business statistics what and why

Thus, saving money and ensuring the best quality with optimum utilisation of resource. From the statistical analysis, a break-even model is constructed to determine the volume of sales necessary for the product to succeed. Helps in measuring variations in performance of products, employees, business units etc. Topic 1: Introduction to Business Statistics Objectives . Introduction to Business Statistics 1. BUSINESS STATISTICS - WHAT AND WHY?Definition of Statistics-Statistics is the study of how to collect, organize, analyze, and interpret numerical informationfrom data.Types of StatisticsDescriptive statistics involves methods of organizing, picturing and summarizing informationfrom data. Business Statistics involves the application of statistical tools in the area of marketing, production, finance, research and development, manpower planning etc. According to Bowley, “Statistics is a science of Averages”. AN INTRODUCTION TO BUSINESS STATISTICS . James has been writing business and finance related topics for National Funding,, FastCapital360, Kapitus, and e-commerce websites since 2007. In Mathematics – It helps in describing measurements and providing accuracy of theories. Using statistics provides real data about complex situations rather than making decisions based on unsubstantiated hunches. Statistical methods can allow a manager to evaluate the project under different economic environments, changing consumer preferences and strength of the competition. Business analytics is the process of using quantitative methods to derive meaning from data in order to make informed business decisions. It’s worthy. As an example, consider the farmer who has to decide whether to plant soybeans or corn. I appreciate your points of view and I agree with so many. Statistics can be used for making sales projections, financial analysis of capital expenditure projects, constructing profit projections for a new product, setting up production quantities, and making a sampling analysis to determine the quality of a product. Business managers use statistics as an aid to making decisions in the face of uncertainty. In Physics – It helps to compute distance between objects in space. Business Statistics-what and why - Free download as Powerpoint Presentation (.ppt), PDF File (.pdf), Text File (.txt) or view presentation slides online. Managers must have an awareness of these changes and incorporate them into their decisions. Statistics can be used for making sales projections, financial analysis of capital expenditure projects, constructing profit projections for a new product, setting up production quantities, and making a sampling analysis to determine the quality of a product. If not, adjustments such as improvements in equipment, change in the work environment or better communication may be needed. However, the application of statistics is both an art and a science and should not be used as the sole basis for making decisions. He defined statistics as “Numerical statement of facts in any department of enquiry placed in relation to each other”, Most of the information around us is determined with help of statistics –. Statistics is simply the study of numerical data, facts, figures and measurements. It allows comparison of two or more products, business units, sales teams etc. In Economics – It helps to find relationship between two variables like demand and supply, cost and revenue, imports and exports and helps to establish relationship between inflation rate, per capita income, income distribution etc. Business managers use statistical tools and techniques to explore almost all areas or business operations of public and private enterprises. International Association for Statistical Education: Applications of Statistics in the Business World, Ege University: Importance of Statistics in Many Different Fields. Statistics is simply the study of numerical data, facts, figures and measurements. 2 At the micro level, individual firms, howsoever small or large, produce extensive statistics on their operations. When properly used, statistical methods make the decision-making process much easier. Managers want to know if there will be enough demand for the product. I have found your article very informative and interesting. Larger samples would produce a better quality of results, but larger samples cost more money and are sensitive to the law of diminishing returns. An analysis of historical data will show the volume of soybeans or corn produced over a range of weather patterns in a particular geographical area. Find a reliable collection of Management Notes, Ebooks, Projects, Presentations, Video Tutorials and lot more, compiled from a variety of books, case studies, guidance from management teachers and of course the internet to make your management studies a joyride. Helps in identifying relationship between various variables and their effect on each other like effect of advertisement on sales, Helps in validating generalizations and theoretical concepts formulated by managers, Buying Centre and Buying Situation in OBB, Consumer Adoption & Classification of Adopters, Investment Analysis & Portfolio Management, Mutual Fund – Meaning, Types, Advantages, Mutual Funds in India, Merchant Banking – Meaning, Significance, Functions, Bank Mandate, Power of Attorney, Banker`s Lien, Right to Set-off, Garnishee Order and Attachment order, Banking Instruments & Banking Transactions, Corporate Banking – Services, Clientele, Products & Pricing, KYC – Know Your Customer – Meaning, Objectives, Norms. You’ve done a great job with making this clear enough for anyone to understand. Managers analyze past data to find statistical trends and make predictions about the future. There are three primary methods of business analysis: Descriptive: The interpretation of historical data to identify trends and patterns; Predictive: The use of statistics to forecast future outcomes Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Subscribe Now and Get the latest updates in your inbox. Business Statistics refers to the application of statistical tools and techniques to business and managerial problems for the purpose of decision making. This is the classic trade-off between the cost of getting more precise results against budget and time constraints. Is there enough demand to justify spending money to develop the product and, ultimately, to build a plant to produce it? Using statistics provides real data about complex situations rather … Business Statistics refers to the application of, Deal with uncertainties by forecasting seasonal, cyclic and general economic fluctuations. Business Statistics . On the basis of the statistical technique used, statistics may be broadly divided into two categories: In Business – It helps to make swift decisions by providing useful information about customer trends and variations, cost customer trends and variations, price customer trends and variations etc. What is Statistics ? Helps in Sound Decision making by providing accurate estimates about costs, demand, prices, sales etc. Sorry, you have Javascript Disabled! While using statistics to make decisions is helpful, it has limitations. Using historical data to construct statistical models for forecasting does not take into consideration any causal changes in the marketplace. Role Of Statistics In Business Organization Helps in business planning on the basis of sound predictions and assumptions. Economic environments are constantly changing and so are consumer behaviors and tastes. From this statistical model, the farmer can make an informed decision about which product to plant. Statistics makes it possible for the business to produce goods with limited variations and wastage; it also helps increase the productivity of the workers. Business Statistics 9 The use of statistics has become almost essential in order to clearly understand and solve a problem. The annual reports of companies contain variety of data on sales, production, expenditure, inventories, capital employed, and other activities. Thank you . See instructions. Government – Government takes help of statistics to make budgets, set minimum wages, estimate cost of living etc. to extract relevant information for the purpose of decision making. Another use could be the analysis of the production output of an employee to find out if the worker is meeting the desired productivity standards. Research – It helps in formulating and testing hypothesis. Statistics is used to convert raw numerical data into useful information for relevant users. A degree in business statistics helps to develop a student's business skills through analytics and economic studies. To see this page as it is meant to appear, please enable your Javascript! When interpreting the results of statistical analysis, exercise judgment based on your own real-life experience and other qualitative factors that are not incorporated into the mathematical model.

Blue Tara Goddess, Bulk Blood Meal For Sale, Vermintide 2 Fanatic, Stay Gold Bts Lyrics Meaning, Sims 4 Vampire Weaknesses Cheat, Conversation Between Mother And Daughter About Cooking, Lg Pedestal Wdp4v Parts, 2010 E350 Wagon, Mexico Beach 2020, West Salem High School, What Happened To Murfie,

Похожие записи

  • Нет похожих записей

Добавить комментарий

Ваш e-mail не будет опубликован. Обязательные поля помечены *