statistic

Statistics is one of the business fields that contribute immensely to the optimal performance of a company. It involves the analysis of data on various aspects of the business operations to derive useful information that can be used to make actionable plans as well as predictions. Departments such as finance, accounting, production, as well as marketing apply statistics in their operations to make accurate predictions on the various aspects of business performance on a daily basis. Statistics is particularly useful in employee performance management.  A manager can apply statistical analytical methods on statistical data collected about the performance of the employees in a given business organization to identify mechanisms that can be used to optimize employee performance and achieve maximum productivity. Additionally, statistics play a critical role in managerial decision making. Through statistical analysis, a manager can compare various investment options under consideration by the company and be in a position to reach a decision that will guarantee the highest returns.

In marketing, statistical analysis is the only method of evaluating the viability of a given market. The marketing department in a given business will need to gather data relating to the consumer behavior on aspects such as tastes and preferences as well as the variation in demand, analyze it statistically and determine the suitability of the market. Consequently, the department can be in a position to make an appropriate decision on the potential of the target market for investment. Besides, it is only through such analysis that the department can identify the various ways of improving the company’s products or services to suit the customer tastes and preferences and in turn improve sales.

Moreover, it is impossible for the finance and accounting departments to operate without the input of statistics. As noted in the article under review, any organization requires finances to run, whether a business organization or not. Employees need to be paid, bills need to be paid, production processes including the acquisition of raw materials need to be funded, and produced commodities need to be distributed among other expenses. In all these, statistics must be used to determine the budgetary allocations required for smooth operations to be guaranteed. Also, job evaluation to determine the salaries and wages for various employees requires the use of statistics.

Additionally, the evaluation of the financial performance of a given company requires possession of adequate statistical knowledge. Even where technology is adopted for this job,  the input of statistical data and formulas is mandatory. Besides, Such data must thus be gathered using statistical procedures.  Also, statistical analysis is required to complete the accounting records of the business to meet the regulatory requirements. Therefore, both fields require adequate statistical knowledge to perform their operations to support the daily activities of the business. Also, professional careers in these fields require possession of adequate knowledge in statistics. Thus, training for jobs such as accountants, financial officers and analysts, marketing strategists, and well as human resource managers among other careers in business demands these professionals to acquire statistical skills for use in their respective employment. Consequently, those aspiring to join these careers must be prepared to take classes in statistics during their training.  

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