IB Business Management Descriptive Statistics Notes

Statistical Tools for Business Decision-Making

1. You're a business owner trying to understand customer preferences or financial performance.
2. How do you make sense of all the data?

This is where statistical tools come in, helping you summarize and analyze information to make informed decisions.

Measures of Central Tendency

1. Mean: The Average

1. The mean is the average value of a dataset.
2. It's calculated by adding all the values and dividing by the number of values.

2. Mode: The Most Frequent

1. The mode is the value that appears most frequently in a dataset.
2. It's useful for identifying common trends.

3. Median: The Middle Value

1. The median is the middle value when data is ordered from least to greatest.
2. It isn't affected by outliers, making it a reliable measure of central tendency.