Type of paper: Essay

Topic: Information, Future, Statistics, Company, Analytics, Management, Risk, Methodology

Pages: 1

Words: 275

Published: 2021/02/07

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Descriptive statistics is data analysis that helps show, describe, or summarize data in a meaningful way. This component of statistical methodology does not allow one to make conclusions beyond the data that has been analyzed or to even make conclusions regarding hypotheses that have been made. It is just a way to describe data. Descriptive statistics enables the presentation of data in a meaningful way, and it allows a simple interpretation of data. Descriptive statistics tries to describe what the data is and what it shows. It is used to present quantitative descriptions in a manageable form.
Statistical inference helps in reaching a conclusion that extends beyond the immediate data only. For example, it can be used to conclude from a sample data what the population thinks about a certain product. Also, it can be used to make judgments on the probability that an observed difference between groups is dependable or if it just happened by chance (William, 2006).
Predictive analytics is the practice of extracting information from data sets so as to determine patterns and predict future trends and outcomes. The analytics does not tell what will happen in the future. It focuses more on what might happen in the future, and it has an acceptable level of reliability, which includes risk assessment and what-if scenarios. Predictive analysis is used to forecast future probabilities. Predictive models are used in analyzing historical data and current data in order to understand customers, partners, products, and to identify opportunities and any potential risk to a company. The analysis uses a number of techniques such as data mining, machine learning and statistical modeling that help analysts make future business forecasts (Beal, 2015).
It is important that any manager understands the differences between these three components. By understanding each component, the manager can make a reliable analysis on any data collected in research. Most companies rely on studies and researches to plan and strategize for the company. If data from the research is misinterpreted, it will cause the company to suffer great losses. For such a case to be avoided, the components of statistical methodology should be understood.

References

Beal, V. (2015). Predictive Analytics. Retrieved from http://www.webopedia.com/TERM/P/predictive_analytics.html
William, M. K. (2006). Inferential Statistics. Retrieved from http://www.socialresearchmethods.net/kb/statinf.php

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WePapers. (2021, February, 07) Statistical Methods Essay. Retrieved September 19, 2021, from https://www.wepapers.com/samples/statistical-methods-essay/
"Statistical Methods Essay." WePapers, 07 Feb. 2021, https://www.wepapers.com/samples/statistical-methods-essay/. Accessed 19 September 2021.
WePapers. 2021. Statistical Methods Essay., viewed September 19 2021, <https://www.wepapers.com/samples/statistical-methods-essay/>
WePapers. Statistical Methods Essay. [Internet]. February 2021. [Accessed September 19, 2021]. Available from: https://www.wepapers.com/samples/statistical-methods-essay/
"Statistical Methods Essay." WePapers, Feb 07, 2021. Accessed September 19, 2021. https://www.wepapers.com/samples/statistical-methods-essay/
WePapers. 2021. "Statistical Methods Essay." Free Essay Examples - WePapers.com. Retrieved September 19, 2021. (https://www.wepapers.com/samples/statistical-methods-essay/).
"Statistical Methods Essay," Free Essay Examples - WePapers.com, 07-Feb-2021. [Online]. Available: https://www.wepapers.com/samples/statistical-methods-essay/. [Accessed: 19-Sep-2021].
Statistical Methods Essay. Free Essay Examples - WePapers.com. https://www.wepapers.com/samples/statistical-methods-essay/. Published Feb 07, 2021. Accessed September 19, 2021.
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