Interpreting Market Data

Question 1

What is correlation.

Answer 1

Helps business understand relationship between 2 factors

Question 2

Sampling

Answer 2

Selecting a representative group of people from a target population

It is quicker and easier than collecting data from everyone

The bigger the sample size the more representative it will be

Question 3

Sampling confidence levels and intervals

Answer 3

Unless the sample size is 100% - it can never be fully accurate

Confidence level = If the sample size is 50% then its 50% accurate

Confidence interval - range of outcomes for a given confidence

Question 4

Extrapolation

Answer 4

Predicting future trends

For example sales trends based on past data

The further into the future we extrapolate the less confidence there is in the data