APPENDIX David Rachamn, Michael Mescon, Courtland Bovee, John Thill - APPENDIX

APPENDIX I
Careers in Business
Careers in Management
OUTLOOK
STARTING THROUGH
TITLE JOB DESCRIPTION REQUIREMENTS SALARY* 2000 COMMENTS
TWO-YEAR PROGRAM
General Clerk In small company, writes High-school diploma $11,500 Good Good starting
and types bills, statements, minimum. Commu- point for learn-
and other documents. An- nity-college degree ing and growing
swers inquiries; compiles desired. General with a solid or-
reports. clerical skills re- ganization.
quired, plus aptitude
for office work.
Bookkeeper Maintains records of finan- Community-college $12,000 Good Excellent train-

cialtransactions for organi- training. Some ac- ing for learning
zation;computes and mails counting and com- about organiza-
statements; operates calcu- puter courses a plus. tion.
lating and bookkeeping ma- Advancement limited
chines. without four-year
degree.
Management Learns many assigned du- Two-year associate $18,000 Very good Usually involves
Trainee ties. Usually participates in degree. Four-year substantial in-
work assignments under degree may offer vestment by
close supervision in sales, greater growth po- employer, so
finance, personnel, produc- tential. candidates with
tion, and similar depart- "good poten-
ments. tial" usually
chosen.
Interviewer Helps job seekers find em- Four-year or two- $16,000 Excellent Good entry-level
(employment ployment and helps employ- year associate de- (may be position for per-
agency) ers find qualified staff. gree. Ability to on a com- sonnel work in
screen people and mission business or gov-
match them with basis) ernment.
jobs. Must know
requirements of jobs
to be filled.
Blue-Collar Trains and manages other Community-college $18,000 Fair Most new jobs
Worker employees. Ensures that training a plus. Job (usually found in trade
Supervisor equipment and materials are knowledge and expe- 10 per- and service sec-
used properly. Recommends rience are most im- cent to 30 tors because of
wage increases. Where nec- portant factors, percent increased for-
essary, enforces union re- along with ability to higher eign competition
quirements. work well with oth- than sub- in manufacturing
ers, command re- ordinates' areas.
spect, and communi- salaries)
cate effectively.
Customer- Interacts with clients, re- Two-year associate $16,000 Very good Good starting
Service searches problems. May do degree. Four-year point for learn-
Representative order processing, usually on degree preferred. ingand for
computer. Must have strong growing with an
communication skills, organization.
both oral and writ-
ten.
•Salaries may vary from company to company.
590
Careers in Business 591
Careers in Management (continued)

OUTLOOK
STARTING THROUGH
TITLE JOB DESCRIPTION REQUIREMENTS SALARY' 2000 COMMENTS
CAM In CAM operations, monitors Two-year associate $17,500
Production production schedules to degree.
Supervisor maintain appropriate work
pace.
FOUR-YEAR PROGRAM
Administrative Helps coordinate work of Four-year degree or $18,000 Very good Good opportu-
Assistant administrator, with varied two-year associate nity for learning
responsibilities. degree. Aptitude for administrative
office work. function first-
hand.
Department Directs the department's Four-year college $26,000 Good Nature of work
Manager activities within the frame- degree, with major will vary signifi-
work of the organization's in an area related to cantly, depend-
overall plan. Strives to the function of the ing on the type
achieve the department's department. and size of the
goals as rapidly and eco- organization.
nomically as possible.
Personnel Hires and processes hourly Four-year college $17,000 Good In larger organi-
Representative and salaried personnel. Par- degree. Knowledge zations, many of
ticipates in recruiting, place- of many jobs and these responsi-
ment, salary administration, their requirements. bilities are han-
job analysis, and employee Ability to deal with dled by special-
counseling and training. people.
Public-Relations Writes news releases, bro- Four-year college $19,500 Good More small or-
Specialist chures, and advertising mail- degree. Good writing ganizations and
ings and serves as bridge skills essential. professional
between companies and groups are be-
public. Communicates cus- ginning to use
tomers' needs and ideas to public-relations
management. specialists.
Manufacturing Takes responsibility for or Four-year college $17,500 Excellent One of best
(Production) assists with operations degree, plus summer starting points
Supervisor within manufacturing and work experience in for career in
assembly divisions of com- manufacturing. Prac- manufacturing.
pany, including cost control, tical work experi- Shortage of
reporting systems, produc- ence, plus ability to good people in
tion schedules, work stan- handle people, es- this field. Lead-
dards, etc. sential. ership ability
required.
Purchasing Purchases goods, materials, Four-year college $17,000 Fair Complete under-
Manager supplies, or services needed degree. Master's in standing of the
by the organization. Uses business administra- items to be pur-
computers to obtain up-to- tion or management chased is essen-
date product and price lists a plus. tial.
and to keep track of inven-

tory levels.
GRADUATE PROGRAM
Human Supervises all personnel Four-year college $27,000 Very good Work experience
Resources departments and all facets degree in manage- in as many
Manager of employment. Handles ment or personnel, fields as possi-

workers' compensation, with minor in labor ble (while at-
employee benefits, salaries relations. MBA in tending school)
and wages, labor negotia- management desir- is very good
tions, training, and records. able. training for per-
sonnel work.
"Salaries may vary from company to company.

592 Careers in Business
Careers in Management (continued)

OUTLOOK
STARTING THROUGH
Operations Uses scientific methods to Four-year college $25,700 On-the-job train-

Manager evaluate and improve deci- degree and master's ing is important.
sions about a company's al- program in opera-
ternative methods of operations research or
tion. management science.
Strong quantitative
background impor-
tant.
International Takes responsibility for in- Four-year college $44,000 Very good
Planning Analyst ternational management degree and MBA.
decisions. Utilizes forecasts Excellent writing
and budgets to project opti- skills.
mal business success.
Computing Develops and schedules Four-year college $45,000 Excellent Must have gen-
Systems work for the computing cen- degree in computer eral manage-
Director ter according to company science. MBA pre- ment skills as
needs. ferred. well as technical
knowledge.
Careers in Marketing
OUTLOOK
STARTING THROUGH
TWO-YEAR PROGRAM
Travel-Agency Arranges travel and tours for Two-year associate $12,000 Excellent Good way to
Representative leisure and company busi- degree desirable. combine interest
ness; coordinates and some- in travel with
times accompanies tours. job.
Uses telephone extensively.
Buyer — Retail Decides on each piece of Two-year associate $14,500 Fair Good base for
merchandise to be sold. degree in marketing, future career in
Checks invoices and return plus co-op or part- retailing.
of merchandise, and author- time experience in
izes payment for merchan- retail store.
dise. Keeps abreast of
trends in market.
Buyer — Purchases goods from the Two-year associate $14,500 Fair Must have com-
Wholesale manufacturer for commercial degree. Four-year plete knowledge
or retail firms. Searches for degree desired by of merchandise
lowest prices and quality largest firms. to be purchased.
merchandise.
Assistant Assists in all phases of store Two-year associate $15,000 Very good Good founda-
Manager — operations: sales, display. degree. tion for manage-
Retail buying, inventory control, rial position in
accounting. retailing.
Sales — Real Lists, sells, and sometimes Two-year associate Commis- Very good Requires tenac-
Estate rents property. Solicits degree. sion ity. Good finan-
property listings and sells to cial opportunity.
clients.Draws up contracts Supplemental
such as deeds or leases, and real-estate
negotiates selling price, courses helpful.
loans, and mortgages.
Sales - Sells insurance, recommend- Two-year associate Commis- Very good Requires a
Insurance ing amount and type of cov- degree. sion C.L.U. (Certified
erage based on clients' LifeInsurance
needs. Underwriter)
certificate.

