The Need for Data Analysis

There are many organizations and businesses around the world collecting data. If you walk down any street you are almost sure to be stopped by somebody with a clip board wanting to ask you questions. This individual is trying to collect data that can be later be used in any number of ways. As well as the questionnaire survey type of data collection three is also observational, measurement, and many other ways to collect it. Almost anything that can be quantified can be used to produce some type of statistics.

The goal of data analysis is to highlight the important information that exists among the collected numbers. Of course, deciding what is important and what isn’t will always be a value judgment. What is important will usually be decided by whoever is paying for the research.

It is probably easier to describe how all this works by way of an example. If a business decides that it wants to market its products to teenagers they will usually spend some time doing research. They might decide to use surveys as a way to find out what this group likes and doesn’t like. Interviewers might then stop X number of young people in a popular part of town and ask them predetermined questions. This will produce a mass of data which can then be analyzed for the relevant information – what the group likes and doesn’t like. This information will then be presented in such a way that it is easy to digest; probably using bar graphs and pie charts. This data will also show trends and allow for predictions.

The Dangers of Data Analysis

If any group wishes to produce data that supports their views or proposals they can mess around with the data. To do this they only have to look for anything that supports their position and ignore anything that doesn’t. By doing this they can create a persuasive argument that may fool a lot of people. The data they are using isn’t telling lies, but it just isn’t telling the full story and so is misleading. There can also be tricks used in how the data is collected in the first place. If you only sample people who are sympathetic to your ideas then this can lead to very biased statistics.

Cartoon Guide to Statistics by Larry Gonick and Woollcott Smith

This book is perfect for people who want a simple introduction to statistics. The cartoons make the subject easy to comprehend and are actually quite fun. Even some very complex statistical ideas are made easy through the use of cartoons. If you want to learn all about basic statistics without putting in a lot of effort then this might be the best book to choose.

Essentials of Statistics for Business and Economics by David R. Anderson, Dennis J. Sweeney and Thomas A. Williams (2008)

This is one of the easier textbooks that will be of value to anyone who is interested in learning a bit more about economic statistics. It is used in many university courses; both undergraduate and graduate. The focus is on core topics but the book does do a good job of covering most of the topics that people will want to learn about this subject.

MBA Fundamentals Statistics by Paul W. Thurman (2008)

This book is aimed at MBA students but may be of benefit to practically anyone. It is a simple introduction to statistics that provides all the important statistical information that students will need to pass their MBA course. This is a Kaplan book so you know that the material is going to be high quality.

Introductory Statistics for Business and Economics – 4th Edition – by Thomas H. Wonnacott and Ronald J. Wonnacott (1990)

This is another introduction text that will be useful for people who are new to economic statistics. The authors have made sure to keep the text clear and have avoided any unnecessary confusing material. Those who read this book should walk away with a good basic understanding of the subject. Introductory Statistics for Business and Economics is now frequently used in academic courses to introduce students to the topic. It is also going to be equally useful to people outside an academic setting. This is a good book to have in your library and you are sure to want to go back to it again and again in the future.

Business Statistics – 5th Edition- by Douglas Downing Ph.D. and Jeffrey Clark Ph.D.(2010)

This book goes into great detail about how statistics can be actually applied in a business setting. It provides plenty of good examples that highlight how these numbers are used in reality. This text tends to get referenced a lot because it is well respected for providing clear explanations of complex statistical ideas. This book is perfect for business people as well as students. It is commonly required reading on MBA courses.

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You can find more engaging infographics concerning economics.

Data source: 2007 CIA World Fact Book

Data source: 2008 CIA World Fact Book

Data source: International Monetary Fund

2007 List by the International Monetary Fund

2006 List by the World Bank

2007 List by the CIA World Factbook