Persons with a graduate degree in statistics will qualify for an extensive list of roles in this discipline. An undergraduate degree would make you eligible for entry-level positions in various sectors. The discipline applies to not only the business world but also engineering, technology, medicine, healthcare, finance, education, and more. Also, there are sub-categories of each of these. For example, the business world covers a range of industries, such as energy, manufacturing, sales, marketing, production, analyzing, and others.
In the competitive job market, individuals may decide that a master’s degree will give them an edge over other applicants. There is more to landing employment than an impressive degree and grades. However, since most companies screen candidates by reviewing an electronically submitted application and supporting documents, the higher degree may land you an interview.
As mentioned above, the business world has many facets, as finance and accounting are integral to a corporation or organization. The following explores some of the roles statistics play in different types of companies.
In the manufacturing process, statistics can be used to measure how many units meet quality standards. By using a set number of finished products, the production manager or personnel can determine how many meet the specifications. The sampling also reveals how many units do not meet the requirements, which can lead to their destruction or recycling back into the process.
Revenue from sales is critical to any business that provides a product or service to customers or clients. One component of sales is forecasting. Historical sales figures are typically used to predict future sales. At the retail level, sales can fluctuate with the seasons. For example, swimwear, sunscreen, and outdoor sport’s products see increased sales in the warmer months. Companies whose sales are substantially higher in the summer or winter need to anticipate the escalation as the production of the units also must be higher.
The statistical analysis for sales examines geographical location, population trends, competition, income levels, pricing, and social class. All of these factors may have a direct effect on establishing potential sales and revenue.
This facet of the business world can be the catalyst for generating new sales or boosting existing market share. Companies spend billions of dollars marketing, mainly through advertising through various media outlets.
Digital advertising in the United States is approximately $30 billion larger than TV advertising.
The U.S. outspends all other countries in marketing/advertising at $197.47 billion in 2019.
The retail industry is the top of the list, spending an average of 21.9% of the budget on advertising, followed by automotive (12.6%) and financial services (12.2%).
Marketing crunches the numbers to analyze statistics – examples are:
- Reasons for a particular location or area with higher sales
- Sales from competitors
- Seasonal changes influence sales
- Cultural and ethnic effects
- Best methods to advertise a new product or service
Most of us have heard the phrase – location, location, location. It is paramount to a successful venture. A small business wants to be on the main thoroughfare to maximize exposure from pedestrians and vehicles. Visibility is vital to drawing in customers. Corporations also have concerns about locale for a different reason. Building a new headquarters or regional office does not require the same presence as retail; however, there are other essential considerations. Management would likely research the corporate tax structure in the area, the cost of building, and the class and education of the surrounding populace from which employees will come. Labor rates are higher in major cities, like New York, Los Angeles, Chicago, and Atlanta, which may make these places cost-prohibitive. Statistics relative to logistics are a consideration for manufacturers who rely on rail or flight transportation and distribution.
Starting in 2017, Amazon began the search for a second headquarters as they had outgrown the Seattle offices. The company prefers young employees (25 to 44) and educated, in other words – millennials. Generally, this age group does not want to be relegated to the suburbs; they want theaters, bars, restaurants, music venues, and museums. After analyzing the statistics from various sources, Amazon decided on Virginia. According to CNBC, it received first place for America’s Top States for Business, based on the categories including wages, tax climate, recreation facilities, education, and infrastructure.
Research and Development
From pharmaceuticals to investment advice, R&D creates new drugs and offers the best products to clients in the latter. The phase is a significant part of the technology industry that must be attentive to the change in buyers’ habits and as the means to cultivate future sales. Apple may lead the pack when it comes to R&D, as the company continually produces tweaks to existing products, namely the iPhone. The company spent $4.2 billion on R&D in the quarter ending June 2019! No doubt, CEO Tim Cook did not authorize that amount without scrutinizing (statistics) the return on this enormous investment.
The examples above are only a taste of where statistics are indispensable in the business world. Whether it is a large corporation like Abbott Laboratories, with over $31 billion in revenue or a single, privately-owned retail store, statistics play a role in the profitability and viability of any business.