role of statistics in managerial decision making
Answers
Answer:
Explanation:
Statistics provide managers with more confidence in dealing with uncertainty in spite of the flood of available data, enabling managers to more quickly make smarter decisions and provide more stable leadership to staff relying on them.
The role of statistics in managerial decision-making is as follows:
1. It helps in making long-term decisions
A business can make its long-term decisions based on statistical data. Statistical models help in taking key decisions by providing detailed forecasts. A business can understand the impact of a new product's launch, increasing sales, etc. before actually making those changes.
2. It gives essential insights
There is abundant data available to us. We can use certain software and other programs to categorize, sort, and derive insights from that data. In business, such insights can be useful to protect it from potential losses.
3. It gives reliable information
The information derived from the statistics is based on real-life data and constitutes even the basic information available. This enables it to provide solutions that are reliable and help in avoiding uncertainty in business.