Respond to each classmate 100 words or more.
These are the questions they had to answer.
- Why do economists and statisticians use samples to draw inferences from data?
- What roles do variation and sampling error play in determining statistical significance?
- Provide an example how how these concepts can be applied in the real world.
- How could or should the biblical passages alter our worldview as students of business?
Economists and statisticians use samples to draw inferences from data as a way to test a solution or concept. Because it is impossible to reach every single target customer for the concept, statisticians use sample groups (Gallo, 2016, p.2). In these tests though, because the entire target population is not reached, there must be room for variation and sampling error in determining statistical significance. For example, the marketing team may run an ad to determine if those who see the ad spend more on the products. If after watching the ad, it is determined that those who saw the ad spent more, it may show a “significant difference”; or it may be that there was really no difference in the ad’s effect on consumers’ purchasing behaviors. This would be a sampling error. This must be noted when not measuring the entire target population. With variation, the hopes would be that the sample population hovers around the average, which would allow the statistician to be more confident in the results. However, if consumers vary greater from the average, and a customer is picked at random, statisticians would not be as confident in the results. James, chapter 1, verse 5 and Proverbs chapter 9, verses 9 through 10 both speak to acquiring our wisdom from God. As students of business, when conducting research, we should allow God to lead our minds to the right solutions. Do not always judge things by the dollar amount that it will bring in, but by the good it will bring to people.
Economists and statisticians use the method of sampling to ensure that no bias things could occur. Bias is a systematic error in the measurement process that differential my influences scores for identified groups; test bias refers to the different validity of test scores for groups (e.g., age, education, culture, race, sex) (Michalos, 2014). Variation and sampling errors are two method that can be used to differentiate if the samples are diverse enough. Variance is the measurement used to determine how broad and far apart are the numbers in a data set. Sampling errors formula is used to determine if the samples are a good representative of the population or is biased in some way (Hayes & Berry-Johnson, 2021). In real life, these calculations can be beneficial to determine things that are valuable like the amount of vegetables sold to each race of population. The amount of people of each race that are in school getting an education. It can even be used to determine race as it relates to employment in the community. The bible is the footprint to operating a business in the world in the most ethical, professional, and Godly manner. James 1:5, Proverbs 9:9-10 and Matthew 22:39 are all biblical passages that express to me the importance of treating people ethically, show love, respect, be teachable, and be open minded. Also, they communicate to me how I should believe in God and have faith in God to ask for whatever it is that my heart desires and know I shall receive.