Evaluate the differences between descriptive and inferential data.

Assignment Brief

In this paper, you are required to pay importance to the value and scope of statistical management and how the concept could be used to solve the complications encountered within the contexts of businesses. Moreover, the paper is categorised into two tasks that have the following primary features to focus:

• The concept of statistics including the definition, features, tools and methods, etc.
• The types of data and information used by businesses
• Compare and contrast the sample and population
• Provide statistical methods to meet business goals
• Employ descriptive and inferential statistics methods in the task
• Differentiate between descriptive and inferential data
• Select companies to prepare presentation and analysis

Instructions 

You are working as a Data Analyst for your organisation. Your supervisors want to understand the value and importance of statistical management and how it can be used to resolve challenges faced by businesses. You will need to reference how a company utilises statistical management to achieve business objectives and you will need to analyse how statistical management interrelates with other business functions to deliver results.

Task 1

Task 1: Individual Presentation. 15 minutes incl. Q&A session. Prepare your presentation, addressing the tasks specified below. PART 1 (theory) You are tasked to explain the value and importance of statistical management: An introduction to statistics; definition, key characteristics, overview of methods etc. Sources and types of data and information businesses can access. The difference between a sample and a population. The value of employing statistical methods when meeting business objectives and achieving competitive advantage. Explanation of the difference between descriptive and inferential statistics and the implications for business intelligence. Provide examples of analysis of given sample sets of data that could be used by the organisation. Be prepared to answer questions related to your analysis and explain all information included on your slides. PART 2 (application) You will be given an Excel document containing monthly adjusted share price information of Apple, Microsoft, Netflix and Amazon for a 5-year period. In the same document, you will also be provided the NASDAQ’s composite index IXIC’s monthly adjusted closing data. You need to choose two of these companies for your analysis and presentation. You need to also use IXIC’s data for further analysis. In addition, you will be given the last four years of revenue, cost and profit information with regards to these companies. You are required to utilise descriptive and inferential statistics methods in this task. Evaluate the differences between descriptive and inferential data. Using sets of given data, you are to calculate a range of descriptive and inferential statistics. Applying and justifying the use of different methods, e.g. histogram, index, correlation, trend forecasting etc. Present your findings in the appropriate format using a range of graphs and charts to communicate data analysis.

Sample Answer

The Value and Importance of Statistical Management in Business Contexts

PART 1: THEORETICAL FOUNDATION

Introduction to Statistics and Its Role in Business

Statistics is a critical domain in business intelligence, providing tools to collect, organise, analyse, interpret, and present data for effective decision-making. It supports evidence-based planning, forecasting, quality control, and risk assessment. Statistics in business is broadly categorised into descriptive and inferential techniques. Descriptive statistics summarise raw data, while inferential statistics extend findings from samples to broader populations through probability theory.

Types and Sources of Data in Business Contexts

Businesses access both primary data (e.g. customer surveys, financial records) and secondary data (e.g. government reports, market research databases). Data may be quantitative (e.g. revenue, units sold) or qualitative (e.g. customer satisfaction), and either structured (databases) or unstructured (social media posts). Data can also be time series (e.g. monthly sales) or cross-sectional (e.g. annual employee feedback).

Understanding Population vs. Sample

In statistical practice, a population includes all potential data points of interest (e.g. all customers), while a sample represents a subset used for analysis. Sampling is cost-effective and practical, especially in large-scale data environments. However, proper sampling techniques must be applied to avoid bias and ensure representativeness.

Strategic Value of Statistical Methods in Business

Applying statistical methods enables firms to identify trends, anticipate market changes, optimise operations, and enhance customer experiences. Through tools like regression analysis, trend forecasting, and hypothesis testing, businesses can improve decision-making, enhance efficiency, and secure a competitive edge. For example, analysing sales trends allows proactive inventory management, while customer data analysis aids targeted marketing.

Descriptive vs Inferential Statistics: A Business Perspective

Descriptive statistics are used to summarise and describe the features of a dataset through means, medians, ranges, and graphical representations. Inferential statistics enable the business to generalise results from a sample to a wider population, often employing confidence intervals, t-tests, and correlation coefficients. Descriptive tools provide a snapshot of past or current states, while inferential tools forecast or test strategic hypotheses for future actions.

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