By NIlesh Kadam  |  Statistical Techniques  |  On 11/8/2019 12:07:58 AM

Business manager  in the 21st century have access to  large amounts of information in the form of data . The main goal is bow to use  the available data to make big decision .It is  from this perspective  of informed decision making that we consider why a manager needs to know  about statistics . I am listing down key reasons why manager need an understanding  of statistics 

  • To know how to properly present and describe information 
  • To know how to draw conclusion from large population from the available samples data 
  • To know how to improve decision making process  
  • To know  how to predict the future outcome 
  • To know how to prepare , present  and  explain statistical reports in Layman terms  to highest authority and  or Clients.

Modern business management is more of understanding the Science of data than an Art. Rising global competition mandates business managers to address uncertainty by using statistical method  can improve decision making Process. Understanding data, apply right statistical method and draw meaningful insights are the main activity of today's business manager.

Practical  knowledge of statistical concepts  helps a manager to solve big problem  Based on big data,  identify and evaluate alternative courses of action, Predicting  error, Observe  processes and take right decision to achieve optimum results.

Statistical  method are commonly used in the functional area of business : accounting, finance, management, and marketing. Lets understand application of statistical techniques in few  domains, 


Accounts use statistical techniques to select the sample for auditing purposes and to understand the cost drivers  in cost of accounting. 


  • Banks  use statistical techniques  to predict  the probability of defaulter on loan before offering  it based on transactions history and many more parameters .
  • By  using statistical techniques you can easily identify  which Mutual  fund  category  is best to invest.
  • By  using statistical techniques one can track the trends in financial measures over time


Management uses  statistical techniques to improve the quality of products  manufactured by company and services delivered by  organization.


Statistical Technique for demand forecasting

  • Marketing uses statistical techniques to estimates the proportions of customer who prefer one product over another and why they do and to draw the conclusions about advertising strategy might be useful in increase the sales of product.

What's The Path Going Forward?

Most of the managers are having business knowledge or domain expertise they are not from technical , statistical background . Hence managers need to know the right path so they can upgrade them self on trending statistical concept . Theoretical knowledge of statistical concepts is good to have but mangers should be well versed with Practical concept . Right interpretation of statistical results can improve your decision making process and also you can guide your customer in right direction . Domain expertise should choose right course or Right analytical training program . Deriving  the report  form data one should have knowledge of statistical tools Like R and Python OR  SAS. As per our research we always  recommend two program for Business managers  1) Data Science with R and Python, SAS 2) Business Analytics course .