Inferential Statistics As a Measure of Judging the Short-Term Solvency An Empirical Study of Three Steel Companies in India

Inferential statistics cover those methods which help in drawing inferences on the characteristics of the population, on the basis of a sample (Sancheti and Kapoor, 2007). It is an applied branch of statistics to help in generalization of facts representing the population. These inferences are drawn for specific purposes e.g., efficiency of management, strengths and weakness of the firm, cost and profit relationship etc. With Inferential Statistics, we draw conclusions that extend beyond the immediate data alone. For Instance, we use Inferential Statistics to infer from the sample data what the population might think. Or, we use Inferential Statistics to make judgments of the probability that an observed difference between groups is a dependable one or one that might have happened by chance in this study. Thus, we use Inferential Statistics to make inferences from data of more general conditions (William 2006)