Careers in Marketing {continued)

•
OUTLOOK
STARTING THROUGH
Sales - Sells to retail stores or insti- Two-year associate $18,500 In many fields,
Wholesale tutions (hospitals, etc.). Pro- degree. Four-year technical knowl-
vides product information. degree desirable. edge of product
Evaluates customer needs required.
and makes recommenda-
tions. Provides services.
Sales - Learns and meets require- Two-year associate $18,500 Specialist train-
Computers ments of customer. Main- degree. Four-year ing in product
tainsongoing relationship, degree desirable. line necessary
providing service and new and usually
information and answering available in
questions. training pro-
grams.
FOUR-YEAR PROGRAM
Sales - Provides clients with infor- Four-year college Unlimited op-
Securities mation on stocks, bonds, degree in marketing portunities for
market conditions, and his- preferred. Strong persistent, per-
tory and prospects of corpo- academic back- sonable, knowl-
rations. Transmits buy and ground in economics edgeable per-
sell orders to trading divi- helpful. Lengthy son. Must have
sion as customers wish. training required. good numerical
Develops portfolios for ability.
clients.
Advertising Assists in general running of Four-year college $16,000 Good entry-level

Assistant office. Assists in develop- degree. Good writing position, where
ment of advertising cam- and communication creativity and
paigns. skills essential. hard work may
pay off.
Assistant Acts as the go-between for Four-year college $16,500 Very good Bonuses are
Account the client and the various degree. Good writing awarded for
Executive — departments of the agency. and communication high achievers.
Advertising Recruits new accounts. Han- skills essential.
dles day-to-day business
functions.
Market Performs one or several of Four-year college $19,500 Mathematical

Researcher - the following duties: secures degree, with empha- aptitude helpful.
Interviewer, information from consumers; sis on marketing,
Editor, writes and proofreads sur- math, or advertising.
Statistician, vey material; analyzes and Computer courses
or Analyst interprets data; collects sec- desirable.
ondary data for compilation
of final report on project.
Advertising- Solicits advertisements for Four-year college $25,000 Very good Bonus potential
newspapers and magazines. degree preferred. for self-starters.
Space Sales
Helps potential advertisers Strong communica-
match sections of the publi- tion skills a must.
cation with their target mar-
kets.
Proofreads copy; helps pre- Four-year college $18,000 Opportunity for

Promotion
pare ads; may display exhib- degree. advancement.
Assistant
its at conferences; performs
other general office work.
Coordinates advertising pro- Four-year college $24,000 Very good Must enjoy
Marketing
degree. Writing skills working with
Manager grams. Communicates infor-
essential. people.
mation and plans to sales-
people. Relays information
from sales force to manage-
ment.
'Salaries may vary from company to company.

Careers in Marketing (continued)

OUTLOOK
STARTING THROUGH
GRADUATE PROGRAM
Advertising Manages one or more of the MBA specializing in $27,000 Very good Competition
Manager following departments: re- marketing or adver- keen for most
search, production, writing, tising. jobs. Great po-
layout, media sales. tential for those
who can make
it.
Technical Sales Sells highly technical equip- MBA in marketing, $30,000 Combination of
ment such as generators, with engineering nontechnical
computers, jet engines, tur- undergraduate de- (sales) and tech-
bines, structural materials to gree. nical (engineer-
customers, usually involving ing) abilities
high-dollar volume. required.
Careers in Finance
OUTLOOK
STARTING THROUGH
TWO-YEAR PROGRAM
Bank Teller Cashes customers' checks; Two-year associate $8,500 Fair Good math
handles deposits and with- degree in finance or skills a must.
drawals and foreign-currency accounting. Courses
exchanges; issues traveler's in banking helpful.
checks and sells savings Ability to handle pre-
bonds. cise, detailed work.
Bank Clerk May and other
sort checks Two-year associate $12,000 Very good Good entry-level
documents, post and pro- degree in finance or position for ca-
cess accounts, keep interest accounting. reer in banking.
files, handle mortgages,
maintain tax records and
insurance on customers'
property.
Accounting Clerk In small company, writes High-school diploma $12,000 Good Entry into gov-
and types bills, statements. minimum. Commu- ernment; good
etc. Answers inquiries; com- nity-college degree starting point
piles reports; handles pay- desired. General for learning and
roll; balances accounts. clerical skills re- growing in sta-
quired, plus aptitude ble occupation.
for office work.
Junior Auditor — Under county auditor, re- Minimum of two-year $12,000 Very good Responsibilities
County cords deeds and similar associate degree in vary greatly,
Government legal instruments, keeps rec- finance or account- depending on
ord of county accounts, ing. size of govern-
compiles and transfers fiscal ment office.
records as directed, pre-
pares financial statements.
Claims Investigates claims for loss Two-year associate $15,000 Good Usually requires
Adjuster — or damages filed with insur- degree with work some travel.
Insurance ance companies. Interviews experience. Four-
parties involved. Inspects year degree desired.
accident areas and property
damaged; negotiates settle-
ments; attends legal hear-
ings.

Careers in Finance (continued)

OUTLOOK
STARTING THROUGH
Loan Counselor Analyzes loan contracts and Two-year associate $15,000 Very good
attempts to obtain overdue degree minimum,
installments; receives and specializing in fi-
records payments; prepares nance or accounting.

reports on delinquent ac-
counts; answers loan inquir-
ies. May represent employer
in legal proceedings.
FOUR-YEAR PROGRAM
Actuary Monitors statistics to create Four-year college $19,000 Excellent Excellent poten-
insurance and pension plans. degree in statistics, tial for top peo-
Determines mortality, acci- actuarial science, or ple.
dent, sickness, disability, mathematics. MBA in
and retirement rates. Con- finance or statistics a
structs probability tables; plus.
calculates premiums.
Interprets numerical results Four-year college $17,000 Very good Good grades in-
of surveys and market re- degree, with major fluence starting
search to help managers in statistics or math- salary.
make decisions and predict ematics.
outcomes.
Trust and Estate Handles day-to-day adminis- Four-year degree. $28,000 Very good
Administration tration of trusts and estates. Experience with
Analyzes trust agreements trusts and estates
and wills to ensure proper desirable.
maintenance.
Credit Analyst Analyzes financial data, pro- Four-year college $25,000 Excellent High grade-point
vides credit information on degree with major in average helpful.
customers; transcribes bal- finance or account-
ance sheets into reports. ing. Internship in
Writes credit reports on cus- accounting desirable.
tomers, providing informa-
tion on operating, deposi-
tory, borrowing figures, etc.
Accountant Provides a variety of ac- Four-year college $20,500 Affords opportu-

(Public) counting services to clients degree in accounting nity for highly
either as individuals or as or finance. MBA de- diversified expe-
members of firms. sired. Additional rience with
computer courses a many organiza-
must. tions. High
grade-point av-
erage helpful.
Accountant Installs and maintains ac- Four-year college $21,000 Excellent Excellent oppor-
counting system. Handles degree in accounting tunity for career
(Corporate)
bookkeeping; maintains ac- or finance. MBA de- path to top
counting controls over in- sired. Additional management in
ventories and purchases. courses in comput- organization.

