Application of inferential statistics in managerial decision making
Answers
The main purpose of statistics in business is to make inferences about certain characteristics of a population on the basis of information contained in a random sample from the entire population. It is used in financial analysis, marketing research, production and operations.
Statistics is a science of making decisions on the basis of numerical information obtained from a randomly selected sample of the group. It is used to make decisions about designing new products, evaluating current versus prospective customers, and streamlining a production process.
Inferential statistics plays an important role in managerial decision making. For example, statistical analysis of a representative group of consumers can offer a reasonably accurate and cost-effective snapshot of the market instead of attempting a census of all the customers a firm may ever deal with.
Inferential statistics is quite helpful especially regarding the managerial decision making in business.It helps to draw a inference about certain population using just sample. This helps in various types of marketing research. By using this statistics , a new product launching decision can be made by making inference about population views of entire area. Moreover, the market situation , customer view about a certain product become a lot more easy. Also, this is not only the cost effective method but can save a lot of time