Business statistics refers to the using of different statistical techniques and tools in a business

setting. It is very important for every business manager to have knowledge of business statistics
because of the following it's importances;
 Business statistics allows organizations to quantify an organization’s performance and identify
patterns. This enables a business’s managers to take informed decisions based on facts rather
than intuitions.
 Another key advantage of business statistics is that it helps companies in performance
management. For instance, it enables managers to know whether the employees are meeting
their productivity requirements.
 Businesses also use statistics to predict whether the market will react positively or negatively to
a new offering. This is vital before investing in the development of a new product.
 Business statistics also helps to identify a relationship between multiple variables and their
impact on each other, for example, the impact of advertising on sales.
 With the help of principles and statistical techniques, organisations can utilise data to make
decisions based on fundamental values instead of intuitions.
 It also helps to analyse the data available to business for making prudent business decisions.
On the other hand, business statistics may not be appropriate for the business as assumed by
the employer in the following ways;
 When utilizing statistics as a diagnostic tool for a business, managers may suffer from outcome
bias.
 Another disadvantage is that individuals have a tendency to inaccurately determine the impact
of sample size if it's small.
 In addition, statistical tests in businesses are often carried out from a frequentist approach. This
might not represent the questions asked.
 I conculssively therefore ask all employers to endeavour apply business statistics whenever
starting a business in order to effectively and perfectly manage the businesses.
References:www.wallstreetmojo.com