‘Today nearly every decision in business is made with the aid of statistical data and statistical methods’.
Use of statistical data is made even in business. The promoters of the business make an extensive use of data to arrive at the conclusions which guide them in starting a new concern. The importance of statistics in business can be given by the following points
(i) Working Out Cause and Effect Relationship Economists try to find out cause and effect relationship between different sets of data. When the causes of the problem are identified, it is easier to formulate certain policies to tackle it. These policies help a businessman to take important decision, e.g. the law of demand states that as price rises, demand falls. So, this law will help a businessman to take necessary decision about price.
(ii) Economic Equilibrium With the help of statistical methods, the economists have evolve some eco-fundamentals telling us how will producers get maximum profit or how consumers get maximum satisfaction? The concept of producer’s equilibrium will help a business to earn maximum profits and the concept of consumer’s equilibrium will help him to assess how much price can be charge from consumers.