DADM1.1 - Data Analysis for Decision Making Part I Data 1...

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Data Analysis for Decision Making Part I: Data 1
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Actionable insight Sound business decisions are based on relevant information utilized in an effective and meaningful manner Statistics provides decision-makers with a set of techniques for collecting, analyzing, and interpreting data into actionable insight Statistical methods are widely used to aid decision-makers in all functional areas of management 2
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Why statistics Problem: Whether to introduce a new product into market Decision Rule: If 30% of the target audience in the relevant population accepts the product To know about the consumer acceptance in a reasonable manner, the company does a "test marketing" exercise. In the test market, 30% of the sample target audience (based on a sample of 150 consumers) indicate their acceptance of the product. Does the sample result at 95% confidence level suggest that 30% of the target audience in the population (entire market) will accept the product? 3
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Why statistics Problem: A bank losing customers steadily wants to investigate the reasons for the loss of customers on account of perceived service quality in critical dimensions like response time, reliability, courtesy of the service staff, and credibility. The bank would like to conduct a comprehensive survey to measure the perceived service quality from the customers' angle on these dimensions vis-a-vis that of competition This would help the bank develop and implement effective strategies to woo its present customers back as well as to attract new customers.
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