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Statistics For Management

By: 48.Tridib Roy Deepa Pandav Tushar Pande Tejal Pradhan Unnat Patil

Introduction
The word statistics is derived from Statisticum in Latin . It relates to state , science of state, political arithmetic In modern times, as a subject statistics is defined as A scientific collecting,summarising,presenting and analyzing data as well as drawing conclusions or making predictions on basis of such analysis. Two branches of statistics:: Descriptive statistics and Inferential Statistics

Cont

Descriptive statistics seeks only to describe or analyze any data. Eg:Grade Point Average is used to summarize the mark of any student or individual bank transactions made in a month Inferential statistics deals with the conclusion or inference drawn from a given analysis of a sample. Eg: From the data collected from number of annual withdrawals, we can find the average number of annual withdrawals in a month.

Scope of Statistics
Economics- statistics helps in major economic decisions such as wages, price, time series analysis, demand analysis. Industry- statistics is widely used inequality control. In production engineering to find out whether the product is confirming to the specifications or not.

Scope continued

Modern science- statistics is used to study the cause and incidence and diseases and also the impact of a particular drug.

war: In war the theory of decision function can be a great assistance to the military and personal to plan In education, statistics has found wide application such as, determining the reliability and validity to a test, factor analysis etc.

Statistics and management

Market research Production control Investment in securities and bonds Purchase department, in where to buy and how to buy Control process

Other function of STATISTICS

Simplifies data. Measuring risk and helps in decision making. Helps in forecasting. Helps in estimation and validating assumptions.

LIMITATIONS OF STATISTICS
Statistics does not deal with individual measurements. Deals only with quantitative characteristics. True only on average. One of the methods of studying the problem. It can be misused.

Applications of statistics
MARKETING Forecasting Sales, Demand And Market Shares TO Compare Sales Performances Customer profiling market research customer buying behavior and Pattern: Cluster Analysis And Correlation Regression

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Operations

Input Stage: Sampling for sampling inspection & inventory control Process stage: Normal distribution for statistical quality control and six sigma method Output stage: Sampling And Binomial Distribution for QC

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HR management Performance appraisal: normal distribution Reward system: percentile Retail Management Identifying customer buying behavior and Pattern: Cluster Analysis And Correlation Regression

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FINANCE Helps in ascertaining risks in quantitative terms E.g. Valuations at Risk (VaR methodology) Helps in comparing volatility and selection of portfolio of stocks E.g.-Calculating Beta() of Stock ECONOMICS Statistical methods render valuable assistance in proper understanding of economic problems Development of new field ECONOMETRICS.

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Insurance Forecasting for determining the premium Regression analysis for finding out impact of different factors on Health and life

HRD Normal distribution Performance appraisal and reward system Retail Cluster analysis is used to identify customer buying behaviors and patterns