what is business statistics

 What Is Business Statistics?

Business statistics is a method of using statistics to gain valuable information from the data available to a company. Various techniques and principles of statistics are applied to gain insights that help to make better decisions. It is a method of using numerical data that they collect from various sources. The information can come from surveys, experiments or other information systems in the company. It helps organisations understand the reasons for various events in the present and predict the future. It can be used in marketing, production planning, human resource planning, finance, etc. 

Why Is Business Statistics Important?

Companies benefit from seeing patterns in their activity. It can be done with business statistics. Looking at past sales patterns, an organisation can predict sales volumes in various situations. Using this technique, one can determine if the company’s business proposition is viable. It is something that affects the performance of the whole company. Businesses can also find out if a particular marketing campaign has helped to attract more customers. It will help them in planning future campaigns in a better way. Business statistics is the foundation for business analytics. 

To understand ways to optimise a team’s performance, the company must first know their present productivity levels and weak areas. It can be gathered from data they have already generated from previous projects. But simply collecting data will not give the management any idea about improving the performance. It is where business statistics help. They must analyse and interpret the data using statistical methods. Though software programmes can do this, a human mind is needed to understand the significance of the analysis and take necessary action.