descriptive statistics in marketing research

What is Descriptive Statistics? Definition, Types, Examples

Appinio Research · 23.11.2023 · 38min read

Have you ever wondered how we make sense of the vast sea of data surrounding us? In a world overflowing with information, the ability to distill complex datasets into meaningful insights is a skill of immense importance.

This guide will equip you with the knowledge and tools to unravel the stories hidden within data. Whether you're a data analyst, a researcher, a business professional, or simply curious about the art of data interpretation, this guide will demystify the fundamental concepts and techniques of descriptive statistics, empowering you to explore, understand, and communicate data like a seasoned expert.

What is Descriptive Statistics?

Descriptive statistics  refers to a set of mathematical and graphical tools used to summarize and describe essential features of a dataset. These statistics provide a clear and concise representation of data, enabling researchers, analysts, and decision-makers to gain valuable insights, identify patterns, and understand the characteristics of the information at hand.

Purpose of Descriptive Statistics

The primary purpose of descriptive statistics is to simplify and condense complex data into manageable, interpretable summaries. Descriptive statistics serve several key objectives:

• Data Summarization:  They provide a compact summary of the main characteristics of a dataset, allowing individuals to grasp the essential features quickly.
• Data Visualization:  Descriptive statistics often accompany visual representations, such as histograms, box plots, and bar charts, making it easier to interpret and communicate data trends and distributions.
• Data Exploration:  They facilitate the exploration of data to identify outliers, patterns, and potential areas of interest or concern.
• Data Comparison:  Descriptive statistics enable the comparison of datasets, groups, or variables, aiding in decision-making and hypothesis testing.
• Informed Decision-Making:  By providing a clear understanding of data, descriptive statistics support informed decision-making across various domains, including business, healthcare, social sciences, and more.

Importance of Descriptive Statistics in Data Analysis

Descriptive statistics play a pivotal role in data analysis by providing a foundation for understanding, summarizing, and interpreting data. Their importance is underscored by their widespread use in diverse fields and industries.

Here are key reasons why descriptive statistics are crucial in data analysis:

• Data Simplification:  Descriptive statistics simplify complex datasets, making them more accessible to analysts and decision-makers. They condense extensive information into concise metrics and visual representations.
• Initial Data Assessment:  Descriptive statistics are often the first step in data analysis. They help analysts gain a preliminary understanding of the data's characteristics and identify potential areas for further investigation.
• Data Visualization:  Descriptive statistics are often paired with visualizations, enhancing data interpretation. Visual representations, such as histograms and scatter plots, provide intuitive insights into data patterns.
• Communication and Reporting:  Descriptive statistics serve as a common language for conveying data insights to a broader audience. They are instrumental in research reports, presentations, and data-driven decision-making.
• Quality Control:  In manufacturing and quality control processes, descriptive statistics help monitor and maintain product quality by identifying deviations from desired standards.
• Risk Assessment:  In finance and insurance, descriptive statistics, such as standard deviation and variance, are used to assess and manage risk associated with investments and policies.
• Healthcare Decision-Making:  Descriptive statistics inform healthcare professionals about patient demographics , treatment outcomes, and disease prevalence, aiding in clinical decision-making and healthcare policy formulation.
• Market Analysis :  In marketing and consumer research, descriptive statistics reveal customer preferences, market trends, and product performance, guiding marketing strategies and product development .
• Scientific Research:  In scientific research, descriptive statistics are fundamental for summarizing experimental results, comparing groups, and identifying meaningful patterns in data.
• Government and Policy:  Government agencies use descriptive statistics to collect and analyze data on demographics, economics, and social trends to inform policy decisions and resource allocation.

Descriptive statistics serve as a critical foundation for effective data analysis and decision-making across a wide range of disciplines. They empower individuals and organizations to extract meaningful insights from data, enabling more informed and evidence-based choices.

Data Collection and Preparation

First, let's delve deeper into the crucial initial data collection and preparation steps. These initial stages lay the foundation for effective descriptive statistics.

Data Sources

When embarking on a data analysis journey, you must first identify your data sources. These sources can be categorized into two main types:

• Primary Data :  This data is collected directly from original sources. It includes surveys, experiments, and observations tailored to your specific research objectives. Primary data offers high relevance and control over the data collection process.
• Secondary Data :  Secondary data, on the other hand, is data that already exists and has been collected by someone else for a different purpose. It can include publicly available datasets, reports, and databases. Secondary data can save time and resources but may not always align perfectly with your research needs.

Understanding the nature of your data is fundamental. Data can be classified into two primary types:

• Quantitative Data :  Quantitative data consists of numeric values and is often used for measurements and calculations. Examples include age, income, temperature, and test scores. Quantitative data can further be categorized as discrete (countable) or continuous (measurable).
• Qualitative Data :  Qualitative data, also known as categorical data, represents categories or labels and cannot be measured numerically. Examples include gender, color, and product categories. Qualitative data can be nominal (categories with no specific order) or ordinal (categories with a meaningful order).

Data Cleaning and Preprocessing

Once you have your data in hand, preparing it for analysis is essential. Data cleaning and preprocessing involve several critical steps:

Handling Missing Data

Missing data can significantly impact your analysis. There are various approaches to address missing values:

• Deletion:  You can remove rows or columns with missing data, but this may lead to a loss of valuable information.
• Imputation:  Imputing missing values involves estimating or filling in the missing data using methods such as mean imputation, median imputation, or advanced techniques like regression imputation.

Outlier Detection

Outliers are data points that deviate significantly from the rest of the data. Detecting and handling outliers is crucial to prevent them from skewing your results. Popular methods for identifying outliers include box plots and z-scores.

Data Transformation

Data transformation aims to normalize or standardize the data to make it more suitable for analysis. Common transformations include:

• Normalization:  Scaling data to a standard range, often between 0 and 1.
• Standardization:  Transforming data to have a mean of 0 and a standard deviation of 1.

Data Organization and Presentation

Organizing and presenting your data effectively is essential for meaningful analysis and communication. Here's how you can achieve this:

Data Tables

Data tables are a straightforward way to present your data, especially when dealing with smaller datasets. They allow you to list data in rows and columns, making it easy to review and perform basic calculations.

Graphs and Charts

Visualizations play a pivotal role in conveying the message hidden within your data. Some common types of graphs and charts include:

• Histograms:  Histograms display the distribution of continuous data by dividing it into intervals or bins and showing the frequency of data points within each bin.
• Bar Charts:  Bar charts are excellent for representing categorical or discrete data . They display categories on one axis and corresponding values on the other.
• Line Charts:  Line charts are useful for identifying trends over time, making them suitable for time series data.
• Scatter Plots:  Scatter plots help visualize the relationship between two variables, making them valuable for identifying correlations.
• Pie Charts:  Pie charts are suitable for displaying the composition of a whole in terms of its parts, often as percentages.

Summary Statistics

Calculating summary statistics, such as the mean, median, and standard deviation, provides a quick snapshot of your data's central tendencies and variability.

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Measures of Central Tendency

Measures of central tendency are statistics that provide insight into the central or typical value of a dataset. They help you understand where the data tends to cluster, which is crucial for drawing meaningful conclusions.

The mean, also known as the average, is the most widely used measure of central tendency. It is calculated by summing all the values in a dataset and then dividing by the total number of values. The formula for the mean (μ) is:

μ = (Σx) / N

• μ represents the mean.
• Σx represents the sum of all individual data points.
• N is the total number of data points.

The mean is highly sensitive to outliers and extreme values in the dataset. It's an appropriate choice for normally distributed data.

The median is another measure of central tendency that is less influenced by outliers compared to the mean. To find the median, you first arrange the data in ascending or descending order and then locate the middle value. If there's an even number of data points, the median is the average of the two middle values.

For example, in the dataset [3, 5, 7, 8, 10], the median is 7.

The mode is the value that appears most frequently in a dataset. Unlike the mean and median, which are influenced by the actual values, the mode represents the data point with the highest frequency of occurrence.

In the dataset [3, 5, 7, 8, 8], the mode is 8.

Choosing the Right Measure

Selecting the appropriate measure of central tendency depends on the nature of your data and your research objectives:

• Use the  mean  for normally distributed data without significant outliers.
• Choose the  median  when dealing with skewed data or data with outliers.
• The  mode  is most useful for categorical data  or nominal data .

Understanding these measures and when to apply them is crucial for accurate data analysis and interpretation.

Measures of Variability

The measures of variability provide insights into how spread out or dispersed your data is. These measures complement the central tendency measures discussed earlier and are essential for a comprehensive understanding of your dataset.

The range is the simplest measure of variability and is calculated as the difference between the maximum and minimum values in your dataset. It offers a quick assessment of the spread of your data.

Range = Maximum Value - Minimum Value

For example, consider a dataset of daily temperatures in Celsius for a month:

• Maximum temperature: 30°C
• Minimum temperature: 10°C

The range would be 30°C - 10°C = 20°C, indicating a 20-degree Celsius spread in temperature over the month.

Variance measures the average squared deviation of each data point from the mean. It quantifies the overall dispersion of data points. The formula for variance (σ²) is as follows:

σ² = Σ(x - μ)² / N

• σ² represents the variance.
• Σ represents the summation symbol.
• x represents each individual data point.
• μ is the mean of the dataset.

Calculating the variance involves the following:

• Find the mean (μ) of the dataset.
• For each data point, subtract the mean (x - μ).
• Square the result for each data point [(x - μ)²].
• Sum up all the squared differences [(Σ(x - μ)²)].
• Divide by the total number of data points (N) to get the variance.

A higher variance indicates greater variability among data points, while a lower variance suggests data points are closer to the mean.

Standard Deviation

The standard deviation is a widely used measure of variability and is simply the square root of the variance. It provides a more interpretable value and is often preferred for reporting. The formula for standard deviation (σ) is:

Calculating the standard deviation follows the same process as variance but with an additional step of taking the square root of the variance. It represents the average deviation of data points from the mean in the same units as the data.

For example, if the variance is calculated as 16 (square units), the standard deviation would be 4 (the same units as the data). A smaller standard deviation indicates data points are closer to the mean, while a larger standard deviation indicates greater variability.

Interquartile Range (IQR)

The interquartile range (IQR) is a robust measure of variability that is less influenced by extreme values (outliers) than the range, variance, or standard deviation. It is based on the quartiles of the dataset. To calculate the IQR:

• Arrange the data in ascending order.
• Calculate the first quartile (Q1), which is the median of the lower half of the data.
• Calculate the third quartile (Q3), which is the median of the upper half of the data.
• Subtract Q1 from Q3 to find the IQR.

IQR = Q3 - Q1

The IQR represents the range within which the central 50% of your data falls. It provides valuable information about the middle spread of your dataset, making it a useful measure for skewed or non-normally distributed data.

Data Distribution

Understanding the distribution of your data is essential for making meaningful inferences and choosing appropriate statistical methods. In this section, we will explore different aspects of data distribution.

Normal Distribution

The normal distribution, also known as the Gaussian distribution or bell curve, is a fundamental concept in statistics. It is characterized by a symmetric, bell-shaped curve. In a normal distribution:

• The mean, median, and mode are all equal and located at the center of the distribution.
• Data points are evenly spread around the mean.
• The distribution is defined by two parameters: mean (μ) and standard deviation (σ).

The normal distribution is essential in various statistical tests and modeling techniques. Many natural phenomena, such as heights and IQ scores, closely follow a normal distribution. It serves as a reference point for understanding other distributions and statistical analyses.

Skewness and Kurtosis

Skewness and kurtosis are measures that provide insights into the shape of a data distribution:

Skewness quantifies the asymmetry of a distribution. A distribution can be:

• Positively Skewed (Right-skewed):  In a positively skewed distribution, the tail extends to the right, and the majority of data points are concentrated on the left side of the distribution. The mean is typically greater than the median.
• Negatively Skewed (Left-skewed):  In a negatively skewed distribution, the tail extends to the left, and the majority of data points are concentrated on the right side of the distribution. The mean is typically less than the median.

Skewness is calculated using various formulas, including Pearson's first coefficient of skewness.

Kurtosis measures the "tailedness" of a distribution, indicating whether the distribution has heavy or light tails compared to a normal distribution. Kurtosis can be:

• Leptokurtic:  A distribution with positive kurtosis has heavier tails and a more peaked central region than a normal distribution.
• Mesokurtic:  A distribution with kurtosis equal to that of a normal distribution.
• Platykurtic:  A distribution with negative kurtosis has lighter tails and a flatter central region than a normal distribution.

Kurtosis is calculated using different formulas, including the fourth standardized moment.

Understanding skewness and kurtosis helps you assess the departure of your data from normality and choose appropriate statistical methods.

Other Types of Distributions

While the normal distribution is prevalent, real-world data often follows different distributions. Some other types of distributions you may encounter include:

• Exponential Distribution:  Commonly used for modeling the time between events in a Poisson process, such as arrival times in a queue.
• Poisson Distribution:  Used for counting the number of events in a fixed interval of time or space, such as the number of phone calls received in an hour.
• Binomial Distribution:  Suitable for modeling the number of successes in a fixed number of independent Bernoulli trials.
• Lognormal Distribution:  Often used for data that is the product of many small, independent, positive factors, such as stock prices.
• Uniform Distribution:  Represents a constant probability over a specified range of values, making all outcomes equally likely.

Understanding the characteristics and properties of these distributions is crucial for selecting appropriate statistical techniques and making accurate interpretations in various fields of study and data analysis.

Visualizing Data

Visualizing data is a powerful way to gain insights and understand the patterns and characteristics of your dataset. Below are several standard methods of data visualization.

Histograms  are a widely used graphical representation of the distribution of continuous data. They are particularly useful for understanding the shape of the data's frequency distribution. Here's how they work:

• Data is divided into intervals, or "bins."
• The number of data points falling into each bin is represented by the height of bars on a graph.
• The bars are typically adjacent and do not have gaps between them.

