Discuss the utility of statistics as a managerial tool Also describe its limitations?

Answer 1

The limitation of any statistical application is the fact that it always depends on some sampling. If this sampling is incomplete, or not representative of your actual base (say customers), your data may not yield accurate conclusions.

Additionally, since it depends on sampling, your measurement is only applicable to a base that fits the profile of your sampling. For instance, if you took your sampling from Caucasian males over age 35, and it turns out your customer base has a large number of African, American females under 23, your conclusions based on the statistics could be imperfect.