Data Analysis Decision Making
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With the aggrandizement in technological progress and increasing trade volumes, data analysis in making decision has come to be of utmost importance. Gone are the days when traders used to sit back at the end of the day to glimpse through the details acquired to have an idea of instrument pricing. Today, with loads of information filling up the laptops and hard disks, entrepreneurs are taking recourse to various technologies and statistical tools for data analysis and decision making. |
What is the relation between data analysis and decision making from a business perspective? Data analysis refers to the procedure of going into the depths of and analyzing information, thus drawing inferences from the available facts. This aids in decision making as we are considering the various facets, the pros and cons by analyzing the useful information, taking a statistical survey of the whole aspect. There are two types of Data analysis namely, Exploratory and Qualitative. The former helps in forming decisions by statistical study and hypotheses, while the latter banks on non-numerical data such as observations and photographs. As decision making forms a crucial part of today’s ever expanding business strategies, research has discovered powerful tools for analyzing information in its exact details which helps in a great way to formulate critical decisions in every field. Microsoft Excel forms one such innovative tool for data analysis presented in graphical and tabular form. Statistical calculations namely, Median, Mode, Variance, Covariance, Standard Deviation etc are encompassed in such formulations and decision making. Another tool which has gained prominence in this arena is the TimeScape, a landmark creation in analyzing statistics in its gigantic form and a valuable resource to decision taking. Risk management, being another crucial aspect in modern day's gargantuan business strategies, risk measurement techniques like historical stimulation VaR and Monte Carlo, too are coming to the fore and helping in handling information in huge quantities.
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