How using statistics supports conclusions*

Whether facing litigation, dealing with financial data, or grappling with market fluctuations, statistical analysis plays a role in determining solutions. When data are organized and summarized, interpreting trends, relationships, patterns and differences/similarities can be performed. Statistical analyses are essential, and are an effective way to study data, and report on metrics of interest. Having the expertise to know when to apply statistical methods, and how to analyze data can have a critical impact on your business.

If this is your situation

• You need to review transactions, claims, general ledger entries, or invoices and it is time and cost prohibitive to review all items. Statistical sampling is a widely accepted method for estimating a total, an average or a difference from a sample of data in order to make conclusions about the population.
• You need to quantify a relationship between an account balance and key factors (industry, economic and company specific). Regression analysis is a robust technique to quantify relationships among predictor variables.
• You need to defend an allegation of improper health care billing. Data analysis is used to examine practices of payment, billing and adjudication issues, and statistical sampling is used to quantify billing irregularities.
• You need to estimate a reserve for future liabilities associated with a product failure or equipment. Survival analysis models are used to estimate the likelihood of failures over time and the remaining useful life of the entity.
• You need to determine if likelihood of confusion arises due to allegations of trademark infringement. A consumer survey is an effective means to collect data and quantify the likelihood of trademark confusion.
• You need to implement a quality control program to mitigate errors or losses in financial reporting. Statistical methods can be used to detect errors, measure internal controls, and monitor progress as process improvements are made.
  

How PricewaterhouseCoopers can help you

PricewaterhouseCoopers' statisticians have a wide range of experience including: sampling applications, statistical modeling, and the ability to organize, summarize, and interpret large volumes of data. We have in-house statistical computing capabilities to effectively support complex business analyses. Our industry expertise includes pharmaceutics, healthcare, financial services, manufacturing, automotive and telecommunications.

We have testified in State and Federal court on a variety of matters relating to statistical methodologies and computing and assist counsel in mediations, arbitrations and settlement discussions. Furthermore, we are accustomed to effectively communicating statistical methods to judges, juries, arbitrators and mediators.