Business statistics: concepts and applications

Business statistics is an area of statistics which works with economic data. Business statistics allows making certain observations on the base of economic data analysis, which plays an important role in further decision making business practices. Statistical data processing methods allow to summarize and visualize series of business data, evaluate it's main qualities which describe properties of the whole data set (average value, deviation, data distribution, etc.)

Today business statistics is used in such economics disciplines as market and financial analysis, accounting and auditing practices, management and marketing researches, etc. Business statistics allows to make different sorts of economic predictions on the base of data series and data series statistical properties. In case, any time a serious businessman starts a new business her first of all looks on statistical data of different kind in order to evaluate performance of similar businesses and predict his own economic opportunities in the chosen field. Business statistics is directly used in price policies and price forecasting on the base of previous price changes, change in offer, demand or change of other external factors. That's why we can conclude that business statistics as a key instrument of any economist today which allows him to get a clear situation in definite area of economy, choose the most optimal business strategies coming out of price behavior, change in demand/offer, etc. Stock market behavior is mainly dictated by business statistics observations, as stock prices may vary due to a number of reasons (both economical and political), yet price variations can be easily explained by microeconomic and macroeconomic statistical observations.

Statistical analysis of February temperature records

February temperature records for Trenton, New Jersey

2007

27,1

2006

34,7

2005

34,4

2004

33

2003

28,5

2002

38,7

2001

35,3

2000

35,9

1999

35,6

1998

39,6

1997

38,8

1996

32,5

1995

29,3

1994

29,2

1993

28,9

1992

37,6

1991

38,9

1990

32,9

1989

32,9

1988

32,7

In the data provided form the NCDC website we can see how February temperatures in NJ varied during last 20 years. The chart which was build using this data allows us to mark three warmest peaks which took place in 1991-1992, 1997-2002 and 2004-2006 years. Also we can mark that coldest years were 1993-1995, 2003 and 2007. Using this data set we can calculate mean, median, mode, and standard deviation for this data set over last 20 years:

Mean can be found according to the following formula:

So mean February temperature equals to 33.825 F

Median of the data is the middle score after data has been set in order, so February temperature median equals to 33.7 F

Mode of the data is the value from data set which occurs most often. The mode of temperature sat data is 32.9 F

Standard deviation is a measure of the spread of data set values. It can be calculated by the following formula:

Standard deviation of temperature data set for February equals to 3,823181 F. The value of standard deviation witnesses that winter climate in New Jersey is very moderate without any considerable temperature jumps. Yet, we can mark that there is a current warming trend as the difference between the lowest average February records and highest average February records equals to 12.5 F.

Conduct a literature and internet search and write a paper of between

200-3-300 words explaining how permutation and combinations can be used in business today.