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Sunday, December 28, 2008

Descriptive and Inductive statistics

Descriptive Statistics.

Descriptive statistics include a large variety of methods for summarizing or describing a set of numbers. These methods may involve computational or graphical analysis.

For example, price index numbers are one example of a descriptive statistic. The measures of central tendency and dispersion are also descriptive statistics, because they describe the nature of the data collected.


Inductive Statistics.

Inductive statistics are methods of using a sample data taken from a statistical population to make actual decisions, predictions, and generalizations related to a problem of interest.

For example, in contract pricing, we can use stratified sampling of a proposed bill of materials to infer the degree it is overpriced or under-priced.

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