Question

We always seem to be focused on using statistics in Business decisions. Please think of some ways you can use statistics in your own decision making. For example, when we go on vacation as a family, we choose between many different types of travel. Using statistical analysis, I am able to come up with different pricing options.

Answer 1

Statistics:

It is an aggregate of facts affected to a marked extent by multiplicity of causes numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected in a systematic manner for a predetermined purpose and placed in relation to each other.

Where there is uncertainty, there exists statistics. If there is no need to statistics. In the case of uncertainty, probability helps in defining the events. probability, linearity, Normality are the back bones to statistics. Now a days there are enough cases which are certain. That is why statistics plays an important role in that situations.

Example:

Any research starts with certain hypotheses, After that it decides whether to accept or reject that hypothesis. Certain statistical tools are necessary to test the statistical hypotheses. Normal distribution, exact sampling distributions t, F, chi-square helps in this context. All the research accepted only through those tests and analysis.

Example:

In playing cards, throwing a dice and betting cases statistics helps very much.

In deciding managerial decisions it will help a lot. In any factory the quality of the products can be tested and take a proper decision to reject or accept the lots, it is an essential feature.

In modern days where analysis needs statistics exists.