Audits contracts, orders, and ers, taxes, economics
vouchers. Prepares tax re- desirable.
turns.
Four-year college $22,500 Must keep up
Economist Looks for solutions to eco-
degree. Graduate with current
nomic questions of busi-
work necessary for economic
nesses. Conducts research,
advancement. trends.
prepares reports, develops
alternative plans.

Careers in Finance (continued)

OUTLOOK
STARTING THROUGH
GRADUATE PROGRAM
Stockbroker Gives data to clients on Four-year college $18,000, Excellent High income
stocks, bonds, market condi- degree in finance or plus com- potential after a
tions, history, and prospects economics. MBA pre- missions year or two in
of companies or government ferred. Must have the field.
bonds. Transmits buy and broker's license for

sell orders on stocks and state in which one
bonds for clients. Develops works. Sales experi-
portfolio of selected invest- ence desirable.
ments for clients.
Operations Conducts logical analyses of Four-year college $25,000

Analyst management problems and degree in finance,
formulates mathematical operations research,
models of problems for so- or computer science
lution by computer. Devel- (nontechnical). Mas-
ops proposals to afford ter's degree pre-
maximum probability of ferred.
profit in relation to risk.
Financial Analyst Conducts statistical analyses Four-year degree in $30,000 Excellent Dealing with
and interprets data on in- management, fi- "big money"
vestments, yield, stability, nance, economics, opens doors for
and future trends. Performs mathematics, statis- great potential
analyses of financial institu- tics, or accounting. development.
tions such as banks, savings MBA preferred. In-
and loan companies, and ternship or experi-
brokerage houses. ence with Financial
house desirable.
State Bank Regulates state-chartered Master's in account- $27,500
Examiner and state-licensed financial ing, auditing, bank-
institutions to ensure their ing, business admin-
soundness. istration, economics,
finance, or computer
science.
Careers in Computers and Data Processing

OUTLOOK
STARTING THROUGH
TWO-YEAR PROGRAM
Computer Schedules jobs to be run on Two-year degree or $13,000 Excellent
Scheduler computer in order of impor- on-the-job experi-
tance. ence. Must be able
to evaluate time
needed for programs
to run and to revise
schedules in case
computer goes
down.
Data-Processing Inputs and accesses informa- Two-year degree or $13,000 Excellent
Clerk tion. Creates tabulations, on-the-job training.
tables, and charts for analy-
Computer Monitors the functioning of Two-year degree in $18,000 Excellent Limited poten-
Operator the computer. data processing de- tialadvance-
sirable. ment.

Careers in Computers and Data Processing (continued)

OUTLOOK
STARTING THROUGH
Robot Reprograms robots to per- Two-year degree. $12,500 Very good New job made
Programmer Form additional or new tasks possible by in-
on assembly line. creasing use of
high-technology
equipment in
industry.
Support Revises and updates existing Two-year degree. $14,000 Excellent Entry-level posi-
Programmer programs. tion.
Applications Uses specifications prepared Two-year degree. $22,000 Very good Part-time expe-
Programmer by systems analyst to design B.S. in computer sci- rience a plus.
programs or expand existing ence desirable.
programs that run the com-
puter.
Computer Keeps computers running Two-year degree. $18,500 Greater salary

Service smoothly. potential with
Technician experience.
Customer- Takes orders, checks inven- Two-year degree. $16,000

Services tory on computer. Fills or-
Representative ders if material is in stock,
passes purchase order via
computer to billing and ship-
ping departments.
Computer- With direction from layout Two-year degree. $17,500 Very good Applications in-
assisted artist, composes typefaces clude marketing
Graphics- and lettering designs on brochures, an-
Terminal Input computer. nual reports,
Artist packaging.
Graphic Designs charts and graphs Two-year degree in $20,000 Excellent

Technician on computers for business business or data
applications. Works on an- processing. Knowl-
nual reports, budgets, pay- edge of business
roll, etc. procedures pre-
ferred.
FOUR-YEAR PROGRAM
Systems Keeps entire computer sys- Four-year college $22,000 Highly detailed
Programmer tem operational. degree in computer work that re-
science, statistics, or quires location
math preferred. of specific prob-
lems within
complex system.
Uses mathematical methods Four-year college $26,000 Computer-

Scientific
to compile data sets to help degree in computer knowledgeable
Programmer
end users solve problems. or information sci- people are much
ence, math, statis- in demand.
tics, or engineering.
Analyzes, designs, tests, and Four-year college $24,000 Must have

Program Analyst
implements programs. degree inbusiness, strong communi-
statistics, data pro- cation skills.
cessing, or math.
Systems Analyst Researches user needs, de- Four-year college $27,000

velops programs to solve degree. More com-
user problems and increase plex jobs may re-
efficiency. Oversees imple- quire graduate work.
mentation.

Careers in Computers and Data Processing (continued)

OUTLOOK
STARTING THROUGH
Documentation Writes marketing brochures Four-year college $22,000 Excellent Must be a good
Specialist and in-house manuals in- degree in business communicator,
structing users in what com- administration or able to translate
puter systems do and how computer science. complex con-
to use them. cepts into un-
derstandable
instruction.
Computer Designs hardware to meet Four-year college $32,000

Designer business needs. Creates degree in computer
working model, then writes science, electronics,
specification sheet so it can or mechanical engi-
be produced. neering. MBAor
master's in engineer-
ing desirable.
GRADUATE PROGRAM
Computer Designs, improves, and man- Four-year college $25,000 Fast-growing
Engineer ufactures hardware to meet degree in electron- field.
needs. ics, mechanical engi-
neering, or industrial
engineering, plus
extensive work in
computer science.
Master's preferred.
Applications Provides sales information MBA plus BS in com- $27,500 Good communi-
Analyst (Sales) for marketing. Takes respon- puter science (tech- cations skills a
sibility for software installa- nical), math/statis- must.
tions and maintenance, pro- tics, or engineering.
grammer consultation, and
customer and
liaison with
employer software groups.
Development Locates and summarizes MBA or master's $32,000 Top administra-
Manager problems with computer degree in computer tive position
operations and presents science. Requires that requires
forecasts to other managers. understanding of administrative,
technical side of supervisory, and
computer operations. technical skills.
Computer- Supervises activities of engi- Master's degree pre- $35,000 Excellent
Project Manager neers, designers, and techni- ferred. Four-year col-
cians in all aspects of build- lege degree in com-
ing computer from scratch. puter science a
minimum. Good or-
ganization and com-
munication skills.
Careers in the Federal Government

