Question

Importance of statistics for management

Answer 1

Importance of statistics in management.

1. Statistics is an indispensable to planning. In order that planning is successful, it must be based on correct analysis of complex statistical data.

2. The success of businessman more or less depends upon the accuracy and precision of his statistical forecasting.

for example suppose a businessman wants to manufactured readymade garments, before starting with the production process he must have an overall idea to ' how many garments are to be manufactured', 'how much raw material and labour is neededfor that ' and ' what is the quality,shape, color, size etc of the garments to be manufactured' . Thus the fomulation of a production plan in advance is must which cannot be done without having qualitative facts about the details mentioned above.

3. Many of the government policies runs on statistics. They use statistical data to make their decisions regerding any number of things.

4. The nation's budget depends upon statistical data because it is the most accurate data available when estimating expected expanditures and revenue.

for example Statistics in the government is figuring out whether or not to raise the minimum wage due to rise in the cost of living.

5. In production process, to find whether the product is conforming to specification or not, statistical tools like inspection plans control charts etc are of extreme importance.