Why Are Statistics Is Important In The Field Of Business?

6 Answers

Joe McHugh Profile
Joe McHugh answered
Statistics are essential in business because it measures profitability; without profit a business is almost pointless. Being able to compare income and outgoings is the most basic form of accounting in business and provides evidence of profitability.

  • Set-up

Before setting up a business, it is essential to have evidence that it will be viable. Finding a market for your business, the costs involved and the income it will raise, will determine the viability of the business. By looking over statistics you are likely to uncover hidden costs that can have an impact on the business.

  • Monitoring

When in business, it is inevitable that costs will vary, an obvious one being the costs of fuel. By keeping tabs on costs you can vary your own prices to ensure continued profitability. If you are exporting then the exchange rates are essential statistics, without making any changes at your end there could easily be a 10% swing in either direction in exchange rates; which will have an important impact on your profitability.

  • Auditing

Maintaining a regular audit system ensures that your statistics and accounts are being properly checked out. All component parts of a business are liable to change, having a system that is adaptable and flexible to these variations ensures that your business is best placed to react to fluctuations whilst remaining profitable.

  • Trends

A less obvious use of statistics in business is to pick up on trends. If one particular line in your business is likely to see an increase in demand then it is best to concentrate your resources into that area.

This is very true with seasonal trends which often requires a business to be producing goods a few months in advance in order to take advantage of future demands.
melchor bacasen Profile
melchor bacasen answered
Yes, in business statistics is very important.

statistic will show how does your business situation is, if it is progressing or not. We have to know if our business is demand to consumer or not.

if we know this all then there is no risk in business.
Tim O'Shea Profile
Tim O'Shea answered
Statistics are important in business for the following reasons:

1 - Research, learning from other business models and research market data and trends

2 - Reporting, finding out what is happening with a business (financial etc)
Edmond Becca Profile
Edmond Becca answered

Statistical facts can help determine the value of any given business
procedures. Managers who fail to recognize the importance of statistical
analysis could very well doom their business enterprises to failure.

Meta Forrest Profile
Meta Forrest answered
Because it can show how healthy or unhealthy a business is and what changes need to be made in any one given department to improve things. It can also show how profits or losses can fluctuate from year to year or even month to month .

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