Explain the utility of statistics as a managerial tool
Answers
1:Statistics is not a Body of Substantive Knowledge but rather a Body of Methods for obtaining knowledge. (Professor Wallis and Roberts) As a managerial tool, statistics does help us greatly in making better decisions. It uses scientific methodology for collecting, analyzing, interpreting a random sample in order to draw inference about some particular characteristic of a specific Homogenous Population. We tend to study a Sample chosen from the Population and try to infer information about the entire population by only examining the smaller sample as It is generally impossible to study an entire population for two reasons: A-The process would be too expensive or too time-consuming. B- The process would be destructive. Limitations • Deals only with quantities characteristics. • Result is true only on an average. • It is only a tool or means to an end and not the end itself, which has to be intelligently identified using this tool.
2:Utility of statistics as managerial tools is no doubt very important. Look over the use of the statistical tools in the business research. Statistical indices are widely used as well as the comparisons of the years of a company through the statistical analysis, can also help the management to decide a number of issues for the company. While limitations include the inaccuracy in the data collections, ignorance of the zero term errors and the explanation about the immeasurable variables which do have some impact. Statistics is a board of method for maintaining knowledge. It is a simple and economical method to find the means and valuable data even for large numbers. In a managers life it is a very helpful tool to do analysis and making business growth values and make right forecast. A manager may need to know what the middle or median figure is in salaries in a business, and how many employees fall into that range. 1. It can also be misused, Increasing misuse of Statistics has led to increasing distrust in statistics. 2. Like other scientific subjects it does not deals with pure facts.( 3. Statistics is fully base on analyzing )
3:Statistics touches everybody in every walk of life.This newly developed science is now widely used in government industry and business.Its applications have now gone beyond science engineering and technology and have entered such areas as law, political science, fine arts and literature. Statistical analysis is a great tool that help managers of any type of orginazations in achieving their objectives and planning areas.Statatsics is a broad term and it is not just the numerical facts but it also help the managers of orginazations in decision making. They can predict their growth and also can keep the track of their orginazations performances as well as their competitors.It greatly helps the management to reduce the chances of mistakes and prepare to deal with any uncertainity. Dispite of all these advantages there are some limitations to it as well. Statistics only deals with quantitative measurements and has no use in qulitative approch.It mostly deals with averages and fully based on assumptions or analyzing.The collected data may not be sufficient and it may lead to mistakes.This tool can be only used by the qulified people. In view of this discussion,it can be very easily deduced that with the careful notification of the flaws of statistical analysis,good decisions can still be made .
4:Yes, it is very true that the utility of statistics is really very important in a different business as managerial tools. It is the collection of mathematical data and we can calculate easily with the help of this tool. It is also very important to measures the different types of data in Excel Sheets and also we denote it in the spread sheets. This is the most common way to act like an able manger that performs his duty for their organizations. Now a days where the technologies enhance all over the world its uses are going up and up in a different business like insurance, where the
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utility statics is a type of statistics