Scribd
Upload
7 views1 page

1.1.1 Statistical Thinkinganalysis

Data is a collection of related observations, and statistics involves methods to gather, organize, summarize, and analyze this data to make informed decisions. The importance of statistical analysis has grown with the complexity of businesses, impacting areas such as manufacturing control, market research, and performance measurement. Managers must understand statistical concepts and tools to navigate increased market uncertainty and make effective decisions.

Uploaded by

sayalimore9474
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
7 views1 page

1.1.1 Statistical Thinkinganalysis

Data is a collection of related observations, and statistics involves methods to gather, organize, summarize, and analyze this data to make informed decisions. The importance of statistical analysis has grown with the complexity of businesses, impacting areas such as manufacturing control, market research, and performance measurement. Managers must understand statistical concepts and tools to navigate increased market uncertainty and make effective decisions.

Uploaded by

sayalimore9474
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1

Statistical thinking and analysis

Data is a collection of any number of related observations. We can collect the number of telephones
installed in a given day by several workers or the numbers of telephones installed per day over a period
of several days by one worker and call the results our data. A collection of data is called a data set and a
single observation is called as a data point.

Statistics is not restricted to only information about the State, but it also extends to almost every realm
of the business. Statistics is about scientific methods to gather, organize, summarize and analyze data.
More important still is to draw valid conclusions and make effective decisions based on such analysis. To
a large degree, company performance depends on the preciseness and accuracy of the forecast.
Statistics is an indispensable instrument for manufacturing control and market research. Statistical tools
are extensively used in business for time and motion study, consumer behaviour study, investment
decisions, credit ratings, performance measurements and compensations, inventory management,
accounting, quality control, distribution channel design, etc.

For managers, therefore, understanding statistical concepts and knowledge about using statistical tools
is essential. With an increase in a company's size and market uncertainty due to reduced competition,
the need for statistical knowledge and statistical analysis of various business circumstances has greatly
increased. Prior to this, when the size of business used to be small without much complexities, a single
person, usually owner or manager of the firm, used to take all decisions regarding the business.
Example: A manager used to decide, from where the necessary raw materials and other factors of
production were to be acquired, how much of output will be produced, where it will be sold, etc. This
type of decision making was usually based on experience and expectations of this single individual and
as such had no scientific basis.

You might also like