Histograms help you visualize the central tendency, spread, and skewness of your data. They can reveal whether your data is normally distributed, skewed to the left or right, or exhibits multiple peaks.

Histograms are especially useful when you have a large dataset and want to quickly assess its distribution. They are commonly used in fields like finance to analyze stock returns, biology to study species distribution, and quality control to monitor manufacturing processes.

Box plots , also known as box-and-whisker plots, are excellent tools for visualizing the distribution of data, particularly for identifying outliers and comparing multiple datasets. Here's how they are constructed:

• The box represents the interquartile range (IQR), with the lower edge of the box at the first quartile (Q1) and the upper edge at the third quartile (Q3).
• A vertical line inside the box indicates the median (Q2).
• Whiskers extend from the edges of the box to the minimum and maximum values within a certain range.
• Outliers, which are data points significantly outside the whiskers, are often shown as individual points.

Box plots provide a concise summary of data distribution, including central tendency and variability. They are beneficial when comparing data distribution across different categories or groups.

Box plots are commonly used in fields like healthcare to compare patient outcomes by treatment, in education to assess student performance across schools, and in market research to analyze customer ratings for different products.

Scatter Plots

Scatter plots  are a valuable tool for visualizing the relationship between two continuous variables. They are handy for identifying patterns, trends, and correlations in data. Here's how they work:

• Each data point is represented as a point on the graph, with one variable on the x-axis and the other on the y-axis.
• The resulting plot shows the dispersion and clustering of data points, allowing you to assess the strength and direction of the relationship.

Scatter plots help you determine whether there is a positive, negative, or no correlation between the variables. Additionally, they can reveal outliers and influential data points that may affect the relationship.

Scatter plots are commonly used in fields like economics to analyze the relationship between income and education, environmental science to study the correlation between temperature and plant growth, and marketing to understand the relationship between advertising spend and sales.

Frequency Distributions

Frequency distributions  are a tabular way to organize and display categorical or discrete data. They show the count or frequency of each category within a dataset. Here's how to create a frequency distribution:

• Identify the distinct categories or values in your dataset.
• Count the number of occurrences of each category.
• Organize the results in a table, with categories in one column and their respective frequencies in another.

Frequency distributions help you understand the distribution of categorical data, identify dominant categories, and detect any rare or uncommon values. They are commonly used in fields like marketing to analyze customer demographics, in education to assess student grades, and in social sciences to study survey responses.

Descriptive Statistics for Categorical Data

Categorical data requires its own set of descriptive statistics to gain insights into the distribution and characteristics of these non-numeric variables. There are various methods for describing categorical data.

Frequency Tables

Frequency tables , also known as contingency tables, summarize categorical data by displaying the count or frequency of each category within one or more variables. Here's how they are created:

• List the categories or values of the categorical variable(s) in rows or columns.
• Count the occurrences of each category and record the frequencies.

Frequency tables are best used for summarizing and comparing categorical data across different groups or dimensions. They provide a straightforward way to understand data distribution and identify patterns or associations.

For example, in a survey about favorite ice cream flavors , a frequency table might show how many respondents prefer vanilla, chocolate, strawberry, and other flavors.

Bar charts  are a common graphical representation of categorical data. They are similar to histograms but are used for displaying categorical variables. Here's how they work:

• Categories are listed on one axis (usually the x-axis), while the corresponding frequencies or counts are shown on the other axis (usually the y-axis).
• Bars are drawn for each category, with the height of each bar representing the frequency or count of that category.

Bar charts make it easy to compare the frequencies of different categories visually. They are especially helpful for presenting categorical data in a visually appealing and understandable way.

Bar charts are commonly used in fields like market research to display survey results, in social sciences to illustrate demographic information, and in business to show product sales by category.

Pie charts  are circular graphs that represent the distribution of categorical data as "slices of a pie." Here's how they are constructed:

• Categories or values are represented as segments or slices of the pie, with each segment's size proportional to its frequency or count.

Pie charts are effective for showing the relative proportions of different categories within a dataset. They are instrumental when you want to emphasize the composition of a whole in terms of its parts.

Pie charts are commonly used in areas such as marketing to display market share, in finance to show budget allocations, and in demographics to illustrate the distribution of ethnic groups within a population.

These methods for visualizing and summarizing categorical data are essential for gaining insights into non-numeric variables and making informed decisions based on the distribution of categories within a dataset.

Descriptive Statistics Summary and Interpretation

Summarizing and interpreting descriptive statistics gives you the skills to extract meaningful insights from your data and apply them to real-world scenarios.

Summarizing Descriptive Statistics

Once you've collected and analyzed your data using descriptive statistics, the next step is to summarize the findings. This involves condensing the wealth of information into a few key points:

• Central Tendency:  Summarize the central tendency of your data. If it's a numeric dataset, mention the mean, median, and mode as appropriate. For categorical data, highlight the most frequent categories.
• Variability:  Describe the spread of the data using measures like range, variance, and standard deviation. Discuss whether the data is tightly clustered or widely dispersed.
• Distribution:  Mention the shape of the data distribution. Is it normal, skewed, or bimodal? Use histograms or box plots to illustrate the distribution visually.
• Outliers:  Identify any outliers and discuss their potential impact on the analysis. Consider whether outliers should be treated or investigated further.
• Key Observations: Highlight any notable observations or patterns that emerged during your analysis. Are there clear trends or interesting findings in the data?

Interpreting Descriptive Statistics

Interpreting descriptive statistics involves making sense of the numbers and metrics you've calculated. It's about understanding what the data is telling you about the underlying phenomenon. Here are some steps to guide your interpretation:

• Context Matters:  Always consider the context of your data. What does a specific value or pattern mean in the real-world context of your study? For example, a mean salary value may vary significantly depending on the industry.
• Comparisons:  If you have multiple datasets or groups, compare their descriptive statistics. Are there meaningful differences or similarities between them? Statistical tests may be needed for formal comparisons.
• Correlations:  If you've used scatter plots to visualize relationships, interpret the direction and strength of correlations. Are variables positively or negatively correlated, or is there no clear relationship?
• Causation:  Be cautious about inferring causation from descriptive statistics alone. Correlation does not imply causation, so consider additional research or experimentation to establish causal relationships.
• Consider Outliers:  If you have outliers, assess their impact on the overall interpretation. Do they represent genuine data points or measurement errors?

Descriptive Statistics Examples

To better understand how descriptive statistics are applied in real-world scenarios, let's explore a range of practical examples across various fields and industries. These examples illustrate how descriptive statistics provide valuable insights and inform decision-making processes.

Financial Analysis

Example:  Investment Portfolio Analysis

Description:  An investment analyst is tasked with evaluating the performance of a portfolio of stocks over the past year. They collect daily returns for each stock and want to provide a comprehensive summary of the portfolio's performance.

Use of Descriptive Statistics:

• Central Tendency:  Calculate the portfolio's average daily return (mean) to assess its overall performance during the year.
• Variability:  Compute the portfolio's standard deviation to measure the risk or volatility associated with the investment.
• Distribution:  Create a histogram to visualize the distribution of daily returns, helping the analyst understand the nature of the portfolio's gains and losses.
• Outliers:  Identify any outliers in daily returns that may require further investigation.

The resulting descriptive statistics will guide the analyst in making recommendations to investors, such as adjusting the portfolio composition to manage risk or improve returns.

Example:  Hospital Patient Demographics

Description:  A hospital administrator wants to understand the demographics of patients admitted to their facility over the past year. They have data on patient age, gender, and medical conditions.

• Central Tendency:  Calculate the average age of patients to assess the typical age of admissions.
• Variability:  Compute the standard deviation of patient ages to understand how age varies among patients.
• Distribution:  Create bar charts or pie charts to visualize the gender distribution of patients and frequency tables to analyze the prevalence of different medical conditions.
• Key Observations:  Identify any trends, such as seasonal variations in admissions or common medical conditions among specific age groups.

These descriptive statistics help the hospital administration allocate resources effectively, plan for future patient needs, and tailor healthcare services to the demographics of their patient population.

Marketing Research

Example:  Product Sales Analysis

Description:  A marketing team wants to evaluate the sales performance of different products in their product line. They have monthly sales data for the past two years.

• Central Tendency:  Calculate the mean monthly sales for each product to determine their average performance.
• Variability:  Compute the standard deviation of monthly sales to identify products with the most variable sales.
• Distribution:  Create box plots to visualize the sales distribution for each product, helping to understand the range and variability.
• Comparisons:  Compare sales trends over the two years for each product to identify growth or decline patterns.

Descriptive statistics allow the marketing team to make informed decisions about product marketing strategies, inventory management, and product development.

Social Sciences

Example:  Survey Analysis on Happiness Levels

Description:  A sociologist conducts a survey to assess the happiness levels of residents in different neighborhoods within a city. Respondents rate their happiness on a scale of 1 to 10.

• Central Tendency:  Calculate the mean happiness score for each neighborhood to identify areas with higher or lower average happiness levels.
• Variability:  Compute the standard deviation of happiness scores to understand the degree of variation within each neighborhood.
• Distribution:  Create histograms to visualize the distribution of happiness scores, revealing whether happiness levels are normally distributed or skewed.
• Comparisons:  Compare the happiness levels across neighborhoods to identify potential factors influencing happiness disparities.

Descriptive statistics help sociologists pinpoint areas that may require interventions to improve residents' overall well-being and identify potential research directions.

These examples demonstrate how descriptive statistics play a vital role in summarizing and interpreting data across diverse domains. By applying these statistical techniques, professionals can make data-driven decisions, identify trends and patterns, and gain valuable insights into various aspects of their work.

Common Descriptive Statistics Mistakes and Pitfalls

While descriptive statistics are valuable tools, they can be misused or misinterpreted if not handled carefully. Here are some common mistakes and pitfalls to avoid when working with descriptive statistics.

Misinterpretation of Descriptive Statistics

• Assuming Causation:  One of the most common mistakes is inferring causation from correlation . Just because two variables are correlated does not mean that one causes the other. Always be cautious about drawing causal relationships from descriptive statistics alone.
• Ignoring Context:  Failing to consider the context of the data can lead to misinterpretation. A descriptive statistic may seem significant, but it might not have practical relevance in the specific context of your study.
• Neglecting Outliers:  Ignoring outliers or treating them as errors without investigation can lead to incomplete and inaccurate conclusions. Outliers may hold valuable information or reveal unusual phenomena.
• Overlooking Distribution Assumptions:  When applying statistical tests or methods, it's important to check whether your data meets the assumptions of those techniques. For example, using methods designed for normally distributed data on skewed data can yield misleading results.

Data Reporting Errors

• Inadequate Data Documentation:  Failing to provide clear documentation about data sources, collection methods, and preprocessing steps can make it challenging for others to replicate your analysis or verify your findings.
• Mislabeling Variables:  Accurate labeling of variables and units is crucial. Mislabeling or using inconsistent units can lead to erroneous calculations and interpretations.
• Failure to Report Measures of Uncertainty:  Descriptive statistics provide point estimates of central tendency and variability. It's crucial to report measures of uncertainty, such as confidence intervals or standard errors, to convey the range of possible values.

Avoiding Biases in Descriptive Statistics

• Sampling Bias :  Ensure that your sample is representative of the population you intend to study. Sampling bias can occur when certain groups or characteristics are over- or underrepresented in the sample, leading to biased results.
• Selection Bias:  Be cautious of selection bias, where specific data points are systematically included or excluded based on criteria that are unrelated to the research question. This can distort the analysis.
• Confirmation Bias:  Avoid the tendency to seek, interpret, or remember information in a way that confirms preexisting beliefs or hypotheses. This bias can lead to selective attention and misinterpretation of data.
• Reporting Bias:  Be transparent in reporting all relevant data, even if the results do not support your hypothesis or are inconclusive. Omitting such data can create a biased view of the overall picture.

Awareness of these common mistakes and pitfalls can help you conduct more robust and accurate analyses using descriptive statistics, leading to more reliable and meaningful conclusions in your research and decision-making processes.

Descriptive statistics are the essential building blocks of data analysis. They provide us with the means to summarize, visualize, and comprehend the often intricate world of data. By mastering these techniques, you have gained a valuable skill that can be applied across a multitude of fields and industries. From making informed business decisions to advancing scientific research, from understanding market trends to improving healthcare outcomes, descriptive statistics serve as our trusted guides in the realm of data.

You've learned how to calculate measures of central tendency, assess variability, explore data distributions, and employ powerful visualization tools. You've seen how descriptive statistics bring clarity to the chaos of data, revealing patterns and outliers, guiding your decisions, and enabling you to communicate insights effectively . As you continue to work with data, remember that descriptive statistics are your steadfast companions, ready to help you navigate the data landscape, extract valuable insights, and make informed choices based on evidence rather than guesswork.

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Quant Analysis 101: Descriptive Statistics

Everything You Need To Get Started (With Examples)

By: Derek Jansen (MBA) | Reviewers: Kerryn Warren (PhD) | October 2023

If you’re new to quantitative data analysis , one of the first terms you’re likely to hear being thrown around is descriptive statistics. In this post, we’ll unpack the basics of descriptive statistics, using straightforward language and loads of examples . So grab a cup of coffee and let’s crunch some numbers!

Overview: Descriptive Statistics

What are descriptive statistics.

• Descriptive vs inferential statistics
• Why the descriptives matter
• The “ Big 7 ” descriptive statistics
• Key takeaways

At the simplest level, descriptive statistics summarise and describe relatively basic but essential features of a quantitative dataset – for example, a set of survey responses. They provide a snapshot of the characteristics of your dataset and allow you to better understand, roughly, how the data are “shaped” (more on this later). For example, a descriptive statistic could include the proportion of males and females within a sample or the percentages of different age groups within a population.