OUTLOOK
STARTING THROUGH
TWO-YEAR PROGRAM
Workers' Processes claims for work- Two-year degree $15,118
Compensation ers'compensation. with experience, or (GS5 rat-
Claims Examiner four-year degree. ing)

Careers in the Federal Government (continued)

OUTLOOK
STARTING THROUGH
Clerical Performs various clerical Two-year degree in $13,513 Very good Excellent entry
Stenographer duties, including typing. Fil- clerical studies. (GS4 rat- position for sec-
ing, shorthand. Shorthand or speed- ing) retarial career.
writing skills re-
quired. High-school
diploma with two
years' experience
also acceptable.
Clerk Acts as receptionist and Associate degree in $12,038 Fair
clerk; assists supervisor in general studies or (GS3 rat-
carrying out various assign- one year's minimum ing)
ments. work experience.
FOUR-YEAR PROGRAM
Internal Revenue Examines and audits records Four-year college $15,118 Very good Highly competi-
Agent of individuals and busi- degree, accounting (GS5 rat- tive, but oppor-
nesses to determine their major. Best opportu- ing) tunities for pro-
federal tax liabilities. nities for those in $18,726 motion make
top quarter of class. (GS7 rat- this career a
Must be willing to ing) desirable goal.
travel. Must be in
upper 25 percent of
class to start at GS7.
Special Agent, Working with the U.S. attor- Four-year college $15,188 Very good
IRA ney general, investigates degree, accounting (GS5 rat-
potential criminal violations major desirable. ing)
of federal tax laws; deter- $18,726
mines whether there is (GS7 rat-
cause for trial; prepares trial ing)
documents.
Personnel- Handles various phases of All majors, prefera- $22,907 Fair Stable Held with
Staffing personnel, including classifi- bly with degree in (GS9 rat- substantial com-
Specialist cation, salary analysis, re- personnel or labor ing) petition.
cruiting, and research. relations. Employ-
ment experience
helpful.
Social Insurance Handles facets of social-

all Allmajors, with ac- $15,118 Good Positions avail-
Representative insurance administration. counting, manage- (GS5 rat- able nationwide.
ment, personnel, and ing) Especially good
general business for those seek-
having the edge. ing long-range
careers in Social
Security.
Accountant Provides variety of account- Four-year college $15,118 Very good Competition
ing services to various agen- degree in accounting. (GS5 rat- keen. Apply well
(Auditor)
in advance of
cies of government. May Internship in public, ing)
industrial, or govern- $18,726 graduation.
audit contracts, orders, and
vouchers. ment accounting (GS7 rat-
highly desirable. ing)
Must be at top of
class to rate GS7.
Performs various economic Four-year college $15,118 Most jobs in

Economist
degree in economics; (GS5 rat- Washington,
analyses of projects in labor,
advisable to consider ing) D.C., although
agriculture, industry econo-
metrics, material resources, advanced degrees for some are avail-
best long-range ca- able nationwide.
finance, and transportation.
reer opportunities. Highly competi-
tive.
'Salaries may vary from company to company

Careers in the Federal Government (continued)

OUTLOOK
STARTING THROUGH
GRADUATE PROGRAM
Accountant Studies financial data. De- MBA in accounting; $22,907 Very good Excellent experi-
velops and installs new ac- four-year degree in (GS9 rat- ence for later
counting systems. Prepares accounting with ex- ing) entry into busi-
and evaluates Financial re- perience or CPA cer- ness.
ports. tificate.
Budget Analyst Evaluates programs to de- MBA in business $22,907 Good

velop budgets; usually de- administration, eco- (GS9 rat-
velops alternative budgets nomics, accounting, ing)
as well. Keeps an eye on or related field. Un-
debts and expenditures. dergraduate degree
should be in ac-
counting or finance.
Examiner — Makes examinations and MBA in business $27,716 Good Excellent growth
Savings and audits of savings and loan administration, eco- (GS9 rat- potential.
Loan, Farm associations, cooperative nomics, accounting, ing)
Credit, or banks, investment institu- or related field. Un-
Investment tions, national banks, and dergraduate degree
Company other financial organiza- should be in ac-
tions to determine financial counting or finance.
soundness, compliance
with regulatory laws and
provisions, and integrity of
accounts.
Management Using the basics of manage- MBA in business $27,716 Very good Excellent experi-
Analyst ment science, makes recom- administration or (GS9 rat- ence for later
mendations to improve orga- management science. ing) move into busi-
nizational work flow, ness.
structure, and planning.
Logistics- Coordinates logistical sup- Graduate degree in $27,716 Very good Candidates must
Management port activities to provide fi- business logistics, (GS9 rat- work well with
Specialist and ser-
nancial, physical, distribution of logis- ing) people.
vices support needed on tics management.
various projects.
Financial Analyst Uses theory and principles MBA in finance, busi- $27,716 Very good Excellent growth
of finance to make recom- ness administration, (GS9 rat- potential.
mendations for various deci- economics, or ac- ing)
sions necessary to govern- counting.
ment operations. Studies the
security filings of corpora-
tions to determine financial
soundness. Makes loan rec-
ommendations for various
government ventures. Evalu-
ates potential contractors.
Realty Specialist Studies and directs purchase Two years' graduate $27,716 Good Candidate must
and sale of real estate. Man- work in real estate, (GS9 rat- know real-estate
ages property for best re- regional or city plan- ing) regulations and
turn. ning, business ad- market values.
ministration, eco-
nomics, or other
related Fields.

Appendix //
Research, Statistical
Analysis, and Reports
Businesspeople use sophisticated information-gathering methods and inter-

pretation techniques to get a clear view of many factors affecting the effi-
ciency, productivity, and profits of their businesses. Production managers
use statistics in quality control. Human resource managers may use statistics
to ensure that test scores reflect the ability to do a job. Marketing managers
do a lot of research, measuring the size of markets, the effectiveness of vari-
ous marketing techniques, and the needs and desires of prospective custom-
ers. In accounting, audits are often conducted by analyzing in detail a repre-
sentative group of accounts. Financial managers analyze the performance of
their investment portfolios. And risk managers use statistics to determine
risks. Without such research, managers might make some very costly errors.
Basic Research
The first step in business research is to decide what needs to be studied. What
precisely is the problem, and what are the possible answers? For example, a
production manager may know that the quality of a finished product is a
problem, but she or he needs to make some educated guesses about the spe-
cific components or processes that are faulty in order to pursue solutions.
The next step is to seek data that will prove or disprove the possible
solutions.
Staff people and all levels of managers need to know where and how to ob-
Sources of data tain data; an important business skill. They must also understand that
it is
there are two main ways to classify data: (1) according to where they are
located and (2) according to the reason they were gathered.
Data grouped according to location are either internal data or external
internal data Information data. Internal data are those available in the company's own records
—
available in a company's invoices, purchase orders, personnel files, and the like. External data are
own records those obtained from outside sources, including government agencies say,—
external data Information
the Census Bureau —
and nongovernment sources such as trade associations
and trade periodicals. Internal data are sometimes easier to obtain and more
obtained from sources out-
side the records of the busi- specific to the company, but outside sources often have better resources for
ness itself gathering data on broad economic and social trends.
601
602 Research, Statistical Analysis, and Reports
primary data Information Data grouped by purpose are either primary or secondary. Primary data
gathered for the study of a consist of information gathered for the study of a specific problem. Second-
specific problem ary data consist of information previously produced or collected for a pur-
secondary data Informa- pose other than that of the moment. Sometimes the collection of secondary
tion previously produced or data is characterized as "library research." In business research, government
collected for a purpose and trade organizations are the major sources of secondary data.
other than that of the Businesspeople usually examine secondary data first because these data
moment often have three advantages over primary data:
Speed. Secondary-data sources, such as A Guide to Consumer Markets, put

