Part Three
Statistical Tools
Statistics are needed to make better and informed decisions, quantify markets, identify important trends, answer questions for strategic planning, and support key business proposals with hard data. Excel provides you with a set of statistical tools that enable you to solve and sort out a variety of problems. In this part, I will cover descriptive statistics and simple regressions.
Two approaches can be taken in solving the problems of descriptive statistics using Excel. The first one is to use the built-in functions. The second one is to use the Excel add-in called the Analysis ToolPak. Both methods are covered here.
I also show two different methods for regressions: the built-in functions as well as the Analysis ToolPak Excel add-in.
How can statistics help you with your business decisions?
- By providing a user-friendly summary of data/information (that is, charts).
- Allowing the test of a hypothesis: for example, verification that an increase in advertisement will affect sales levels. Conclusive decisions can be reached from the data interpretation.
- Comparing information from different sources.
- Predicting how likely an outcome is for a particular event.
- Knowing when to employ a statistician and being able to communicate with him.
Where could you use statistics in business?
- In conducting research.
- In the interpretation of press articles.
- In developing your critical and analytical thinking skills.
- In becoming a better-informed consumer.
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