Statistics And Business 2

Statistical method of analysis provide an important tool to the management of a business enterprise for cost and budgetary control.

Various statistical techniques such as index numbers and time series analyses helps in the study of price behavior. Regression and correlation help in the estimation of relationship between two or more variables, e.g relationships are established between market demand and per capital income, sales promotion and profit enhancement, e.t.c.

The theory and techniques of sampling can be used in connection with various business surveys with a considerable saving in time and money. These techniques are now being extensively used in the test-checking of accounts.

Another statistical method that is helpful in business is Statistical Quality Control (S.Q.C.). S.Q.C is used in industries for the establishment of quality standards for products, for maintaining the requisite quality as may be stipulate by the regulating bodies, and for assuring that goods sold out are of acceptable given standard.