Article 1 “Optimize your Portfolio Using Normal Distribution”

References
Seth, S (2019, jul14) Optimize your Portfolio Using Normal Distribution, Investopedia
https://www.investopedia.com/articles/investing/100714/using-normal-distribution-formula-
optimize-your-portfolio.asp
ABSTRACT
The normal distribution is one of the most important probability in statistics because it fits
many natural phenomena. For example, heights, blood pressure, measurement error and IQ
scores follow the normal distribution. It is also known as the Gaussian distribution and the bell
curve. The normal distribution is a probability function that describes how the values of a
variables are distributed.
Summary
The first article that I have choose analyze the use of normal distribution in business. It illustrate
any business investment have two aspects risk and return. Business owner are focused on the
lowest risk for the high possible return in investment. The normal distribution helps to
determine the risk and return as mean for the return and standard deviation for risk. In stock
exchange a particular change in mean 1% meaning on average it goes above the 1%. The higher
the mean, the better. The standard deviation helps to determine the amount by which value
deviate from the mean on average. Higher the standard deviation leading to uncertainty, the
riskier the investment in stock.
Relation with PA1
Mean and standard deviation uses in business will be very helpful in my upcoming PA1. The
article above relate how normal distribution helps to calculate the market return and
uncertainty. The data from normal distribution can helps the managerial to lessen the risk and
maximize the profit.
Article 2 “Sales statistics”
References
McGill, J (2020) Sales Statistics: 20 Sales stats that will change your Approach, Leadfuze
https://www.leadfuze.com/sales-statistics/
ABSTRACT
Statistics data are difficult to understand to the sales veterans, but it reflects the cold hard truth
that a sales person come across in every day work. Statistics data helps in solving the problem
in creative ways rather than totally relaying on them as hard and fast rules. The information and
data that are as good as actions and decision taken from the result.
Summary
The article provide the strategy that helps to boost the sales and understand the consumer
using the statistical data. For example 35% of people decide to open the mail based on the
subject line, The open rate for the long subject line drop to 60% it best to write short subject
line for the best outcome, The average sales requires 5 follow up calls where 44% sales person
given up in 2 to 3 times the most probable to sales conversion is 5 calls. Sales represented
using social media selling are 79% more likely to meet the target than who doesn’t use social
media selling.
Relation to PA1
The above article provides how statistics data can be used by the sales team. It will be a very
helpful article for PA1 to reflect how data helps in the sales boost and how effective decision
can be made to achieve the sales target.
Conclusion
The article 1 provides the information on how normal distribution helps in calculating risk and
uncertainty using mean for return and standard deviation for risk in financial stock market. The
second article provides the example how statics is use in real world by sales teams. Overall all
statistics are the fact that we encounter in our day to day work. Knowing and understanding it
will simplified us in effective decision making.