The Importance Of Statistics

Statistics can be used/can be implemented in almost all walks of life. It is the analysis, interpretation, preservation, and presentation of data. The uses of statistics in any industry are limitless.

Statistics can be used by everyone. Production companies use statistics to gauge the public’s perception of their products. Business managers use statistics as an aid to making decisions in the face of uncertainty. Statistics can be used for making sales projections, financial analysis of capital expenditure projects, constructing profit projections for a new product, setting up production quantities, and making a sampling analysis to determine the quality of a product. Using statistics provides real data about complex situations rather than making decisions based on unreliable assumptions.

Companies use statistics in market research and new product development. They take random surveys of consumers to gauge the market acceptance and potential for a proposed product. Managers want to know if there will be enough demand for the product. Is there enough demand to justify spending money to develop the product, to advertise the product and, ultimately, to build a factory to produce it? From the statistical analysis, a break-even model is constructed to determine the volume of sales necessary for the product to succeed.

A defining business trend in the Digital Age has been the growth in the volume and the use of quantitative data. Increasingly, decisions once based on management intuition and experience now rely on empirical evidence drawn from statistical data. As the volume of data sets grow larger, the term “big data” has become a buzzword. Statistical evidence can inform business leaders about how their companies perform, the effectiveness of their business operations and information about their customers.

Whether producing or designing new products, streamlining a production process or evaluating current vs. prospective customers, today’s business managers face greater complexities than ever before. Running a shop on instinct no longer suffices. Statistics provide managers with more confidence in dealing with uncertainty in spite of the flood of available data, enabling managers to more quickly make smarter decisions and provide more stable leadership to staff relying on them.