APPLICATION OF STATISTICS IN BUSINESS with Graphs | Business Statistics

APPLICATION OF STATISTICS IN BUSINESS
WHAT IS STATISTICS ?
Meaning
Significance of STATISTICS
ROLE OF STATISTICS IN ACCOUNTING, FINANCE, MARKETING, PRODUCTION & ECONOMICS
Quantative Data Graphs, Pie Charts, Dot Plots & Pareto Charts

1. B.BA Business Statistics B.BA (Spring-18) Batch Fall-17 Presented To: Miss MADEEHA University Of Gujrat LHR Campus Harbanspura , LAHORE

2. Who I AM ? HASSAN SHAHEER Roll No : 17500920-010 Semester : Spring-18 Batch : Fall-17

3. TOPIC......! APPLICATION OF STATISTICS IN BUSINESS

4. WHAT IS STATISTICS ? Statistics is the science that deals with the collection, classification, analysis, and interpretation of numerical facts or data, and that, by use of mathematical theories of probability imposes order and regularities on aggregate of more or less disparate elements.

5. Statistics play a vital role in nearly all businesses and form the backbone for all future development Strategies . Every business plan starts with extensive research and this is all complied into statistics that can influence a final decision

6. Meaning The word statistics is used in two different senses. In plural sense statistics means data and in singular sense statistics is science which deals with the collection, presentation, analysis, and interpretation of some numerical data.

7. Significance of STATISTICS Statistics is a particularly useful branch of mathematics that is not only studied theoretically but one that is used by researches in many fields to organize analysis and summarized data. Statistical methods and analyses are often used to communicate research findings and to support hypotheses and give reliability to conclusions.

8. ROLE OF STATISTICS IN ACCOUNTING FINANCE MARKETING PRODUCTION ECONOMICS

9. ACCOUNTING The Public accounting firms use statistical sampling procedures when conducting audits for their clients. For instance, suppose an accounting firm wants to determine whether the amount of accounts receivable shown on a client's balance sheet fairly represents the actual amount of accounts receivable.

10. Usually the large number of individual accounts receivable makes review in and validating every account too time-consuming and expensive. As common practice in such situations, the audit staff selects a subset of the accounts called a sample.

11. After reviewing the accuracy of the sampled accounts, the auditors draw a conclusion as to whether the accounts receivable amount shown on the client's balance sheet is acceptable

12. FINANCE Financial analysis uses a variety of statistical information to guide their investment recommendations. In the case of stocks, the analysis reviews a variety of financial data including  price/earnings ratios and dividend  yields.

13. By comparing the Information for an individual  stockwith information about the stock market averages, a financial analyst can begin to draw a conclusion as to whether an individual stock is over- or underpriced.

14. MARKETING Electronic scanners at retail checkout counters collect data for a variety of marketing research applications. For example, data suppliers and Information purchase point-of-sale scanner data from grocery stores, process the data, and then well statistical summaries of the data to manufacturers.

15. Manufacturers spend hundreds of thousands of dollars per product category to obtain scanner statistics and the promotional activity statistics to gain a better understanding of the relationship between promotional activities and sales.

16. Production Today's emphasis on quality makes quality control that important application of statistics in production. A variety of statistical quality control charts are used to monitor the output of a production process. 

17. In particular, a v-bar chart  can  be  used  to  monitor the average output. Suppose, for example, that a machine fills containers with a soft drink. Periodically,a production worker selects a sample of containers and computes the average number of ounces in the sample.

18. This average, or the value, is plotted on a v-bar chart. A plotted value above the chart' supper control limit indicates overfilling, and a plotted value below the chart's lower control limit indicates under filling.

19. The process is termed ""in control"" and allowed to continue as long as the plotted v-bar values fall between the chart's upper and lower control limits. Properly interpreted, a v-bar chart can help determine when adjustments are accessary to correct a production process

20. ECONOMICS Economists frequently provide forecasts about the future of the economy or some aspect of it. They use a variety of statistical information in making such forecasts.

21. For example, in forecasting inflation rates that economist's use statistical information on such indicators as the Producer Price Index, the unemployment rate, and manufacturing capacity utilization. These statistical indicators often entered into computerized forecasting models that predict inflation rates.

22. Quantative Data Graphs Pie Charts Dot Plots Pareto Charts

23. Pie Charts A pie chart (or a circle chart) is a circular statistical graphic which is divided into slices to illustrate numerical proportion. In a pie chart, the arc length of each slice is proportional to the quantity it represents.

24. While it is named for its resemblance to a pie which has been sliced, there are variations on the way it can be presented. The earliest known pie chart is generally credited to William Playfair's Statistical Breviary of 1801.

25. Graphical Representation

26. Dot Plots A dot chart or dot plot is a statistical chart consisting of data points plotted on a fairly simple scale, typically using filled in circles. There are two common, yet very different, versions of the dot chart.

27. Graphical Representation

28. Pareto Charts A Pareto chart, named after Vilfredo Pareto, is a type of chart that contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total is represented by the line.

29. Graphical Representation

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