DQ Week 5 part 2

Statistics
Tutor: None Selected Time limit: 1 Day

Why is statistical significance not necessarily of practical importance to a business decision? Provide an example and explain. Why do statisticians have only a limited role in deciding whether statistical significance requires a business action? 

Jul 5th, 2015

Thank you for the opportunity to help you with your question! the solution is as such:

According to me that isn't necessarily the case each time; there are plenty of cases where statistics play a major role, specially quality assurance  in almost all businesses.

One unnecessarily attractive reason is that 80% of the business people in the world have no idea what that actually means. 80% of the rest think they do, but end up misinterpreting it like anything.

Many are simply dismissive of what they see as "geek science," and the geeks speaking geek speak don't help. [I'm reminded of the saying that "a million economists laid end to end would never reach a conclusion.]

But the real reason may be  that businessmen have to make decisions in the real world with less than perfect information, whereas statistics folks tend to stick with the extremes of "very probable" or "can't really say." or both at many times.

So for example, if we have to decide whether to make blue products or pink products, it may be difficult to say to a small level of significance which the public might really prefer based on sampling. "Within the margin of error" doesn't help make decisions. We need to have some idea which is more likely, even if isn't gospel.

Please let me know if you need any clarification. I'm always happy to answer your questions.awaiting a positive feedback. It was lovely helping you. Please do contact or text me directly for assistance on your work next time at cheap rates. Looking forward to help you again. A positive feedback awaited. Thank you.
Jul 5th, 2015

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