Descriptive Statistics Project Example | Topics and Well Written Essays - 1500 words

Descriptive - Statistics Project Example Consequently, an organization can meet expectations among all target consumers and at the same time optimize its sales volume and profitability. Similarly, understanding statistics on consumption helps business organizations in planning their productions, an aspect that affects wastes in storage cost, and goods that expire before sales. Understanding demand is also important for informed decisions among producers and consumers through generating information on alternatives that can be compared for decision-making (Apte, 2009). For producers and aspiring producers, understanding distribution in levels of expenditures for different classes of goods and services may indicate more profitable ventures for exploration while a consumer’s understanding of trends in major expenditures could develop awareness of possible utilities for exploration. Understanding that others spend significant amount of money on entertainment may, for example, be an indicator that entertainment is benefici al to professional and personal health and influence a consumer’s opinion on entertainment expenditure level. Expenditure and its determinants are also important for theoretical understanding of relationship between demand and its associated factors. According to law of demand, level of demand for a commodity is inversely proportional to the commodity’s price, should all other factors be kept constant (Friedman, 2009), and this establishes a basis for studying microeconomic factors such as demand and its relationship with other factors, to ascertain the theory, based on changing environments. Studying demand and its associated factors also offers a basis for extending the theory of demand to explaining correlations among the factors to demand such as levels of income, fraction of income spent on different types of utilities (Chauhan, 2009), and â€Å"cultural