IMPORTANCE OF STATISTICS IN INDUSTRY,

COMPANY AND MARKET:-

A common use of statistics is to measure performance. For example, you might
gather data about a small number of product units to make an estimate about the
quality level of an entire batch of production, this is known as statistical sampling.

Another use could be the analysis of the production output of an employee to find
out if the worker is meeting the desired productivity standards. If not, adjustments
such as improvement in equipment, change in the work may be needed.

Improving the ways that data and information are presented and interpreted. And
supporting the planning of analysis of data from, interpretation of the results of and
implementation of actions from investigations by non statisticians. Ideas are
developed on the way that a statistical services should operate to fulfill its triple
role of specialist analysis, helping others and providing software.

INDUSTRY
MANUFACTURING- Industrial statisticians help build products and deliver
services that satisfy customers and increase their company’s market share and
profit margin. Statisticians help design the best products guide the transaction from
design to manufacturing, ensure a consistently excellent product, manage customer
satisfaction, and ensure a financially beneficial bottom line. Industry professionals
use statistical models for quality control and quality assurance in nearly all
manufactured goods.

MARKETING- Statistics is used to quantify the extent of variation in customer’s

need and want. Statisticians design experiments for new product, conduct focus
groups and sample survey to gather customer feedback, and perform field
experiments in test markets to determine produce viability and marketability.

ENGINEERING- they are responsible for leading large projects with significant
costs, technical complexity, and responsibility. Statistical method allow engineers
to make a consistent product, detect problems, minimize chemical wastes, and
predict product life.
STATISTICAL COMPUTING- Reliable and accurate statistical software is
arguably the most important tool available to statisticians in every field.
Developing code that is both user friendly and sufficiency complex is a
challenging task, as is exploiting the rapidly occurring improvements in hardware
platforms, graphics and algorithms.

 Industrial statistics may be defined as a science that employs the techniques

and methods of general statistical theory to develop a system of indexes that
describes the composition and distribution of industries, the work of industrial
enterprises, association, and sector as well as industry as a whole and the result
of such activity.
 Industrial statistics is also the practical work involved in collecting, processing,
and analyzing industrial data in order to evaluate the implementation of state
plans and to describe the development of industrial production and its
economic efficiency.
 Industrial statistics makes use of a system of indexes showing the availability
and composition of manpower resources, and the length and use of work time.
 Special attention is given to the level, dynamics and change factors of labor
productivity, as well as to the wages of industrial workers.
 Industrial statistics incorporates indexes showing the size, composition,
condition, and utilization of industrial capital stock as a whole and of its most
active part – energy and manufacturing equipment. Also included indexes of
the movement and use of objects of labor.
 Indexes of scientific and technological progress are of major importance in
industrial statistics. These are indexes of industrial mechanization and
automation, electrification, chemicalization, the invention and introduction of
new technological processes, specialization, coordination, and concentration.
 Financial results are reflected in indexes of prime cost, profit ,and rate of
profitability. After the introduction of new regulation for planning and
economic stimulation, industrial enterprise acquired greater economics
independence, a change that gave impetus to the development of economic
statistical analysis.
 The experience of organizing industrial statistics in the USSR has influenced
the development of branch of statistics in other socialist countries. In capitalist
countries industrial data are collected and processed by numerous institution,
 both governmental and private. Protection of the interests of private companies
has hindered the development of current industrial statistics.

Statistics plays an important role in company’s, as well:-

BUSINESS STATISTICS:-
It involves the application of statistical tools in the area of marketing, production,
finance, research & development, manpower planning etc. to extract relevant
information for the purpose of decision making. Business managers use statistical
tools and techniques to explore almost all areas or business operations of public
and private enterprises.

IMPORTANCE OF STATISTICS IN BUSINESS:-

 It helps to make swift decisions by providing useful information about customer
trends and variations, cost customer trends and variations, price customer trends
and variations etc.
 Deals with uncertainties by forecasting seasonal, cyclic and general economic
fluctuations.
 It helps in sound decision making by providing accurate estimates about costs,
demand, prices, sales etc.
 It helps in measuring variations in performance of products, employees,
business units etc.
 It helps in business planning on the basis of sound predictions and assumptions.
 It allows comparison of two or more products, business units, sales teams etc.
 It helps in identifying relationship between various variables and their effect on
each other like effect of advertisement on sales.
 It helps in validating generalizations and theoretical concepts formulated by
managers.
 It also helps to find relationship between two variables like demand and supply,
cost and revenue, imports and exports, and helps to establish relationship
between inflation rate, per capita income, income distribution etc.
 Helps in sound decision making by providing accurate estimates about costs,
demand, prices, sales etc. also helps in measuring variations in performance of
 products, employee, business units etc. it allows comparison of two or more
products, business units, sales teams etc.

IMPORTANCE OF STATISTICS IN MARKET:-

Statistics are applied in marketing to identify market trends, and to measure and
evaluate the potential and success of marketing programs. The secret to successful
marketing is to identify the target market accurately and to use effective marketing
communication channels and tactics to reach it.

 Statistics can help the marketer to achieve both of those goals as well as
evaluate the success of the marketing effort and provide data on which to base
changes to the marketing program.
 The statistical inference delivered from the carriage of these researches are
vital factors in determining the direction of an organization’s marketing flow.
Product development, market development, promotional plans and knowing
the customer stand points, statistics run the state of affairs in contemporary
marketing.
 There is a statistical analysis termed as multi dimensional preference analysis
that employs the use of columns and rows for consumers and products
respectively. With the help of this data analysis the marketer can determine
consumer preference patterns for different products. Essential of the target
market come out in the open along with the areas of potential market growth.
 Companies use statistics in market research and new product development.
They take random survey of consumers to gauge the market acceptance
potential for a proposed product. Managers want to know if there will be
enough to justify spending money to develop the product and ultimately, to
build a plant to produce it. From the statistical analysis, a breakeven model is
constructed to determine the volume of sales necessary for the product to
succeed.
 For example, consider the farmer who has to decide whether to plant soybeans
or corn. Of course, the farmer wants to maximize the number of bushels
produced under good or bad weather conditions, each weather condition has a
certain probability of occurring. An analysis of historical data will show the
volume of soybeans or corn produced over a range of weather patterns in a
particular geographical area. From this statistical model the farmer can make
an informed decision about which product to plant.