Describe the business benefits of parameter estimation. Provide examples of the type of parameters...

Question

Describe the business benefits of parameter estimation. Provide examples of the type of parameters that might be of interest to decision makers in areas such as marketing.Elaborate on how being able to estimate those parameters would benefit the quality of the resultant decisions.Describe the business benefits of drawing inferences—specifically, when it is advantageous to rely on inferences and what is required to ascertain the correctness of inferences.Discuss the relationship between tests of difference and hypothesis testing in the context of designing marketing promotions.

David · Accepted Answer

1. Parametric estimation in business:  
Parametric estimation is the technique that uses the statistical relationship 
between historical data (such as number of people who liked 
advertisement,cost of product before and after advertisement)  and another 
variables  to calculate an parametric estimates for the  activities , such as    
advetisement profit of item. This technique can produce high accuracy 
depending upon the sophistication level used and the historical data  built 
into the model. Thus parameter estimation can help business men 
deternine how successful their next venture will be based on the time and 
cost they apply to the research of  the past known  variablesin the model 
leading to its estimation.
2. Benefits of parametric estimation: 
An estimate is the most knowledgeable statement one can make at a 
particular point in time. A complete estimate includes:

Describe the business benefits of parameter estimation. Provide examples of the type of parameters that might be of interest to decision makers in areas such as marketing. Elaborate on how being able...

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