STATISTICS

Statistics

Statistics

Introduction

I believe statistics plays a very vital role in the business world and it can greatly help me in attaining my goals. It pays a very important role in the business and for a businessman to be successful, it is essential to be quick and to show accuracy when making decisions. Therefore, he needs to know the customers well to analyze their needs in order to decide the commodities that should be offered to them and in what quantities (McClave, et.al, 1997).

Advantages of Statistics to Businessmen

Plan Production

For the businessmen, statistics provides assistance in plan production with regards to the tastes of the customers. Statistical methods are used by the businessmen to check the quality of the products that are offered to the customers. Moreover, all the other information of the business activities is also based on statistical information. Besides all this, statistics also enables the businessmen to make correct decisions with regards to the location of the business, the marketing strategies that should be adopted and the financial resources that should be used.

Collects Facts

A businessman who does not use statistics for his business operations may not be at an advantage. This is because not using statistics may drive him in the endless stream of numbers that may last forever. Therefore, a businessman opts for statistics because it is a science that is extremely important as it uses numbers in order to collect and categorize facts. 

Determines Value of Business

Statistical facts enable a businessman to determine the value of the business procedures that are implemented. Therefore, it is important for the managers to recognize the importance of statistics to a business and because the managers who fail to do so may drive their business enterprise towards failure (Northouse, 2009).

Sampling

Sampling is a part of statistics that is important part of the business and should be considered by the management. This enables them to take information from a small sample group which is then applied to the general population. For instance, if the marketing specialists introduce an idea that according to them might bring profits to the company, and they are unsure, statistics can be used to determine the possibilities. Idea can be tested by the marketers by offering the commodity to a particular group of customers. This is also known as test marketing program in which testing is conducted. After the test finishes, figures are used by the ...