Descriptive statistics are distinguished from inferential statistics. With descriptive statistics, you are describing what is or what the data shows. With inferential statistics, you are trying to draw conclusions that extend beyond the characteristics of the data alone. For instance, we use inferential statistics to try to infer from the sample data what the population might think. We use inferential statistics to make judgments of the probability that an observed difference between groups is a reliable one or one that might have happened by chance in this study. Thus, we use inferential statistics to make inferences from our data to more general conditions; we use descriptive statistics simply to describe what is happening in our data (Trochim and Donnelly, 2006).

Whether designing new products, streamlining a production process, or evaluating current versus prospective customers, todays business managers face greater complexities than ever before. Gone are the days of running a business on instinct. Statistics provide business owners and managers with more confidence in dealing with uncertainty to make smarter decisions and provide more stable leadership to staff.

Several years ago, I was asked to consult on starting an extended-stay hotel. Part of that consultancy included developing a business plan. For the purposes of this discussion, I have hired each of you to assist me with developing the business plan. Please provide me with your advice on the type and kind of data I should be collecting and how it may inform decisions I make about the hotel.

Reference

Trochim, W., & Donnelly, J. (2006). The research methods knowledge base. Mason, OH: Atomic Dog Publishing.