BusinessAnalytics and Sampling
Ananalytical competitor is an organization that utilizes datamethodically and objectively. Such organizations have variousattributes. First, they focus on optimization technologies thatenable them to analyze rudimentary data with the aim of understandingtrends and financial performances(Webb, 2015).For example the American Airlines intensified the online reservationplatform to increase its revenues. Also, the firms employ a singleapproach when operating their data initiatives. According to Webb(2015), theleadership of analytical enterprises has preferences for analytics asthe primary tool to understand the markets. The industries thatexperience high levels of analytical competition include aviationwith 61% and manufacturing at 45%. According to Kirzner(2015), therationale for this is that most of the companies in the twoindustries are always hatching a differentiation strategy to beatcompetition. Also, the high percentage of adoption of the big dataapproaches is instigated by the action of model companies that useanalytics to outline their strategies.
Whenconducting a study, a sample is taken as a representation of thetargeted population. The sample affects the statistical tests andoutcomes of a research in several ways. First, the size of the groupdetermines quantity of data. According toIsrael (2012), researchersconsider the amount of information before deciding on the mostappropriate tool to test it. For example, when determining therelationship between the size of the diet and weight gain in 100participants, it can be challenging for a researcher to determine therelationship between the variables without employing a statisticaltool such as SPSS. Also, the number of those who take part in a studydetermines the precision and statistical significance of a study(Israel, 2012).For example, in a research carried out on the political factorsinfluencing the location of manufacturing industries in the UnitedStates, it would be insignificant to collect data from 10 firms. Therationale for this is that there are numerous such companies and tenwould not be a sufficient representation of the thousands indifferent states.
Itis also imperative to plan the sample size before collecting data.The preliminary preparations help researchers to estimate the cost,time and the resources needed when gathering information (Israel,2012). It also helps in assessing whether the targeted group canallow the generalization of the results at the end of the inquiry.Information and interpretation of findings gathered from a bigpopulation can be applied in another setting due to the highprecision of the outcomes.
Israel,G. D. (2012). Sampling: Determining sample size. Retrieved,5(13),2013.
Kirzner,I. M. (2015). Competitionand entrepreneurship.Chicago: University of Chicago press.
Webb,K. L. (2015). Analytical Models of Competition and Coordination inMarketing Channels: A Qualitative Review. In Proceedingsof the 1994 Academy of Marketing Science (AMS) Annual Conference(pp. 408-412). New York NY: Springer International Publishing.