Intro to Business Statistics

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Descriptive statistics

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Intro to Business Statistics

Definition

Descriptive statistics involves summarizing and organizing data so it can be easily understood. Common tools include measures of central tendency (mean, median, mode) and measures of variability (range, variance, standard deviation).

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5 Must Know Facts For Your Next Test

  1. Descriptive statistics does not make inferences about the population but summarizes the sample data.
  2. Common graphical representations include histograms, bar charts, and box plots.
  3. The mean is influenced by extreme values (outliers), whereas the median is not.
  4. Standard deviation provides insight into the spread of data around the mean.
  5. Descriptive statistics are often used as a preliminary step before performing inferential statistics.

Review Questions

  • What are two common measures of central tendency?
  • Why might you use a box plot in descriptive statistics?
  • How does standard deviation differ from range?

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