What Is The Role Of Statistics In Business Decision?

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James Milford Profile
James Milford answered
Statistics are created by "crunching” and analyzing large clusters of numerical data -when stats are used in the corporate realm, they provide businesspeople with the tools they need to implement short and long-term processes, plans, and marketing initiatives. Profit and loss statements, customer management information, and market share graphs are just a few business tools derived from the use of business statistics. Without the proper use of statistics, a business owner or manager may not have a full grasp of essential information necessary to run a successful corporate operation. In addition, many start-up businesses must present detailed business plans to banks or potential investors in order to secure funding - statistics can be used to come up with practical business plans that impress prospective partners or financial institutions.

Getting the hang of using statistics in business will be easier when you spend some time learning and researching the fundamentals. Some entrepreneurs choose to attend business classes to refine their skills - colleges and universities often feature Statistics classes in their course lists. These classes also teach applications and concepts related to the use of statistics. If you’re not interested in attending classes, you can find many free online tutorials that will help you gain knowledge of all the ways business stats can help you achieve your business goals.

Programs such as Excel (or other accounting-type software packages) are a good way to create and manage databases of relevant information. Excel features a series of formulas that can be used to analyze and group data. The goal of record keeping and analysis should be finding key areas that affect profits, performance, and customer satisfaction. These important "levers” can then be adjusted to boost efficiency and to improve sales or services. For example, if you’re tracking website hits based on a hot new marketing campaign, your numerical analyses, or statistics, may help you decide whether or not to spend more money advertising online. Statistics are an easy and practical way to make better decisions at your company.
Anonymous Profile
Anonymous answered
See the recent book "The Role of Statistics in Business and Industry" by G. Hahn and N. Doganaksoy, Wiley, 2008. $53 at amazon.com, a bargain for an instant classic!
Katie Harry Profile
Katie Harry answered
Statistics plays an important role in business, because it provides the quantitative basis for arriving at decisions in all matters connected with operations of business. As like statistics helps in a business to plan production according to the tastes of the consumers.

Statistics in business can also serve as a tool of management to evaluate performance of machines and personnel. It also enables the businessman to judge the efficiency of new production methods by studying relationship between costs and methods of production.

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