Statistics And Business 1

There is hardly any area in which the impact of statistics has been felt more strongly than in business where , as a daily way of life, decisions which affect profitably and continuity must be made at all levels of all kind of business. In the last five decades, the application of statistical method has brought about drastic changes in all major areas of business management general management, market surveys, research and development, finance, production, sales, advertisement, and the rest.

Of course, not all problems in these areas are of a statistical nature, but the list of those above which can be treated either partly or entirely by statistical methods is very long some of the roles of statistics in business are highlighted below.

Statistics helps business in planning and formulating short and long term policies. A shrewd manufacturer must know in advance 'how much to be produced', 'how many workers and how much raw materials will be needed to produce that estimated quantity' and 'what quality, type, size, color or grade of the product is to be manufactured'. In short, he must have a production plan, such a plan requires all details given above cannot be framed without quantitative facts.

Statistical methods of analyses are helpful in the marketing function of an enterprises. It helps in marketing function of an enterprises, marketing research, advertisement campaigns, and in comparing the sales performances.