The use of manager’s purchasing index is a statistic that has helped in predicting the production trend. The statistic used helps the reader to observe a falling trend as well as the rising trends in economic development. In addition, showing the trend also helps in comparison purposes. From the index, we note that the purchasing of the manager is lower some month compared to other months. The use of statistics in this article also helps the reader to draw inferences. An index of 50 in this case is a measure that shows whether production is contracting or expanding. An index below 50 shows that manufacturing is contracting and that above 50 shows growing manufacturing, hence, inferences can be drawn on the overall progress with regards to expanding or contraction.
The use of statistics in this article also helps in setting targets. China set a target of 7.5% growth in GDP. GDP evaluates her performance and whether they meet the targeted level of growth depends on reaching the targeted level of GDP. By calculating the GDP, statistics has helped to indicate that the country has hit the targeted economic growth since the GDP attained was 7.7%.The use of statistics in this article enables the reader to make predictions, as well. The government was able to predict the economic growth using measurement of GDP.
The use of graphs in this article has reduced the complexity of data and made it simpler to understand. In New Zealand’s measure of unemployment, large and complex data has been simplified to a line graph which is easy to understand. By use of statistics, the reader can tell, at a glance, the trend of unemployment. From the graph, the reader can easily tell the months that experience high level of unemployment and those months with low levels of unemployment.
Use of statistics has helped to simplified understanding of facts. The study which has tabulated the level of unemployment in New Zealand, samples of thirty thousand individuals and fifteen thousand households to successfully show the trend of unemployment in the entire country of New Zealand. Statistics has saved the cost and time of collecting data from the whole country to show a trend that is possible to be shown by small samples.
Application of statistics in this article has enabled the formulation of sound policies and decisions. From the data analyzed about unemployment in New Zealand, the government decided in the month of June that 48,400 people were eligible to get unemployment benefits, and 128,600 were eligible to receive jobseeker support.
A clear interpretation of the study shows some bias. For example, the purchasing manager’s index is used to conclusively assess the level of production. Its indicators such as supplier deliveries and number of orders are denominators under which determine the level of production. Such an assumption has locked out important factors that determine expansion of production such as technology. Concerning unemployment in New Zealand, the levels of unemployment in the entire country have been estimated using a sample of only 30,000 individuals from only three regions.
In this article, some sections have not used statistics correctly. For example, the measure of GDP in china has not been used correctly because it did not take the standard 80 days after year end. It instead took 20 days. In addition, local officials in China get promotions on the basis of levels of GDP hence they inflate the levels. There is an incorrect use of the statistic.
Making informed decisions needs additional information. To begin with determining the level of manufacturing, the levels of capital, technology and competition are required to make informed choices on the level of production in addition to the manager’s purchasing index. Also in determining the level of unemployment in New Zealand, more regions of the country should be represented in the samples that are used to calculate the levels of unemployment. The samples should include more individuals to represent a bigger proportion of the population.
Application of statistics has greatly simplified analysis and communication of information. Albeit faced with many shortcomings, it is a crucial tool that cannot be wished away in writing business articles.
"Brian Gaynor: Sorting the statistics from the damned lies - Business - NZ Herald News." The New Zealand Herald. N.p., n.d. Web. 23 Apr. 2014.