Knowledge Update

The Role of Statistics in Modern Business Environment

Statistics is all about numerical data, facts, figures & Measurements. It holds a central position in almost every field, including industry, commerce, trade, education and research. It assists in understanding and describing occurrences in the ecosphere. It helps in determining the existing position of per capita income, unemployment, population growth rates, housing, schooling, medical facilities, etc., of any country.

The use of Statistics in the management of a business is so pervasive that it’s nearly impossible to summarize. Statistical tools and techniques are used in business & managerial problems for the purpose of decision making. All business activities are based on statistical information. It helps in business planning on the basis of predictions and assumptions.

On the basis of past trend behaviour of any variable, one can forecast the value of any product at different intervals of time, for which we use statistical techniques like regression, interpolation & time series. In the modern world, statistical methods are universally applicable and it is, in itself enough to say how important the science of statistics is.

As a matter of fact, the success of any business entirely depends upon thoughtful use of statistical techniques.

References:
• Gerald J. Hahn & Necip Doganaksov, “The Role of Statistics in Business and Industry”, WILEY
• S. P. Gupta & M. P. Gupta, "Business Statistics”, Sultan Chand & Sons
• https://bbamantra.com/business-statistics-importance
• https://www.emathzone.com/basic-statistics

Dr. Anil Kr. Taneja, is a Professor of Mathematics at Skyline University Nigeria. He has a PhD. in Mathematics from M.D. University Rohtak, India

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