out by The Conference Board, provide information at a moment's notice.
Cost. Collecting primary data may be an expensive process. But for the cost
of membership in an organization, a business can have the results of all the
group's research at its disposal.
Availability. The owner of a business can hardly expect the owner of a com-
peting firm to make information available. Trade associations and the gov-
ernment, on the other hand, collect information from all firms and make it
available to everyone.
Secondary data do have some drawbacks, however. The information may be

out of date, or it may not be as relevant as it first seems. And the company or
agency that collected the data may not be as impartial as it should be. Fur-
thermore, the source may lack expertise: The survey may not be broad
enough to cover the targeted geographic area or income group, or questions
may be phrased in such a way that the respondents may guess the "correct
answers" — that is, what the researcher wants to hear.
The best way to overcome the disadvantages of secondary data may be to

Primary research collect primary data through original research. Although primary data may
techniques also be collected ineptly, they are certain to be more relevant to the particu-
lar business's needs. To find answers to their problems, businesses of all sizes
and types use the following techniques: sampling, observation, surveys, and
experimentation.
Sampling
sample Small part of a A sample is a small part of a large group of people or items. (In statistical
large group language, the group from which a sample is drawn is known as a population
or universe.) Researchers use data collected from a properly selected sample
to draw conclusions or make forecasts about the population from which the
sample was drawn, and they are able to do so because of the laws of
probability.
probability Likelihood, probability Probability is the likelihood, over the long run, that a certain
over the long run. that a event will occur in one way rather than in another way. For example, if you
certain event will occur in flip a coin, the likelihood of throwing "heads" is one-half, or 50 percent —
one way rather than
other way
in an- because a coin has only two sides —
and the likelihood of throwing "tails" is
also 50 percent. In a series of 10 tosses, you would expect to throw "heads"
about 5 times. You could throw "heads" 10 times, but that outcome would be
unlikely.
How does a businessperson use probability in everyday operations? Sup-
pose the manager of a department store finds that out of every 1 ,000 letters
from customers, about 50 letters, or 5 percent, have been complaints. The
Research, Statistical Analysis, and Reports 603
manager would expect that on an\ daj when 100 letters arrive from custom-
ers, about 5 or them will be complaints. Of course, there may be more or
lew er complaint letters, but if the number suddenly increases to 20 or 30 and
stays at that level for a few days, the manager might suspect a problem:
Perhaps someone is tampering with the customer correspondence file; per-
haps customers don't like something new or different in the store's opera-
tions. In either case, a sudden shift that contradicts probability will alert the
manager.
Probability is the principle behind sampling. For instance, if 10 out of
100 finished products sampled Monday are found to be defective, it is proba-
bly safe to assume that 10 percent of the whole production run is defective,
provided that the sample was selected to represent the universe of finished
products fairly.
random sampling Select- random sampling The most common method of selecting a sample is random
sample in a way that
ing a sampling. A group of items or individuals is chosen from a larger group in a
gives all items or persons ii
way that gives all items or persons in the group an equal chance of being
the larger group an equal
selected. Simple methods of random selection include drawing names from a
chance of being selected
hat, taking every 100th product to come off the production line, auditing
every 5th financial report, and so on.
Imagine that a college bookstore in an urban area has ordered 1,000
T-shirts imprinted with the school's name. The T-shirt manufacturer may
use sampling to determine whether clothing stores in that city would also
like to stock the T-shirts. It is impractical for the manufacturer to call the 200
stores that, according to the Yellow Pages, carry this kind of merchandise.
Instead, he or she may call every 20th shop listed. The 10 stores that would be
called represent a random sample because they are listed alphabetically —
not by size, location, type of customer, or any other factor that might affect
their interest in the T-shirts. A good response from those 10 stores would
indicate that many of the other 190 stores would be interested in the T-shirts,
to J.
The major limitation of random sampling is that the population to be
sampled has to be small enough and sufficiently concentrated geographically
so that a list of all the names or items it includes is available or can easily be
prepared. To draw a sample from all the clothing stores in the United States
would be too large and expensive a task. But other sampling techniques may
be used in such instances. It's sufficient for our purpose to note that random
sampling is very effective when used in limited populations.
Observation
observation Technique of Observation is the technique of watching or otherwise monitoring incidents
watching or otherwise mon- of the particular sort that the investigator wants to study. An example of
itoring all incidents of the observation is using cameras and video tape to study the way employees do
particular sort that the in- their work. Another example is a municipal traffic department's using a
vestigator wants to study counting mechanism to record the number of cars that use a given street; the
department is then able to determine whether the street should be widened
or whether a traffic light should be installed.
Observation sounds simple enough, but it is rather difficult to decide
exactly what sort of activity should be measured, especially when it comes to
observing human behavior. For example, if the purpose of the research is to
determine the level of procrastination among office workers, what behavior
reveals procrastination? Is gazing into space a sign of procrastination, or is it

