5 Business Benefits to Using Statistical Modeling

1. 5 Business Benefits to Using Statistical Modeling Statistical modeling is the mathematical model of observed data that helps an analyst interpret the numbers. Instead of examining the raw data, statistical modeling allows data analysts to identify the relationship between variables, predict future data trends, and visualize the data to help an organizations leverage it. The primary objective of analyzing data is tracking its pattern. These patterns help make inferences about the entire dataset. Statistical modeling is an important component in business to help organizations test assumptions and scenarios. The business can benefit from using statistical modeling in the following ways: 1.Forecasting future business position and customer behavior Statistical modeling provides accurate data analysis that can predict every future aspect of the business, from production to sales. The analysis also helps a company track customer patterns and predict their future behavior. 2.Outrunning your competitors Most of your competitors may not use statistical modeling in their daily business, failing to control the market due to mistakes. Thus, statistical modeling gives you a competitive edge by promoting practical marketing strategies.

2. 3.Improving Decision-making If you make business decisions without analyzing the data, you are prone to making mistakes. In this regard, statistical modeling helps you gain meaningful insights into making the right decisions. Statistical modeling promotes informed business decisions. 4.Controlling the managers Whenever the business owner reviews future investment plans, he/she can ask the managers to provide statistical models and methods used to validate the plan’s significance. Validating managers’ conclusions helps the owner to control the management and sustain the integrity within the team. 5.Increasing your sales Analyzing and finding out the issues surrounding your products help you address them and increase the offer. Statistical modeling helps you develop products according to consumer needs and expectations, increasing sales and maximizing profit. By using a planning tool, like Anaplan, businesses can easily add statistical modeling to large data sets with one click. Anaplan houses a variety of statistical models that the planner can choose based on their needs. This function is important through all planning aspects of the business and can be a valuable resource to an organization.