Question

Statistics for Decision Making.

One statistical tool such as descriptive statistics. Use real example of at work or at home, not hypothetical.

Answer 1

Descriptive statistics can be used in office to get an idea of the central tendency of average salary of the entire organization. The organization I work at consists of 5,000 employees, so it's not possible for me to know the salaries of all the 5,000 employees. I can take a sample of the people I know and are at different levels, then can calculate the mean median and mode of the salaries of all, and here as the people at the top of teh firm are less in number while the number of people at the bottom of the firm are high in number, so the data will be right skewed, as the data is skewed then the median will be a better tool for getting an idea of the average rather than the mean. So by calculating the median of the salaries of my sample data, I can get an idea of the average of the salary of all the people working at the organization.