Algebra 1 Statistics

Algebra 1 Statistics

We're going to learn about ways statistics is used in business as well as ways to represent data.

How Businesses Use Statistics

In a world that has become driven by data, it’s no wonder that businesses have started paying closer attention to statistical analysis. However, not everyone is capable of following and understanding statistics, which is why the demand for statisticians has risen over the last decade.

It takes an expert to translate the enormous volumes of data and present them in a way in which corporate bodies can both understand them, and then incorporate them into the company business model. These days, it is essential for any company to utilize this information in order to increase their revenue and improve their brand.

Small Businesses

If you run your own business, here are some ways in which statistical analysis can help you, and the type of candidates that you should be looking for when you look to employ a statistician.

It is important for all businesses to collect data in order to help improve their operations. Listed below are just a few areas where you can effectively apply statistical analysis in your company.

Poll

Would you like to own your own business one day?

• Yes

• No

Improve Operations

Data and statistics can help to identify problematic areas in the way in which a company operates. For example, if you have an online store, but you are struggling to make sales, this could be down to a fault in your e-commerce functions on the website. Alternatively, you might discover that it is down to poor marketing and a lack of engagement from potential customers. Data collection will also allow you to monitor your customers’ purchasing habits, which will help you to better understand what products are in demand.

Improve Operations pt. 2

This can also be applied to your staff and their productivity. Monitoring your staff and assessing the statistics from these reports will help you to determine where improvements need to be made. This could be down to an individual struggling to meet their workload, in which case, you can discuss with them how they can improve and offer them some help. Furthermore, you might discover that your scheduling or expectations of your staff are not the most effective. This will allow you to reassess how you set targets, deadlines, and other goals, and to implement better strategies in the workplace.

Marketing

Marketing is important for every business, and data-driven techniques are all the rage in the digital age. Market research has always been used, but now businesses have access to more information using analytical tools. These can be accessed on social media sites, search engines, and the company website, itself.

The reason this data has become so important in recent years is because it offers a better insight into consumer activity. As social media is used by billions of people all over the globe, naturally, it has become a popular marketing tool. It’s important to understand how consumers engage with posts and other advertising on these platforms.

Marketing

This kind of data collection has enabled businesses to hone in on specific demographics, and utilize their marketing materials to increase their revenue and brand awareness.

Finances

Statistics have also been able to improve a company’s financial position. Although there will be the need for a trusted accountant to take care of the books, the information they pass on will shape a business’s financial future.

Auditing software and other book-keeping programs are a fantastic source of financial data. It is important that a company understands this information in order to make smart, secure decisions when it comes to organizing budgets. Additionally, statistics can help to make realistic estimations about quarterly and annual revenue projections.

Finances

If any issues do arise regarding a company’s financial health, these records will enable the correct actions to be taken in order for the problem to be resolved. This could potentially save the company from any legal issues that involve possible financial misconduct.

Trends

Although trends are used in marketing techniques, they can also be applied to the overall progression of a business. Understanding what is gaining popularity in an industry is important to keep a company relevant in its field. Becoming out of touch with the customer base and their demands will only lead to a struggling business.

Analytical programs can help to predict future trends, and statisticians can explain to businesses how they can adapt to fit in with these changes. It can also provide an opportunity for a company to get ahead of the curve and become a trend-setter, itself.

Statistics as a Career

Considering how much businesses rely on data analysis; many people might be thinking about pursing a career in statistics. It could even be beneficial for business owners to learn the basics of data analysis, so that they also better understand the process.

To get a job offer of this kind, candidates will have to be educated to a degree level. Usually, a major in mathematics in preferable, but not essential. Additionally, a masters in statistics would be beneficial and is highly recommended.

Ways to Represent Data

Here are some common ways to represent data and how to interpret them.

Pie Chart

A pie chart shows the relative proportions of data in different categories. Pie charts are excellent ways of displaying categorical data with easily separable groups. 

Multiple Choice

What percentage do the Peach, Banana and Pineapple take up of the pie chart?

• 60

• 120

• 190

• 216

Bar Chart

A bar chart displays frequencies of categories of data. The reason why the bars are separated by spaces is to emphasize the fact that they are categories and not continuous numbers.

Multiple Choice

How many mountain bikes were sold?

• 22

• 16

• 28

• 6

Histogram

A histogram displays frequencies of quantitative data that has been sorted into intervals. The following is a histogram that shows the heights of a class of 53 students. Notice the largest category is 56-60 inches with 18 people.

Multiple Choice

Which interval shows the greatest number of pets?

• 15-19

• 0-4

• 5-9

• 10-14

Boxplot

A boxplot (also known as a box and whiskers plot) is another way to display quantitative data. It displays the five 5 number summary (minimum, Q1, median, Q3, maximum). The box can either be vertically or horizontally displayed depending on the labeling of the axis. The box does not need to be perfectly symmetrical because it represents data that might not be perfectly symmetrical.

Multiple Choice

The green line represents the ...

• Q1

• Min

• Max

• Median

Dotplot

Quantitative data in a single variable is often collected in order to understand how a characteristic of a group differs amongst the group members or between groups.

Multiple Choice

How many students have 0 Brothers and Sisters?

• 6 students

• 0 students

• 12 students

• 10 students

Line Graph

Line graphs are used to track changes over short and long periods of time. When smaller changes exist, line graphs are better to use than bar graphs. Line graphs can also be used to compare changes over the same period of time for more than one group.

Multiple Choice

A restaurant recorded the number of pizzas sold each month for one year. The data are shown in the graph below. During which month did the restaurant sell 40 pizzas?

• March

• May

• July

• August

Multiple Choice

Find the Mean (average) of the Data Set:

7, 8, 3, 4, 8

• 7

• 6

• 5

• 4

Multiple Choice

Find the Median (middle) of the Data Set:

7, 8, 3, 4, 8

• 7

• 8

• 4

• 3

Fill in the Blanks

Find the Mode (most frequent) in the Data Set:

7, 8, 3, 4, 8

Fill in the Blanks

Find the Range (max-min) in the Data Set:

7, 8, 3, 4, 8