Another common descriptive statistic is the humble average (which in statistics-talk is called the mean ). For example, if you undertook a survey and asked people to rate their satisfaction with a particular product on a scale of 1 to 10, you could then calculate the average rating. This is a very basic statistic, but as you can see, it gives you some idea of how this data point is shaped .

What about inferential statistics?

Now, you may have also heard the term inferential statistics being thrown around, and you’re probably wondering how that’s different from descriptive statistics. Simply put, descriptive statistics describe and summarise the sample itself , while inferential statistics use the data from a sample to make inferences or predictions about a population .

Put another way, descriptive statistics help you understand your dataset , while inferential statistics help you make broader statements about the population , based on what you observe within the sample. If you’re keen to learn more, we cover inferential stats in another post , or you can check out the explainer video below.

Why do descriptive statistics matter?

While descriptive statistics are relatively simple from a mathematical perspective, they play a very important role in any research project . All too often, students skim over the descriptives and run ahead to the seemingly more exciting inferential statistics, but this can be a costly mistake.

The reason for this is that descriptive statistics help you, as the researcher, comprehend the key characteristics of your sample without getting lost in vast amounts of raw data. In doing so, they provide a foundation for your quantitative analysis . Additionally, they enable you to quickly identify potential issues within your dataset – for example, suspicious outliers, missing responses and so on. Just as importantly, descriptive statistics inform the decision-making process when it comes to choosing which inferential statistics you’ll run, as each inferential test has specific requirements regarding the shape of the data.

Long story short, it’s essential that you take the time to dig into your descriptive statistics before looking at more “advanced” inferentials. It’s also worth noting that, depending on your research aims and questions, descriptive stats may be all that you need in any case . So, don’t discount the descriptives! 

The “Big 7” descriptive statistics

With the what and why out of the way, let’s take a look at the most common descriptive statistics. Beyond the counts, proportions and percentages we mentioned earlier, we have what we call the “Big 7” descriptives. These can be divided into two categories – measures of central tendency and measures of dispersion.

Measures of central tendency

True to the name, measures of central tendency describe the centre or “middle section” of a dataset. In other words, they provide some indication of what a “typical” data point looks like within a given dataset. The three most common measures are:

The mean , which is the mathematical average of a set of numbers – in other words, the sum of all numbers divided by the count of all numbers. 

The median , which is the middlemost number in a set of numbers, when those numbers are ordered from lowest to highest.

The mode , which is the most frequently occurring number in a set of numbers (in any order). Naturally, a dataset can have one mode, no mode (no number occurs more than once) or multiple modes.

To make this a little more tangible, let’s look at a sample dataset, along with the corresponding mean, median and mode. This dataset reflects the service ratings (on a scale of 1 – 10) from 15 customers.

As you can see, the mean of 5.8 is the average rating across all 15 customers. Meanwhile, 6 is the median . In other words, if you were to list all the responses in order from low to high, Customer 8 would be in the middle (with their service rating being 6). Lastly, the number 5 is the most frequent rating (appearing 3 times), making it the mode.

Together, these three descriptive statistics give us a quick overview of how these customers feel about the service levels at this business. In other words, most customers feel rather lukewarm and there’s certainly room for improvement. From a more statistical perspective, this also means that the data tend to cluster around the 5-6 mark , since the mean and the median are fairly close to each other.

To take this a step further, let’s look at the frequency distribution of the responses . In other words, let’s count how many times each rating was received, and then plot these counts onto a bar chart.

As you can see, the responses tend to cluster toward the centre of the chart , creating something of a bell-shaped curve. In statistical terms, this is called a normal distribution .

As you delve into quantitative data analysis, you’ll find that normal distributions are very common , but they’re certainly not the only type of distribution. In some cases, the data can lean toward the left or the right of the chart (i.e., toward the low end or high end). This lean is reflected by a measure called skewness , and it’s important to pay attention to this when you’re analysing your data, as this will have an impact on what types of inferential statistics you can use on your dataset.

Measures of dispersion

While the measures of central tendency provide insight into how “centred” the dataset is, it’s also important to understand how dispersed that dataset is . In other words, to what extent the data cluster toward the centre – specifically, the mean. In some cases, the majority of the data points will sit very close to the centre, while in other cases, they’ll be scattered all over the place. Enter the measures of dispersion, of which there are three:

Range , which measures the difference between the largest and smallest number in the dataset. In other words, it indicates how spread out the dataset really is.

Variance , which measures how much each number in a dataset varies from the mean (average). More technically, it calculates the average of the squared differences between each number and the mean. A higher variance indicates that the data points are more spread out , while a lower variance suggests that the data points are closer to the mean.

Standard deviation , which is the square root of the variance . It serves the same purposes as the variance, but is a bit easier to interpret as it presents a figure that is in the same unit as the original data . You’ll typically present this statistic alongside the means when describing the data in your research.

Again, let’s look at our sample dataset to make this all a little more tangible.

As you can see, the range of 8 reflects the difference between the highest rating (10) and the lowest rating (2). The standard deviation of 2.18 tells us that on average, results within the dataset are 2.18 away from the mean (of 5.8), reflecting a relatively dispersed set of data .

For the sake of comparison, let’s look at another much more tightly grouped (less dispersed) dataset.

As you can see, all the ratings lay between 5 and 8 in this dataset, resulting in a much smaller range, variance and standard deviation . You might also notice that the data are clustered toward the right side of the graph – in other words, the data are skewed. If we calculate the skewness for this dataset, we get a result of -0.12, confirming this right lean.

In summary, range, variance and standard deviation all provide an indication of how dispersed the data are . These measures are important because they help you interpret the measures of central tendency within context . In other words, if your measures of dispersion are all fairly high numbers, you need to interpret your measures of central tendency with some caution , as the results are not particularly centred. Conversely, if the data are all tightly grouped around the mean (i.e., low dispersion), the mean becomes a much more “meaningful” statistic).

Key Takeaways

We’ve covered quite a bit of ground in this post. Here are the key takeaways:

• Descriptive statistics, although relatively simple, are a critically important part of any quantitative data analysis.
• Measures of central tendency include the mean (average), median and mode.
• Skewness indicates whether a dataset leans to one side or another
• Measures of dispersion include the range, variance and standard deviation

If you’d like hands-on help with your descriptive statistics (or any other aspect of your research project), check out our private coaching service , where we hold your hand through each step of the research journey. 

Psst… there’s more!

This post is an extract from our bestselling short course, Methodology Bootcamp . If you want to work smart, you don't want to miss this .

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Home » Descriptive Research Design – Types, Methods and Examples

Descriptive Research Design – Types, Methods and Examples

Table of Contents

Descriptive Research Design

Definition:

Descriptive research design is a type of research methodology that aims to describe or document the characteristics, behaviors, attitudes, opinions, or perceptions of a group or population being studied.

Descriptive research design does not attempt to establish cause-and-effect relationships between variables or make predictions about future outcomes. Instead, it focuses on providing a detailed and accurate representation of the data collected, which can be useful for generating hypotheses, exploring trends, and identifying patterns in the data.

Types of Descriptive Research Design

Types of Descriptive Research Design are as follows:

Cross-sectional Study

This involves collecting data at a single point in time from a sample or population to describe their characteristics or behaviors. For example, a researcher may conduct a cross-sectional study to investigate the prevalence of certain health conditions among a population, or to describe the attitudes and beliefs of a particular group.

Longitudinal Study

This involves collecting data over an extended period of time, often through repeated observations or surveys of the same group or population. Longitudinal studies can be used to track changes in attitudes, behaviors, or outcomes over time, or to investigate the effects of interventions or treatments.

This involves an in-depth examination of a single individual, group, or situation to gain a detailed understanding of its characteristics or dynamics. Case studies are often used in psychology, sociology, and business to explore complex phenomena or to generate hypotheses for further research.

Survey Research

This involves collecting data from a sample or population through standardized questionnaires or interviews. Surveys can be used to describe attitudes, opinions, behaviors, or demographic characteristics of a group, and can be conducted in person, by phone, or online.

Observational Research

This involves observing and documenting the behavior or interactions of individuals or groups in a natural or controlled setting. Observational studies can be used to describe social, cultural, or environmental phenomena, or to investigate the effects of interventions or treatments.

Correlational Research

This involves examining the relationships between two or more variables to describe their patterns or associations. Correlational studies can be used to identify potential causal relationships or to explore the strength and direction of relationships between variables.

Data Analysis Methods

Descriptive research design data analysis methods depend on the type of data collected and the research question being addressed. Here are some common methods of data analysis for descriptive research:

Descriptive Statistics

This method involves analyzing data to summarize and describe the key features of a sample or population. Descriptive statistics can include measures of central tendency (e.g., mean, median, mode) and measures of variability (e.g., range, standard deviation).

Cross-tabulation

This method involves analyzing data by creating a table that shows the frequency of two or more variables together. Cross-tabulation can help identify patterns or relationships between variables.

Content Analysis

This method involves analyzing qualitative data (e.g., text, images, audio) to identify themes, patterns, or trends. Content analysis can be used to describe the characteristics of a sample or population, or to identify factors that influence attitudes or behaviors.

Qualitative Coding

This method involves analyzing qualitative data by assigning codes to segments of data based on their meaning or content. Qualitative coding can be used to identify common themes, patterns, or categories within the data.

Visualization

This method involves creating graphs or charts to represent data visually. Visualization can help identify patterns or relationships between variables and make it easier to communicate findings to others.

Comparative Analysis

This method involves comparing data across different groups or time periods to identify similarities and differences. Comparative analysis can help describe changes in attitudes or behaviors over time or differences between subgroups within a population.

Applications of Descriptive Research Design

Descriptive research design has numerous applications in various fields. Some of the common applications of descriptive research design are:

• Market research: Descriptive research design is widely used in market research to understand consumer preferences, behavior, and attitudes. This helps companies to develop new products and services, improve marketing strategies, and increase customer satisfaction.
• Health research: Descriptive research design is used in health research to describe the prevalence and distribution of a disease or health condition in a population. This helps healthcare providers to develop prevention and treatment strategies.
• Educational research: Descriptive research design is used in educational research to describe the performance of students, schools, or educational programs. This helps educators to improve teaching methods and develop effective educational programs.
• Social science research: Descriptive research design is used in social science research to describe social phenomena such as cultural norms, values, and beliefs. This helps researchers to understand social behavior and develop effective policies.
• Public opinion research: Descriptive research design is used in public opinion research to understand the opinions and attitudes of the general public on various issues. This helps policymakers to develop effective policies that are aligned with public opinion.
• Environmental research: Descriptive research design is used in environmental research to describe the environmental conditions of a particular region or ecosystem. This helps policymakers and environmentalists to develop effective conservation and preservation strategies.

Descriptive Research Design Examples

Here are some real-time examples of descriptive research designs:

• A restaurant chain wants to understand the demographics and attitudes of its customers. They conduct a survey asking customers about their age, gender, income, frequency of visits, favorite menu items, and overall satisfaction. The survey data is analyzed using descriptive statistics and cross-tabulation to describe the characteristics of their customer base.
• A medical researcher wants to describe the prevalence and risk factors of a particular disease in a population. They conduct a cross-sectional study in which they collect data from a sample of individuals using a standardized questionnaire. The data is analyzed using descriptive statistics and cross-tabulation to identify patterns in the prevalence and risk factors of the disease.
• An education researcher wants to describe the learning outcomes of students in a particular school district. They collect test scores from a representative sample of students in the district and use descriptive statistics to calculate the mean, median, and standard deviation of the scores. They also create visualizations such as histograms and box plots to show the distribution of scores.
• A marketing team wants to understand the attitudes and behaviors of consumers towards a new product. They conduct a series of focus groups and use qualitative coding to identify common themes and patterns in the data. They also create visualizations such as word clouds to show the most frequently mentioned topics.
• An environmental scientist wants to describe the biodiversity of a particular ecosystem. They conduct an observational study in which they collect data on the species and abundance of plants and animals in the ecosystem. The data is analyzed using descriptive statistics to describe the diversity and richness of the ecosystem.

How to Conduct Descriptive Research Design

To conduct a descriptive research design, you can follow these general steps:

• Define your research question: Clearly define the research question or problem that you want to address. Your research question should be specific and focused to guide your data collection and analysis.
• Choose your research method: Select the most appropriate research method for your research question. As discussed earlier, common research methods for descriptive research include surveys, case studies, observational studies, cross-sectional studies, and longitudinal studies.
• Design your study: Plan the details of your study, including the sampling strategy, data collection methods, and data analysis plan. Determine the sample size and sampling method, decide on the data collection tools (such as questionnaires, interviews, or observations), and outline your data analysis plan.
• Collect data: Collect data from your sample or population using the data collection tools you have chosen. Ensure that you follow ethical guidelines for research and obtain informed consent from participants.
• Analyze data: Use appropriate statistical or qualitative analysis methods to analyze your data. As discussed earlier, common data analysis methods for descriptive research include descriptive statistics, cross-tabulation, content analysis, qualitative coding, visualization, and comparative analysis.
• I nterpret results: Interpret your findings in light of your research question and objectives. Identify patterns, trends, and relationships in the data, and describe the characteristics of your sample or population.
• Draw conclusions and report results: Draw conclusions based on your analysis and interpretation of the data. Report your results in a clear and concise manner, using appropriate tables, graphs, or figures to present your findings. Ensure that your report follows accepted research standards and guidelines.

