What is the Use of Statistics in Business?
There are many reasons a business uses statistics in its practice. The first reason is that in the use of statistics, the business will have to track and understand its numbers and information. The collection and organization of this data will be a good opportunity for the business owner to understand the performance of the business.
Other than the act of collecting and arranging data help, statistics show how customers react to the products or services a business provides. It is important for a business to understand how they are profiting and how customers are interacting with their products or services alongside different marketing tactics the company is using. This is important for a business as a good use of these statistical tools will allow it to make the necessary changes in the business in order to increase revenue and profit.
Another reason for using statistical tools will be for the company to identify trends in itself or with regard to the industry it is in as a whole. For example, if a business recorded lower profit in certain months in a year, it can adjust its cost and inventory during those times so as to minimize the cost of keeping stock and transporting those stock from warehouse to storefronts. The company may also look at the trend and decides to develop marketing strategies that focus on those slower sales months in order to improve the profitability of the business in those times.
Last but not least, another reason can be for the business to make a prediction about the future according to the trend it observes from the data. While there are different possibilities in the future and it is difficult to have certainty, analyzing existing data can give the company a sense of what may happen in the future and the possibility of those events happening which may be beneficial or challenging. With that knowledge in mind, the company can make adjustments if needed or have contingency plans ready should those unfavorable events happen.
There are more reasons for a business to use statistical analysis tools. The most important aspect is how the competition in industries is fierce and the more data and knowledge a company can get, the higher chance it can stay in business and profit in the long term.
Use of Descriptive Statistics
Descriptive statistics, as its name implied, is used to describe a dataset. In business, descriptive statistics can be used to help the business to understand how its customers behave and react to the products or services it provides. There are a few commonly looked at statistical points, which are:
- mean: the average
- mode: the most frequent data point
- median: the data point that is in the middle of the range
Order an assignment through this link: https://intel-writers.com/
