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1. Data are everywhere
2. Statistical techniques are used to make many decisions that
affect our lives
3. No matter what your career, you will make professional
decisions that involve data. An understanding of statistical
methods will help you make these decisions efectively
Why study statistics?
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Applications of statistical concepts in
the business world
• Marketing – hypothesis testing, chi-square tests, nonparametric
statistics
• Finance – correlation and regression, index numbers, time series
analysis
• Personel – hypothesis testing, chi-square tests, nonparametric
tests
• Operating management – hypothesis testing, estimation,
analysis of variance, time series analysis
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• The science of collectiong, organizing, presenting, analyzing,
and interpreting data to assist in making more effective
decisions
• Statistical analysis – used to manipulate summarize, and
investigate data, so that useful decision-making information
results.
Statistics
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Importance of Statistics
1. Statistics makes the work simple & provides a clear picture on
the work we do on daily basis.
2. The statistical methods helps us to research on different streams
such as medicine, economics, business, social science and so on.
3. Statistics provides us different types of organized data with the
help of graphs, diagrams and charts.
4. Statistics comes handy while we do critical analysis.
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STATISTICS AND ECONOMETRICS
EXAMPLE: In Econometrics Linear Regression models are
formulated to analyze the effect of various determinants of demand
on demand for a product.
STATISTICS AND PHYSICAL SCEINCES
EXAMPLE: In geography data concerning temperature level over the
years can be collected and analyzed with the help of the statistics.
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STATISTICS AND BANKING
Statistics is used in the field of banking for various activities like
•Fixing rate of interests
•Advancing of loans
•Making recoveries
•Establishment of new branches etc.
Also the credit policy is framed on the basis of the data collected regarding the demand and supply of
money in the economy.
STATISTICS AND COMMERCE
It is used in the business activities such as:
•Production Management
•Demand forecasting
•Financial Analysis
•Costing
•Marketing
•Manpower Planning
•Market Research etc.