When to Use Descriptive Research Design

Descriptive research design is used in situations where the researcher wants to describe a population or phenomenon in detail. It is used to gather information about the current status or condition of a group or phenomenon without making any causal inferences. Descriptive research design is useful in the following situations:

• Exploratory research: Descriptive research design is often used in exploratory research to gain an initial understanding of a phenomenon or population.
• Identifying trends: Descriptive research design can be used to identify trends or patterns in a population, such as changes in consumer behavior or attitudes over time.
• Market research: Descriptive research design is commonly used in market research to understand consumer preferences, behavior, and attitudes.
• Health research: Descriptive research design is useful in health research to describe the prevalence and distribution of a disease or health condition in a population.
• Social science research: Descriptive research design is used in social science research to describe social phenomena such as cultural norms, values, and beliefs.
• Educational research: Descriptive research design is used in educational research to describe the performance of students, schools, or educational programs.

Purpose of Descriptive Research Design

The main purpose of descriptive research design is to describe and measure the characteristics of a population or phenomenon in a systematic and objective manner. It involves collecting data that describe the current status or condition of the population or phenomenon of interest, without manipulating or altering any variables.

The purpose of descriptive research design can be summarized as follows:

• To provide an accurate description of a population or phenomenon: Descriptive research design aims to provide a comprehensive and accurate description of a population or phenomenon of interest. This can help researchers to develop a better understanding of the characteristics of the population or phenomenon.
• To identify trends and patterns: Descriptive research design can help researchers to identify trends and patterns in the data, such as changes in behavior or attitudes over time. This can be useful for making predictions and developing strategies.
• To generate hypotheses: Descriptive research design can be used to generate hypotheses or research questions that can be tested in future studies. For example, if a descriptive study finds a correlation between two variables, this could lead to the development of a hypothesis about the causal relationship between the variables.
• To establish a baseline: Descriptive research design can establish a baseline or starting point for future research. This can be useful for comparing data from different time periods or populations.

Characteristics of Descriptive Research Design

Descriptive research design has several key characteristics that distinguish it from other research designs. Some of the main characteristics of descriptive research design are:

• Objective : Descriptive research design is objective in nature, which means that it focuses on collecting factual and accurate data without any personal bias. The researcher aims to report the data objectively without any personal interpretation.
• Non-experimental: Descriptive research design is non-experimental, which means that the researcher does not manipulate any variables. The researcher simply observes and records the behavior or characteristics of the population or phenomenon of interest.
• Quantitative : Descriptive research design is quantitative in nature, which means that it involves collecting numerical data that can be analyzed using statistical techniques. This helps to provide a more precise and accurate description of the population or phenomenon.
• Cross-sectional: Descriptive research design is often cross-sectional, which means that the data is collected at a single point in time. This can be useful for understanding the current state of the population or phenomenon, but it may not provide information about changes over time.
• Large sample size: Descriptive research design typically involves a large sample size, which helps to ensure that the data is representative of the population of interest. A large sample size also helps to increase the reliability and validity of the data.
• Systematic and structured: Descriptive research design involves a systematic and structured approach to data collection, which helps to ensure that the data is accurate and reliable. This involves using standardized procedures for data collection, such as surveys, questionnaires, or observation checklists.

Advantages of Descriptive Research Design

Descriptive research design has several advantages that make it a popular choice for researchers. Some of the main advantages of descriptive research design are:

• Provides an accurate description: Descriptive research design is focused on accurately describing the characteristics of a population or phenomenon. This can help researchers to develop a better understanding of the subject of interest.
• Easy to conduct: Descriptive research design is relatively easy to conduct and requires minimal resources compared to other research designs. It can be conducted quickly and efficiently, and data can be collected through surveys, questionnaires, or observations.
• Useful for generating hypotheses: Descriptive research design can be used to generate hypotheses or research questions that can be tested in future studies. For example, if a descriptive study finds a correlation between two variables, this could lead to the development of a hypothesis about the causal relationship between the variables.
• Large sample size : Descriptive research design typically involves a large sample size, which helps to ensure that the data is representative of the population of interest. A large sample size also helps to increase the reliability and validity of the data.
• Can be used to monitor changes : Descriptive research design can be used to monitor changes over time in a population or phenomenon. This can be useful for identifying trends and patterns, and for making predictions about future behavior or attitudes.
• Can be used in a variety of fields : Descriptive research design can be used in a variety of fields, including social sciences, healthcare, business, and education.

Limitation of Descriptive Research Design

Descriptive research design also has some limitations that researchers should consider before using this design. Some of the main limitations of descriptive research design are:

• Cannot establish cause and effect: Descriptive research design cannot establish cause and effect relationships between variables. It only provides a description of the characteristics of the population or phenomenon of interest.
• Limited generalizability: The results of a descriptive study may not be generalizable to other populations or situations. This is because descriptive research design often involves a specific sample or situation, which may not be representative of the broader population.
• Potential for bias: Descriptive research design can be subject to bias, particularly if the researcher is not objective in their data collection or interpretation. This can lead to inaccurate or incomplete descriptions of the population or phenomenon of interest.
• Limited depth: Descriptive research design may provide a superficial description of the population or phenomenon of interest. It does not delve into the underlying causes or mechanisms behind the observed behavior or characteristics.
• Limited utility for theory development: Descriptive research design may not be useful for developing theories about the relationship between variables. It only provides a description of the variables themselves.
• Relies on self-report data: Descriptive research design often relies on self-report data, such as surveys or questionnaires. This type of data may be subject to biases, such as social desirability bias or recall bias.

About the author

Muhammad Hassan

Researcher, Academic Writer, Web developer

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How to Uncover Insights: Descriptive Marketing Research

If you’re tired of shooting in the dark to understand your target audience, say goodbye to guesswork and hello to descriptive marketing research!

Picture this.

Imagine having access to a crystal-clear lens that shows you the deepest insights about your customers, their preferences, etc.

With descriptive marketing research, you can unlock the hidden treasures of insights and gain a competitive edge.

No more wasting resources on ineffective campaigns. Or even blindly chasing trends and patterns.

Descriptive marketing research empowers you to make informed decisions based on data.

By diving deep into the minds of your customers, you can tailor your marketing strategies to resonate with their needs. You’ll be able to anticipate their needs, create irresistible offers, and deliver personalized experiences.

Here’s the twist.

Descriptive marketing research isn’t just about numbers and statistics.

Yes, you read that right.

It’s about understanding the human behavior behind the data. More so, it’s about crafting compelling stories that capture hearts and forging genuine connections.

In this blog, you’ll learn the following:

What is Descriptive Marketing Research?

What are the characteristics of descriptive marketing research, what are the advantages of descriptive marketing research, methods of descriptive marketing research, how to design a survey for descriptive marketing research, how to analyze descriptive survey results.

Before diving into the blog’s core, we’ll address the following question: What is descriptive marketing research?

Have you ever wondered how businesses gather valuable insights about their customers?

This is where descriptive marketing research comes into play.

Descriptive marketing research is a powerful tool that helps you uncover the who, what, when, and where of your target consumer’s behavior .

In other words, it’s a method you can use to analyze data to gain in-depth insights into buying patterns and market trends.

By examining a large sample of people, this research approach enables you to paint a detailed picture of your target market.

With descriptive marketing research, you can explore various aspects such as demographics, psychographics, and purchasing behaviors.

It lets you identify key customer segments, understand their needs and motivations, and make data-driven decisions .

This research method relies on collecting and analyzing data from diverse sources, including surveys, interviews, observation, etc.

Through careful examination and analysis of this data, you can uncover valuable insights.

Unlike other research approaches, descriptive marketing research is purely observational.

In other words, you don’t influence variables in your study. You just watch behaviors.

Check out some of the distinctive characteristics of descriptive marketing research:

Quantitative research

Descriptive marketing research primarily focuses on collecting data for further analysis.

By gathering data from a representative sample, you can describe the nature of a specific demographic segment. This quantitative approach provides actionable numerical insights.

Uncontrolled variables

In descriptive marketing research, you maintain a hands-off approach toward the variables.

The approach relies on observational methods, allowing variables to behave naturally without any interference. And it ensures an unbiased representation of the subject under investigation.

Cross-sectional studies

It means studying different sections or segments belonging to the same group simultaneously.

It provides a snapshot of your target audience at a specific point in time.

The basis for further research

The data you collect and analyze through descriptive research becomes the foundation for further exploration.

You can use this data to delve deeper into the subject matter using various research techniques.

Let’s dive into some of the key benefits of the research method.

Provides a comprehensive understanding

Descriptive marketing research gives you a comprehensive understanding of market dynamics, consumer behavior, and preferences.

Armed with this knowledge, you can make informed decisions that align with your target audience.

Supports data-driven decision-making

With descriptive research, you can access empirical data and valuable insights.

This enables data-driven decision-making across various aspects of marketing, such as product development, pricing strategies, customer targeting, etc.

Identifies market trends and patterns

Descriptive research enables you to identify emerging market trends and patterns.

By staying ahead of the curve, you can adapt your strategies, ensuring you’re always aligned with evolving consumer behavior.

Benchmarks performance

By collecting data on customer satisfaction, brand perception, and other metrics, descriptive research allows you to benchmark your performance against competitors and industry standards.

This helps you gauge your position in the market and identify areas for improvement.

Assists in market segmentation

Descriptive research plays a crucial role in market segmentation.

By analyzing demographic, psychographic, or behavioral characteristics, you can identify and target specific market segments. This paves the way for personalized and effective marketing strategies.

Evaluates marketing campaigns

You can assess the effectiveness of your marketing campaigns using descriptive research.

It lets you measure brand awareness, evaluate customer response to promotional activities, and make data-backed adjustments to optimize your campaigns.

Provides a foundation for further research

Descriptive research provides a foundation for more in-depth and exploratory studies.

It provides initial insights and hypotheses you can test and explore further using additional research methods.

Let’s explore descriptive marketing research methods and understand their unique characteristics:

Observational Method

This is a powerful approach to conducting descriptive research

And this is because it combines both quantitative and qualitative observations .

Quantitative observation focuses on numbers and values.

It provides insights into numerical aspects, such as age, weight, volume, etc. You can analyze this data using charts like the Net Promoter Score.

Conversely, qualitative observation doesn’t involve numbers but focuses on monitoring characteristics.

It entails observing your respondents from a distance in a natural environment. This method allows for a deeper understanding of your subject’s behavior.

In a descriptive research design , you become an observer.

Case Study Method

This method entails in-depth research and study of the target individuals or groups.

Here, you form hypotheses and expand the scope for studying a phenomenon.

Survey Research

This involves gathering data through surveys, questionnaires, or polls.

Surveys are a popular market research tool for collecting feedback from your target respondents. A well-designed survey includes a balanced mix of open-ended and closed-ended questions.

You can conduct surveys online or offline, making it the go-to option for descriptive marketing research, especially when dealing with large sample sizes.

Designing a survey for descriptive marketing research requires careful planning.

To ensure the success of your survey, follow the essential steps below

Define the research goals

Clearly define the objectives of your research. Determine the specific information you aim to gather and the insights to gain.

Decide on the research method

Choose the most suitable research method for your descriptive marketing research.

This could be online surveys, paper-based questionnaires, etc, depending on the nature of your target audience.

Define the sample population

Identify your target audience. Consider demographics, such as age, gender, location, or other relevant criteria, to ensure full representation.

Design your questionnaire

Create a well-structured questionnaire that aligns with your descriptive marketing research goals.

Keep the questions clear, concise, and easy to understand.

Write specific questions

Formulate questions that reflect your overall goals.

Use a mix of closed-ended questions and open-ended questions to capture both quantitative and qualitative data.

Distribute the questionnaire

Choose the most appropriate method for distributing your descriptive marketing research survey to your target audience.

This could include email invitations, posting on social media, or distributing paper surveys in person or via mail.

Congratulations on successfully learning how to uncover insights using descriptive marketing research.

Now, it’s time to unlock the true potential of your survey data by analyzing it.

While tools like Excel help organize data, they lack consumer research survey-specific charts, like Likert Scale Chart.

Don’t worry.

There’s an exciting solution that can take your descriptive marketing research survey data analysis to a whole new level. It’s called ChartExpo.

ChartExpo is a powerful Excel add-in that will revolutionize how you analyze your best survey questions.

With its user-friendly interface and a wide range of descriptive research survey-based charts, ChartExpo effortlessly transforms survey responses into actionable insights.

You don’t need to be a programming genius to use ChartExpo’s features.

One of ChartExpo’s standout features is the Likert Scale Chart. This chart acts as a magnifying glass, allowing you to dive deep into your survey data for hidden insights.

Try ChartExpo’s free 7-day trial and experience its full potential

How to Install ChartExpo in Excel

Let’s imagine you run an online business. You want to know whether your customers are satisfied with your products.

You’ve organized a survey to gather feedback from your customers and you’ve used the sample questions below:

• To what extent do you agree that our product meets your quality expectations?
• Do you agree that our product offers value in relation to its price?
• Would you be inclined to recommend our product to others?

Let’s further imagine you’ll use the following answer options in your descriptive marketing research survey format.

• Strongly Disagree=1
• Neither agree nor disagree=3
• Strongly Agree=5

In the coming section, we’ll use ChartExpo, and sample data to demonstrate how you can leverage a Likert Scale Chart to visualize your descriptive marketing research survey data for insights.

Before we dive into this, we’ll show you how to install ChartExpo in Excel.

To get started with ChartExpo in Excel, follow the steps below:

• Open your Microsoft Excel.
• Open the worksheet and click the Insert button to access the  My Apps

• Click the Insert button to initiate the ChartExpo engine.

• Click the Search box and type “Likert Scale Chart.”

• Highlight your data and click the Create Chart From Selection button, as shown below.

• Use the multiple-choice responses you deployed in your survey to gather responses to map your Likert Scale Chart.
• In our case we’ll use the following multiple-choice responses:

• Click the Create Chart button, as shown above.

• To add the chart header, click the Edit Chart.
• Once the Chart Header Properties window shows, fill in your header in Line 1, as shown.

• Toggle the small button below Line 2 to the right side to activate the header.
• Click the Apply button, as shown above.

