Application of Statistics in Business

How Statistics work in Business and What is the importance Level of Statistics in Business.

1. Course Teacher : Ms. Samiha Sanjana Lecturer Department of Business Administration North East University Bangladesh Submitted By: Hasan Mohammed Abdullah Faroqui Student ID: 200301010501 Program: Spring-2021 (MBA) Department of Business Administration North East University Bangladesh. Assignment of Mid Semester Course Title: Business Statistics Course Code: STA-523 Submitted To: Department of Business Administration North East University Bangladesh.

2. Application of Statistics in Business 1 st of all we want to know about what is Business Statistics. Business Statistics is the process of analyzing, categorizing, interpreting and compiling data.  Business  administrative professionals make inferences from these data sets regarding products, markets and consumers to help organizations make informed decisions.

3. Simple definition of statistics? 1 : A branch of mathematics dealing with the collection, analysis, interpretation, and presentation of masses of numerical data. 2 : A collection of quantitative data.

4. How Statistics use in Business Marketing: Statistics is used in almost every aspect of creating and growing customers , in forecasting sales, market share and demand for various industrial products, in designing marketing campaigns , in conducting marketing research , in studying customer response etc . Finance: Statistical tools and technique are used for analyzing financial risk, measuring financial performance, comparing return on investment, making break even analysis, making financial planning and asset evaluation, cash flow analysis and prediction , etc.

5. Insurance: Probability and statistics are used extensively in designing new insurance policies and in fixing of premiums for the companies. Purchasing and Inventory: Statistical techniques offer guideline on how much raw material to purchase, levels of inventory to keep and costs to ship and store finished products.

6. Economics: Statistical data and methods give valuable assistance in the proper understanding of the economic problem and indicators and in the formulation of economic policies. Operations: Operations means transforming various resources into product and services in the place, quantity, cost, quality and time as required by the customers. Statistics plays a very useful role at the input , processing and output stage.

7. Human Resource Management : All the functions of HRM department need statistical tools for evaluating the performance, developing rating systems and training systems, studying labor turnover rates, and collecting, storing, retrieval and analysis of a mass of data . Research & Development: Without statistical applications, it is impossible for a firm to conduct research on particular topic and reach valid conclusions.

8. Information Systems: IT uses statistics in various areas like, optimization of server time, assessing performance of a program as well as resources used by the program. Controlling: Managers and decision makers need to use statistics in every area of controlling costs, operations and in planning budgets . In this way statistics play an important role in business.