a necessary pause to reflect and plan? Is someone who makes frequent trips
to the water cooler procrastinating? Or is the procrastinator the one who
industriously writes 10 relatively pointless memos instead of writing 1 im-
portant 10-page report?
Surveys
Businesses often need to know why employees or potential customers behave
the way they do. The simplest way to find out is to ask them, and that's where
surveys Data-collection surveys come in. To conduct a survey, investigators may mail a questionnaire
method which the sub-
in (a list of questions) to the respondents (the people who answer the questions),
jects areasked questions to or they may get their answers via face-to-face or telephone interviews. Re-
determine their attitudes spondents may be questioned once or a number of times. The biggest prob-
and opinions lems in doing surveys are selecting an appropriate sample and phrasing
questions objectively.
Experimentation
experiment Data-collection In an experiment, the investigator tries to find out how one set of conditions
method in which the investi- will affect another set of conditions by setting up a situation in which all
gator tries to find out how factors may be carefully measured. An experiment differs from ordinary ob-
one set of conditions will servation in that the experimenter can deliberately make changes in the situ-
affect another set of condi- ation to see what effect each change has. The conditions that change are
tions by setting up a situa-
called variables. The changes that the experimenter makes deliberately are
tion in which all factors and
the independent variables; those that change in response are the dependent
events involved may be
variables. In a taste test, for example, the independent variable would be the
carefully measured
various brands sampled; the dependent variable would be the tasters' prefer-
variables Changeable fac- ences for particular brands.
tors in an experiment Experiments are often conducted in laboratories, where independent
independent variables variables can be easily controlled. For example, a scientist studying the ef-
Events that are controlled fects of crowding on mice could, in the laboratory, control the size of the
by outside factors cages, the number of mice in each cage, and so on. But some experiments
dependent variables may be performed in an ordinary social setting.
Events that change as the An experimenter usually tries to observe two separate groups made up of
independent variables similar individuals who are randomly assigned to one group or the other.
change One group is exposed to a specific independent variable, and the other is not.
(The group that is not exposed to the independent variable is called the con-
trol group.) To find out whether employees who undergo a certain type of
training do better work, a personnel director might put one group of workers
through on-the-job training only, while putting the other group through both
on-the-job training and classroom training. After a suitable time in the actual
work setting, the performance of the two groups of workers could be com-
pared. If the group that underwent both classroom and on-the-job training
was doing a significantly better job, the dual-training approach (the indepen-
dent variable) might be considered worth the expense. But if the control
group (the group that received only on-the-job training) did better or if the
two groups did equally well, the dual-training approach would not be con-
sidered advantageous.
Statistics
Some data obtained through primary and secondary research pertain to peo-
ple's likes and dislikes, their opinions and feelings; other data are of a more
factual nature. Factual data presented in numerical form are referred to as
statistics Factual data that statistics. Examples of statistics include the batting averages of ballplayers,
can be presented in numeri- the number of highway deaths in a year, and the number of ice-cream cones
cal form
eaten in August. Statistics are often expressed as percentages —
an inflation
rate of 17 percent, for instance.
Businesspeople rely on statistical information because of its relative pre-
cisionand analytical value. Although it is important that they be able to
understand such statistics, they do not really need to be statisticians. Today,
many microcomputer software packages are available that allow even those
who have little experience with statistics to analyze and interpret data.
"T j . Raw data —

lists and tables of numbers —
are of little practical value by
a y g aaia themselves. Instead, they must be manipulated to bring forward certain key
numbers such as averages, index numbers, and trends.
Averages
average Number typical of One way to present data in an easily understood way is to find an average, a
a group of numbers or number typical of a group of numbers or quantities. For example, a person-
quantities nel manager may want to know the average wage of workers in each labor
classification in order to make a forecast of future labor costs when a new
union contract is negotiated. Or a marketing manager may want to know the
average age of potential consumers of a new product in order to slant adver-
tising toward that age group.
The most widely used averages are the mean, the median, and the mode.
A smgle set of data may be used to produce all three. In Exhibit App. II. 1, for
example, the mean, median, and mode are different numbers, even though
all three have been calculated on one week's performance by a sales force.
mean Sum of all the items the mean The statistic most often thought of as an average is the mean, the
in a group, divided by the sum of all the items in a group divided by the number of items in the group.
number of items in the The mean is invaluable when comparing one item or individual with a
group group.
For example, if a sales manager wants to compare the performance of her
salespeople during a certain week, the mean would give a simple figure for
comparison. She would begin with the basic data in Exhibit App. II. 1 and
then divide total sales by the number of salespeople:
$63,000
= $7,000 mean sales for the week
By this measure, Wimper's sales were average; the three people with sales
below $7,000 were below average; the five with sales above $7,000 were
above average. If some of the salespeople needed to be cut, the sales manager
could use figures like these to make decisions.
The advantages of the mean are ease of comprehension and speed of com-
putation. But one disadvantage is that the mean gives a distorted picture
when there is an extreme value. For instance, if Caruso's sales for the week
were $27,000, the mean for the nine salespeople would be $9,000 ($81,000
Salesperson Sales
divided by 9). Because eight of the nine salespeople would have sold less than
Wilson $3,000 the mean, this calculation would be of little help to the sales manager.
Green 5,000
6,000
the median When items or numbers are arranged from lowest to highest, as
Carrick
Wimper 7,000 Mean

in Exhibit App. possible to find the median
II. 1, it is —
the midpoint, or the
point at which half the numbers are above and half are below. With an odd
Keeble 1 Median number of items, the median may be arrived at by inspection. In Exhibit
Kemble 8.500 App. II. 1, for example, the median is $7,500. There are four figures above it
O'Toole 8.500 and four below. If there is an even number of items —
say, 10 salespeople
Mannix 8.500
instead of 9 — the midpoint would be the mean of the two central figures.
The chief disadvantage of the median is that many people do not under-
Caruso 9,000
stand what it means. Moreover, it is cumbersome to arrange a large number
Total $63,000 of items in order of size.
But with a limited number of items, the median is easy to find, and when
EXHIBIT APP. 11.1
items that are difficult to measure can be arranged in order of size, the me-
Mean, Median, and
dian is a great time saver. It also avoids the distortion caused by extreme
Mode
values and thus gives a more accurate picture of the data. For example, if
The same set of data can be Caruso's sales were $27,000 instead of $9,000, the median would not be af-
used to produce three kinds
fected. Or if it were necessary to know the average amount spent on advertis-
of averages, each of which
ing by retail grocers, the figure used would probably be the median because
has important business
the amounts spent by the big chains would not distort the average. In busi-
applications.
ness, therefore, the median is a useful measure.
median Midpoint, or the the mode The mode is the number that occurs most often in any series of
point in a group of numbers data or observations. The mode answers the question "How frequently?" or
at which half are higher and "What is the usual size or amount?" In the sales manager's study, the mode is
half are lower
$8,500.
mode Number that occurs One important use of the mode is marketing information about
to supply
most often in any series of common sizes of shoes and you were the owner of a shoe store,
clothing. If
data or observations you would not want to stock four pairs of every shoe size in each style. You
might find that for every 40 pairs of size 8 sold, only 2 of size 12 were sold.
Like the median, the mode is not influenced by extreme values. The mode
should not be used, however, when the total number of observations is small
or when a large group is subdivided into many small groups. In such cases, a
significantly repeated value may not exist. And there is no mode if a number
does not appear more than once.
Index numbers
In business, it is often important to know how results in one period compare
with those of another. To express this comparison conveniently, an index

index number Percentage number is used. An index number is a percentage that represents the amount
used to compare such fig- of fluctuation between a base figure, such as a price or cost at one period, and
ures as prices or costs in
the current figure.
one period with those in a
Say an oil company wants to keep an index on the number of workers it
base or standard period
employs. It chooses as a base year 1984, when it employed 5,000 workers. Tn
1985, employment slipped to 4,900 workers. In 1986, it surged to 5,300. The
index numbers for the years 1985 and 1986 are obtained by dividing the
base-year figure into the current-year figure and then multiplying by 100 to
change the resulting decimal into a percentage:
Current-year employment (1985) 4,900

