Define statistical thinking.

Short Answer

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Statistical thinking refers to designing and conducting studies about data to draw detailed conclusions about the observed data by focusing on research questions.

Step by step solution

01

Defining statistical thinking

A researcher tries to align his/her thought processes about anything with statistical analysis. While drawing the conclusions, the researcher also gives his/her opinion about the expectations, which helps companies make proper decisions.

02

Explaining the importance of statistical thinking

Statistical thinking is often done by the companies where they tend to understand the market trends, expected sales growth, expected profits, etc. Therefore, an analytical team is created to draw exact conclusions so that the managers can find the loopholes in their business processes and act accordingly.

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Most popular questions from this chapter

What is a representative sample? What is its value?

Consumer recycling behavior. Under what conditions will consumers dispose of recyclable paper in the garbage? This was the question of interest in an article published in the Journal of Consumer Research (December, 2013). In one of the studies conducted, the researchers instructed 78 college students to cut an 8.5-×11-inch sheet of paper into eight smaller pieces. Half the students were randomly assigned to list five uses for the cut paper (usefulness is salient condition). The students in the other half were asked to list their five favorite TV shows (control condition). After completing an unrelated task, all students were asked to dispose of the paper upon leaving. There was a trash bin and a recycling bin outside the door. The researchers kept track of which students recycled and which students disposed of their paper in the garbage. This information was used to test the theory that students in the usefulness is salient condition will recycle at a higher rate than students in the control condition.

a. Explain why the data-collection method used in this study is a designed experiment.

b. Identify the experimental unit in this study.

c. Identify the variables measured in this study. What data type (quantitative or qualitative) is produced from each variable? (Hint: Two variables are measured.)

d. About 68% of the students in the usefulness is recycled, compared to 37% of students in the control condition. Use this information to make an inference about the population of interest.

Question: Performance-based logistics. In industry, performance-based logistics (PBL) strategies are increasingly popular ways to reduce cost, increase revenue, and attain customer satisfaction. The Journal of Business Logistics (Vol. 36, 2015) used the opinions of a sample of 17 upper-level employees of the U.S. Department of Defense and its suppliers to determine the factors that lead to successful PBL projects. The current position (e.g., vice president, manager [mgr.]), type of organization (commercial or government), and years of experience were measured for each employee interviewed. These data are listed below. Identify each variable measured as producing quantitative or qualitative data.

Interviews

Position

Organization

Experience (years)

1

Vice president

Commercial

30

2

Post production

Government

15

3

Analyst

Commercial

10

4

Senior mgr.

Government

30

5

Support chief

Commercial

30

6

Specialist

Government

25

7

Senior analyst

Government

9

8

Division chief

Government

6

9

Item mgr.

Government

3

10

Senior mgr.

Government

20

11

MRO mgr.

Government

25

12

Logistics mgr.

Government

30

13

MRO mgr.

Commercial

10

14

MRO mgr.

Commercial

5

15

MRO mgr.

Commercial

10

16

Specialist

Government

20

17

Chief

Government

25

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