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Offers Data To Managers Who Help Them To Make Successful Decisions Based On Fundamental Values Rather Than Intuitions

Statistics and quantitative methods play an important role in business decision making by allowing managers to analyze data and make interpretations to inform decisions. They help evaluate past performance, forecast the future, and make decisions based on fundamental values rather than intuition. Businesses that utilize accurate data through statistical analysis can make more confident decisions, continually grow the organization, and identify new business opportunities.

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14 views

Offers Data To Managers Who Help Them To Make Successful Decisions Based On Fundamental Values Rather Than Intuitions

Statistics and quantitative methods play an important role in business decision making by allowing managers to analyze data and make interpretations to inform decisions. They help evaluate past performance, forecast the future, and make decisions based on fundamental values rather than intuition. Businesses that utilize accurate data through statistical analysis can make more confident decisions, continually grow the organization, and identify new business opportunities.

Uploaded by

sssmitali53
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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26.

Discuss the role of Statistics & Quantitative methods in the business


decisions making.

Business statistics offers data to managers who help them to make successful
decisions based on fundamental values rather than intuitions. Statistics is used to
analyze the data and make interpretations, whether for sales estimation, introducing
a new product line, making new production strategies, etc.
Quantitative techniques are very powerful medium through which we solve
uncertainty in decision making and enhance projectability and efficiency in the
business. Therefore, these quantitative techniques evaluate planning factors and
when these arise then provide meaningful solution to particular business problem.
Statistical analysis is collecting, organizing, and interpreting data meaningfully.
Business statistics offers data to managers who help them to make successful
decisions based on fundamental values rather than intuitions. Statistics is used to
analyze the data and make interpretations, whether for sales estimation, introducing
a new product line, making new production strategies, etc.
The primary purpose of business statistics is data collection, allowing managers to
evaluate past performance, forecast future business practices, and run the
organization profitably. Furthermore, it becomes the basis for risk navigation, sales
prediction, market trends, changing consumer behavior, price determination, etc.
For businesses that envision gaining a competitive edge, data is the right tool they
should invest in. The main reason behind the success of any big firm is its emphasis
on data and research.
For example- Amazon recommends their customers based on their past orders and
buying behavior. They use machine learning and data analytics to drive their
recommendation engines rather than blindly suggesting [products to customers.
Similarly, Starbucks uses an analytical approach to identify its future store locations.
They partner with a location analytics company to find ideal store locations. They
continuously use data to make informed decisions about finding new customers,
acquiring customer insights, targeting marketing campaigns, spotting fraud,
identifying other business risks, etc.

A business can benefit in myriad ways when they utilize accurate data. Let’s find out
how.
1. Making More Confident Decisions.
With the collection and analysis of data, you can make any business decision
confidently as it is based on specific patterns and trends evaluated. No matter
whether it is related to the launch of a new product or its discontinuation, entering
into a new market, and so on.
2. Continual Organizational Growth
Once you implement a strategy that was made using data, your next step is to check
its outcomes. Businesses can apply their decisions to many functions, operations,
and departmental activities. One after another, when they keep on implementing
strategies, it will empower them to set actionable benchmarks that will result in
continual growth and progress.
3. Hunting New Business Opportunities
With statistical analysis, businesses can have access to more opportunities. The
timely evaluation of market trends and customer demands will enable them to gain
insights before their rivals. Hence, with correct quantities of data, they can identify
business opportunities and gain an edge over their rivals.
Related Read – Difference between Null Hypothesis and Alternative Hypothesis
Types of Statistical Methods For Business Use
1. Descriptive Statistics
Descriptive Analysis answers the question ‘what happened’ by summarizing the past
data. It is the process of describing samples and populations. A large amount of data
is summarised into various valuable bits of information. It mainly emphasizes
frequency distribution, central tendency, and data variability. In a frequency
distribution, we record how often data occurs, central tendency shows the center
point of data distribution, and variability of the set indicates its degree of disposition.

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