0.98, or 98%
Base-year employment 5,000
Current-year employment (1986) 5,300

1.06, or 106%
Base-year employment 5,000
These figures tell us that employment was off 2 percent in 1985 but up 6
percent in 1986.
One of the best-known index numbers is the Consumer Price Index,
which is used by economists to track inflation. Others include the Dow Jones
Industrial Average, which gauges ups and downs in the stock market; the
Index of Industrial Production; and the Wholesale Price Index.
Trend analysis
Managers must often determine whether the variations in business activity
indicated by statistics have any regular pattern. Suppose that a department
store's monthly index of sales shows an increase of 6 percent for December.
Before the manager can decide whether to increase the number of sales-
clerks, the amount of inventory, and the advertising budget, he must know
whether the increase in sales will continue into January and February and
beyond.
trend analysis Examina- Trend analysis, also known as time-series analysis, is the examination of
tion of data over a suffi- data over a sufficiently long time so that regularities and relationships can be
ciently long period so that detected, interpreted, and used as the basis for forecasts of business activity.
regularities and relationships
Such an analysis generally explains change in terms of three factors: sea-
may be detected, analyzed,
sonal variations, cyclical variations, and secular (or long-term) trends in
and used as the basis for
business growth.
forecasts
seasonal variation Regu- seasonal variations A seasonal variation is a regular, predictable change
lar, predictable change over over the course of a year. For instance, the demand for ice cream is always
a year's time higher in August than in February. Two other examples are increased store
sales before Christmas and the rise in sales of swimsuits when the tempera-
ture rises.
Businesses can sometimes use knowledge of seasonal variations to open
up new markets in slack seasons. Makers of tea, for example, noticed that tea
drinking fell off sharply at the end of winter. But they wanted to maintain a
constant labor and sales force; they wanted to avoid hiring extra workers in
peak seasons and laying off workers in slack periods. So they successfully
promoted iced tea to keep sales — and thus production — more evenly dis-
tributed throughout the year.
cyclical variations Over a period of several years (often four), the economy
goes through a fluctuation known as the business cycle, which is a familiar-
cyclical variation Change example of medium-term cyclical variation. The business cycle begins with
that occurs in a regularly prosperity, a period of high income and employment in which businesses
repeating pattern grow and construction activity is high. Then follows a recession, during
which income, employment, and production all fall. If sufficient corrective
measures —
usually by government regulation —are not taken, depression
sets in. A depression is a radical drop in business activity with consequent
high unemployment and frequent business failures. Generally, a depression
Research, Statistical Analysis, and Reports
is followed by recovery, which

is characterized by a rise in production, con-
struction,and employment. The cycle usually begins again. Government

spending, wars, and inflation may temporarily disrupt this pattern, but
eventually the cycle's phases are likely to return to normal.
An understanding of this cycle is important in financial management
because investments yield various results in various economic climates. In
manufacturing and other capital-intensive businesses, cycles are also impor-
tant. It is dangerous to build an expensive new plant just before the economy
hits a recession phase because orders for the goods produced in it may not
reach necessary levels for several years. If the plant is built at the tail end of
a recession, however, the manufacturer will be ready to take advantage of the
surge in demand that accompanies the recovery phase.
secular trend Pattern of secular trends A secular trend (or long-term trend) is a pattern of growth or
growth or decline in a par- decline in a particular industry or a national economy over a long period,
ticular business, industry, or usually 20 or 30 years. Secular trends may result from changes in population,
economy that occurs over a availability of capital, technology and production methods, consumer habits
long period of time — say,
and spending patterns, and so on. One familiar secular trend has been the
20 or 30 years
decline in the demand for rail travel since the development of the automobile
and airplane. Another is the upward trend the drug companies have been
enjoying because of increased interest in health care. Managers study secular
trends to plan for the future, compare their company's growth with that of
other firms in the same industry, and set up standards for their own
performance.
As useful as key numbers are in making business decisions, more sophisti-

Interpreting data cated techniques may produce even more valuable statistics. Further calcu-
lations can reveal relationships between sets of data, provide predictions,
and help uncover the underlying factors that contribute to a wider range of
findings. In effect, data analysis yields a picture; data interpretation yields a
story.
One of the most common types of data interpretation is the calculation of
correlation Statistical rela- a correlation, which is a relationship between two or more variables (change-
tionship between two or able factors in a situation or experiment). Imagine that analysis has shown a
more variables decrease in worker productivity over the past year. It is possible, but not
efficient, to think of all the variables that might have caused the change and
then, one by one, construct experiments to test their relationship to the de-
crease. costs far less and takes far less time to compare statistically the
It
trends for all those variables with the trend in productivity to see whether
any of them exhibit a similar pattern.
positive correlation Statis-
Correlations may be positive or negative. A positive correlation is one in
tical relationship in which an
increase or decrease in one which the trends travel in the same direction simultaneously. The decrease
variable is associated with in productivity, for instance, may be positively correlated with workers' ex-
another variable's change in perience levels or with incentive pay scales; in other words, as experience
the same direction levels or incentive pay scales go down, so does productivity. A negative cor-
relation, on the other hand, is like a mirror image: The trends travel in oppo-
negative correlation Sta-
site directions. If productivity goes down as the number of accidents goes up,
tistical relationship in which
a change in one variable is
the two variables are negatively correlated.
associated with the other Correlations may point the way toward solutions, but remember that
variable's change in the correlations do not indicate cause-and-effect relationships. They merely
opposite direction show that two variables change at the same time, not that change in one
actually causes change in the other. Even though productivity drops when
the number of accidents goes up, for instance, there is no evidence that acci-
dents cause productivity declines or vice versa.
To predict or control business activity, it may be foolish to rely on a
correlation without further interpretation. For example, a large department
store noticed that its sales seemed to be positively correlated with the Dow
Jones Industrial Average: An increase in the stock price index was regularly
followed by a similar increase in the store's sales. After several years, how-
ever, the correlation suddenly turned negative: when the stock price index
went up, store sales went down. Statisticians soon found the reason. The Dow
Jones Industrial Average and the store's sales were both dependent variables
related to a third variable, the state of the economy as a whole. When the
economy started to decline, so did the store's sales (a positive correlation).
But the economy's health and stock prices were not so clearly correlated.
Stock prices sometimes rose temporarily during periods of low prosperity.
So the store managers realized that watching stock prices would not help
them predict how well the business would do; there was no real cause-and-
effect relationship between the two.
Reports
Even the most carefully planned and painstakingly prepared statistical re-
search project may be a waste of time if the information is poorly presented.
Written reports that highlight key research results must be clear and easy to
follow. Tables and graphs help, and such visual aids may even be crucial to
giving readers a clear picture of the situation.
A tood business report has six parts:

