Statistics is the most commonly used quantitative method in business. It entails extracting the best information from available data sources and using it to aid the decision making process. In most businesses, statistical results are used for quality control, forecasting sales, quality control methods and market research. The data which is used in calculating business statistics includes opinion polls, population censuses, and data bases of consumers, sales and demand data. What an expert does is analyses how a data can be collected for a given question and then how it should be analysed in to answer that query best.
Statistics is the science of learning from data. So from planning for the collection of data and data management to drawing inferences from it and presenting results, statistics covers each and every aspect.
How are business statistics used
There are many ways of analyzing data for a business. What one chooses to pick centers around the business model and the question you are looking the answers for. Here are a few stats that help businesses get a grip on the market.
Consumer technology stats: These statistics revolve around technology consumers use and the influence it has on their lives and the relation of your business to the same. For instance, in March 2006, RBC conducted a survey which said forty three percent mobile users claimed they would be willing to pay more for a cell phone that prohibits advertising messages. Statistics like these help the business understand what the market wants and is happy or unhappy with.
Demographic stats: These statistics take a specific area or theme in mind before they are calculated. These vary from households to income groups, country, province, etc. Again, these help a business find out what people in a particular are thinking. For instance, The Center of Retirement Research conducted a survey that revealed 43% of working households were in danger in 2004 of not having enough fund at the time of their retirement. These surveys help businesses understand the market better.
E-commerce statistics: These are stats which help a business understand how well it will fair in the online world. For instance, if one is venturing into the business of baby products online, a statistic like “how many people are shopping for these products online on a monthly basis” would help one understand the scope of that business before it kicks off.
Qualities to look for in a statistician: Whether a firm chooses a company to help them or does the statistic internally, there are a few things that are required for a statistic to be perfect. To begin with, the firm or person examining the data must be equipped with graphical techniques which are required for displaying data. In addition to that one needs to understand the limitations and scope of statistical inference and how it can help investigation.
Overall, statistical analysis in business has helped firms around the world understand their consumer and business better.