How Statistics Can Be Helpful in Business Decision Making?

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Why students are taking the opportunity to study statistics?

Is there any possibility to have a bright future?

In current times, students are concerned about building up their future and so choosing statistics as their degree course is a wise decision. It is the subject that gives you the opportunity to build up career in different field.

So, what is the subject deal with?

Statistics is referred to analysing of data. It is the science that would help you learn from the data collected. It is also an art of measuring, controlling and finally interpreting along with scientific methods. The subject is very important and it is widely used in different fields starting from astronomy to entertainment.

It is normal that you find the subject to be a complex one and students would be in need of help on daily basis to manage their college assignments. Now, let’s explore the two broad categories of statistics!

  1. Qualitative data analysis:

It is the kind of data analysis where the data will not be available in the form of numbers. In this case, the data will be accessible in natural language description. So, this is also referred as the “categorical” data.

  • Quantitative data analysis:

It is a kind of data analysis which would demand proper study of the numbers. Data available with you is actually in quantity or numerical terms.

Now, you should know why statistics is so important in business?

Definitely, it helps in taking proper decision so that it can contribute in growth of the business. So, here you get to learn the role of statistics in business decision making!

The manager needs to possess the ability to scrutinize the data and make the future forecast related to business or specific department. The manager needs help of statistics as well as statistical concepts. Today, you can’t think of making a business decision in a rush which is abrupt.

A decision should always be concrete based on facts and figures. Here are the points that you should keep in mind while making decision related to business:

  • The broader aspects of the business

To make the business a successful entity it is important that you predict the future. Getting a bigger picture is possible when you start analysing with the data. The data will reduce the cost and will be able to provide accurate information about market. Statistics does not consume much of your time and it is said to be a cost-effective solution.

  • Evidence to the authentic position

Statistics come up with the goals along with the stand-alone figures and the evidences for the substantial positions which can offer certainty and give positive direction to the company. Leaders have the opportunity to get knowledge and then emphasize on persuading the people so that they can move in a direction and take up the risk on unsubstantiated opinions.

  • Need to make connections between variables

Statistics have the ability to build up relationships. It is essential to have a clear view of the data which would enable to establish links between two different variables. Focusing in the data it is possible to get a control over customer satisfaction and also enable to repeat the various purchases and enhance the sales volume.

  • Give assurance on quality

It is obvious that the business will emphasize on continuous improvement of the quality and give assurance on it. The quality assurance programs of the business include Six Sigma and Lean Manufacturing which actually knows the importance of statistics. The subject provides the platform through which you can measure and also have proper control on the production processes which can minimize the variations and lead to error. You need to maintain consistency in the process.

Do you have knowledge on business statistics?

Through the statistics it is possible for the business to produce more goods along with a limited wastage. So, you can expect to improve the productivity of workers in the most simplified manner. It is the money saving tool which can give assurance on the best quality along with proper use of resources.

While discussing about the statistical research, you will possibly know that the managers have the opportunity to analyse the past performance of the business and make future prediction that would lead to the effectiveness of organizations. Statistics actually take into account the markets, set up prices and then inform the advertising which would influence consumer demand.

The descriptive analysis allows understanding the past and also getting explanation of what has happened. Through the help of historical data, managers have the ability to understand the past failures and successes. This is also referred as the “cause and effect analysis.”

Some of the important applications related to descriptive analytics are finance, sales, marketing and operations.

When it comes to predictive analytics you will understand that it adopts various statistical techniques which are related to data mining. This finally enables to predict the probabilities of future occurrences based on the historical data.

Obviously statistics helps to evaluate the performance in business!

The main role of statistics in relation to business is to help the managers evaluate the performance of employee. The manager has the potential to collect important data related to productivity of employees. The managers would analyse the data and look for ways through which employees can enhance the performance and achieve highest level of productivity.

There are many companies around who takes the initiative to collect data related to employee retention and keep them happy on the job. Tracking of performance and then motivating employees to improve productivity can be possible through statistics.

There are many companies around who take the opportunity to compile the statistics and check out employee performance. The companies would take the chance to motivate employees while keeping in consideration the other external factors which would offer alternative tasks.

Collecting of data is what statistics all about! So, it demands valid data for evaluation…

It is vital to collect the data that is used in statistics and also summarize it. It would act in favour of the business as the manager can adopt a logical method to strategize the future growth of business. But, remember that the collection and reporting of data needs to be done in an ethical manner.

The manager has the flexibility to make use of the data and understand the sales figure of the company. He might also be responsible for evaluating the low performance and make new strategies to gain return on investment.