Business-report
The title should be a brief description of the report as a whole rather than a
format
catchy headline. The names of the authors and the date go under the title.
The introduction should briefly state the subject of the report, the research
techniques used, and the nature of the specific problem to be solved.
The conclusions — the answers to the problem outlined in the introduction —
should be presented concisely.
Recommendations — suggestions on how the company might deal with the
problem —should be practical, specific, and derived from the conclusions.
The body of the report should present data to back up the conclusions and
recommendations.
Appendixes (which contain data not directly related to the problem), notes
(which give additional information on points made in the body), and sources
(which tell the reader where the information in the report was obtained) all
go at the end of the report.
Sometimes the conclusions and recommendations follow the body ol the

report.
^^"^~-~~* With all the graphics software available today for computers, there is little
Tables and reason no t to present data in a form that has visual impact. Several types
diagrams of diagrams are used to display relationships among data (see Exhibit
App. II. 2):
Pictograph
1.
ill.
iiiii
iiiii
JJ II i 1970 1975 19801985
I ,000 workers
EXHIBIT APP. II.
Diagrams Used in
Business Reports
These types of diagrams -
line graph, bar chart, pie A line graph is a line connecting points. Line graphs show trends, such as an
chart,and statistical map — increase in profits.
are most often used in pre- A bar chart uses either vertical or horizontal bars to compare information.
senting business data. Because of its simplicity, the bar chart is frequently used in business
reports.
A pictograph is a variation of the bar chart, with symbols or pictures used to
represent data instead of bars. Pictographs are good attention-getters, but

using them often means sacrificing some accuracy.
A pie chart is a circle divided into slices. The slices are labeled as percent-
ages of the whole circle, or 100 percent. A pie chart provides a vivid picture
of relationships, but it is not good for showing precise data.
A statistical map shows both locations and quantities by variations in color,
texture, or shading or by a concentration of dots. Like the pie chart, it is
better for showing general relationships.
table Grid for displaying
relationships among words A table, a grid of words and numbers, is commonly used to present data when
and numbers, particularly there is a large amount of precise numerical information to convey. Exhibit
many precise numbers App. II. 3 shows the standard parts of a table.
3
EXHIBIT APP. II.
The Parts of a Table Gross Revenues by Source

(in thousands of dollars)
All cables, whether long or
short, simple or compli- 1983* 1984 1985 1986
cated, contain a title, col- Entertainment and recreation 445,165 508,444 571,079 643,380
umn heads (across the top), Motion pictures 118,058 152,135 134,785 161,400
line heads (down the side),
Consumer products and other 66,602 80,564 90,909 109,725
and entries in the "cells" of
TOTAL REVENUES 629,825 741,143 796,773 914,505
the grid. They may also in-
clude footnotes and a •Reclassified for comparative purposes and to c omply with reporting req jirements adopted in 983
Source: Company Annual Reports. 1983. 1984 1985. 1986.
source note.
Numbers don't lie, as the saying goes. But it's also true that the people who
Statistics and collect and present numbers are not always as straightforward as they might
honesty be. Statistical findings may sometimes be manipulated or juggled to make
them appear in the best possible light. One of many such tactics is the use of
precise, impressive-sounding statistics that may actually prove very little.
For instance, an advertising agency may claim that half an ounce of an anti-
septic killed 31 ,108 germs in a test tube in 1 1 seconds. But an antiseptic that
kills germs in a test tube may not in fact work in the human body. Or there
may be so many thousands of germs in a comparable portion of the human
anatomy that the ability to kill 31,108 is woefully inadequate.
Another juggling technique is the "shifting base." Suppose a store offers
$10 Christmas gifts in October and urges customers to buy right away to save
50 percent. Save 50 percent of what? The store plans to increase the price to
$20 in November, so the saving would be 50 percent of the coming markup,
not of the advertised price. In neglecting to say what base the percentage was
figured on, the store is being less than honest.
The people who misuse statistics cannot take all the blame, however.
There are so many ways to analyze, interpret, and report numbers that judg-
ment naturally becomes a big factor. Anyone in business and, for that —
matter, any consumer —
should therefore take some responsibility for un-
derstanding what the numbers are saying before making decisions based on
those numbers.
index number (606) random sampling (603)
KEY TERMS internal data (601) sample (602)

mean (605) seasonal variation (607)
average (605) median (606) secondary data (602)
correlation (608) mode (606) secular trend (608)
cyclical variation (607) negative correlation (608) statistics (605)
dependent variables (604) observation (603) surveys (604)

experiment (604) positive correlation (608) table (610)
external data (601) primary data (602) trend analysis (607)

independent variables (604) probability (602) variables (604)

APPENDIX David Rachamn, Michael Mescon, Courtland Bovee, John Thill - APPENDIX

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

APPENDIX David Rachamn, Michael Mescon, Courtland Bovee, John Thill - APPENDIX

Uploaded by

Copyright:

Available Formats

APPENDIX I

Bookkeeper Maintains records of finan- Community-college $12,000 Good Excellent train-

•Salaries may vary from company to company.

Careers in Management (continued)

date product and price lists a plus. tial.

and to keep track of inven-

Manager of employment. Handles ment or personnel, fields as possi-

"Salaries may vary from company to company.

Careers in Management (continued)

Operations Uses scientific methods to Four-year college $25,700 On-the-job train-

"Salaries may vary from company to company.

Careers in Marketing {continued)

Advertising Assists in general running of Four-year college $16,000 Good entry-level

Market Performs one or several of Four-year college $19,500 Mathematical

Proofreads copy; helps pre- Four-year college $18,000 Opportunity for

'Salaries may vary from company to company.

Careers in Marketing (continued)

"Salaries may vary from company to company.

Careers in Finance (continued)

records payments; prepares nance or accounting.

Accountant Provides a variety of ac- Four-year college $20,500 Affords opportu-

ventories and purchases. courses in comput- organization.

"Salaries may vary from company to company.

Careers in Finance (continued)

of companies or government ferred. Must have the field.

bonds. Transmits buy and broker's license for

Operations Conducts logical analyses of Four-year college $25,000

Careers in Computers and Data Processing

'Salaries may vary from company to company.

Careers in Computers and Data Processing (continued)

Computer Keeps computers running Two-year degree. $18,500 Greater salary

Customer- Takes orders, checks inven- Two-year degree. $16,000

Graphic Designs charts and graphs Two-year degree in $20,000 Excellent

Uses mathematical methods Four-year college $26,000 Computer-

Analyzes, designs, tests, and Four-year college $24,000 Must have

Systems Analyst Researches user needs, de- Four-year college $27,000

'Salaries may vary from company to company.

Careers in Computers and Data Processing (continued)

Computer Designs hardware to meet Four-year college $32,000

Careers in the Federal Government

"Salaries may vary from company to company.

Careers in the Federal Government (continued)

Social Insurance Handles facets of social-

Performs various economic Four-year college $15,118 Most jobs in

'Salaries may vary from company to company

Careers in the Federal Government (continued)

Budget Analyst Evaluates programs to de- MBA in business $22,907 Good

'Salaries may vary from company to company.

Businesspeople use sophisticated information-gathering methods and inter-

Speed. Secondary-data sources, such as A Guide to Consumer Markets, put

Secondary data do have some drawbacks, however. The information may be

The best way to overcome the disadvantages of secondary data may be to

reveals procrastination? Is gazing into space a sign of procrastination, or is it

"T j . Raw data —

Wimper 7,000 Mean

with those of another. To express this comparison conveniently, an index

Current-year employment (1985) 4,900

Current-year employment (1986) 5,300

is followed by recovery, which

struction,and employment. The cycle usually begins again. Government

As useful as key numbers are in making business decisions, more sophisti-

A tood business report has six parts:

Sometimes the conclusions and recommendations follow the body ol the