Why is statistics a core subject in Business Analytics programs?

Everybody has to perform better than others in today’s competitive environment. A company must improve productivity, raise revenues, and thoroughly understand business models. Business analytics aids in understanding the viewpoint of the client and forecasting future sales because we live in a data-driven world. 

Additionally, business analytics gathers data from the database and performs analyses to obtain information that will help the business. It supports businesses’ ability to compete.

Your company can use its data more effectively than before with business analytics; you need to know where to look. Using statistics in business analytics is your greatest option for gaining the information you require, whether you’re generating forecasts or looking for trends.

Businesses can do a lot with their big data, and statistical analysis is a smart method for them to look at it and learn from it. It covers various data-related topics, such as data gathering, surveys, and experiments.

What is statistics?

The science of statistics focuses on creating and researching strategies for gathering, analyzing, interpreting, and presenting empirical data. Research in statistics finds application in almost all scientific domains. Moreover, research concerns in the various scientific fields inspire the creation of new statistical methods and theories. 

Statistics is an interdisciplinary field. Statisticians use various mathematical and computational techniques while creating new approaches and researching the theory that supports such methods.

Uncertainty and variation are the key concepts in the study of statistics. In science, as well as, more generally, in life, there are numerous circumstances where the result is unknown. When there is uncertainty, it may be because the outcome has not yet been decided (for example, we may not know if it will rain tomorrow). However, it may also be because we are unaware of the outcome even if it has already been decided (e.g., we may not know whether we passed a particular exam).

Why statistics in business analytics?

Suppose you own a knitwear factory and are unsure about the appropriate production volume. Making too many items results in a financial loss, while producing too few results in lost sales opportunities. Then, how do you come up with the ideal number? The response is in business statistics.

Business statistics experts use statistical techniques to respond to most business questions. A complex financial position could need to be described, customer behavior might need to be predicted, or the effectiveness of an advertising campaign might need to be evaluated.

A key instrument in business analytics is business statistics. Business statistics courses are a must for people who want to work in business analytics.

Are you wondering what the importance of statistics in business analytics is? Then, you should know that statistics aid in understanding the present and foretelling the future for businesses. This can reduce costs for enterprises, open up new opportunities, and boost productivity. A corporation can determine how many staff to hire or how to expand production, for instance, by using statistics to forecast sales patterns.

Business statistics experts are frequently hired by medium- to large-sized companies to assist them in their studies. Small business entrepreneurs do, however, also employ data to aid in their operations.

Statistical methods in business analytics

Listed below are a few well-liked statistical techniques in business analytics.

1. Sampling 

It involves selecting a sample—a condensed set—of observations from a vast population. It is a frequently employed technique in all types of data analysis. Random, stratified, and cluster sampling are a few techniques. Sometimes, due to time restrictions or possible data similarities, you may be unable to analyze all the data. In this situation, sampling is an option.

2. Correlation Analysis 

It is used to examine how closely or how much related two or more variables are to one another. Most manufacturing companies want to know the relationship between –

• Commodity supply and demand
• The volume of production and the efficiency of machinery and equipment

3. Regression Analysis

This statistical method is admirable and often employed in business analytics. Utilizing historical data allows for the value of future outcomes to be predicted. Time-series analysis and data forecasting are both aided by this technique. The various regression analysis techniques include the following:

• Linear Regression
• Multiple Regression
• Logistic Regression
• Poisson Regression

4. Graphical Analysis 

The data is displayed using graphs or diagrams because data presented in the form of diagrams and graphs appear more credible and appealing. Consequently, it gives a data set a relevant outlook. Among the widely used graphical tools are:

• Histograms
• Bar charts
• Pareto charts
• Scatter plots

Learn statistics with a business analytics program

Typically, a person in the business statistics field holds a bachelor’s degree or higher qualification. Finance and business administration are popular majors. A master’s degree, such as an MBA, is frequently required for higher-level positions in business statistics. Advanced statistical methods are taught in an MBA school, and students often have greater practice using these methods to solve problems in the real world.

Check out the Manipal Academy of Higher Education (MAHE)’s PGCP in Business Analytics at Online Manipal, if you want to study business analytics and advance your profession. For professionals hoping to build a name for themselves in the rapidly expanding field of business analytics, we offer this postgraduate certificate program in business analytics. The course will teach participants how to use data to formulate corporate strategies, address organizational issues, and give customers accurate and data-driven responses.

Conclusion

The field of business statistics is currently in demand. The BLS predicts a 33% increase in the number of statistician posts between 2020 and 2030, indicating that the sector is expanding as quickly as or more quickly than other sectors. That’s the equivalent of 15,000 new jobs!

Business statistics are becoming more and more critical in today’s business environment. This is because decisions supported by mathematics are typically more sound than those supported by qualitative data. Thus, choose MAHE’s online M.Sc. in Business Analytics program and boost your career.

10 Types of Data Analysis Method 

Mathematical & Statistical Methods	AI and Machine Learning Methods
Descriptive Analysis	Neural Networks
Regression Analysis	Decision Trees
Factor Analysis	Evolutionary Algorithm
Dispersion Analysis	Fuzzy Logic
Discriminant Analysis	Time Series

Key takeaways:

• People in business statistics positions can succeed with solid math skills. The job is ideal for someone who appreciates using data to solve riddles because it is highly analytical and question-focused.
• While some roles can be filled with only a bachelor’s degree, most positions require a master’s to advance.
• The core subjects in business analytics course are a variety of statistical techniques like hypothesis testing, correlation, regression, and so forth.