Business Statistics Term Paper Example | Topics and Well Written Essays - 1500 words

Business Statistics - Term Paper Example Business statistics is used in all the functional departments of an organization – finance, human resource, marketing, operations and management and accounting. In the finance function, it is normally used to make decisions relating to measuring risk using variances, investments in stock markets using means, acquisition of assets and valuations (Keller, pp. 7). In marketing, it allows the managers to make decisions on the four Ps based on the identified consumer patterns and buying behavior using histograms, means and inferences (Keller, pp. 8). It also plays a vital in the company’s operations and management. It allows the managers to decide on the reorder points using histograms, waiting for lines using Poisson distribution, location analysis using regression and quality using variance.Linear Regression is an important statistical technique that compares the change in one variable with respect to another variable(s). It is most commonly used a tool in the business env ironment for various purposes including decision making. This is considered the best method for the estimation of the line of best fit which minimizes the chances of error.Linear regression is being used in a wide variety of business functions across the organizations. In the accounting function, it is used to project the costs based on the level of activity as well as separate the fixed and the variable costs. In another scenario, it allows the analysis to separate the fixed and variable costs from the total costs.