Using statistics to help make business decisions enables executives to
a.eliminate risks b. predict business cycle
c.decrease government regulation d. reduce risks
I think it is d
See previous post.
The correct answer is d. reduce risks.
Using statistics to help make business decisions allows executives to reduce risks in several ways. Here's an explanation of how statistics can be used to achieve this:
1. Data-driven decision making: Statistics help businesses analyze large amounts of data to identify patterns, trends, and relationships. This enables executives to make informed decisions based on evidence rather than intuition or guesswork. By relying on statistical analysis, businesses can reduce the chances of making decisions that are solely based on subjective opinions.
2. Risk assessment: Statistics can be used to quantify and assess risks. Through techniques such as probability analysis and risk modeling, executives can better understand the likelihood and potential impact of different risks. This enables them to prioritize risks and develop appropriate mitigation strategies.
3. Performance measurement: Statistics provide objective measures of business performance. By tracking key performance indicators (KPIs) and analyzing performance data, businesses can identify areas of weakness or inefficiency. This helps executives to proactively address issues and minimize the likelihood of risks materializing.
4. Forecasting and planning: Statistics can also be used for short-term and long-term forecasting. Through techniques such as time series analysis and regression analysis, executives can predict future trends, demand patterns, and other important factors. This enables them to plan and allocate resources more effectively, reducing the risk of over or under-investment.
Therefore, by leveraging statistics in decision-making processes, executives can reduce risks and increase the chances of making informed and successful business decisions.