Statistics in Business
In general statistics is the collection of large quantities with numerical data to be scientifically analyzed. Statistics is referred to as interpreting and analyzing data. Areas that use modern statistical methods are the medical, biological and social sciences, economics, finance, marketing research, manufacturing and management, government, research institutes and many more. Statistics is important because it turns data into knowledge leading to solving problems and innovation. Types and the Role of Statistics
There are different types and levels of statistics. Quantitative is how is data being measured. There are four levels of measuring data: nominal, ordinal, interval, and Ratio. These four levels use different statistical techniques. Business cannot run successfully based on instincts. Statistics is a tool that provides managers with more confidence in dealing with vagueness even with the help of data availability, and enables managers to respond faster and smarter on decisions needed to provide a stable leadership to the staff relying on them. Statistics analyze a group of consumers which can lead to reasonable accurate and cost effective picture of the market. It provides a foundation to building a strategy. Statistics help a company create objective goals giving a sense of direction. The information collected is further analyzed to reveal links between variables and point out relationships. This could potentially lead to more control on customer satisfactions, recurring purchases, and increasing the volume of sales. Part of statistics is ensuring quality by reducing waste, errors, material costs, and the cost of honoring warranties due to defective products. Many businesses have Six Sigma or Lean Manufacturing to ensure quality and cost improvement. To be successful it is important to know exactly what is needed from the data collected. Managers must know what to measure and how to manage the numbers versus letting the numbers...
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