Question

Give an example of the use of descriptive statistics and inferential statistics in each of the following areas of application in a business firm. (a) Production management (b) Financial management (c) Marketing management (d) Personnel management

Answer 1

Answer:

e2f5u5uvt35ubutb4574tg3t57h5v5i755u 5575t5y5ub557jth54gbg55y5un3d35uugrv4yn5yb4t4y5uq6j

Answer 2

Answer:

Explanation:

The term descriptive statistics deals with collecting, summarizing, and 7 simplifying data, which are otherwise quite unwieldy and voluminous. It seeks to achieve this in a manner that meaningful conclusions can be readily drawn from the data. Descriptive statistics may thus be seen as comprising methods of bringing out and highlighting the latent characteristics present in a set of numerical data.

Inferential statistics, also known as inductive statistics, goes beyond describing a given problem situation by means of collecting, summarizing, and meaningfully presenting the related data. Instead, it consists of methods that are used for drawing inferences, or making broad generalizations, about a totality of observations on the basis of knowledge about a part of that totality.

Croxton and Cowden give numerous uses of Statistics in business such as project planning, budgetary planning and control, inventory planning and control, quality control, marketing, production and personnel administration. Within these also they have specified certain areas where Statistics is very relevant.

(a) Production management:

The concept of productivity is very relevant here. On the basis of measurement of productivity, the productivity bonus is awarded to the workers. Comparisons of wages and productivity are undertaken in order to ensure increases in industrial productivity. Statistical quality control methods are used to ensure the production of quality goods. Identifying and rejecting defective or substandard goods achieve this.

(b) Financial management:

(i) Targets were too high and unrealistic  

(ii) Salesmen's performance has been poor

(iii) Emergence of increase in competition  

(iv) Poor quality of company's product, and so on.

(c) Marketing management  

Here in Marketing Descriptive analysis plays a vital role in analyzing the product marketing agenda and market essence. It provides us the insights to analysis the mass movement of the product by collecting the data from the surveys.

(d) Personnel management:

Another sphere in business where statistical methods can be used is personnel management. Here, one is concerned with the fixation of wage rates, incentive norms and performance appraisal of individual employee.