• To edit the legend properties, click the pencil-like icon on the X-axis.
• Once the Legend Properties window shows, fill in your legend below the Text
• Click the Apply All button, as shown above.
• Click the Save Changes button to preserve all the changes.
• Check out the final Likert Scale chart below.

• Among the customers surveyed, 50% agreed to recommend our product to others. On the other hand, 40% did not agree, and 10% remained neutral.
• When it comes to our product price, 55% of customers agreed with it. However, 25% did not agree, and 20% chose not to answer this question.
• Regarding the quality of our product, 55% of customers agreed that it meets their expectations. Surprisingly, 45% did not agree.
• When asked about their overall response to the survey questions, 53% of customers provided a positive response, 36% gave a negative response, and 10% remained neutral.

What are the different types of descriptive surveys?

The different types of descriptive surveys are, namely, cross-sectional surveys, longitudinal surveys, correlational surveys, and retrospective surveys.

Each type focuses on different aspects of data collection and analysis, allowing you to gather insights about a specific population.

What is the aim of the descriptive survey?

The aim of a descriptive survey is to gather accurate and comprehensive insights into a specific population.

It focuses on describing and documenting characteristics, behaviors, attitudes, and other relevant factors to provide a clear understanding of your target market.

In conclusion, descriptive marketing research plays a vital role in understanding your customers’ behavior, market trends, and preferences.

Through methods such as surveys, observations, and case studies, you can gather valuable insights that drive your marketing strategies and decision-making processes.

With ChartExpo, a powerful tool designed to enhance data visualization, you can take your descriptive marketing research to the next level.

By transforming complex data into visually appealing and easily understandable charts, ChartExpo empowers you to communicate your findings effectively and make impactful presentations.

The benefits of leveraging descriptive marketing research and tools like ChartExpo are immense. you gain a comprehensive understanding of your target audience, identify market trends, benchmark performance, and create personalized marketing strategies.

By utilizing the insights derived from descriptive marketing research, you can streamline your workflow, increase efficiency, and make data-driven decisions that propel them ahead of the competition.

Try ChartExpo now and unlock the potential of your data.

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What Are Descriptive Statistics?

• How They Work

Univariate vs. Bivariate

Descriptive statistics and visualizations, descriptive statistics and outliers.

• Descriptive vs. Inferential

The Bottom Line

• Corporate Finance
• Financial Analysis

Descriptive Statistics: Definition, Overview, Types, and Example

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master's in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Descriptive statistics are brief informational coefficients that summarize a given data set, which can be either a representation of the entire population or a sample of a population. Descriptive statistics are broken down into measures of central tendency and measures of variability (spread). Measures of central tendency include the mean, median, and mode, while measures of variability include standard deviation, variance, minimum and maximum variables, kurtosis , and skewness .

Key Takeaways

• Descriptive statistics summarizes or describes the characteristics of a data set.
• Descriptive statistics consists of three basic categories of measures: measures of central tendency, measures of variability (or spread), and frequency distribution.
• Measures of central tendency describe the center of the data set (mean, median, mode).
• Measures of variability describe the dispersion of the data set (variance, standard deviation).
• Measures of frequency distribution describe the occurrence of data within the data set (count).

Jessica Olah

Understanding Descriptive Statistics

Descriptive statistics help describe and understand the features of a specific data set by giving short summaries about the sample and measures of the data. The most recognized types of descriptive statistics are measures of center. For example, the mean , median , and mode , which are used at almost all levels of math and statistics, are used to define and describe a data set. The mean, or the average, is calculated by adding all the figures within the data set and then dividing by the number of figures within the set.

For example, the sum of the following data set is 20: (2, 3, 4, 5, 6). The mean is 4 (20/5). The mode of a data set is the value appearing most often, and the median is the figure situated in the middle of the data set. It is the figure separating the higher figures from the lower figures within a data set. However, there are less common types of descriptive statistics that are still very important.

People use descriptive statistics to repurpose hard-to-understand quantitative insights across a large data set into bite-sized descriptions. A student's grade point average (GPA), for example, provides a good understanding of descriptive statistics. The idea of a GPA is that it takes data points from a wide range of exams, classes, and grades, and averages them together to provide a general understanding of a student's overall academic performance. A student's personal GPA reflects their mean academic performance.

Descriptive statistics, especially in fields such as medicine, often visually depict data using scatter plots, histograms, line graphs, or stem and leaf displays. We'll talk more about visuals later in this article.

Types of Descriptive Statistics

All descriptive statistics are either measures of central tendency or measures of variability , also known as measures of dispersion.

Central Tendency

Measures of central tendency focus on the average or middle values of data sets, whereas measures of variability focus on the dispersion of data. These two measures use graphs, tables and general discussions to help people understand the meaning of the analyzed data.

Measures of central tendency describe the center position of a distribution for a data set. A person analyzes the frequency of each data point in the distribution and describes it using the mean, median, or mode, which measures the most common patterns of the analyzed data set.

Measures of Variability

Measures of variability (or the measures of spread) aid in analyzing how dispersed the distribution is for a set of data. For example, while the measures of central tendency may give a person the average of a data set, it does not describe how the data is distributed within the set.

So while the average of the data maybe 65 out of 100, there can still be data points at both 1 and 100. Measures of variability help communicate this by describing the shape and spread of the data set. Range, quartiles , absolute deviation, and variance are all examples of measures of variability.

Consider the following data set: 5, 19, 24, 62, 91, 100. The range of that data set is 95, which is calculated by subtracting the lowest number (5) in the data set from the highest (100).

Distribution

Distribution (or frequency distribution) refers to the quantity of times a data point occurs. Alternatively, it is the measurement of a data point failing to occur. Consider a data set: male, male, female, female, female, other. The distribution of this data can be classified as:

• The number of males in the data set is 2.
• The number of females in the data set is 3.
• The number of individuals identifying as other is 1.
• The number of non-males is 4.

In descriptive statistics, univariate data analyzes only one variable. It is used to identify characteristics of a single trait and is not used to analyze any relationships or causations.

For example, imagine a room full of high school students. Say you wanted to gather the average age of the individuals in the room. This univariate data is only dependent on one factor: each person's age. By gathering this one piece of information from each person and dividing by the total number of people, you can determine the average age.

Bivariate data, on the other hand, attempts to link two variables by searching for correlation. Two types of data are collected, and the relationship between the two pieces of information is analyzed together. Because multiple variables are analyzed, this approach may also be referred to as multivariate .

Let's say each high school student in the example above takes a college assessment test, and we want to see whether older students are testing better than younger students. In addition to gathering the age of the students, we need to gather each student's test score. Then, using data analytics, we mathematically or graphically depict whether there is a relationship between student age and test scores.

The preparation and reporting of financial statements is an example of descriptive statistics. Analyzing that financial information to make decisions on the future is inferential statistics.

One essential aspect of descriptive statistics is graphical representation. Visualizing data distributions effectively can be incredibly powerful, and this is done in several ways.

Histograms are tools for displaying the distribution of numerical data. They divide the data into bins or intervals and represent the frequency or count of data points falling into each bin through bars of varying heights. Histograms help identify the shape of the distribution, central tendency, and variability of the data.

Another visualization is boxplots. Boxplots, also known as box-and-whisker plots, provide a concise summary of a data distribution by highlighting key summary statistics including the median (middle line inside the box), quartiles (edges of the box), and potential outliers (points outside the "whiskers"). Boxplots visually depict the spread and skewness of the data and are particularly useful for comparing distributions across different groups or variables.

Anytime descriptive statistics are being discussed, it's important to note outliers. Outliers are data points that significantly differ from other observations in a dataset. These could be errors, anomalies, or rare events within the data.

Detecting and managing outliers is a step in descriptive statistics to ensure accurate and reliable data analysis. To identify outliers, you can use graphical techniques (such as boxplots or scatter plots) or statistical methods (such as Z-score or IQR method). These approaches help pinpoint observations that deviate substantially from the overall pattern of the data.

The presence of outliers can have a notable impact on descriptive statistics. This is vitally important in statistics, as this can skew results and affect the interpretation of data. Outliers can disproportionately influence measures of central tendency, such as the mean, pulling it towards their extreme values. For example, the dataset of (1, 1, 1, 997) is 250, even though that is hardly representative of the dataset. This distortion can lead to misleading conclusions about the typical behavior of the dataset.

Depending on the context, outliers can be treated by either removing them (if they are genuinely erroneous or irrelevant). Alternatively, outliers may hold important information and should be kept for the value they may be able to demonstrate. As you analyze your data, consider the relevance of what outliers can contribute and whether it makes more sense to just strike those data points from your descriptive statistic calculations.

Descriptive Statistics vs. Inferential Statistics

Descriptive statistics have a different function than inferential statistics, data sets that are used to make decisions or apply characteristics from one data set to another.

Imagine another example where a company sells hot sauce. The company gathers data such as the count of sales , average quantity purchased per transaction , and average sale per day of the week. All of this information is descriptive, as it tells a story of what actually happened in the past. In this case, it is not being used beyond being informational.

Let's say the same company wants to roll out a new hot sauce. It gathers the same sales data above, but it crafts the information to make predictions about what the sales of the new hot sauce will be. The act of using descriptive statistics and applying characteristics to a different data set makes the data set inferential statistics. We are no longer simply summarizing data; we are using it predict what will happen regarding an entirely different body of data (the new hot sauce product).

What Is Descriptive Statistics?

Descriptive statistics is a means of describing features of a data set by generating summaries about data samples. It's often depicted as a summary of data shown that explains the contents of data. For example, a population census may include descriptive statistics regarding the ratio of men and women in a specific city.

What Are Examples of Descriptive Statistics?

Descriptive statistics are informational and meant to describe the actual characteristics of a data set. When analyzing numbers regarding the prior Major League Baseball season, descriptive statistics including the highest batting average for a single player, the number of runs allowed per team, and the average wins per division.

What Is the Main Purpose of Descriptive Statistics?

The main purpose of descriptive statistics is to provide information about a data set. In the example above, there are hundreds of baseballs players that engage in thousands of games. Descriptive statistics summarizes the large amount of data into several useful bits of information.

What Are the Types of Descriptive Statistics?

The three main types of descriptive statistics are frequency distribution, central tendency, and variability of a data set. The frequency distribution records how often data occurs, central tendency records the data's center point of distribution, and variability of a data set records its degree of dispersion.

Can Descriptive Statistics Be Used to Make Inference or Predictions?

No. While these descriptives help understand data attributes, inferential statistical techniques—a separate branch of statistics—are required to understand how variables interact with one another in a data set.

Descriptive statistics refers to the analysis, summary, and communication of findings that describe a data set. Often not useful for decision-making, descriptive statistics still hold value in explaining high-level summaries of a set of information such as the mean, median, mode, variance, range, and count of information.

Purdue Online Writing Lab. " Writing with Statistics: Descriptive Statistics ."

Cooksey, Ray W. " Descriptive Statistics for Summarizing Data ." Illustrating Statistical Procedures: Finding Meaning in Quantitative Data , vol. 15, May 2020, pp. 61–139.

Professor Andrew Ainsworth, California State University Northridge. " Measures of Variability, Descriptive Statistics Part 2 ." Page 2.

Professor Beverly Reed, Kent State University. " Summary: Differences Between Univariate and Bivariate Data ."

Purdue Online Writing Lab. " Writing with Statistics: Basic Inferential Statistics: Theory and Application ."

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Statistical Analysis Methods for Market Research

Statistical analysis will take market research to the next level, in this article…, introduction.

• What is statistical analysis?
• Statistical analysis methods
• Benefits of Using Statistical Analysis

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Primary market research allows organizations to collect information from target markets by employing traditional quantitative and qualitative techniques.

However, acquiring data is not the only factor for conducting effective market research as data is more widely available thanks to the power of technology and the internet and online panels .

Modern advancements make it easier for businesses across all industries to monitor customer and market sentiments while collecting large quantities of data.

The power of data is not inherent as a data set is only as good as the analysis and insights. The right analysis methods can assist your business in extracting key information and trends from a pool of random data points that analysts can use to set short and long-term growth strategies.

What is Statistical Analysis?

Statistical analysis is a quantitative data analysis method that uses numbers to assign a measurability factor that is easy to compare and interpret. Under statistical analysis, the raw data is collected and analyzed to identify any patterns and trends which can be used for informed decision making.

The process of using statistics for market research involves:

• Defining the type of data to be extracted from the target population
• Exploring the relationship of the data with the population set
• Developing a model that summarizes insights and defines any visible links between the data set and the population
• Testing the model to establish the validity of the model
• Incorporating the results into your business strategy by anticipating future trends

Statistical Analysis Methods

There are two main statistical analysis methods commonly used for market research purposes: descriptive and inferential statistics. Both methods have different goals and applications, making them suitable for evaluating different data sets.

Descriptive Statistics

Descriptive statistics provide insight into the data collected, but they do not draw any conclusions about the larger population the data sample is extracted from. This method essentially describes a sample by summarizing and graphing data.

Conducting market research with descriptive statistics can help organizations understand the basic features of any set of quantifiable data by grouping data and identifying any patterns or trends.

This method is relatively simple as it involves basic mathematic calculations and data aggregation to yield important figures to evaluate historical business practices and their effectiveness. Some common descriptive statistical analysis methods include:

This involves mathematical functions, including counting, percentage calculation, and frequency occurrences.

Measures of frequency are used to primarily count the number of times a specific variable, event, or number appears in a data set.

It is used to establish how often a response occurs in the sample.

This describes the central positions of a distribution for a given data set.

It is used to display the average responses by analyzing the frequency of the sample data points and expressing it using the mean, median, and mode.

The central tendency measure identifies the most common trends or shared characteristics in the sample data.

Inferential Statistics

Inferential statistics use insights and measurements derived from the sample set and extrapolates the results to a larger set.

This method is primarily used to draw conclusions from an experiment sample and generalize the points to a relevant population.

