Business Statistics &

Its Application in
Business
What is Statistics?
•Statistics is the science of conducting studies to
collect, organize, summarize, analyze and draw
conclusions from data.
Branches of Statistics :

Statistics Descriptive
Statistics
Inferential
Statistics
Types of Data :
Primary
Secondary
Application of statistics in business:
Management

Finance
Statistics Accounting

Economics
Economics :
Economics is about allocating limited resources among unlimited ends in the most
optimal manner. Statistics offers information to answer some basic questions in
economics –
What to produce?
How to produce?
For whom to produce?
Management :
In today’s world, business management is a complex process.
Also, while planning, organizing, controlling, and communicating, the management is
confronted with many alternative courses of action.
The trial and error method is not a great way of making decision.
Therefore, statistical data and powerful statistical techniques of probability,
expectations, sampling, significance test, estimation theory, forecasting, etc. play an
important role.
Marketing :
Marketing is all about creating and growing customers profitably.
Statistics is used in almost every aspect of creating and growing
customers profitably. Statistics is extensively used in making decisions
regarding how to sell products to customers. Also, intelligent use of
statistics helps managers to design marketing campaigns targeted at the
potential customers. Marketing research is the systematic and objective
gathering, recording and analysis of data about aspects related to
marketing.
Finance :
Uncertainty is the hallmark of the financial world. All financial decisions
are based on “Expectation” that is best analyzed with the help of the
theory of probability and statistical techniques. Probability and statistics
are used extensively in designing of new insurance policies and in fixing
of premiums for insurance policies. Statistical tools and technique are
used for analyzing risk and quantifying risk, also used in valuation of
derivative instruments, comparing return on investment in two or more
instruments or companies.
Thank you!