Application of Statistics in Business and Economics
Introduction
Statistics is the systematical collection of information in the form of numbers to be analyzed and used in different aspects. This paper will issue a report on the application of statics in business and economics.
Related to the study conducted on the application of strategies in business and economics, it is evident that there are different methods used by a business to achieve its goals. Still, these methods are rarely understood or achieved. Most companies use these methods to their advantage to make profits, which is used to better their working environments, improve productivity. In addition, these methods are also used to develop company cultures that are friendly to the effective use of statistics (James, 2018)
Furthermore, while studying numbers to determine how likely or unlikely things are to happen, thinking is very important for sound decision making; only through a better understanding of studying numbers can managers analyze the common and most direct causes of forces and different circumstances affecting their production process; through this, they are able to they can smartly direct special efforts towards improving the production process and situations or forces that might temper with the process and make it worse. Statistics can be used effectively when Para Statisticians have a clear grasp of studying numbers and analyzing them. Luckily, some circumstances prove that there are enough simple tools that can be used to make rough and ready studies that can educate most occurring business problems and help in various decision making for the future success of a business.
Many businesses apply statistics all around the globe dues to their relation to computers and science, which help a business grow. As time continues, large amounts of data are created by companies; these are the data used to make decisions in regards to the success of the business. Furthermore, analyzing numbers give a proper understanding of money problems and the creation of money based policies. Most money patterns can be converted into numbers and dealt with according to numbers sound logic (James, 2018).
Furthermore, statistics have so many different things combined working as a unit studying the flow of money within a country that it led to the development of a new subject called Econometrics; it deals with the flow of money and study of money issues.
Application of statistics in economics
Statistics is a data explanation tool used for collecting, classifying, and carefully studying data, it is an essential tool for a money flow expert to help them understand different business and money based problems, which help them plan different policies to tackle the situation. In money flow based on money studies, we carefully study the behavior of various groups such as people who use a product or service, producers, governments and have their opinions in instances of watching, noticing, or making statements. Furthermore, it is the data that enables a money flow expert to claim such cases of watching, seeing, or making statements and take the exact study of the money flow within a country. In addition, studying numbers of data and methods give valuable help in the better understanding of money based problems and the creation of money based policies. Most money-based events are, or pattern of things and indicators can be put in numbers and dealt with in relation to numbers and sound logic (Cleff, 2019).
Furthermore, in economics, most scholars have switched their focus inductive logic from deductive logic to help explain economic prepositions. Moreover, principles and theories have been developed by economists in areas of production, distribution, taxation, exchange, business cycles, consumption, and so on, based on deductive logic. Nevertheless, statistics also help in understanding problems in economics with clarity and precision. For example, price statistics help in understanding inflation as a problem and the cost of living in the economy (Cleff, 2019).
Statistics also help in the planning of the economy through the gathering of different information in regards to various aspects of the economy; this will allow economists to plan for the future efficiently. Statics assist in providing data and analyzing the data through the use of secure techniques such as forecasting, index numbers, and time series analysis., which are essential in data analysis for economic planning.
In addition, statistics also creates a relationship between various variables such as agriculture output and global warming, quantity demand, and quantity produced, the price level of money supply, and so on. Thus, economics as a discipline links with statistics in many ways. Furthermore, studying modern economics need statistical and mathematical foundation. Through time, statistics and mathematics have developed hence the development of econometrics methods (Sharma, 2017).
Conclusion
Statistics has a significant influence on economics and business perspective. It helps with research using different models, analyzing data from the study and introduction of new ideas of how to tackle the situation arising from the analyzed data from the research conducted.
References
Cleff, T. (2019). Applied Statistics and Multivariate Data Analysis for Business and Economics. Springer International Publishing.
James, G. M. (2018). Statistics within business in the era of big data. Statistics & Probability Letters, 136, 155-159.
Sharma, A. (2017). Role of Statistics in Different Fields. Research Journal of Science and Technology, 9(1), 118-122.