GettingStartedChapterGSObjectivesInthischapteryoulearn:

Thatthepreponderanceofdatamakeslearningaboutstatisticscriticallyimportant.Statisticsisawayofthinkingthatcanleadtobetterdecisions.HowapplyingtheDCOVAframeworkforapplyingstatisticscanhelpsolvebusinessproblems.Thesignificanceofbusinessanalytics.Theopportunitybusinessanalyticsrepresentforbusinessstudents.HowtoprepareforusingMicrosoftExcel?orMinitabwiththisbook.InToday’sBusinessWorldYouCannotEscapeFromDataIntoday’sdigitalworldeverincreasingamountsofdataaregathered,stored,reportedon,andavailableforfurtherstudy.Youheartheworddataeverywhere.Dataarefactsabouttheworldandareconstantlyreportedasnumbersbyaneverincreasingnumberofsources.EachBusinessPersonFacesAChoiceOfHowToDealWithThisExplosionOfDataTheycanignoreitandhopeforthebest.Theycancountonotherpeople’ssummariesofdataandhopetheyarecorrect.Theycandeveloptheirowncapabilityandinsightintodatabylearningaboutstatisticsanditsapplicationtobusiness.StatisticsIsEvolvingSoBusinessesCanUseTheVastAmountOfDataAvailableTheemergingfieldofBusinessAnalyticsmakes“extensiveuseof:DataStatisticalandquantitativeanalysisExplanatory&predictivemodelsFactbasedmanagementtodrivedecisionsandactions.”ToProperlyApplyStatisticsYouShouldFollowAFrameworkToMinimizePossibleErrorsInthisbookwewilluseDCOVADefinethedatayouwanttostudyinordertosolveaproblemormeetanobjectiveCollectthedatafromappropriatesourcesOrganizethedatacollectedbydevelopingtablesVisualizethedatabydevelopingchartsAnalyzethedatacollectedtoreachconclusionsandpresentresultsUsingTheDCOVAFrameworkHelpsYouToApplyStatisticsTo:Summarize&visualizebusinessdataReachconclusionsfromthosedataMakereliablepredictionsaboutbusinessactivitiesImprovebusinessprocessesDefinitionOfSomeTermsVARIABLEAcharacteristicofanitemorindividual.DATAThesetofindividualvaluesassociatedwithavariable.STATISTICSThemethodsthathelptransformdataintousefulinformationfordecisionmakers.DCOVAAreTheseNumbersUsefulInMakingDecisionsAsurveyof1,179adults18andoverreportedthat54%thoughtthat15secondswasanacceptableonlineadlengthbeforeseeingfreecontent.Asurveyreportedwomenweremorelikelythanmentociteseeingphotosorvideos,sharingwithmanpeopleatone,seeingentertainingorfunnyposts,learningaboutwaystohelpothers,andreceivingsupportfrompeopleinyournetworkasreasonstouseFacebook.AstudyfoundthenumberoftimesaspecificproductwasmentionedincommentsintheTwittersocialmessagingservicecouldbeusedtomakeaccuratepredictionsofsalestrendsforthatproduct.WithoutStatisticsYouCan’tDetermineifthenumbersinthesestudiesareusefulinformationValidateclaimsofpredictabilityorcausalitySeepatternsthatlargeamountsofdatasometimesrevealBusinessAnalytics:TheChangingFaceOfStatisticsUsestatisticalmethodstoanalyzeandexploredatatouncoverunforeseenrelationships.Usemanagementsciencemethodstodevelopoptimizationmodelsthatimpactanorganization’sstrategy,planning,andoperations.Useinformationsystems’methodstocollectandprocessdatasetsofallsizes,includingverylargedatasetsthatwouldotherwisebehardtoexamineefficiently.BusinessAnalyticsHasAlreadyBeenAppliedInManyBusinessDecision-MakingContextsHumanresourcemanagers(HR)understandingrelationshipsbetweenHRdrivers,keybusinessoutcomes,employeeskills,capabilities,andmotivation.Financialanalystsdeterminingwhycertaintrendsoccurtopredictfuturefinancialenvironments.Marketersdrivingloyaltyprogramsandcustomermarketingdecisionstodrivesales.Supplychainmanagersplanningandforecastingbasedonproductdistributionandoptimizingsalesdistributionbasedonkeyinventorymeasures.TheGrowthOf“BigData”SpursTheUseOfBusinessAnalytics“BigData”isstillafuzzyconcept.Verylargedatasetsarearisingbecauseoftheautomaticcollectionofhighvolumesofdataatveryfastrates.Attributesthatdistinguish“BigData”fromwellstructuredlargedatasetsare“volume”ofdata,“velocity”ofthedatacollection,and“variety”ofthedata.Statistics:AnImportantPartofYourBusinessEducationYouneedanalyticalskillsfortheincreasinglydata-drivenenvironmentofbusiness.Studiesshowanincreaseinproductivity,innovation,andcompetitivenessfororganizationsthatembracebusinessanalytics.ToquoteHalVarian,thechiefeconomistatGoogleInc.,“thesexyjobinthenext10yearswillbestatisticians.AndI’mnotkidding.”HowToUseThisBookTheUsingStatisticsscenarioatthebeginningandendofeachchapterprovideArealbusinesssituationthatthechapter’stopicscanhelpaddressContextwhichisanimportantpartofthelearningprocessThroughouteachchapteryouwillfindExcel?andMinitabsolutionstoexampleproblems.NumerouscasestudiesareprovidedsoyoucanApplywhatyouhavelearnedEnhanceyouranalytical&communicationskillsSoftwareandStatisticsSoftwareisusedinstatisticstoassistyouinapplyingstatisticalmethods.Thisbookcoverstheuseoftwosoftwarepackages:MicrosoftExcel?--MicrosoftOffice’sdataanalysisapplicationMinitab--adedicatedstatisticalanalysispackage.EitherExcel?orMinitabcanbeusedtolearnandpracticethestatisticalmethodsinthisbook.ChecklistForPreparingtoUseExcel?orMinitabWithThisBook?ReadAppendixCtolearnabouttheonlineresourcesyouneedtomakebestuseofthisbook.?Downloadtheonlineresourcesthatyouwillneedtousethisbook,usingtheinstructionsinAppendixC.?Checkforandapplyupdatestotheprogramthatyouplantouse.(SeetheAppendixSectionD.1instructions).?IfyouplantousePHStat,theVisualExplorationsadd-inworkbooks