MBA SEMESTER 1MB0040 – STATISTICS FOR MANAGEMENT- 4 Credits(Book ID: B1129)Assignment Set- 1 (60 Marks)Note: Each question carries 10 Marks. Answer all the questionsQ1. (a) ‘Statistics is the backbone of decision-making’. Comment.(b) ‘Statistics is as good as the user’. Comment.Answer:a.
Due to advanced communication network, rapid changes in consumer behaviour, varied expectationsof variety of consumers and new market openings, modern managers have a difficult task of makingquick and appropriate decisions. Therefore, there is a need for them to depend more upon quantitativetechniques like mathematical models, statistics, operations research and econometrics.Decision making is a key part of our day-to-day life. Even when we wish to purchase a television, welike to know the price, quality, durability, and maintainability of various brands and models beforebuying one. As you can see, in this scenario we are collecting data and making an optimum decision. Inother words, we are using Statistics.Again, suppose a company wishes to introduce a new product, it has to collect data on market potential,consumer likings, availability of raw materials, feasibility of producing the product. Hence, datacollection is the back-bone of any decision making process.Many organisations find themselves data-rich but poor in drawing information from it. Therefore, it isimportant to develop the ability to extract meaningful information from raw data to make better decisions. Statistics play an important role in this aspect.Statistics is broadly divided into two main categories. Below Figure illustrates the two categories. Thetwo categories of Statistics are descriptive statistics and inferential statistics.