“Right
decision at right time” is the unanimously pertinent expression
which helps corporate to flourish. A proper decision making
can happen only with the help of proper statistical analysis.
Statistical analysis is the most important practice used by
every company to resolve any problem. It solves the every smallest
and the biggest of the problems in the right manner. It refers
to the collective methods used to process a noisy data. In other
words, it is the collection, examination, summarization and
interpretation of large data to derive at a resolution of
an existing problem. Study of collated data helps in avoiding
the problem in long run. Statistics analysis helps a business unit
to foresee an emerging problem in future. In most of the companies,
statistic analysis is done by the business analyst who would
not only analyze the data but help the company avoid any problem
in future.
Statistical thinking thus can be applied to both business operations and methods of management. Clearly, the need to utilize the statistical thinking for tangible business improvements is now greater than ever before. A century ago H. G. Wells commented, "Statistical thinking will one day be as necessary for efficient citizenship as the ability to read and write."
Businesses also employ statistical analysis of data to help in improving their processes. Precisely, statistical methods help to demonstrate the need for improvements, identify ways to make improvements, assess whether or not improvement activities have been successful, and estimate the benefits of improvement strategies. Thus, the ultimate goal of statistical analysis in business is to improve the performance of business processes. For instance, we might use:
1. Descriptive and inferential statistics to compare the risk and return characteristics of different investment choices in order to improve the way we manage an investment portfolio.
2. Statistical process control to improve a manufacturing or service process.
3. Regression analysis to predict demand for a product in order to improve the way we manage inventories.
4. Design of experiments to study the effects of several different advertising campaigns in order to improve how a product is marketed.
In each case, we are improving the performance of a business process by taking informed action on the basis of statistical analysis. This theme provides the philosophical reason for conducting statistical studies in business. Statistical thinking can be used in all parts of an organization and in all job functions. A manager makes "better" decisions when he utilizes all available information in an effective and meaningful way.
The primary role of statistics is to provide decision makers with methods for obtaining and analyzing information to help make these "better" decisions. It is, therefore, said that statistics is the art and science of collecting and understanding data. Statistical techniques should be viewed as an important part of the business decision process, allowing informed strategic decisions to be made that combine intuition and expertise with a thorough understanding of the facts available. Use of statistics is becoming increasingly important in maintaining a competitive edge for success…today!
