Limitations of Statistics

Limitations of Statistics

Statistics is a branch of mathematics that is used to collect, analyze, and interpret numerical data. Statistics is a powerful tool that is used in a wide range of fields, from scientific research to business to government. However, like any tool, statistics has its limitations. In this article, we will discuss some of the limitations of statistics.

Sample Size: 

One of the biggest limitations of statistics is sample size. The sample size refers to the number of observations in a dataset. In order to obtain reliable and accurate results, the sample size needs to be large enough. If the sample size is too small, the results may be skewed, and they may not accurately reflect the population being studied. For example, if a survey only includes a small number of participants, the results may not accurately represent the views of the entire population.

Quartiles Formula

Quartiles Formula

Quartiles are a useful statistical tool in business statistics for dividing a dataset into four equal parts, each representing 25% of the data. They are often used in conjunction with other measures of central tendency and variability, such as the mean and standard deviation, to better understand the distribution of the data.

The quartiles of a dataset can be calculated using the following formula:

Q1 = L + (N/4 - F) * (U - L)/C

Q2 = L + (N/2 - F) * (U - L)/C

Q3 = L + (3N/4 - F) * (U - L)/C

Statitics in Business Analytics

Statitics in Business Analytics

Business analytics is a rapidly growing field that helps companies make data-driven decisions. One key component of business analytics is statistics, which involves the analysis and interpretation of data. In this article, we will explore what statistics is in the context of business analytics, why it is important, and how it is used.

What is Statistics in Business Analytics?