Business statistics for managers - the median, the mode and the mean

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Some of the questions answered in this assignment are the following: talking about central tendencies, in which cases the median and the mode can be more useful than the mean? Illustrate through real life examples; do some research and indicate in which applications the following probability distributions are more used; in your own words, explain the importance of doing hypotheses (null and alternative).

Illustrate through real life examples different from those worked during the seminar; explain why it is so important to consider the seasonal factors when doing forecasting.

Extraits

[...] The companies do not look at the luck, but this law can be used for comparing many observations. For instance, you can compare a real distribution to a uniform one for a market study. It is useful for testing the hypothesis H0 that the phenomenon is because of the chance event. b. Exponential The exponential one is used for calculating the length of life. It cans also represent the frequency of an event. c. Poisson The Poisson one is a law which is used for the rare events : quality controls, accidents, etc . [...]

[...] In business, you have to be aware of these variations because it allows to avoid to take bad decisions 7. In the second slide about Forecasting you will find the following five sentences a. Forecasts are usually wrong It is impossible to predict everything. There are all the time new datas, complex factors or unpredicted problems or events which change the results (for instance, a bomb attack). b. A good forecast is more than a single number A good forecast is a logical continuation of a serie of numbers which is used with smartness. [...]

[...] It means that the results, the conclusion and the possible decision would be more precise. d. The longer the horizon, the less accurate the forecast If you look too far, the precision decreases because the number of unpredicted facts, informations, and events increases. The market cans change a lot on a long period. e. Past + key information = better forecast It is for sure decisive to use past informations for making forecasts. If you don't consider the past, you will make a blind forecast without solid informations and figures (something really empty). [...]

[...] Business statistics for managers - the median, the mode and the mean 1. Talking about central tendencies, in which cases the median and the mode can be more useful than the mean? Illustrate through real life examples The mode and the median are sometimes better to use than the mean because when there are extreme values in the data set, it does not affect the final result. When you use the mean, the impact of these values can be important and should be taken into account because it can ruin and change the conclusion of the analysis (biased results). [...]

[...] The two and three are quiet the same concerning their mean, mode median, variance and standard deviation. The means of the one and two are closer but we have to consider the fact that the mean can be less effective if there are extreme values (biased results). b. Compare the three series by pairs, I mean vs vs vs 3. Can we reject with a significance level of the null hypothesis H0 that the means of both series are the same? [...]