Essay - Business Statistics Statistical Data is a Vital Aid for Businesses...

Business Statistics

Statistical data is a vit*****l aid for businesses to make decisions that involve uncertainty and risks in the future. The use of probability distribution *****fers general idea to ***** businesses how the future events are most likely ***** turn out. Because in normal circumstances, the likelihood of occurring random event is same, however, when the ***** of ***** some occurrence becomes higher than expected, the business can take proactive actions and plan accordingly. For example, the Insurance companies believe that the chances of car crash for safe drivers are less than 1.5% over their life times, however, recently due to the bursting of tires of Ford SUV, the probability of the crash jumped exponentially. ***** Insurance ***** were quick ***** notice this abnormality and find the cause of the problem.

***** are important to provide information on existing and potential markets, measure industry performance and indicate social and economic trends. There ***** several devices such as mean, st*****ard deviation, proportion, variance etc that can be used by ***** in making ***** everyday decisions.

In some cases simple counts ***** ***** may work. For example, with count data, one can be certain ab***** the past occurrence of an event and those ***** then can ***** put in different *****ment units ***** create different charts and graphs that can provide a comparison over different dimensions.

***** some of the *****, the prob*****ility model is likely to approximate the behavior ***** ***** *****s when the process displays a reasonable degree of statistical control. Yet, decid*****g which probability model is appropriate requires judgment that ***** managers do not possess.

In ***** recent years, with great use of information technology, statistical methods have emerged in ***** years as one of the fundamental ********** for business decision support, which *****s businesses important device in mak*****g complex decisions quickly.

Beca***** the nature of economic ***** business phenomena is clearly statistical in nature and ***** need for a scientific ********** is becoming more ***** more necessary, so statistical analysis has become an integral part ***** every aspect of theoretical and applied research.

The inter-dependence of economies ***** the development of global markets has introduced new levels and sources ***** competition for the businesses. Businesses face new ***** of risk as the markets in which they operate become more open. Should they invest in new capacity to be able to compete ***** effectively? How exposed a position can they afford to take in their key markets? In short, how does a business cope with the risks inherent in ***** modern economy? When uncert*****inty is so high, the management has no choice but make ***** use of the statistics to justify ********** decisions. So statistical devices are a set of tools that can help business organizations impose order in the modern world. Business statistics offer the opportunity to make decisions based on numerical data, in the face of uncertainty.

***** of the common ***** of the statistical tools is to measure economic activity and ***** impact of developments