CUSTOMER_CODE
SMUDE
DIVISION_CODE
SMUDE
EVENT_CODE
SMUAPR15
ASSESSMENT_CODE BBA104_SMUAPR15
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
8537
QUESTION_TEXT Explain any five uses of statistics in business and management.
SCHEME OF
EVALUATION
(Any 5 uses – 2 marks each – total 10 marks)
Entrepreneurs: It is necessary to study the market before start a new
business. To ensure the success of a new venture, a businessman has
to collect the past records and current market trends scientifically.
Statistics will help to analyze the data and predict the future course of
action. A number of new enterprises have failed either due to
unreliability of data or due to faulty prediction and conclusions.
Production: After a new business is launched, the business head has
to plan its production so that he is able to meet the demand of its
product and incur minimum losses on account of over or under
production. For this he has to estimate the pattern of demand of the
product by conducting various market surveys. Based upon these
surveys, he might also forecast the demand of the product at various
points of time in future using statistical techniques.
Marketing: An optimum marketing strategy would require a skilful
analysis of data on population, shifts in population, disposable
income, competition, status of the people, advertising, quality of the
sales people, and other related matters. These variables and their
inter-relationship must be statistically studied and analyzed.
Purchasing: The purchasing department of an organization makes
decision regarding the purchase of raw materials and other supplies
from different suppliers. The statistical data on cost of the
component, product delivery time etc. would assist in formulating
purchasing policies as to where to buy, when to buy and how much to
buy.
Investment: Statistics have been almost indispensable in making a
sound investment whether it be in buying or selling of stocks and
securities or real estate. The financial newspapers are full of tables
and graphs analyzing the prices of stocks and their movements. The
financial newspapers are full of tables and graphs analyzing the
prices of stocks and their movements. Based upon these statistical
data, a good investor will buy when prices are at lowest and sell when
prices are at the highest.
Quality control: Statistics are used in quality control so extensively
that even the phenomenon is known as "statistical quality control
(SQC)". Statistical quality control consists of using statistical
methods to collect and analyze data in the determination and control
of quality. The techniques primarily deals with the samples, taken
randomly and as representative of the entire lot size or population,
then these samples are analyzed and inferences made concerning the
characteristics of the lots from which they are drawn. The analysis of
the quality control is done with the help of control charts
Personnel: Study of statistical data regarding wage rates, employment
trends, accident rates, employee grievances, labor turnover rate etc.,
and the proper analysis of such data assists the personnel departments
in formulating the personnel policies and in the process of manpower
planning.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
121554
QUESTION_TEXT Explain characteristics of statistics.
CHARACTERISTICS OF STATISTICS
The character of statistical information collected from a group of
individuals or objects, is of two types-quantitative and qualitative.
The quantitative character is technically called ‘variable’. A variable
takes different ‘values’ and these values can be measured numerically
in suitable units. Information about the ages of a group of women is
quantitative, because the age is expressed in numbers, say 30 years,
34.6 years, etc
Statistics are the aggregate of facts
SCHEME OF
EVALUATION
Single or isolated facts or figures cannot be called statistics as they
cannot be compared or related to other figures within the same
framework. Accordingly, it must be an aggregate of these figures. For
example, if I say I spend 15000 per month it would not be considered
as statistics.
Statistics are affected by multiple causes
The term statistical data can be used only when we cannot predict
exactly the values of the various physical quantities. It means that the
numerical value of any quantity at any particular moment is the result
of the action and interaction of a number of forces, differing among
themselves and it is not possible to say as to how much of it is due to
any one particular cause.
Statistics are expressed numerically
Statistics are expressed in numbers. The qualitative statements do
not show accurate interpretations and hence cannot be called
statistics. For example, statements like, “Bangladesh is a poor
country” would not be considered statistical statements. On the
other hand comparing per capita income of India with China would
be called statistics.
Statistics are collected in a systematic manner for a predetermined
purpose
Quantitative data can be called statistics only if they have been
compiled in a properly planned manner and for a purpose about
which the enumerator had a definite idea. The decision maker
should have the clear idea about the object for which the facts are
to be collected.
Statistical data must be according to reasonable standards of
accuracy
The accurate statistical data will be generated by counting the actual
number in the data, such as number of patients in the hospital. The
data must be reasonably accurate. This is necessary because
statistical data are to serve as a basis for statistical investigations. If
the basis happens to be incorrect the results are bound to be
misleading.
Statistics should be placed in relation to each other
Numerical facts may be placed in relation to each other either in
point of time, space or condition. The statement ‘placed in relation
to each other’ means that the facts should be comparable.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
121555
QUESTION_TEXT
Write the merits and demerits of mode.
Merits & Demerits of mode:
Merits:
SCHEME OF
EVALUATION
1. It is easy to calculate. In many cases, it can be identified just by
inspection.
2. It can be located in situations where the variable is not
measurable but categorization is possible.
3. Like mean and median, it is not influenced by extreme
observations. It can be calculated even if these extreme
observations are not known.
4. It can be identified even when the class intervals are of
unequal width provided that the width of modal and that of its
preceding and following classes are equal.
Demerits:
1. It is not depended on all the observations.
2. It is not capable of further mathematical analysis.
3. In certain situations, mode is not rigidly defined and hence, the
important requisite of a good measure of central tendency is
not satisfied.
4. It is mostly affected by the fluctuations of sampling.
5. It is not suitable when different items of the data are of unequal
importance.
QUESTION_TYPE
DESCRIPTIVE_QUESTION
QUESTION_ID
121559
QUESTION_TEXT Explain the Limitations of Statistics.
SCHEME OF
EVALUATION
The statistical methods, though, widely used in different areas of human
knowledge, has its own limitations as far as its application is concerned.
Some of these important limitations are as follows:
Statistics does not deal with individual values
Statistical studies are undertaken to study the characteristics of a group
rather than individuals. It only deals with the aggregate values. For
example, the salary of a faculty member in itself is not statistical in nature
unless the salaries of other faculty members are also known.
Statistics do not deal with qualitative characteristics
Statistics only deal with the quantitative facts. These facts are capable of
being represented in the form of numerical figures and therefore, are also
known as numerical facts. These facts can be analyzed and interpreted
with the help of statistical methods. This cannot be used to study such
events which cannot be compared to some degree by comparing IQs or
scores in certain tests. However, certain qualitative characteristics such as
honesty integrity cannot be measured statistically.
Statistical conclusions are not usually true
Since statistics is not an exact science, hence these conclusions are true
only certain conditions. Most of the statistical studies are based on a
sample taken from the population. Under certain circumstances the
estimated data are also used. Hence, the conclusions about a population
based on such information are bound to be true only approximately.
Therefore, statistical methods, if not applied in the proper perspective of
the collected data, may lead to false conclusions. They should therefore be
handled with utmost care and by experts only.
Statistical interpretation requires a high degree of skill
In order to get meaningful results with the proper collection of data, it
requires extensive training to read statistics in its proper context (10
marks)