What is statistics?

Simply said, it is a collection of data and performing analysis on them. It includes following activities:

• data collection
• experiment design
• summing up the information to comprehend
• making conclusions based on data
• assessing the presence and estimating the future

When to use statistics?

It is true that in some cases business decisions that could use statistical information are made without statistics. On the other hand, many business decisions that shouldnĺt use statistics are made using statistics. We should use statistics to avoid wrong assumptions in order to convert specific facts about the world into useful information.

Most common mistakes related to the use of statistics.

• lack of basic statistical knowledge on the part of the business people
• assuming how complicated or difficult it is to use statistics
• statistics cost a lot of money
• we don't have time for it
• we can decide without facts and numbers
• wrong data

Why are statistics so important in Six Sigma?

Fundamental principle of Six Sigma is data based decision. Therefore, it is crucial to interpret the data correctly and statistical tools are very important in confirmation of hypotheses. In most of the Six Sigma initiatives, hard statistics are not necessary and analysis can be performed with basic mathematical calculations.