to planning for economic development.2. Statistics and economics: Statistical data and techniques of statistical analysis have to immensely useful involving economical problem. Such as wages, price, time series analysis, demand analysis.3. Statistics and business: Statistics is an irresponsible tool of production control. Business executive are relying more and more on statistical techniques for studying the much and desire of the valued customers.4. Statistics and industry: In industry statistics is widely used inequality control. In production engineering to find out whether the product is confirming to the specifications or not. Statistical tools, such as inspection plan, control chart etc.5. Statistics and mathematics: Statistics are intimately related recent advancements in statistical technique are the outcome of wide applications of mathematics.6. Statistics and modern science: In medical science the statistical tools for collection, presentation and analysis of observed facts relating to causes and incidence of dieses and the result of application various drugs and medicine are of great importance.7. Statistics, psychology and education: In education and physiology statistics has found wide application such as, determining or to determine the reliability and validity to a test, factor analysis etc.8. Statistics and war: In war the theory of decision function can be a great assistance to the military and personal to plan "maximum destruction with minimum effort."
What are inferential statistics?
Statistical inference is about testing hypotheses. In order to test a hypothesis, you make a prediction about the observations, contrasting the prediction with what might happen if the hypothesis were not true. The prediction is tested against the observations by calculating a test statistic or inferential statistic. This is a value which is based purely on the observations. If the test statistic is too far from the predicted value then the hypothesis should be rejected in favour of the alternative hypothesis.What constitutes "too far" depends on the presumed distribution of the variable being tested, as well as the degree of certainty required from the test - the power of the test. The latter is a balance between probability of rejecting the hypothesis when it is true and that of not rejecting it when it is false. These outcomes may be weighted according to the risk or costs that a false decision carries.