An underlying assumption of this method is that the sample size is an accurate representation of the population which requires us to identify the population, include relevant sampling techniques to extract the sample set, and have some built-in safeguards to account for sampling errors.

While this method is more complicated than descriptive statistics, it provides richer numerical data for future business strategies. Some common inference statistical analysis methods include:

This is used to establish the underlying structure of a larger set of correlated variables.

The purpose is to condense information contained in multiple original valuables into a smaller set with composite dimensions while ensuring there is minimum loss of information.

Simply stated we are reducing data by making one variable, which is easy to manage by representing a set of observed variables (typically semantic differential scales ) in terms of common factors which can explain correlation that can be applied to a larger population.

This is used to distinguish how market research respondents make complicated purchasing decisions that include perceiving and evaluating different variables related to a product or service.

Conjoint analysis requires respondents to evaluate the tradeoffs involved with different factors such as prices, branding, etc., and identify their bearing on purchase consideration to evaluate the decision-making criteria for customers.

This technique is used to evaluate patterns, trends, relationships, and probabilities by grouping variables to understand correlations between different variables involved in the sample data.

This method identifies relationships that might not be readily apparent by placing the variables next to each other in a two-dimensional table which provides a unique perspective and outlook beneficial for gauging insights.

The Totally Unduplicated Reach and Frequency Analysis is used to rank and optimize product combinations and while fine-tuning our communication strategies by analyzing the reach of communication sources and frequency.

TURF Analysis allows you to evaluate estimates of media and market potential in devising optimal communication and placement strategies.

It identifies the number of users reached by each communication method and how often they are reached so you can have a stronger grip on market sentiments.

This method provides an in-depth study into the relationship between two or more variables from a data set and their application to the overall population pool.

This can help businesses make predictions about future behavior by establishing a causal or dependency relationship that can be positive or negative.

The intensity is measured by a higher numeric value on a scale ranging from -1 to +1.

This is a commonly used method for predicting the strength of a relationship between two or more variables.

To run a regression analysis, you need to have a dependent variable whose variation is dependent on another variable and independent variables which are controlled by the experimenter, and its variation is not dependent on any other variable.

In the analysis, the impact of independent variables on the dependent variable is evaluated to understand which variables have a greater impact.

Speaking hypothesis testing is another way to derive conclusions about a population by testing representative sample sets against experimenter-defined expectations or hypotheses.

The hypothesis can establish relationships between variables or provide insights about population properties such as mean and variation through T-Test, Chi-Square, and ANOVA tests.

This method makes it easy to draw suitable conclusions when it is impossible to test the entire population.

However, this method requires sophisticated sampling techniques to ensure the sample is representative of the population.

Benefits of Using Statistical Analysis in Market Research

Statistical analysis methods can provide worthwhile benefits to facilitate market research processes by:

• Producing theories backed by numerical evidence . The quantitative nature of statistical analysis provides a solid numeric framework to provide objective support for relationships between variables and hypotheses. These statistics make it easier for organizations to make well thought out decisions to serve customers better and provide relevant products and services to align with long-term goals and a positive impact on productivity.
• Yielding data that is easily calculated and analyzed . The precision offered by numbers and percentages can provide answers that can be analyzed by performing arithmetic functions. They do not need to be coded, unlike qualitative data, to improve understandability. This cuts down on data processing time while producing relevant results.
• Yielding a larger respondent pool . Before implementing any statistical analysis techniques, you need to have a data set. It is important to note that the data set for quantitative research is typically larger than that of qualitative research because it consists of close-ended questions, which are less time consuming, thereby encouraging more people to complete the survey or questionnaire. The larger data set allows you to have a more accurate sample representing the population which provides greater credibility to any results derived from the analysis

Jim Whaley  is a business leader, market research expert, and writer. He posts frequently on  The Standard Ovation  and other industry blogs.

OvationMR is a global provider of first-party data  for those seeking solutions that require information for informed business decisions.

OvationMR is a leader in delivering insights  and reliable results across a variety of industry sectors around the globe consistently for market research professionals and management consultants.

Visit: https://www.ovationmr.com .

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Descriptive Statistics

Descriptive statistics are used to describe the basic features of the data in a study. They provide simple summaries about the sample and the measures. Together with simple graphics analysis, they form the basis of virtually every quantitative analysis of data.

Descriptive statistics are typically distinguished from inferential statistics . With descriptive statistics you are simply describing what is or what the data shows. With inferential statistics, you are trying to reach conclusions that extend beyond the immediate data alone. For instance, we use inferential statistics to try to infer from the sample data what the population might think. Or, we use inferential statistics to make judgments of the probability that an observed difference between groups is a dependable one or one that might have happened by chance in this study. Thus, we use inferential statistics to make inferences from our data to more general conditions; we use descriptive statistics simply to describe what’s going on in our data.

Descriptive Statistics are used to present quantitative descriptions in a manageable form. In a research study we may have lots of measures. Or we may measure a large number of people on any measure. Descriptive statistics help us to simplify large amounts of data in a sensible way. Each descriptive statistic reduces lots of data into a simpler summary. For instance, consider a simple number used to summarize how well a batter is performing in baseball, the batting average. This single number is simply the number of hits divided by the number of times at bat (reported to three significant digits). A batter who is hitting .333 is getting a hit one time in every three at bats. One batting .250 is hitting one time in four. The single number describes a large number of discrete events. Or, consider the scourge of many students, the Grade Point Average (GPA). This single number describes the general performance of a student across a potentially wide range of course experiences.

Every time you try to describe a large set of observations with a single indicator you run the risk of distorting the original data or losing important detail. The batting average doesn’t tell you whether the batter is hitting home runs or singles. It doesn’t tell whether she’s been in a slump or on a streak. The GPA doesn’t tell you whether the student was in difficult courses or easy ones, or whether they were courses in their major field or in other disciplines. Even given these limitations, descriptive statistics provide a powerful summary that may enable comparisons across people or other units.

Univariate Analysis

Univariate analysis involves the examination across cases of one variable at a time. There are three major characteristics of a single variable that we tend to look at:

• the distribution
• the central tendency
• the dispersion

In most situations, we would describe all three of these characteristics for each of the variables in our study.

The Distribution

The distribution is a summary of the frequency of individual values or ranges of values for a variable. The simplest distribution would list every value of a variable and the number of persons who had each value. For instance, a typical way to describe the distribution of college students is by year in college, listing the number or percent of students at each of the four years. Or, we describe gender by listing the number or percent of males and females. In these cases, the variable has few enough values that we can list each one and summarize how many sample cases had the value. But what do we do for a variable like income or GPA? With these variables there can be a large number of possible values, with relatively few people having each one. In this case, we group the raw scores into categories according to ranges of values. For instance, we might look at GPA according to the letter grade ranges. Or, we might group income into four or five ranges of income values.

One of the most common ways to describe a single variable is with a frequency distribution . Depending on the particular variable, all of the data values may be represented, or you may group the values into categories first (e.g. with age, price, or temperature variables, it would usually not be sensible to determine the frequencies for each value. Rather, the value are grouped into ranges and the frequencies determined.). Frequency distributions can be depicted in two ways, as a table or as a graph. The table above shows an age frequency distribution with five categories of age ranges defined. The same frequency distribution can be depicted in a graph as shown in Figure 1. This type of graph is often referred to as a histogram or bar chart.

Distributions may also be displayed using percentages. For example, you could use percentages to describe the:

• percentage of people in different income levels
• percentage of people in different age ranges
• percentage of people in different ranges of standardized test scores

Central Tendency

The central tendency of a distribution is an estimate of the “center” of a distribution of values. There are three major types of estimates of central tendency:

The Mean or average is probably the most commonly used method of describing central tendency. To compute the mean all you do is add up all the values and divide by the number of values. For example, the mean or average quiz score is determined by summing all the scores and dividing by the number of students taking the exam. For example, consider the test score values:

The sum of these 8 values is 167 , so the mean is 167/8 = 20.875 .

The Median is the score found at the exact middle of the set of values. One way to compute the median is to list all scores in numerical order, and then locate the score in the center of the sample. For example, if there are 500 scores in the list, score #250 would be the median. If we order the 8 scores shown above, we would get:

There are 8 scores and score #4 and #5 represent the halfway point. Since both of these scores are 20 , the median is 20 . If the two middle scores had different values, you would have to interpolate to determine the median.

The Mode is the most frequently occurring value in the set of scores. To determine the mode, you might again order the scores as shown above, and then count each one. The most frequently occurring value is the mode. In our example, the value 15 occurs three times and is the model. In some distributions there is more than one modal value. For instance, in a bimodal distribution there are two values that occur most frequently.

Notice that for the same set of 8 scores we got three different values ( 20.875 , 20 , and 15 ) for the mean, median and mode respectively. If the distribution is truly normal (i.e. bell-shaped), the mean, median and mode are all equal to each other.

Dispersion refers to the spread of the values around the central tendency. There are two common measures of dispersion, the range and the standard deviation. The range is simply the highest value minus the lowest value. In our example distribution, the high value is 36 and the low is 15 , so the range is 36 - 15 = 21 .

The Standard Deviation is a more accurate and detailed estimate of dispersion because an outlier can greatly exaggerate the range (as was true in this example where the single outlier value of 36 stands apart from the rest of the values. The Standard Deviation shows the relation that set of scores has to the mean of the sample. Again lets take the set of scores:

to compute the standard deviation, we first find the distance between each value and the mean. We know from above that the mean is 20.875 . So, the differences from the mean are:

Notice that values that are below the mean have negative discrepancies and values above it have positive ones. Next, we square each discrepancy:

Now, we take these “squares” and sum them to get the Sum of Squares (SS) value. Here, the sum is 350.875 . Next, we divide this sum by the number of scores minus 1 . Here, the result is 350.875 / 7 = 50.125 . This value is known as the variance . To get the standard deviation, we take the square root of the variance (remember that we squared the deviations earlier). This would be SQRT(50.125) = 7.079901129253 .

Although this computation may seem convoluted, it’s actually quite simple. To see this, consider the formula for the standard deviation:

• X is each score,
• X̄ is the mean (or average),
• n is the number of values,
• Σ means we sum across the values.

In the top part of the ratio, the numerator, we see that each score has the mean subtracted from it, the difference is squared, and the squares are summed. In the bottom part, we take the number of scores minus 1 . The ratio is the variance and the square root is the standard deviation. In English, we can describe the standard deviation as:

the square root of the sum of the squared deviations from the mean divided by the number of scores minus one.

Although we can calculate these univariate statistics by hand, it gets quite tedious when you have more than a few values and variables. Every statistics program is capable of calculating them easily for you. For instance, I put the eight scores into SPSS and got the following table as a result:

which confirms the calculations I did by hand above.

The standard deviation allows us to reach some conclusions about specific scores in our distribution. Assuming that the distribution of scores is normal or bell-shaped (or close to it!), the following conclusions can be reached:

• approximately 68% of the scores in the sample fall within one standard deviation of the mean
• approximately 95% of the scores in the sample fall within two standard deviations of the mean
• approximately 99% of the scores in the sample fall within three standard deviations of the mean

For instance, since the mean in our example is 20.875 and the standard deviation is 7.0799 , we can from the above statement estimate that approximately 95% of the scores will fall in the range of 20.875-(2*7.0799) to 20.875+(2*7.0799) or between 6.7152 and 35.0348 . This kind of information is a critical stepping stone to enabling us to compare the performance of an individual on one variable with their performance on another, even when the variables are measured on entirely different scales.

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Descriptive Statistics

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Descriptive statistics in research: a critical component of data analysis.

15 min read With any data, the object is to describe the population at large, but what does that mean and what processes, methods and measures are used to uncover insights from that data? In this short guide, we explore descriptive statistics and how it’s applied to research.

What do we mean by descriptive statistics?

With any kind of data, the main objective is to describe a population at large — and using descriptive statistics, researchers can quantify and describe the basic characteristics of a given data set.

For example, researchers can condense large data sets, which may contain thousands of individual data points or observations, into a series of statistics that provide useful information on the population of interest. We call this process “describing data”.

In the process of producing summaries of the sample, we use measures like mean, median, variance, graphs, charts, frequencies, histograms, box and whisker plots, and percentages. For datasets with just one variable, we use univariate descriptive statistics. For datasets with multiple variables, we use bivariate correlation and multivariate descriptive statistics.

Want to find out the definitions? Univariate descriptive statistics: this is when you want to describe data with only one characteristic or attribute

Bivariate correlation: this is when you simultaneously analyze (compare) two variables to see if there is a relationship between them

Multivariate descriptive statistics: this is a subdivision of statistics encompassing the simultaneous observation and analysis of more than one outcome variable

Then, after describing and summarising the data, as well as using simple graphical analyses, we can start to draw meaningful insights from it to help guide specific strategies. It’s also important to note that descriptive statistics can employ and use both quantitative and qualitative research .

Describing data is undoubtedly the most critical first step in research as it enables the subsequent organisation, simplification and summarisation of information — and every survey question and population has summary statistics. Let’s take a look at a few examples.

Examples of descriptive statistics

Consider for a moment a number used to summarise how well a striker is performing in football — goals scored per game. This number is simply the number of shots taken against how many of those shots hit the back of the net (reported to three significant digits). If a striker is scoring 0.333, that’s one goal for every three shots. If they’re scoring one in four, that’s 0.250.

A classic example is a student’s grade point average (GPA). This single number describes the general performance of a student across a range of course experiences and classes. It doesn’t tell us anything about the difficulty of the courses the student is taking, or what those courses are, but it does provide a summary that enables a degree of comparison with people or other units of data.

Ultimately, descriptive statistics make it incredibly easy for people to understand complex (or data intensive) quantitative or qualitative insights across large data sets.

