How should statistical analysis and business experience interact with each other?

Expert Solution

Every business decision that is taken or should be taken should be relied based on apriori information i.e. past data. There are a lot of highs and lows in a business and statistical analysis paves the road towards making rational and balanced decisions which would be beneficial for the business. There is a strong interaction between business experience and statistical analysis. For example - of a company is considering merging of with another company, it would do great to look at the past performance of the company and the relative successes of similar mergers in the industry. Here business experience is enriched by statistical analysis of the companies merging and other information that is prevalent in the industry.

There has been a metaphorical rise of big data analytics companies as a result of this significant interaction and the great influence statistical analysis has on business decision making. This interaction has been crucial with the influxes of the statistical analytical methods being used largely for making sense of business experiences and moving ahead onward to more logical and rational decisions based on the various statistical analytical tools available.

So there should be complete fluidity and complete freedom on the way in which statistical analysis and business experience must interact with each other. Relying on data which offers deep insight in the running of any business is the correct way of staying relevant in any competitive business.

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orchestra answered 2 years ago

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