Using information

There are a few basic principles that need to be followed when using statistical data. Keep in mind the following guidelines:

• Find out the facts. Identify which organization or sources can help you find the information you require.
• Decide which format suits your needs best. Information can be released in many forms, including print and online publications, CD-ROMs and more and more from Internet sites.
• Find the information. If Statistics Canada is your source, you may obtain data on the Statistics Canada website, and from most community libraries. If you use other sources, ensure that the information is up-to-date and reliable. Reference librarians across the country will be able to assist you.
• Understand the terms, concepts and definitions of the data you are using, including the surveyed population and the methodology used. This will help you to compare similar information from different sources. Common statistical terms include: current and constant dollars, indexes, random rounding, and seasonal adjustment.

Here are just a few examples of the practical uses of statistical information:

• Tracking market share: A Halifax trust and mortgage loan company wants to evaluate its market share of retirement savings plans, mortgages and other key financial products. Using balance sheet data, researchers for the company can compare their growth and market share with the industry total and with other financial groups who sell the same products. By doing this, they define the products that offer the most potential for new sales. They can then integrate these vital facts into a new marketing strategy.
• Projecting construction costs: A hydro utility in Yellowknife is planning to build a new generating plant, but it will not be complete for at least 10 years. To establish its viability, planners want to look at future construction costs. The generating plant will be complex, with industrial, commercial and institutional sections. Through consultations with Statistics Canada, planners can determine which indexes they can use and (assuming stability in the economy) project price changes for the next 10 years.
• Tracking sales prices: A pharmaceutical firm in Winnipeg wants to compare price changes for its products with those of the industry as a whole. Using a series of pharmaceutical indexes, analysts can compare their price trends over time with those of the industry. In this way, they can measure their own competitiveness.
• Forecasting a market: Machine toolmakers in Sudbury need to know what the automotive industry is planning to spend on machinery and equipment. Using capital expenditures data, they can obtain the information they need to plan investments in new plants and equipment.
• Planning diversification: A Montréal clothing wholesaler has been doing exceptionally well and wants to expand into another service industry in the province. The wholesaler first looks at retail data to find out where consumer spending is highest, not only throughout the province but for Montréal as well. The index also shows retail trends over time. Using this information, the wholesaler can decide which area offers the most business potential.
• A major acquisition: Executives of a British Columbia resource corporation are reviewing a number of corporations for a possible acquisition. They need to collect information about their legal situation, corporate structures and subsidiaries, as well as the names of all directors and officers of each corporation. They also want to study the structure of several competitors to see how integrated they are within the industry. Working closely with the officials of the Corporation Returns Acts, they access the Intercorporate Ownership Database. The database provides a list of all corporate holdings and principal industries, as well as the names and addresses of all directors and officers.

There are many more uses of statistical data. To find out what these uses are, proceed to the case studies.