The branch of mathematics which helps to transform numbers into respective important information that are used for making decisions is known as statistics. This particular subject lets an individual to know about risky situations that are associated with a particular business decision. So, it helps to get knowledge and gives the individual ways for making different decisions regarding the business. Statistics helps a business firm by providing different methods for variations which ultimately assist in decision making procedure. Mainly the subject of statistics assists the business firm to analyze the profit and loss through the sense of numbers.
In the world of business, the subject of statistics has got three different and important uses. The main thing that is necessary for business statistics is summarization of business data. The three different specific uses of statistics in business are to draw various conclusions from the collected data, to make valid forecasts about the particular business activity and ultimately to help the firm to gain profit.
These methods are dependent of two branches of statistics which are inferential statistics and descriptive statistics. The method that helps in the collection, summarization, presentation and lastly analyzing of business data is known as descriptive statistics. In inferential statistics, the data is collected from a small group in order to draw conclusion on a bigger group. Most of the charts and tables that we witness in a business presentation are made from descriptive statistical method. In business firms the subject of statistics is used in three different ways. They are as follows:
- For visualizing and summarizing data.
- For reaching conclusions about large groups that are based on data collected from comparably smaller group.
- For improving business processes by using managerial approaches like Six Sigma which focus on improvement.
There are particular methods for using assumptions and conditions and concluding result. For doing this the business firm has to hire a statistician who knows the subject well. Any individual cannot do the calculation. Moreover, the subject is totally based on mathematics. The subject helps to create important information from either samples or populations. In most cases the conclusion is represent in table, chart, graph, and other pictorial presentations. A population includes all items and individuals which are required to draw conclusions and the potion of a population which is selected for analysis is known as sample. The variables of the data may differ for various reasons. Without operational definitions, variable values become meaning less. The assimilation of business has to be done very carefully in order to get a perfect result. Moreover, the statistical analysis gives a comparison of various variables. The result can be understood by an individual when he or she gives an apparent look on the particular stuff. Moreover, business growth cannot be witnessed without proper statistical analysis. The representations can also be made with the help of computer. You can make the report interesting by using various types of settings from the computer program.