Application of Descriptive Statistics Essay Example | Topics and Well Written Essays - 500 words

Application of Descriptive Statistics - Essay ExampleOne of the applications of descriptive statistics is in convocationing of liberal sets of data for easy understanding of trend. The case of Diamler that includes transactions in large numbers of vehicles for instance requires summaries that group sets of data for clarity. Frequency dispersion tables and histograms groups data and illustrate frequencies of each group of data. Yearly demand for a particular brand of vehicle that can be grouped by seasons or months allows the bon ton to teach the trends in seasonality of demands for its products. As a producer, frequency scattering tables, graphs and histograms helps the company to predict trend and hence get its performance capacity. This facilitates on time demand production and help to save costs of storing stock. Similarly, frequency distribution by geographical markets helps the company to understand the market capacity. This is useful in making decisions over distributi on of the companys products in its markets. These analyses help the company to make informed decision of its trend in supply (Ross, p. 10-17 Daimler, p. 1).Measures of central tendencies are other descriptive statistics that facilitates business decision-making processes. The mean, for example, illustrates the norm values recorded over a subject in a given period. Its application in Daimler is realized through average demand for different vehicle brands across seasons. Among other factors, understanding mean distribution facilitates decisions on production capacity in order to meet the markets demand without underproduction or underproduction. The mode, another descriptive statistics, defines the highest frequency in grouped data. The company uses it to identify peak seasons and locations for demand of each of its vehicle brands. This helps the company to maximize on its market by availing sufficient stock in its markets (Mimmack and Meyer, p. 10- 19).Standard deviation