Assignment

Course Title:

Business Mathematics & Statistics

Topic:

“Importance of Business Statistics & Mathematics on Management System”

""Submitted to:

Mr. Ahsan Fawad

Submitted By:

Neelum Urooj

Department:

Institute of Business Management and Administration Science

The Islamia University of Bahawalpur

Introduction:
Operating a business of any size is a complex undertaking. In addition to day-to-day
responsibilities, Your Company must engage in ling term planning, develop new Products or
services, streamline production or delivery and locate new customers while serving exciting
clients. Running a shop on instinct no longer suffices. Statistics and mathematics provide
managers with more confidence in dealing with uncertainty in spite of the flood of available data,
enabling, and managers to more quickly make smarter decisions and provide more stable
leadership to staff relying on them.

Statistics:

The word “statistics” derived from the Latin word “Status” or the Italian word “statista” or the
German word “statistic” each of which means a “political”. Statistics is about the development of
methods for the collection and analysis of data in order to answer specific questions in an
unbiased way, so that the conclusions depends only on the data and or on any preconceived
ideas” (Manly & Alberto, 2016)

Statistics is the branch of Mathematics which deals with the collecting, analyzing and
interpreting and presentation of data. There are two types of Statistics Descriptive Statistics and
Inferential Statistics. Statistics helps us in the collection of data and provide analysis of data and
present the data.

Mathematics:

Mathematics plays a vital role in social and economic growth of a nation. Mathematics is the art
of drawing. It is the subject which is teach and learn throughout the life.

The science of logical study of shapes, numbers, quantity, arrangements and many other related
concepts is called Mathematics.(James, James, & Davis, 1959)

To formulate new conjectures mathematics seeks out patterns and use them. By mathematical
proof mathematics resolve the truth or falsity of conjectures. Through the use of logic and
abstraction, mathematics developed from calculation, counting, the systematic study and
measurement of the motions and shapes of physical objects.
Management System:

The way in which an organization manages the interrelated parts of its business in order to
achieve its objectives is called management system. These objectives can relate to a number of
different topics, including service quality and products, environmental performance, operational
efficiency, health and safety in the workplace and many more.

Importance of Statistics:

Since a large number of uncontrolled cause’s outcomes of random experiment affected, to

formulate a law regarding the outcomes is impossible. Actually, so far as we confirm ourselves
to deterministic framework this formulation is impossible. In every field of human activity
importance of mathematics and statistic play a vital role. Statistics has important role in
determining the existing position of per capita income, unemployment, population growth rate,
housing, schooling medical facilities etc. in a country. In determining the exciting position of per
capital income, population growth rate, unemployment, schooling, housing, and medical
facilities statistics has important role. Now statistics hold a central position in almost every field
like, industry, trade, business, commerce, mathematics, economics, chemistry, physics, botany,
biology, astronomy, psychology etc., so statistics application is very wide. (Thota, 2013)

Importance of Statistics in Management:

Statistics is considered an important field of study, and its importance in management can never
be ignored. Statistics models are used by the company in making significant decisions. All
forms of date available to the company can be organized by using statistical tools- and statistical
formulas can be used to analyze and interpret the data.

Once the conclusions are drawn by using the statistical techniques, the management can then
make important decisions, and decisions related to new product launches, business extension,
product diversification, and investments are usually made based on statistical methods.

For a country Statistics is essential. Government different policies are based on Statistics. In all
administrative taking decisions Statistical data are now widely used. Suppose the pay scales of
employee revised by the government in view of increase in the living cost, the rise in the cost of
living determined by the statistical methods. Government depends in statistics while preparing
of federal and provincial’s government because it helps in estimating revenues and expenditure
from different source. So it is not bad thing to say statistics is the eyes of the state
administration.(Thota, 2013)

Importance of Business Mathematics:

