explain the utility of statistics as an managerial tool
Answers
: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.