Many organizations rely on statistical analysis to organize information and predict future trends on a basis of the data. This analysis is an aspect of business intelligence involving the gathering and scrutiny of business data together with reporting of trends. Business organizations may have numerous options on what to do with their huge amounts of data. However, statistic analysis offers a way for the information to be examined as a whole and then broken down into individual samples. Below is an overview of statistical analysis.
Types of Statistical Analysis
Statistical analysis can be divided into two main types: descriptive and inference. Descriptive analysis is what is used by businesses to summarize their information. It intends to describe a huge amount of data with summary tables and charts. However, it does not try to draw conclusions concerning the population from which the sample was gotten. Considering that graphs, tables and charts are primary components, this type of statistics makes understanding and visualizing raw data much easier. Simply put, it is a way of describing data.
Inferential statistics, also referred to as modeling, provides a way of studying the data even further. It allows businesses to test a certain hypothesis and then come to a conclusion about the data. This involves examining a sample of entire data while the results are applied to the whole group. The conclusions made by a statistical inference are referred to as statistical proposition. All in all, descriptive statistics are used to describe the information. On the other hand, inferential statistics infer hypotheses and conclusions about the same data.
Software for Statistical Analysis
Not everyone is a statistical genius who can easily compute the required statistics on the huge amounts of data acquired by an organization. This means that most businesses use a certain kind of software for statistical analysis. Such software is offered by several providers. It provides the specific analysis needed by an organization to improve its businesses. The software can easily and quickly generate graphs and charts when carrying out descriptive statistics. Also, it can simultaneously carry out more complex computations needed when inferential statistics are being conducted.
Statistical analysis can be defined as the science of collecting huge amounts of data, exploring and then presenting it. The aim of this is to find out if there are any underlying trends and patterns. This analysis takes a look at each single sample of data in a population. This is as opposed to a cross sectional representation of samples as seen in less sophisticated method.