How Statistics can be Used in Business Decisions

How Statistics can be used in Business Decisions
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How Statistics can be used in Business Decisions
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Date: 27th April 2023.
Subject: How Statistics can be used in Business Decisions.
Statistics entails the process of gathering, compiling, analyzing, interpreting, and presenting non-numeric and numeric data to promote effective business decision-making. Businesses cannot operate smoothly without making decisions based on accurate and valid data. In that light, statistics ensure that enterprises can develop strategies and run their operations without wasting resources. That is why explaining how statistics can be used in making business decisions is crucial and prepares an individual to understand its numerous applications.
In particular, effective decision-making is essential for the success of a business. Statistics enables businesses to know consumer behavior. Descriptive statistics analyzes what has happened by using the recorded data to understand the trend. For instance, many companies can track their performance by using Key Performance Indicators (KPIs) and monthly revenue reports among others (Chhabra, 2022). When a business understands its consumers’ behaviors, it becomes easy to come up with products and services that can meet its clients’ needs entirely. Besides, if an existing commodity does not fully meet the consumer’s requirements, it can be modified. Descriptive statistics can help a business to know the number of clients who visit its stores or websites daily, weekly, monthly, or annually. As such, the data gathered through descriptive statistics can help a business to know its customers better so that it can improve its goods and services to meet their needs.
Currently, data has become the driving force in businesses and more information is gathered today than ever before. Despite the large volume of data that companies are collecting, it can be useless if proper statistical analyses are not done to enhance decision-making. For example, businesses can make more informed decisions by using the gathered data so that they can predict their future. Hypothesis testing refers to a statistical method that businesses can use to ana...