The business world is all about data. Data is a very important key to do every single action. The proper collection and presentation of this data are what differentiates a company from another. The presentation of big data using statistical means makes the data much more understandable to the public. Just listing down the figures related to a topic in a raw format would make it difficult for the receiver to understand and interpret accurately, whereas using statistical analysis. These data can be organized and presented more appealingly.
One of the most efficient ways of statistical analysis is Descriptive Statistical Analysis. It, in the simplest of words, means to describe. Descriptive statistics uses simpler means of data cluster and data presentation, where the focus is completely on the data rather than on the possible inferences of the data. There are four types of descriptive statistics that are used in the business world
- Measures of Central Tendency – Mean, Median, and Mode
- Measures of Frequency – Count, Percentage
- Measures of Variation – Standard Deviation, Range
- Measures of Position – Percentile Ranks, Quartile Ranks
Using these four measures, the big data of companies is converted into a less complex form which is more informative in less time and easy to grasp and remember. The best thing about descriptive statistical analysis (analisisstatistikdeskriptif, which is the term in Thai) is that it facilitates data visualization.
Use of Descriptive Statistics in Business
Descriptive Statistics is widely used in the business world as it makes the data more organized and presentable. It helps take the business take into the next level. The different types of descriptive statistics help in the presentation of different sets of information. Descriptive statistics combined with data visualization can present charts and graphs, which are easier to understand. This helps study the data from a particular point and helps describe what the event was all about. But the purpose of these statistics is not to conclude, but to describe the facts and help people understand the events.
The role of descriptive analysis is very important in the business world. With the help of such statistical analysis, the data organization of a company improves to a great extent. The use of descriptive statistics in business helps in improving client relations. It also facilitates transparency in the record maintenance of the company. In short descriptive statistical analysis is a pivotal part of business intelligence which can help a business grow in a wide number of ways.