What Is The Role Of Statistics In Management Sciences?

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Statistical measurement is used to make predictions based on data. With statistics, management can take a great deal of information and turn it into something fairly easy to understand, in chart or spreadsheet form.

Statistics are used to determine average sales, for instance. They can also predict growth and keep track of overall performance of employees' or a product’s sales. Also, they help with management by making it easy to determine how many supplies to buy over a period of time.

Statistics can also be used to determine the satisfaction level for a particular product, and what sells best in what geographical area.

They are used to decide what is and is not a good investment, and determine the risk-taking factors involved. Insurance companies are a good example of this type of management use, because they make their decisions almost entirely based on statistics.

A manager may need to know what the middle or median figure is in terms of the salaries in a business, and how many employees fall into that range. (Sometimes if a person has an extremely long list and doesn’t feel like counting each one individually, it is much simpler to find the mode.)

Statistics are also used in engineering, and even politics. Politicians will use statistics to determine how well a candidate is doing, for instance in exit polls.

Scientists will look at data such as average rainfall over a period of time, or in a certain location. They look at earthquake, tornado and hurricane statistics, and draw conclusions from the data.

Pharmaceutical and other researchers will compile data and determine information about a product’s usefulness, cost-effectiveness and safety.

A limitation would be whether an adequate amounts of data have ended up being subjected to the statistical analysis, as those results would then be blindly assumed to represent definitive scientific conclusions. Another limitation is how statistics are used, and the human error involved - either intentionally or unintentionally.

In our modern society, statistics have almost become a fetish or obsession. That limitation is tied in with another human element - in that statistics can be misused.

Bad statistics are used to promote all sorts of causes or products. They have been mis-used by politicians, charities, certain rights groups, media, government agencies and corporations.

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