Take your research and subsequent analysis to the next level

Types of descriptive statistics

To quantitatively summarise the characteristics of raw, ungrouped data, we use the following types of descriptive statistics:

• Measures of Central Tendency ,
• Measures of Dispersion and
• Measures of Frequency Distribution.

Following the application of any of these approaches, the raw data then becomes ‘grouped’ data that’s logically organised and easy to understand. To visually represent the data, we then use graphs, charts, tables etc.

Let’s look at the different types of measurement and the statistical methods that belong to each:

Measures of Central Tendency are used to describe data by determining a single representative of central value. For example, the mean, median or mode.

Measures of Dispersion are used to determine how spread out a data distribution is with respect to the central value, e.g. the mean, median or mode. For example, while central tendency gives the person the average or central value, it doesn’t describe how the data is distributed within the set.

Measures of Frequency Distribution are used to describe the occurrence of data within the data set (count).

The methods of each measure are summarised in the table below:

Mean: The most popular and well-known measure of central tendency. The mean is equal to the sum of all the values in the data set divided by the number of values in the data set.

Median: The median is the middle score for a set of data that has been arranged in order of magnitude. If you have an even number of data, e.g. 10 data points, take the two middle scores and average the result.

Mode: The mode is the most frequently occurring observation in the data set.  

Range: The difference between the highest and lowest value.

Standard deviation: Standard deviation measures the dispersion of a data set relative to its mean and is calculated as the square root of the variance.

Quartile deviation : Quartile deviation measures the deviation in the middle of the data.

Variance: Variance measures the variability from the average of mean.

Absolute deviation: The absolute deviation of a dataset is the average distance between each data point and the mean.

Count: How often each value occurs.

Scope of descriptive statistics in research

Descriptive statistics (or analysis) is considered more vast than other quantitative and qualitative methods as it provides a much broader picture of an event, phenomenon or population.

But that’s not all: it can use any number of variables, and as it collects data and describes it as it is, it’s also far more representative of the world as it exists.

However, it’s also important to consider that descriptive analyses lay the foundation for further methods of study. By summarising and condensing the data into easily understandable segments, researchers can further analyse the data to uncover new variables or hypotheses.

Mostly, this practice is all about the ease of data visualisation. With data presented in a meaningful way, researchers have a simplified interpretation of the data set in question. That said, while descriptive statistics helps to summarise information, it only provides a general view of the variables in question.

It is, therefore, up to the researchers to probe further and use other methods of analysis to discover deeper insights.

Things you can do with descriptive statistics:

• Define subject characteristics: If a marketing team wanted to build out accurate buyer personas for specific products and industry verticals, they could use descriptive analyses on customer datasets (procured via a survey) to identify consistent traits and behaviours.

They could then ‘describe’ the data to build a clear picture and understanding of who their buyers are, including things like preferences, business challenges, income and so on.

• Measure data trends

Let’s say you wanted to assess propensity to buy over several months or years for a specific target market and product. With descriptive statistics, you could quickly summarise the data and extract the precise data points you need to understand the trends in product purchase behaviour.

• Compare events, populations or phenomena

How do different demographics respond to certain variables? For example, you might want to run a customer study to see how buyers in different job functions respond to new product features or price changes. Are all groups as enthusiastic about the new features and likely to buy? Or do they have reservations? This kind of data will help inform your overall product strategy and potentially how you tier solutions.

• Validate existing conditions

When you have a belief or hypothesis but need to prove it, you can use descriptive techniques to ascertain underlying patterns or assumptions.

• Form new hypotheses

With the data presented and surmised in a way that everyone can understand (and infer connections from), you can delve deeper into specific data points to uncover deeper and more meaningful insights — or run more comprehensive research.

Guiding your survey design to improve the data collected

To use your surveys as an effective tool for customer engagement and understanding, every survey goal and item should answer one simple, yet highly important question:

“What am I really asking?”

It might seem trivial, but by having this question frame survey research, it becomes significantly easier for researchers to develop the right questions that uncover useful, meaningful and actionable insights.

Planning becomes easier, questions clearer and perspective far wider and yet nuanced.

Hypothesise — what’s the problem that you’re trying to solve? Far too often, organisations collect data without understanding what they’re asking, and why they’re asking it.

Finally, focus on the end result. What kind of data do you need to answer your question? Also, are you asking a quantitative or qualitative question? Here are a few things to consider:

• Clear questions are clear for everyone. It takes time to make a concept clear
• Ask about measurable, evident and noticeable activities or behaviours.
• Make rating scales easy. Avoid long lists, confusing scales or “don’t know” or “not applicable” options.
• Ensure your survey makes sense and flows well. Reduce the cognitive load on respondents by making it easy for them to complete the survey.
• Read your questions aloud to see how they sound.
• Pretest by asking a few uninvolved individuals to answer.

Furthermore…

As well as understanding what you’re really asking, there are several other considerations for your data:

• Keep it random

How you select your sample is what makes your research replicable and meaningful. Having a truly random sample helps prevent bias, increasingly the quality of evidence you find.

• Plan for and avoid sample error

Before starting your research project, have a clear plan for avoiding sample error. Use larger sample sizes, and apply random sampling to minimise the potential for bias.

• Don’t over sample

Remember, you can sample 500 respondents selected randomly from a population and they will closely reflect the actual population 95% of the time.

• Think about the mode

Match your survey methods to the sample you select. For example, how do your current customers prefer communicating? Do they have any shared characteristics or preferences? A mixed-method approach is critical if you want to drive action across different customer segments.

Use a survey tool that supports you with the whole process

Surveys created using a survey research software can support researchers in a number of ways:

• Employee satisfaction survey template
• Employee exit survey template
• Customer satisfaction (CSAT) survey template
• Ad testing survey template
• Brand awareness survey template
• Product pricing survey template
• Product research survey template
• Employee engagement survey template
• Customer service survey template
• NPS survey template
• Product package testing survey template
• Product features prioritisation survey template

These considerations have been included in Qualtrics’ survey software , which summarises and creates visualisations of data, making it easy to access insights, measure trends, and examine results without complexity or jumping between systems.

Uncover your next breakthrough idea with Stats iQ™

What makes Qualtrics so different from other survey providers is that it is built in consultation with trained research professionals and includes high-tech statistical software like Qualtrics Stats iQ .

With just a click, the software can run specific analyses or automate statistical testing and data visualisation. Testing parameters are automatically chosen based on how your data is structured (e.g. categorical data will run a statistical test like Chi-squared), and the results are translated into plain language that anyone can understand and put into action.

• Get more meaningful insights from your data

Stats iQ includes a variety of statistical analyses, including: describe, relate, regression, cluster, factor, TURF, and pivot tables — all in one place!

• Confidently analyse complex data

Built-in artificial intelligence and advanced algorithms automatically choose and apply the right statistical analyses and return the insights in plain english so everyone can take action.

• Integrate existing statistical workflows

For more experienced stats users, built-in R code templates allow you to run even more sophisticated analyses by adding R code snippets directly in your survey analysis.

         Advanced statistical analysis methods available in Stats iQ

Regression analysis – Measures the degree of influence of independent variables on a dependent variable (the relationship between two or multiple variables).

Analysis of Variance (ANOVA) test – Commonly used with a regression study to find out what effect independent variables have on the dependent variable. It can compare multiple groups simultaneously to see if there is a relationship between them.

Conjoint analysis – Asks people to make trade-offs when making decisions, then analyses the results to give the most popular outcome. Helps you understand why people make the complex choices they do.

T-Test – Helps you compare whether two data groups have different mean values and allows the user to interpret whether differences are meaningful or merely coincidental.

Crosstab analysis – Used in quantitative market research to analyse categorical data – that is, variables that are different and mutually exclusive, and allows you to compare the relationship between two variables in contingency tables.

Go from insights to action

Now that you have a better understanding of descriptive statistics in research and how you can leverage statistical analysis methods correctly, now’s the time to utilise a tool that can take your research and subsequent analysis to the next level.

Try out a Qualtrics survey software demo so you can see how it can take you through descriptive research and further research projects from start to finish.

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Descriptive statistics is a subfield of statistics that deals with characterizing the features of known data. Descriptive statistics give summaries of either population or sample data. Aside from descriptive statistics, inferential statistics is another important discipline of statistics used to draw conclusions about population data.

Descriptive statistics is divided into two categories:

Measures of Central Tendency

Measures of dispersion.

In this article, we will learn about descriptive statistics, including their many categories, formulae, and examples in detail.

What is Descriptive Statistics?

Descriptive statistics is a branch of statistics focused on summarizing, organizing, and presenting data in a clear and understandable way. Its primary aim is to define and analyze the fundamental characteristics of a dataset without making sweeping generalizations or assumptions about the entire data set.

The main purpose of descriptive statistics is to provide a straightforward and concise overview of the data, enabling researchers or analysts to gain insights and understand patterns, trends, and distributions within the dataset.

Descriptive statistics typically involve measures of central tendency (such as mean, median, mode), dispersion (such as range, variance, standard deviation), and distribution shape (including skewness and kurtosis). Additionally, graphical representations like charts, graphs, and tables are commonly used to visualize and interpret the data.

Histograms, bar charts, pie charts, scatter plots, and box plots are some examples of widely used graphical techniques in descriptive statistics.

Descriptive Statistics Definition

Descriptive statistics is a type of statistical analysis that uses quantitative methods to summarize the features of a population sample. It is useful to present easy and exact summaries of the sample and observations using metrics such as mean, median, variance, graphs, and charts.

Types of Descriptive Statistics

There are three types of descriptive statistics:

Measures of Frequency Distribution

The central tendency is defined as a statistical measure that may be used to describe a complete distribution or dataset with a single value, known as a measure of central tendency. Any of the central tendency measures accurately describes the whole data distribution. In the following sections, we will look at the central tendency measures, their formulae, applications, and kinds in depth.

Mean is the sum of all the components in a group or collection divided by the number of items in that group or collection. Mean of a data collection is typically represented as x̄ (pronounced “x bar”). The formula for calculating the mean for ungrouped data to express it as the measure is given as follows:

For a series of observations:

x̄ = Σx / n

• x̄ = Mean Value of Provided Dataset
• Σx = Sum of All Terms
• n = Number of Terms

Example: Weights of 7 girls in kg are 54, 32, 45, 61, 20, 66 and 50. Determine the mean weight for the provided collection of data.

Mean = Σx/n = (54 + 32 + 45 + 61 + 20 + 66 + 50)/7 = 328 / 7 = 46.85 Thus, the group’s mean weight is 46.85 kg.

Median of a data set is the value of the middle-most observation obtained after organizing the data in ascending order, which is one of the measures of central tendency. Median formula may be used to compute the median for many types of data, such as grouped and ungrouped data.

Ungrouped Data Median (n is odd): [(n + 1)/2] th  term Ungrouped Data Median (n is even): [(n / 2) th  term + ((n / 2) + 1) th  term]/2

Example: Weights of 7 girls in kg are 54, 32, 45, 61, 20, 66 and 50. Determine the median weight for the provided collection of data.

Arrange the provided data collection in ascending order: 20, 32, 45, 50, 54, 61, 66 Median = [(n + 1) / 2] th  term = [(7 + 1) / 2] th  term = 4 th  term = 50 Thus, group’s median weight is 50 kg.

Mode is one of the measures of central tendency, defined as the value that appears the most frequently in the provided data, i.e. the observation with the highest frequency is known as the mode of data. The mode formulae provided below can be used to compute the mode for ungrouped data.

Mode of Ungrouped Data: Most Repeated Observation in Dataset

Example: Weights of 7 girls in kg are 54, 32, 45, 61, 20, 45 and 50. Determine the mode weight for the provided collection of data.

Mode = Most repeated observation in Dataset = 45 Thus, group’s mode weight is 45 kg.

If the variability of data within an experiment must be established, absolute measures of variability should be employed. These metrics often reflect differences in a data collection in terms of the average deviations of the observations. The most prevalent absolute measurements of deviation are mentioned below. In the following sections, we will look at the variability measures, their formulae in depth.

Standard Deviation

The range represents the spread of your data from the lowest to the highest value in the distribution. It is the most straightforward measure of variability to compute. To get the range, subtract the data set’s lowest and highest values.

Range = Highest Value – Lowest Value

Example: Calculate the range of the following data series:  5, 13, 32, 42, 15, 84

Arrange the provided data series in ascending order: 5, 13, 15, 32, 42, 84 Range = H – L = 84 – 5 = 79 So, the range is 79.

Standard deviation (s or SD) represents the average level of variability in your dataset. It represents the average deviation of each score from the mean. The higher the standard deviation, the more varied the dataset is.

To calculate standard deviation, follow these six steps:

Step 1: Make a list of each score and calculate the mean.

Step 2: Calculate deviation from the mean, by subtracting the mean from each score.

Step 3: Square each of these differences.

Step 4: Sum up all squared variances.

Step 5: Divide the total of squared variances by N-1.

Step 6: Find the square root of the number that you discovered.

Example: Calculate standard deviation of the following data series:  5, 13, 32, 42, 15, 84.

Step 1: First we have to calculate the mean of following series using formula: Σx / n

Step 2: Now calculate the deviation from mean, subtract the mean from each series.

Step 3: Squared the deviation from mean and then add all the deviation.

Step 4: Divide the squared deviation with N-1 => 4182.84 / 5 = 836.57

Step 5: √836.57 = 28.92

So, the standard deviation is 28.92

Variance is calculated as average of squared departures from the mean. Variance measures the degree of dispersion in a data collection. The more scattered the data, the larger the variance in relation to the mean. To calculate the variance, square the standard deviation.

Symbol for variance is s 2

Example: Calculate the variance of the following data series:  5, 13, 32, 42, 15, 84.

