BUSINESSSTATISTICS(NMBA015)

Objectives,ApplicationsandUtilities

OBJECTIVES
Statistics is concerned with the collective analysis and presentation of data as the basis for
inference and decision. The aims of the subject are to develop skills in collection, analysis and
presentation of data and to also develop the capability to use the common statistical methodsof
analysisandinterferenceandtoappreciatetheirconceptualbasis.

In other words, The objective of this paper is to acquaint the students with various statistical
tools and techniques used to business decision making. The courseaimstoprovidefundamental
knowledgeandexposureto thestudents tousevariousstatisticalmethodsinordertounderstand,
analyzeandinterpretdatafordecisionmaking.

Applications
Almost every industry uses statistics, including insurance, consumer products, retail,
pharmaceuticals and even the federal government. Statistics are important for a number of
reasonsandcanbeusedforvariouspurposes.
The government uses statistics to measure ongoing economic indicators that greatly
affect business and industry. For example, tracking the gross domestic product, orGDP,
determines quarterly increases or decreases in business and industry expenditure.
Productivity, expenditures on durable goods, retail sales and unemployment statistics
help the government determine if there is an impending recession on the horizon or if
economicconditionsareimproving.
Life insurance companies rely on statistics to assess whether to give coverage and how
much to charge.Actuariespluginmassiveamountsofdatatoevaluatethelikelihoodofa
person getting illnesses or injuries based on factors such as age and occupation. Life
expectancystatisticshelpdeterminethecostoflifeinsurancepremiums.