Examples The use of statistics in the management of a business is so pervasive that it's nearly impossible to summarize.A business may buy hundreds of thousands of microchips, for example, so many that it would take years to inspect each one.Uniformity The advantage of statistics is that they're comparable.
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Have you noticed that the trend in business planning right now is that less is more?
Interpretation of key statistics is essential to decision making.
Decision Making Statistical analysis allows businesses to measure the performance of a business and identify trends.
The business might then pull random samples from the order and perform statistical analysis to decide whether to accept or reject the microchips.
Statistics can be used for marketing and market analysis.If employees work 10 hours per day one week, and eight hours the next, it would be difficult to say the numbers are necessarily comparable.It might be better to calculate the number of widgets made per hour.These, and hundreds more sample business plans, are included in Live Plan.It's the fastest way to create a business plan for your business. You're making your pitches even tougher if you're using a generic, flavorless business plan.But I know from experience that the last thing you have when you're starting your own business is an abundance of time to dream up creative ideas for your business plan.For example, a business might use statistical techniques to estimate the size of a particular industry, and then use its own internal data to estimate its share of the market.Businesses might use their past experience to estimate future results through regression analysis, or they may use it to estimate the percentage of clients who'll fail to pay their bills.In large organizations, statistics are used to make a wide range of decisions.In small businesses, statistics help banks make decisions on whether to offer loans based on key financial ratios contained in a company's financial statement, loans that can be used to grow a new firm.