Probability and Normal Distributions in Business Decision-Making
A look at the importance of statistical information to businesses and how it allows managers to collect, analyze, and interpret data vital to their company's success.
# 57407 | 1,020 words | 5 sources | APA | 2005 |
Published on Mar 31, 2005 in Business (Actuarial Science) , Business (Statistics) , Mathematics (General)
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This paper discusses the importance of statistical information to a company's growth and success. The paper explains how a manager with statistical skills will have a significant business advantage, since business decisions are often based on inferences from data. The paper further explains the many applications of statistical tests and how the the premise for many of these tests relates to two concepts, probability and the normal distribution. Finally, the paper explains both concepts and how these concepts form the basis of most statistical tests.
From the Paper:"A manager must often estimate the characteristics of a population based on information provided by a sample chosen to yield an estimate of population characteristics. Confidence intervals are a mathematical statement of the level of confidence around the estimate. Today's global businesses face dynamic and complex markets. The environments in which these enterprises compete are constantly changing. Successful firms can develop strategies that enable them to be flexible in the changing world. These are firms that manage changes instead of reacting to changes. In order for firms to become proactive in change management, they must be able to quickly analyze different strategies and the impact of different scenarios on the firm's performance. For companies in high technology industries, the dynamic and highly uncertain nature of their businesses makes rapid decision making a key for survival. Thus, it is crucial that businesses develop the capability to analyze business decisions and environments quickly without relying on costly, time-consuming studies and research."
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Probability and Normal Distributions in Business Decision-Making (2005, March 31) Retrieved May 23, 2013, from http://www.academon.com/essay/probability-and-normal-distributions-in-business-decision-making-57407/
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