What Is The Role Of Statistics In Business?

Statistics play a vital role in nearly all businesses and form the backbone for all future development strategies.

Businesses closely analyse data and statistics to work out what they are doing right and what is working for the company; while also determining what needs immediate attention or changing if things are not going so well. Therefore without detailed statistics to draw on, businesses would be running their companies blind-folded; which can result in complete disaster.

Every business plan starts with extensive research and this is all compiled into statistics that can influence a final decision. Many businesses need to apply for bank loans when they are starting out or when growth is initiated. The bank will only grant a loan if they can see extensive statistics to indicate the business will make the money they claim and thus will be able to repay the loan. If a business went to a bank without any statistical evidence, it is extremely unlikely the bank would approve the loan request.

Statistics aid development and learning, so their role in business should never be underestimated. The traditional business model would simply not work without access to detailed statistical reporting as any direction would be lost and keeping track of finances would be almost impossible.

Helps To:
1. Study demand
2. Accounting and auditing
3. Quality control
4. Location size decisions
5. Planning future operations
6. Marketing decisions
7. Production planning

Statistics plays an important role in establishing the marketing strategies and in positioning the company in marketing .through statistical research a one can know the customer's demand .

Depending on the type of business that is being operated, statistics are mainly used in business to gather information about their customers (current or potential), and would mainly be used to help improve or increase sales or marketing by making their business more tailored to their customers. Alternatively, if they were looking to open new markets, then they would use this to research the needs and demands of customers. Statistics are also used in business to work out the breakdown of financial dealings of the company, so they can address where the spending and returns have been for the company, so they can budget for future spending and expenses.

Role of statistics n  different types of busines