ABSTRACT
V. Significance levels ................................................................................................ 511 A. Significance tests ........................................................................................... 511 B. Misinterpretations of significance tests......................................................... 512 C. Guidelines for managers............................................................................... 513
VI. Applications of statistical software programs...................................................... 514 VII. Advantages of statistical software over spreadsheets ......................................... 515
References........................................................................................................................ 516
This chapter examines the role of statistical packages as a management tool in the public sector. With the need for public agencies to engage in policy analysis and program evaluations to justify continuation of current programs or the need for new program initiatives, statistical packages have become an increasingly important management tool. This chapter discusses the use of these packages in improving the quality of information available to decision-makers. The capability of statistical software programs continues to increase with the development of data mining and other analytic techniques. Statistical software, today, has moved from descriptive and inferential statistics to include the capability to link agency databases with an expanded array of analytic techniques designed to exploit the potential of existing
data files. Public-sector managers may be vulnerable to numerous pitfalls, such as those that the manager may encounter in the utilization of statistical software programs. Common pitfalls can be avoided if managers evaluate assumptions, examine descriptive statistics, understand statistical significance as it relates to Type I and Type II errors, and examine the values that have guided the analytic effort. While spreadsheets have significant value in terms of managing financial and accounting data, statistical software packages have a utility that extends beyond that of current spreadsheet programs. Statistical software provides the public manager with the potential to integrate data files and to conduct a segmented analysis to answer complex managerial questions.
