006. The Functions of Statistics

Statistics is the science concerned with the (1) collection, (2) organization, (3) presentation, (4) analysis, and (5) interpretation of data.

The first step in any statistical study is the Collection of the data. Then the researcher has to Organize and Present these data in some meaningful and descriptive manner. The data must be put into some logical order that tends to quickly and readily reveal the message they contain. This procedure constitutes the process of Descriptive statistics. After the data have been Organized and Presented for examination, the statistician must analyze and interpret them. These procedures rely on Inferential statistics and constitute a major benefit of statistical analysis.

Statistical application 1-1 (to predict the future with some degree of accuracy). Fortune magazine recently described the problem Nike, a maker of athletic shoes, was having in deciding which type of color design was preferred among its customers. There was some confusion on the part of upper management regarding which of two competing fashions would attract more customer interest.

A sample of over 1000 die-hard runners was carefully selected. The runners were given the opportunity to express their preferences. From this information, management concluded that the population of customers displayed an overwhelming preference for the one design over the other. On this basis, the decision was made as to which design to manufacture and market.

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