# How I understand statistical concept and how you can too

# Does apply statistic sometimes make you feel stupid? 4 ways understanding statistic for online business application

What is a statistic? Why is it important for our daily lives? How can we use the statistic to make money? To understand this, firstly you need to understand that statistic is your tools. Similarly, like a spanner, screwdriver and any other tools used to fix your car. The difference is statistic is a “soft” tools that enable statistician to make an educated judgment, decision and solving a complex problem. data analysis using spss basic statistic for research online business

Take, for example, I got a list of symptoms from the respondents who already answer my questionnaire about indoor air quality in their office environment. The next issues will be what to do after that? We need to tabulate our data, present and make changes, but the big question, how? Yes, that right. you need a solid foundation for statistical analysis before you can do all this.

In this article, I am going to discuss the statistical overview of the data analysis. What is data analysis? what is an inferential statistic and how to use different statistical measures, inappropriate strategies (answering your question or problem)? I am going to share few ideas about the statistical review that can be summarized as follows:

- Definition of statistics
- Basic statistical concepts
- Basic population and sampling
- Understand the basic principle of scale of measurement

## What is statistic

A statistic in simple term can be defined as numerical facts to a specific field of study as a group of the method used to make an informed decision using scientific criteria. This includes the data collection process, analysis of the data, presentation of the data and scientific interpretation of the data. The role of statistic is very simple like we mentioned before, as a tool and techniques that will be used to convert meaningful information. This can be illustrated by using below graphic;

There are three types of statistics as we speak which can be divided into three different situations depends on

- Purpose (either you want to explore the data by looking into the descriptive nature of the data, OR using statistic as inferential test to test your educated assumption or guess)
- Assumption (whether your data tabulated normally or not normally tabulated)
- Number of variables (whether you are using one variable we call it as univariate, two variables or bivariate and the variables recorded more than three we call it as multivariate)

## Type of statistic

Understanding these type of statistic will further focus your scope of analysis and saving time in making a scientific decision for your data or research. When you conduct a study in the field or testing your potential market for your sales, there are few elements that need to be taking care of to avoid the misjudgment of the data interpretation after they were analyzed. Therefore, we need a scientific methodology framework. The framework will be discussed further in other articles. The basis of this framework will be your population and sample of the study. This idea can be explained using figure below. After considering all your population and sample of interest you might also want to consider other methodological consideration elements such as sampling, ethics and so on.

Now let’s focus back on our statistics. Before you can use statistic as a tool, you must understand the concept of VARIABLES, ATTRIBUTES, and VALUES (VAV). This term is very critical in helping you set up for your statistical software such as SPSS, JMP (SAS) and other related platforms. What is VAV? The variable is your item of interest, in this example, we are going to use the ETHNICITY. In some countries, ETHNICITY divided into three categorize such as MALAY, CHINESE, and INDIAN. All this races/ ethnicity can be called an attribute, the explanation of the variables. And VALUES, on the other hand, is the technique where we assign specific code/ values using a numerical format in “instructing” the computer algorithm for data analysis. VAV can be illustrated using pictures.

## Data analysis using SPSS basic statistic for research online business

By default, your variables will be divided into TWO common variables such as INDEPENDENT VARIABLE (IV) or DEPENDENT VARIABLES (DV). Independent is where you investigate the factors or item that we interested to look into. Where the dependent is your output or effects that you want to investigate. Took one example, we have an online seller would like to know the differences in his profit after selling 99 items via online to three different races. He wants to know, how the data behaves and shown.

Objective: Factor influence the online sales revenue for Mr HHH

The IV, in this case, will be factors. And usually, factors can be defined as socio-demographic factors. Therefore, the ETHNICITY/ RACE will be your IVs and income he made will be the DV.

In statistics, the very important items to understand will be the type of variables as we discuss before. Variables can be divided into two BIG variables such as:

- Quantitative (can be in the form of discrete or continuous)
- Qualitative/ Categorical (variable that cannot be assumed as numerical values but can be classified into more than 2 categories)

These variables will generate attributes and values which lead to the generation of data. Data can be collected in many ways such as:

- Experiments
- Telephone survey
- Mail questionnaire
- Online questionnaire
- Direct observation
- Personal interviews

## Scale of Measurement

After your data being collected either (primary or secondary data), then we can arrange and classify our variables into specific SCALE of MEASUREMENT. The ideas of this scale can be explained using pictures.

In any statistical software, usually, our variables will be considered as 4 types as shown above. The arrow down based on the above figure shows that the increase of importance or quality of data to be used in your research or decision-making process. Giving example above (about the online seller and related factors). Let say, there are two factors he wants to consider, the first will be GENDER and the second variable will be ETHNICITY/ RACE and the most important variables will be the outcome or income or output of his investigation. GENDER and RACE for data analysis will be considered as NOMINAL because of their characters as non-alpha numeric data. Second variables of DV several types of variables depends on your approach and data collected. If like say, the business owner wants to monitor only “profit” or non-profit status of their online customer, this data will generate the NOMINAL scale of data because profit and non-profit is the categorize and remember this is the lowest scale ever to conduct the more advanced analysis. The second approach was using numerical data such as the exact amount of online sale was made, then the advance data analysis such as regression, modeling, and predictive analytics can be used. This is because of the scale he uses (RATIO) using exact numeric values which translate into meaningful data as compared to the first approach. If you want to learn about data collection from Google Drive, click following.

The basic scale of measurement can be further applied using the guide below.

We hope that you enjoy learning this article and we will further share with you the steps taken for data analysis using SPSS, JMP (SAS) and MS Excel. Hope you can use the information above and please do comment below if you need helps. You can register below and request for demo access to the online learning for analysis.

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