What are the role of statistics in business and economics?

Answer 1

The important limitations of statistics are:

(1) Statistics laws are true on average. Statistics are aggregates of facts. So single observation is not a statistics, it deals with groups and aggregates only.

(2) Statistical methods are best applicable on quantitative data.

(3) Statistical cannot be applied to heterogeneous data.

(4) It sufficient care is not exercised in collecting, analyzing and interpretation the data, statistical results might be misleading.

(5) Only a person who has an expert knowledge of statistics can handle statistical data efficiently.

(6) Some errors are possible in statistical decisions. Particularly the inferential statistics involves certain errors. We do not know whether an error has been committed or not.

Answer 2

Mathematics is a universal language. Yes!! It's a language whereas students consider it as a big problem itself. We would be lost to any point in history or right after evolution if it was't for the subject of numbers. Let us try to understand that mathematics s not a problem but an answer to all those who want to make money or look at their situation financially. Businesses are defined by what they profit from their operations.

Interestingly, mathematics makes itself a symbiotic subject to finance, business, economics and even for militaryaccreditations. Economics with mathematics is the answer for many economists who will make assumptions on the theory they would like top present on the workings of the economy but ill realize their ambitions be met when they use numbers to explain their relative thoughts.

Businesses understand their motions in the market with the help of maths under conditions what they need to achieve to be the masters or what they need to remain in the business at all. Developing understanding that we are all connected to the mathematics will help us look beyond the horizons of the stars.

Math is important and relavent in economic analysis, these are just two components of economic analysis and not the only way to view an economic model, as most economic analysis can be done with graphs.

Mathematics is an important subject and knowledge of it enhances a person's reasoning, problem-solving skills, and in general, the ability to think. Hence it is important for understanding almost every subject whether science and technology, medicine, the economy, or business and finance. Mathematical tools such as the theory of chaos are used to mapping market trends and forecasting of the same. Statistics and probability which are branches of Mathematics are used in everyday business and economics. Mathematics also form an important part of accounting, and many accountancy companies prefer graduates with joint degrees with mathematics rather than just an accountancy qualification. Financial Mathematics and Business Mathematics form two important branches of mathematics in today's world and these are direct application of mathematics to business and economics. Examples of applied maths such as probability theory and management science, such as queuing theory, time-series analysis, linear programming all are vital maths for business.

by ODOEMEAM JOSEPH CHIMEZIE

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Answer 3

Economist use statistics to understand buying patterns in consumers. Statistics allow them to gain more insight about buyer's demands in the market.

Answer 4

Analysis of statisctic data allows to evaluate the current health level of a bussiness and ecconomy as well as it helps to predict the possible future of a bussiness and economy.