First we have to calculate the standard deviation, that we calculate above i.e. SD = 28.92 s 2 = (SD) 2 = (28.92) 2 = 836.37 So, the variance is 836.37

Mean Deviation

Mean Deviation  is used to find the average of the absolute value of the data about the mean, median, or mode. Mean Deviation is some times also known as absolute deviation. The formula mean deviation is given as follows:

Mean Deviation = ∑ n 1 |X – μ|/n

•   μ is Central Value

Quartile Deviation

Quartile Deviation is the Half of difference between the third and first quartile. The formula for quartile deviation is given as follows:

Quartile Deviation = (Q 3 − Q 1 )/2

•   Q 3 is Third Quartile
• Q 1 is First Quartile

Other measures of dispersion include the relative measures also known as the coefficients of dispersion.

Datasets consist of various scores or values. Statisticians employ graphs and tables to summarize the occurrence of each possible value of a variable, often presented in percentages or numerical figures.

For instance, suppose you were conducting a poll to determine people’s favorite Beatles. You would create one column listing all potential options (John, Paul, George, and Ringo) and another column indicating the number of votes each received. Statisticians represent these frequency distributions through graphs or tables

Univariate Descriptive Statistics

Univariate descriptive statistics focus on one thing at a time. We look at each thing individually and use different ways to understand it better. Programs like SPSS and Excel can help us with this.

If we only look at the average (mean) of something, like how much people earn, it might not give us the true picture, especially if some people earn a lot more or less than others. Instead, we can also look at other things like the middle value (median) or the one that appears most often (mode). And to understand how spread out the values are, we use things like standard deviation and variance along with the range.

Bivariate Descriptive Statistics

When we have information about more than one thing, we can use bivariate or multivariate descriptive statistics to see if they are related. Bivariate analysis compares two things to see if they change together. Before doing any more complicated tests, it’s important to look at how the two things compare in the middle.

Multivariate analysis is similar to bivariate analysis, but it looks at more than two things at once, which helps us understand relationships even better.

Representations of Data in Descriptive Statistics

Descriptive statistics use a variety of ways to summarize and present data in an understandable manner. This helps us grasp the data set’s patterns, trends, and properties.

Frequency Distribution Tables: Frequency distribution tables divide data into categories or intervals and display the number of observations (frequency) that fall into each one. For example, suppose we have a class of 20 students and are tracking their test scores. We may make a frequency distribution table that contains score ranges (e.g., 0-10, 11-20) and displays how many students scored in each range.

Graphs and Charts: Graphs and charts graphically display data, making it simpler to understand and analyze. For example, using the same test score data, we may generate a bar graph with the x-axis representing score ranges and the y-axis representing the number of students. Each bar on the graph represents a score range, and its height shows the number of students scoring within that range.

These approaches help us summarize and visualize data, making it easier to discover trends, patterns, and outliers, which is critical for making informed decisions and reaching meaningful conclusions in a variety of sectors.

Descriptive Statistics Applications

Descriptive statistics are used in a variety of sectors to summarize, organize, and display data in a meaningful and intelligible way. Here are a few popular applications:

• Business and Economics: Descriptive statistics are useful for analyzing sales data, market trends, and customer behaviour. They are used to generate averages, medians, and standard deviations in order to better evaluate product performance, pricing strategies, and financial metrics.
• Healthcare: Descriptive statistics are used to analyze patient data such as demographics, medical histories, and treatment outcomes. They assist healthcare workers in determining illness prevalence, assessing treatment efficacy, and identifying risk factors.
• Education: Descriptive statistics are useful in education since they summarize student performance on tests and examinations. They assist instructors in assessing instructional techniques, identifying areas for improvement, and monitoring student growth over time.
• Market Research: Descriptive statistics are used to analyze customer preferences, product demand, and market trends. They enable businesses to make educated decisions about product development, advertising campaigns, and market segmentation.
• Finance and investment: Descriptive statistics are used to analyze stock market data, portfolio performance, and risk management. They assist investors in determining investment possibilities, tracking asset values, and evaluating financial instruments.

Difference Between Descriptive Statistics and Inferential Statistics

Difference between Descriptive Statistics and Inferential Statistics is studied using the table added below as,

Example of Descriptive Statistics Examples

Example 1: Calculate the Mean, Median and Mode for the following series: {4, 8, 9, 10, 6, 12, 14, 4, 5, 3, 4}

First, we are going to calculate the mean. Mean = Σx / n = (4 + 8 + 9 + 10 + 6 + 12 + 14 + 4 + 5 + 3 + 4)/11 = 79 / 11 = 7.1818 Thus, the Mean is 7.1818. Now, we are going to calculate the median. Arrange the provided data collection in ascending order: 3, 4, 4, 4, 5, 6, 8, 9, 10, 12, 14 Median = [(n + 1) / 2] th  term = [(11 + 1) / 2] th  term = 6 th  term = 6 Thus, the median is 6. Now, we are going to calculate the mode. Mode = The most repeated observation in the dataset = 4 Thus, the mode is 4.

Example 2: Calculate the Range for the following series: {4, 8, 9, 10, 6, 12, 14, 4, 5, 3, 4}

Arrange the provided data series in ascending order: 3, 4, 4, 4, 5, 6, 8, 9, 10, 12, 14 Range = H – L = 14 – 3 = 11 So, the range is 11.

Example 3: Calculate the standard deviation and variance of following data: {12, 24, 36, 48, 10, 18}

First we are going to compute standard deviation. For standard deviation calculate the mean, deviation from mean and squared deviation.

Dividing squared deviation with N-1 => 1093.351 / 5 = 218.67

√(218.67) = 14.79

So, the standard deviation is 14.79.

Now we are going to calculate the variance.

s 2 = 218.744

So, the variance is 218.744

Practice Problems on Descriptive Statistics

P1) Determine the sample variance of the following series: {17, 21, 52, 28, 26, 23}

P2) Determine the mean and mode of the following series: {21, 14, 56, 41, 18, 15, 18, 21, 15, 18}

P3) Find the median of the following series: {7, 24, 12, 8, 6, 23, 11}

P4) Find the standard deviation and variance of the following series: {17, 28, 42, 48, 36, 42, 20}

FAQs of Descriptive Statistics

What is meant by descriptive statistics.

Descriptive statistics seek to summarize, organize, and display data in an accessible manner while avoiding making sweeping generalizations about the whole population. It aids in discovering patterns, trends, and distributions within the collection.

How is the mean computed in descriptive statistics?

Mean is computed by adding together all of the values in the dataset and dividing them by the total number of observations. It measures the dataset’s central tendency or average value.

What role do measures of variability play in descriptive statistics?

Measures of variability, such as range, standard deviation, and variance, aid in quantifying the spread or dispersion of data points around the mean. They give insights on the dataset’s variety and consistency.

Can you explain the median in descriptive statistics?

The median is the midpoint value of a dataset whether sorted ascending or descending. It measures central tendency and is important when dealing with skewed data or outliers.

How can frequency distribution measurements contribute to descriptive statistics?

Measures of frequency distribution summarize the incidence of various values or categories within a dataset. They give insights into the distribution pattern of the data and are commonly represented by graphs or tables.

How are inferential statistics distinguished from descriptive statistics?

Inferential statistics use sample data to draw inferences or make predictions about a wider population, whereas descriptive statistics summarize aspects of known data. Descriptive statistics concentrate on the present dataset, whereas inferential statistics go beyond the observable data.

Why are descriptive statistics necessary in data analysis?

Descriptive statistics give researchers and analysts a clear and straightforward summary of the dataset, helping them to identify patterns, trends, and distributions. It aids in making educated judgements and gaining valuable insights from data.

What are the four types of descriptive statistics?

There are four major types of descriptive statistics: Measures of Frequency Measures of Central Tendency Measures of Dispersion or Variation Measures of Position

Which is an example of descriptive statistics?

Descriptive statistics examples include the study of mean, median, and mode.

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Conclusive research is a structured data collection technique that provides detailed, factual information that's useful in decision-making. Descriptive marketing research is a form of conclusive research used to describe both the composition of a group in such terms as income, gender, age and education and the characteristics of group members in regards to both current and future behavior. Examples of a group include a collection of customers, sales people, organizations or market segments. Surveys, case studies, job analyses, document analyses, and correlational studies are each a form of descriptive marketing research.

A survey gathers information from a sample to construct quantitative statistics that describe the size and attributes of a larger population. For example, descriptive statistics can be used to calculate the percentage of a population that supports the policies of a particular president. To conduct a survey, the researcher questions a sample of respondents from within a population. The survey or questionnaire may be a document to be completed by the person who is surveyed, an online questionnaire, a telephone interview or a face-to-face interview.

A case study draws conclusions from data collected regarding real-life events for decision-support purposes. For example, a case study may focus on a particular group behavior, a business process or a school's performance. To conduct a case study, detailed information regarding a participant or group is collected and summarized. This information is not intended to generate conclusions about a larger population, but rather to describe the event, individual or group that's the subject of the study.

Job Analysis

A job analysis describes and classifies jobs. For example, a job analysis may provide detailed information regarding the major tasks of a tax accountant, the environment in which he works and the physical, emotional and cognitive capacities required for an individual to be successful in the role. Whereas job analyses are used by corporations in hiring, training and evaluating employees, governments rely on the job descriptions to monitor workforce activity. In turn, psychologists focus on job characteristics to analyze issues of workplace behavior.

Documentary Analysis

Document analysis requires the collection and review of documents that are specific to a particular group in terms of the characteristics of the individual group members or their behavior. For example, government statistics provide information regarding the income, gender, age and education of the U. S. population. Document analysis requires that documents be selected according to predefined criteria that reflect the issues regarding which a researcher seeks evidence. Written agreements, website data, meeting agendas, reports and other publications can be used for this purpose.

Correlational Study

Correlational studies allow a researcher to identify an association between two variables as well as the degree to which the association holds true across multiple populations. For example, a study may focus on a man's age and his expenditures on sports equipment. A positive correlation suggests that a man will spend more on sports equipment as he grows older whereas a negative correlation suggests that he spends less with age.

• "A Concise Guide to Market Research: The Process, Data, and Methods Using IBM SPSS Statistics"; Sarstedt et al. ; 2011
• "Marketing Research: Methodological Foundations": Churchill et al.
• "Essentials of Marketing Research"; Zikmund et al.; 2007
• "Survey methodology"; Groves, et al.; 2009
• "International Marketing Research"; Craig, et al.; 2005

Billie Nordmeyer works as a consultant advising small businesses and Fortune 500 companies on performance improvement initiatives, as well as SAP software selection and implementation. During her career, she has published business and technology-based articles and texts. Nordmeyer holds a Bachelor of Science in accounting, a Master of Arts in international management and a Master of Business Administration in finance.

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Descriptive Statistics

• First Online: 02 November 2017

Cite this chapter

• Erik Mooi 4 ,
• Marko Sarstedt 5 &
• Irma Mooi-Reci 6  

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We first provide an overview of market research’s workflow. We then discuss efficient strategies to help you structure your project’s database, as well as enter, clean, and easily check the collected data for inconsistencies. In addition, we provide easy strategies that allow you to handle missing data observations before we describe the most common and useful univariate and bivariate descriptive graphs and statistics. Thereafter, we take you through the basics of Stata, including its toolbar and shortcuts to frequently used commands, and provide useful tips on how to create and interpret descriptive graphs and table outputs. A range of descriptive statistics is illustrated and applied in Stata, including bar charts, histograms, box plots, pie charts, frequency tables, scatter graphs, crosstabs, and correlation tables, all of which are useful for differently scaled variables. We make use of a case study for an easy and meaningful interpretation of the graphs and table outputs. We conclude with recommendations for further readings and a case study with review questions.

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Alternatively, you could also choose one of the many control system versions, including Subversion, Git, and Mecurial, which enable simple branching and project management. These systems work well with version control in centralized and in distributed environments.

There are multivariate techniques that consider three, or more, variables simultaneously in order to detect outliers. See Hair et al. ( 2010 ) for an introduction, and Agarwal ( 2013 ) for a more detailed methodological discussion.

For more information on missing data, see https://www.iriseekhout.com

The mode is another measure. However, unlike the median and mean, it is ill-defined, because it can take on multiple values. Consequently, we do not discuss the mode.

A similar type of chart is the line chart . In a line chart, measurement points are ordered (typically by their x -axis value) and joined with straight line segments.

Note that the terms n −1 in the numerator and denominator cancel each other and are therefore not shown here.

In Stata, this is best done using the rowmean command. For example, egen commitment = rowmean (com1 com2 com3 ). This command automatically calculates the mean over the number of nonmissing responses.

The logarithm is calculated as follows: If x = y b , then y = log b (x) where x is the original variable, b the logarithm’s base, and y the exponent. For example, log 10 of 100 is 2. Logarithms cannot be calculated for negative values (such as household debt) and for the value of zero. In Stata, you can generate a log-transformed variable by typing: gen loginc = log(income) , whereby loginc refers to the newly created log-transformed variable and income refers to the income variable.

If you open Stata in the Windows or Linux operating systems, the toolbar looks a bit different, but is structured along the same lines as discussed in this chapter.

http://www.stata.com/manuals14/ddatatypes.pdf

http://www.stata.com/manuals14/u.pdf

http://www.stata.com/manuals14/dformat.pdf

Note an ordinary year has 52 weeks and 1 day, while a leap year has 52 weeks and 2 days. This is because 1 week comprises part of 2016 and part of 2017.

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Department of Management and Marketing, University of Melbourne, Parkville, Victoria, Australia

Chair of Marketing, Otto-von-Guericke-University, Magdeburg, Sachsen-Anhalt, Germany

Marko Sarstedt

School of Social and Political Sciences, University of Melbourne, Parkville, Victoria, Australia

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Mooi, E., Sarstedt, M., Mooi-Reci, I. (2018). Descriptive Statistics. In: Market Research. Springer Texts in Business and Economics. Springer, Singapore. https://doi.org/10.1007/978-981-10-5218-7_5

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