Unit 31: Statistics
for Management
Unit code R/508/0570
Unit level 5
Credit value 15
Introduction
The aim of this
unit is to provide students with an understanding of how management information
and decision-making are enhanced by the application of statistical methods.
Students will learn about a range of statistical techniques and how they can
inform management thinking. While studying the unit they will develop their
numerical abilities and increase their confidence in handling data in order to
create information and knowledge.
Learning
Outcomes
By the end of
this unit a student will be able to:
1. Evaluate business and economic
data/information obtained from published sources.
2. Analyse and evaluate raw business data
using a number of statistical methods.
3. Apply statistical methods in business
planning.
4. Communicate findings using appropriate
charts/tables
Essential
Content
LO1 Evaluate
business and economic data/information obtained from published sources
Interpretation
of business and economic data:
·
The
nature of data and information, and how data can be turned into information and
information into knowledge.
·
Interpreting
data from a variety of sources using different methods of analysis:
descriptive, exploratory and confirmatory.
LO2 Analyse
and evaluate raw business data using a number of statistical methods
Statistical
methods that are used to analyse and evaluate data:
·
Differences
between qualitative and quantitative raw data analysis.
Descriptive
statistics:
·
Measures
of central tendency (e.g. mean, median). Measures of variability (e.g. range,
standard deviation).
·
Application
to business data (e.g. finding average earnings, measuring variability in
business processes such as queuing times and customer arrival rates).
Inferential
statistics:
·
The
difference between sample and population. Different sampling techniques and
methods.
Measuring
association:
·
Use
of scatter plots, correlation and regression analysis, simple forecasting.
·
Business
applications such as the association between output and cost, advertising and
sales.
·
Evaluating
use of software such as Excel and SPSS to perform raw data analysis. Applying
the appropriate methods and tools for evaluation of raw data.
LO3 Apply
statistical methods in business planning
Statistical
methods for business planning:
·
Applying
statistical methods to a number of areas of business planning and operations
management, including inventory management and capacity management.
Measures of
variability:
·
The
issue of variability in business processes (e.g. arrival rates of customers and
time taken to deal with customers), and how this leads to a trade-off between
waiting time and process utilisation.
·
Statistical
process control in quality management.
Measures of
probability:
·
Probability
distributions and application to business operations and processes.
·
Normal
distribution (e.g. weights and measures regulations and statistical process
control),
·
Poisson
distribution (e.g. customer arrival rates) and binomial distribution (e.g.
inspection sampling).
·
Inference
(e.g. margins of error and confidence limits).
LO4
Communicate findings using appropriate charts/tables
Different
variables:
·
Choosing
the most effective way of communicating the results of your analysis and
variables.
·
Nominal,
ordinal and interval/ratio levels.
Different types
of charts/tables and diagrams:
·
The
use of frequency tables, simple tables, pie charts, histograms, frequency
curves and normal curve.
·
Advantages
and disadvantages of different types of methods. Presentation of information
using tables and charts.
·
Software
for producing charts/tables (e.g. Excel).
Learning
Outcomes and Assessment Criteria
|
Pass
|
Merit
|
Distinction
|
|
LO1 Evaluate business and economic data/information
obtained from published sources
|
|
|
P1 Evaluate
the nature and process of business and economic data/information from a range
of different published sources.
P2 Evaluate
data from a variety of sources using different methods of analysis.
|
M1 Critically
evaluate the methods of analysis used to present business and economic
data/information from a range of different published sources.
|
LO1 & 2
D1 Critically evaluate the differences in
application between methods of descriptive, exploratory and confirmatory analysis
of business and economic data.
|
|
LO2 Analyse and evaluate raw business data using a
number of statistical methods
|
|
|
P3 Analyse
and evaluate qualitative and quantitative raw business data from a range of
examples using appropriate statistical methods.
|
M2 Evaluate
the differences in application between descriptive statistics, inferential
statistics and measuring association.
|
|
|
LO3 Apply statistical methods in business planning
|
|
|
P4 Apply a
range of
|
M3 Evaluate
and justify
|
D2 Make valid
|
|
statistical
methods used
|
the use of
appropriate
|
recommendations and
|
|
in business
planning for
|
statistical
methods
|
judgements for improving
|
|
quality,
inventory and
|
supported by
specific
|
business planning
|
|
capacity
management.
|
organisational
examples
|
through the application of
|
|
|
|
statistical methods.
|
|
LO4 Communicate findings using appropriate
charts/tables
|
|
|
P5 Using
appropriate
|
M4 Justify
the rationale
|
D3 Critically evaluate the
|
|
charts/tables
|
for choosing
the method
|
use of different types of
|
|
communicate
findings for
|
of communication.
|
charts and tables for
|
|
a number of
given
|
|
communicating given
|
|
variables.
|
|
variables.
|
