Question

Please share your thoughts about the application of statistics in today’s business? Also, what are some of the good examples as when / how you would apply statistics in business?

Answer 1

21st century is all about DATA and without statistics one can not analyse the data and bring out the information from it.Almost every industry use data analysis or you can say Machine learning in their business plans , so they need to use Statistics.

The statistics compile the mandate of the business plan , its operations and its profitability capacity.

Statistics can be used for making sales projections, financial analysis of capital expenditure projects, constructing profit projections for a new product, setting up production quantities, and making a sampling analysis to determine the quality of a product. Using statistics provides real data about complex situations rather than making decisions based on unsubstantiated hunches.

For example, a manufacturer may be able to focus on the wants of customers based on what combination of features they choose. For this a knowledge of permutations, combinations and probability would yield the answer to part of the decision process. A casino would surely want to know the probability of specific outcomes like what is the true statistical probability that a “hard eight” would precede a seven on each roll of the dice. An oil exploration company wants to know how to allocate limited resources (investment capital) on an almost endless possibility of drilling sites in order to maximize profitability and reduce risk. I could go on, but I’m sure you get the idea.