Apart from managing the performance of employees, the manager can also take part in the decision making. Statistics enable managers to understand different situations and compare them so that the best option is selected for the company.

The team has the ability to decide the best software which would finally help in better customer ordering process. The management team will discuss about the software product which is successful one and then finally would choose the best one that would help in better ordering system.

Understand the functions of statistics

Here are the functions of the statistics:

  • Simplifying the complex facts:

The main objective of the statistics is to collect large number of numerical data and then simplify them. The data is huge and it is beyond the capabilities of human. Through statistical method ensures that the whole data collection is simplified in a short span of time.

  • Comparing of the data:

The other function of statistics is to compare the data collected. Apart from simplifying, it is essential to compare and correlate with various mathematical questions such as coefficient, averages, ratios etc.

  • Connection with the facts and figures:

The statistical methods are necessary to investigate the effect and cause of the relationship that happens between facts. It is the relationship that occurs between demand and supply which is easily understandable through statistical method.

  • Forecasting the future:

Statistical method can be the best tool to predict the future and take action according to the phenomenon. This is only possible through statistical techniques which help to estimate the production, investment and consumption.

  • Enhance the knowledge of individual:

Through statistical method it is possible to improve your rational reasoning ability. It is the best way to solve problems of mankind in different spheres of life.

Statistics is the subject that would even indicate the trend. It is the statistical technique like that of the analysis of time and it is widely used to understand the trend and the behaviour of the enquiry that is in question. The function of the statistics is to identify different types of hypothesis and also identify the new theory.

Get the help online to understand the subject

It is really important to get the online help so that you have complete clarity on the subject. Before, you make the career in any organization it is essential that you complete the course with good grades in exam. Here are few places where you can expect to get online help:

  • Informational sites:

Today, you will come across with various informational websites that deliver knowledge and information. It is essential to gain knowledge about statistics. The websites help you teach different concepts and it is the best source that would clarify concepts.

  • Educational videos:

It is the other source through which you can gain thorough knowledge on the subject. The tutorial videos are said to be the useful tool which can help to manage different problems. The videos will break down the problem in different pieces and ensure that you get clarity on the topic.

  • Online forum:

It is the best sources which would give the answers to all queries in the forum. This is the source from where you can get the response. But the answers need to be verified for accuracy.

To penetrate into the business organization and build up a bright future it is important that you study well and score good grades in exam. There are many students who actually struggle with the subject as it is said to be a complex one. But with the professional help you can certainly manage the work conveniently.

You need to understand that every writing service would not have the ability to solve statistical problems. While looking for the service check out the feedback of the students and ensure that the company is trustworthy.

Statistics play a vital role in business

Statistics is really an important subject as it allows the students to have the power of analysis. The concepts and the principles are very important which would help to evaluate various things depending on the facts.

It is really necessary to assess and analyse the data that would come up with meaningful results. Statistics is an effective subject that would demand a proper understanding. When you emphasize on studying statistics it is vital that you know about the different concepts and phenomenon. The main objective of the statistician is to:

  • Collect the necessary data
  • Organizing the data
  • Proper in-depth analysis
  • Interpreting the findings

The main aim of the statistical data is to explain the intensity of the phenomenon that would help in the decision making process. Through statistical instrument it is convenient enough to understand the circumstances which can lead to certain consequences.

Why students should study statistics? Is there is special reason?

The subject actually deals with a large number of data and in today’s world it is not possible to handle data manually. So, having knowledge of statistics will help you easily manage the subject. The statistical tool and the concepts related to the quantitative reasoning will allow in extracting information in the most intelligent manner.

In order to perform the research efficiently it is essential to have sufficient knowledge on statistics. Lack of information will not enable you to have decisions which would ultimately depend on the collected data from the project.

Statistics is the subject that would allow you in taking apt decision between two different possibilities. It is usually used in different areas and has become a part of our daily lives. Through the study of statistics it is possible to stay prepared for the real life situations. The subject would enable to handle the stereotypes and find out the truth.

Author Bio:

Emma McCoy is a professor of statistics, faculty of natural sciences and Department of Mathematics. Her research interests are Time Series, Computational statistics and Wavelets. She is the experienced online tutor who has vast knowledge on the statistics. She has done M.S. in Statistics from Hult International Business School. The online tutor has the potential to understand needs of students. The unique teaching technique enables students get complete clarity on the subject. Through her unique teaching technique students gain clarity on the subject.  For more information about her, you can find it here

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