With the help of few examples point out the role of statistics in management. Discuss briefly bringing out limitations, if any.

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Statistics is the science of collecting, organizing, analyzing, and understanding data in order to make conclusions. Statistics is the scientific application of mathematical principles to the collection, analysis, and presentation of numerical data. Statisticians decide where and how to gather the data, determine the type and size of the sample group, and develop the survey questionnaire or reporting form Stats is also used for measuring production output, for example measuring the output rate for different assembly lines with influencing variables in a beverage factory.

Role of statistics in business management -

1. Statistical research in business enables managers to analyze past performance, predict future business practices and lead organizations effectively
2. Statistics can describe markets, inform advertising, set prices and respond to changes in consumer demand.
3. Statistics plays a vital role in business. A successful businessman must be very speedy and accurate in decision making.
4. Statistical methods are used by businessmen in making decisions, estimation and comparison of sales, production, export, import, etc.
5. Statistics guides businessman to design production according to the taste and preference of the consumers, the quality of the products can also be checked more efficiently by using statistical methods.
6. Many business accomplishments can be accomplished with statistics including deciding a new location, marketing the product, and even estimating what the profit will be on a new product.

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