Using statistics in business decisions
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Flip to reveal answersName four ways statistics help managers
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Question
Name four ways statistics help managers
Answer
Identify trends, compare performance, forecast future, spot problems, support data-backed decisions.
💡 Hint
Trends, compare, forecast, problems
Question
Three limitations of using statistics?
Answer
Small/biased samples can mislead; shows WHAT not WHY; past ≠ future; can be cherry-picked; ignores qualitative.
💡 Hint
Sample + what not why + past
Question
You must be able to CONSTRUCT ___ and ___ in exams
Answer
Bar charts (simple + stacked) and pie charts — not just read them.
💡 Hint
Bar charts + pie charts
Question
Statistics: identify trends, compare, forecast, spot problems, ___
Answer
Support data-backed decisions.
💡 Hint
Support decisions
Question
Pie chart: calculate degrees formula?
Answer
(Value ÷ Total) × 360 degrees.
💡 Hint
Value/total × 360
Question
Statistics show WHAT happened, not ___
Answer
WHY — numbers don't explain the reasons behind the data.
💡 Hint
Why
Question
High average satisfaction (4.2/5) but high SD means ___
Answer
Inconsistency — some customers love it, others hate it. The variation is the real problem.
💡 Hint
Inconsistency is the problem
Question
Must construct: bar charts (simple + stacked) and ___
Answer
Pie charts — calculate degrees and draw accurately.
💡 Hint
Pie charts
Question
Bar chart must include: title, labelled axes, ___, ___
Answer
Equal width bars, drawn to scale, key/legend if multiple categories.
💡 Hint
Equal bars + scale + key
Question
Limitations: past ≠ future, can mislead, ignores ___
Answer
Qualitative factors — always combine quant with qual judgement.
💡 Hint
Qualitative
Question
Past data doesn't guarantee ___
Answer
Future results — trends can change unexpectedly.
💡 Hint
Future
Question
Data-backed arguments are more convincing than ___
Answer
Gut feelings — statistics provide objective evidence for decisions.
💡 Hint
Gut feelings
Question
Numbers can be ___ to support a preferred conclusion
Answer
Manipulated or cherry-picked — selective use of data is misleading.
💡 Hint
Cherry-picked
Question
Not to scale = maximum ___ out of 4 marks
Answer
3 — scale matters for accuracy marks.
💡 Hint
3/4
Question
Bar charts: labelled axes, to scale, equal width, ___
Answer
Key if needed, clear title.
💡 Hint
Key + title
Question
Statistics help spot problems by showing ___
Answer
Unusually high or low figures that signal something needs attention.
💡 Hint
Unusual figures
Question
Quick: Pie chart degrees = value ÷ total × ___
Answer
360.
💡 Hint
360
Question
Stacked bar chart: bars divided into ___ showing subcategories
Answer
Segments — each segment shows a different subcategory, total height = total value.
💡 Hint
Segments
Question
Statistics support ___ based on past data
Answer
Forecasting — predicting future demand, revenue or costs using historical trends.
💡 Hint
Forecasting
Question
Statistics are a tool, not the answer — combine with ___
Answer
Context, judgement and qualitative factors.
💡 Hint
Context + judgement + qualitative
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Topic 6.7 hub
Descriptive statistics
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