Question

What is business statistics? Explain using a few examples how the application of the statistical tools will help managers in business and management decisions.

Answer 1

Business statistics is that the science of good decision making in the face of uncertainty and is employed in several disciplines like economic science, auditing and production and operations, together with services improvement and selling research".

These sources feature regular repetitive publication of series of information. This makes the subject of your time series particularly vital for business statistics. it's conjointly a branch of applied statistics operating totally on knowledge collected as a by-product of doing business or by government agencies. It provides information and skills to interpret and use applied mathematics techniques in a very form of business applications.

A typical business statistics course is meant for business majors, and covers applied mathematics study, descriptive statistics (collection, description, analysis, and outline of data), likelihood, and therefore the binomial and traditional distributions, take a look at of hypotheses and confidence intervals, regression, and correlation.

Usually, the investigator seeks to ascertain the causal effect of one variable on other variable. for example — the effect of a price increase upon demand, or the effect of changes in the money supply upon the inflation rate.

regression analysis Uses to estimate the relationship between a dependent variable and a single independent variable; for example, the relationship between crop yields and rainfall.Measuring the impact on a corporation’s profits of an increase in profits

Understanding how sensitive a corporation’s sales are to changes in advertising expenditures

Seeing how a stock price is affected by changes in interest rates

bussiness statistics may also be used for forecasting purposes for future values .

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