Statistical Tools (Theory)

1.      Time series

Time series is the most important statistical tool which ensure business success. Mainly time series is used for prediction and forecasting, deals with time (minutes, hours, days, years) based data, which will help to take decision. Time series method is very useful models when you have in sequence correlated data. Most of business decision taken on the basis of time series data to analyze sales number for the next year, website traffic, competition position etc.

2.      Z-Test

A z-test is a statistical test used to test the hypothesis two population means are different when the variances is known and the sample size is large (n>30).

3.      T-Test

It is used to test hypothesis of two populations whether they are significantly different (or) it is a common method for comparing the mean of one group to a value / the mean of one group to another.

4.      Chi Square Test

It is used to compare observed data with data that we would like to expect to obtain according to a specific hypothesis.

5.      ANOVA (Analysis Of Variance)

·         Determine whether two or more groups are different

·         Determine if any groups are the best

One way ANOVA

One-way analysis of variance is the distinctive method for comparing three or more group means. The usual goal is to determine if at least one grouped mean/median is different from the others.

6. Co-Relation

     It represents the degree of association or statistical relationship among two variables.ie.

      Degree of linear relationship. It value lies from -1 to +1

      If value close to -1, it is negative co-relation.

      If value close to +1, it is positive co-relation.

7. Regression analysis

Regression analysis is a statistical process for calculating the relationships among variables, which includes many techniques for modeling and analyzing several variables. The attention is on the relationship between a dependent variable and one or more independent variables.

8. Multivariate analysis

Multivariate analysis is basically the statistical process of simultaneously analyzing. Multiple independent variables with multiple dependent variables.

9.  Control chart

Control chart is a graph representation used to study how the process changes over a period of time.  Collected data are plotted in time order. A control chart has a central line (control limit) for the average/mean, an upper line for the upper control limit (UCL) and a lower line for lower control limit (LCL).