Statistics as managerial tools?

Question

Statistics as managerial tools?

Answer 1

Depends exactly what you're asking, but if you're talking about KPIs, then they can be great, as long as the right things are being measured - and measuring results rather than busywork is key to this. Also, they shouldn't be used as a standalone, but rather as an indication of which areas need improvement, or conversely praise. They also need to be viewed as a whole - saying "you only made x calls today" and ignoring the fact that 15 sales were made is a recipe for trouble.

Answer 2

Business executives project long-run capital requirements, forecast sales and dproduction, and analyze quality of production to improve their prodct and to achieve the best use of personnel and materials. The stock market uses statistics of its daily operations to guide the trading public. Direct marketing depends on statistics to test different advertising appeals and select the best mailng lists. Accurate statistics of mortaity and morbidity enable actuaries to compute insurance premiums which are reasonable and profitable to the company.