Mathematics is an important subject and knowledge of it enhance problem-solving skills,

person’s reasoning, and in general, the ability to work. Whether science and technology in
almost every subject understanding of mathematics is very important. Theory of chaos is the
tool of mathematics used to forecasting and mapping market trends. Branches of mathematics are
probability and statistics are used in everyday business and economics. Graduates with joint
degree with mathematics rather than accountancy qualification, mathematics also form an
important part of accounting. To important branches of mathematics in todays are Business
mathematics and Financial Mathematics and in business and economics it has direct application.

https://www.academia.edu/12038651/Assignment_on_Importance_of_Business_

Importance of Mathematics in Management:

Mathematics plays a major role in business management because it helps maximize profit by
using techniques such analyzing production costs, determining ideal pricing, descending sales
patterns and projecting future sales. Having strong skills in mathematics means an individual can
analyze all of a company’s finance and male changes to save the company money and time, and
ultimately make a higher profit.

In some case business management can be made more effective by use of advanced mathematics
such as matrix, calculus, linear programing and matrix algebra. Commercial organization used
mathematics in inventory management accounting, sales forecasting, financial analysis and
marketing. “Business Mathematics in Management System” taken a tan undergraduates level by
business students which includes mathematics course. These courses are less difficult and do not
always go into the same depths other course of mathematics for people major in science and
mathematics fields.
Business Statistics and Business calculus are two most common courses taken in this form. In
these courses problems used are usually real life from the Business world.
 In daily life mathematics is widely used. A solid understanding of basic mathematics in top jobs
like computer consultants, business consultants, company directors, airline pilot, and host of
others, in some cases detailed mathematics knowledge is required. In business Mathematics play
a vital role, like to record and mange business operations business mathematics is widely used.
In commerce, includes elementary arithmetic’s, such as decimal, fractions, and percentage,
statistics, probability and elementary algebra are typically used.

Summary:

Above mention Importance of Business Statistic and Mathematics in the Management system
play a vital role. Government use statistics and mathematics for the making of budget and
calculate the population growth. Policies of government become more effective with the use of
Business Statistics and mathematics. Business statistics has pivotal role in business management.
Statistics helps in making decision with the help of data collection and analysis and interpreting
the data. In manufacturing organization Research and development department make new
product through statistics. Mangers can analysis the performance of employee with the help of
statistics. To improve the productivity of the workforce statistics data provide a direction.
In business decision mathematics play a vital role which is very important in the process of
managerial decision models and algorithms. Different mathematical terms are used to measure
perfect transaction in the business.to make money selling a product or service is totally included
in the business. In the process of managerial decision making models and algorithm are play a
vital role in making of business decision. Government runs on statistics. Decisions regarding
any number of things statistical data used. Most provincial and federal budgets are designed
upon statistical data because it’s the most accurate data available when estimating expected
expenditures and revenues. Another great example of statistics in the government is figuring out
whether or not to raise the minimum wage due to a rise in the cost of living. Statistical data gives
the government the best idea regarding whether or not the cost of living will continue to rise.
Statistics and Mathematics is playing a vital role in the management system. Management
decisions are totally based on the Statistical data for implementation of any policy and making
decision according to data. Mathematics in business is very crucial and has great importance in
the management system. The study of mathematics is essentially just studying numbers patterns,
and in business, this means knowing how to manipulate numbers and make meaning out of large
data sets. All companies need some sort of mathematician to look at the company’s expenses,
sales and cash flow. If a company has good documentation of where their money is coming from
an going to, using mathematics, an individual is able to see inefficiencies in the company’s
operations and make important changes.

References:

James, G., James, R. C., & Davis, P. (1959). Mathematics dictionary. Physics Today, 12(10), 50.
Manly, B. F., & Alberto, J. A. N. (2016). Multivariate statistical methods: a primer: Chapman and
Hall/CRC.
Thota, S. (2013). A Suevey Notes on Applications and Importance of Statistics in Various Disciplines.
International Journal of Mathematics and Computer Applications Research (IJMCAR), 3(1), 77-82.

https://www.reference.com/business-finance/role-mathematics-business-management-
144b123703e60b#:~:text=Mathematics%20plays%20a%20major%20role,patterns%20and
%20projecting%20future%20sales.