This document is an assignment submission for a Business Statistics course taught by Ms. Samiha Sanjana at North East University Bangladesh. It was submitted by student Hasan Mohammed Abdullah Faroqui. The assignment discusses the application of statistics in business. It defines business statistics and explains how statistics are used in various business functions like marketing, finance, insurance, purchasing and inventory, economics, operations, human resource management, research and development, information systems, and controlling.

1. Course Teacher:
Ms. Samiha Sanjana
Lecturer
Department of Business Administration
North East University Bangladesh
Submitted By:
Hasan Mohammed Abdullah Faroqui
Student ID: 200301010501
Program: Spring-2021 (MBA)
Department of Business Administration
North East University Bangladesh.
Assignment of Mid Semester
Course Title: Business
Statistics
Course Code: STA-523
Submitted To:
Department of Business Administration
North East University Bangladesh.

2. Application of
Statistics in
Business
1st of all we want to know about
what is Business Statistics.
Business Statistics is the process
of analyzing, categorizing,
interpreting and compiling
data. Business administrative
professionals make inferences
from these data sets regarding
products, markets and
consumers to help organizations
make informed decisions.

3. Simple definition of statistics?
 1 : A branch of mathematics dealing with the
collection, analysis, interpretation, and
presentation of masses of numerical data.
 2 : A collection of quantitative data.

4. How Statistics use in Business
 Marketing: Statistics is used in almost every aspect of
creating and growing customers , in forecasting sales,
market share and demand for various industrial products,
in designing marketing campaigns , in conducting
marketing research , in studying customer response etc.
 Finance: Statistical tools and technique are used for
analyzing financial risk, measuring financial
performance, comparing return on investment, making
break even analysis, making financial planning and asset
evaluation, cash flow analysis and prediction , etc.

5.  Insurance: Probability and statistics are used
extensively in designing new insurance policies
and in fixing of premiums for the companies.
 Purchasing and Inventory: Statistical
techniques offer guideline on how much raw
material to purchase, levels of inventory to keep
and costs to ship and store finished products.

6.  Economics: Statistical data and methods give
valuable assistance in the proper understanding
of the economic problem and indicators and in
the formulation of economic policies.
 Operations: Operations means transforming
various resources into product and services in
the place, quantity, cost, quality and time as
required by the customers. Statistics plays a
very useful role at the input , processing and
output stage.

7.  Human Resource Management : All the
functions of HRM department need statistical
tools for evaluating the performance, developing
rating systems and training systems, studying
labor turnover rates, and collecting, storing,
retrieval and analysis of a mass of data.
 Research & Development: Without statistical
applications, it is impossible for a firm to conduct
research on particular topic and reach valid
conclusions.

8.  Information Systems: IT uses statistics in various areas
like, optimization of server time, assessing performance of a
program as well as resources used by the program.
 Controlling: Managers and decision makers need to use
statistics in every area of controlling costs, operations and in
planning budgets.
 In this way statistics play an important role in business.