What are the real-life applications of Statistics in Business and

Vilharjevw7

Vilharjevw7

Answered question

2022-01-29

What are the real-life applications of Statistics in Business and Economics? Briefly explain at least three examples.

Answer & Explanation

coolbananas03ok

coolbananas03ok

Beginner2022-01-30Added 20 answers

In many real life situation statistics is very useful in business and economics.
Real life application in business:
1) It is used to helps managers to design marketing campaigns targeted at the potential customers. It plays a very useful role at the input stage through sampling inspection and inventory management.
2) It is used for analyzing risk and quantifying risk, also used in valuation of derivative instruments, comparing return on investment in two or more instruments or companies.
3) It can be used for analyzing various resources into product and services in the quantity, place, cost, quality and time as required by the customers.
Real life application of statistics is economics:
1) Statistics used in determining the measures of Gross National Product and Input-Output analysis. It is also used to analyzed the cost function, production function and consumption functions.
2) It is also used for detailed and systematic study of family budget data which gives a detailed account of the family budget showing expenditure on the main items of family consumption together with family structure and composition.
3) Some powerful techniques are index numbers, time series analysis, and also forecasting. These are immensely useful in the analysis of data in economic planning.

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