Applications of Business Statistics
Statistics are used by all industries and businesses as a standardized unit of measurement for presenting data in a useful and meaningful format. Statistics can be used to measure historical performance and to forecast future targets. For business managers and leaders, statistics provide insight into how business units are performing relative to an organizations goals and objectives. Statistics also forecast future trends and are used in all areas of human thought an endeavor for planning purposes. Statistics are used in all areas of trade and commerce. Governments frequently undertake studies for the purposes of formulating policy and businesses use data to identify what is currently working and what is not. Business initiatives are altered to improve organizational performance based on feedback from statistical studies. Advertising companies use statistics to assess target markets and formulate campaigns. Marketers use statistics to identify opportunities for business development. Since the advent of the internet, statistics have become important for online business operators. Whether it be measuring search engine traffic, assessing product conversion or determining which paid ads are working, statistics provide the necessary data in a meaningful way to support strategic decision making. Without the use of statistics, businesses could not calculate returns on investment and business decision making would become a hit and miss affair. The computer industry makes use of statistics to detect emerging trends and develop products that are in line with consumer preferences. Without data to support product development, organizations would have no way of determining changing consumer preferences and tastes. With competing demands for capital and labor, organizations rely on data to determine how to best make use of exiting resources and plan for future requirements. Managers rely on monthly and quarterly statistics to adjust...
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