Future Business Leaders of America (FBLA) Business Calculations Practice Test

What is the process of arriving at conclusions based on data called?

1. Qualitative analysis

2. Statistical inference

3. Descriptive statistics

4. Business statistics

The correct answer is: Statistical inference

The process of arriving at conclusions based on data is known as statistical inference. This involves using statistical methods to make generalizations or predictions about a population based on a sample of data. By analyzing the patterns and relationships identified within the sample, it allows researchers and decision-makers to draw conclusions and make informed decisions that extend beyond the immediate data set. Statistical inference encompasses several techniques, such as hypothesis testing and confidence intervals, to provide a framework for assessing the likelihood that the observed patterns in the sample are representative of the larger population. This is particularly valuable in fields such as business, social sciences, and healthcare, where understanding trends and making predictions can guide strategic decision-making. The other terms mentioned in the choices represent different aspects of data analysis. Qualitative analysis focuses on understanding non-numerical data through methods such as interviews and thematic analysis, while descriptive statistics summarizes data characteristics (like mean, median, and mode) but does not infer conclusions about a larger population. Business statistics is a broader term that includes various statistical methods used in a business context, but it does not specifically denote the inferential aspect.