Statistics make nearly every industry go around. Everyone wants to have numbers to back up nearly any decision, and you can become invaluable by providing those numbers. If you're looking to add a marketable skill to your resume, learning statistical methods for business is a surefire way to make yourself more attractive to a wide variety of employers.

Educating yourself on statistical methods will give you a better ability to either advise a superior on how to act on a large variety of situations or even make the decision yourself. Your advice will be better received since it will come with numbers that you've found through the appropriate statistics process. Statistics and statistical methods education and training comes in a variety of ways, including:

1. Earning an undergraduate degree in business statistical analysis.

2. Learning more statistical method information through a graduate degree program.

3. Finding continuing education that covers a particular statistics method.

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Meet the minimum for a new career with an undergraduate degree in statistics

Most career paths in statistics require an undergraduate degree at minimum. Make sure that the program you chose is well-regarded in your industry of choice; some programs are better suited to specific industries than others.

I recommend: Duke University offers both an undergraduate degree and minor in statistical science. Purdue University's statistics department has a variety of options available to undergraduate students.

Become an authority on statistics methods with a graduate degree

If you want to be considered an expert in statistical theory in your line of work, you should have a graduate degree in one of the statistical sciences. This degree allows you to further your education beyond your original undergraduate degree, no matter what you may have majored in.

I recommend: Texas A&M University has an online option for graduate degrees in statistics. North Carolina State University offers statistical graduate programs specifically tailored to certain industries.

Continue to learn more through training on statistical methods in business

Once you have a strong base knowledge in statistical theory, you'll need to update yourself with the latest information regularly. By finding ongoing training through a variety of trade groups, you can both network and learn more about statistics at the same time.

I recommend: The American Statistical Association (ASA) offers a variety of statistical training options for a wide range of education levels. By clicking on Continuing Education on the left, you'll be able to see a variety of training options. Conferences put on by the Society for Industrial and Applied Mathematics (SIAM) offer a wide range of training programs through conferences in business statistical methods.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When learning about statistical techniques, make sure that you focus on your industry of choice. The methods used in an engineering firm are not likely to be the same as those used by an insurance company.

Statistics can be an excellent resource for any business looking to properly allocate resources in all divisions of the business. From inventory management to scheduling to seasonal trending and everything in between, if you understand and know how to use statistical methods in business properly, these potential problem areas for a company can turn into opportunities to increase a company’s profit margin.

Using a statistical method won't just improve a specific area of your business. Statistical techniques can help identify larger trends in an industry. In a competitive business environment, the ability to spot and use industry trends to your advantage can be the lifeblood of company. A business can use a statistics method like logistics curving or probit curving to forecast the success of new products and know when to retire older products.

Before you implement a statistics process to assist in your business, you should consider the following:

1. Know the basics of statistical process;

2. Decide whether to conduct business statistical analysis in-house or outsource it; and,

3. Have a plan to implement the results of the statistical analysis.

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Use Microsoft Excel to test drive statistical methods in business

Microsoft Excel offers plenty of features that will enable a small company with limited funds or a large one that is leery of investing too many resources for the statistical analysis.

I recommend: Take advantage of the software that you already have, in this case Microsoft Excel, to evaluate just how effective and useful statistical analysis will be for your business. Make sure that you install the Excel statistical analysis pack on the computer or you will not have access to all the statistical functions in Excel. You will need someone on staff that understands how to input and interpret the data that is relevant to your business. Understand however, that Excel is not as robust as a dedicated statistical analysis software package.

Invest in statistical trending and analysis software

Once you decide to implement statistical analysis in your business, you need a software package to handle the task.

I recommend: After taking the less robust Excel statistical software out for a test drive, you may want to purchase software to conduct in-house statistical analysis of your business. Be certain that you have employees on staff to handle the application and analysis. If not, you may need to hire a statistical analyst. There are many different statistical software programs available such as SPSS, SAS, and Insightful.

Hire someone who knows how to perform the statistics process

To get a proper statistical analysis, you may need to hire an outside firm to perform the analysis.

I recommend: Outsource the business statistical analysis if your company does not have the proper in-house talent or if it is economically inefficient to do so. Feel comfortable with the business statistical methods company that you hire. Examples of companies that can perform this business statistical analysis are John Galt Solutions, Inc., Minimax Consulting and Chainalytics LLC.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Have each division manager at the company take an introduction to statistics course. If the decision-makers within the company do not have a basic understanding of statistical analysis, your company will be at the mercy of the statistician on staff or the outsourcers you hired.

Many businesses use statistical methods to help them predict upcoming trends in products so that they can keep up with customer demands in today's busy marketplace. There are statistical methods that relate to specific businesses and those which have more wide- range applications. It's important to know statistics and statistical methods key terms so you can be sure that you are applying the statistical application that best fits your business needs.

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Data mining

Data mining, or knowledge discovery, is a statistical method in which users analyze data from various perspectives or angles so that they can then categorize it and look for patterns. These patterns help users to better predict upcoming trends and errors.

I recommend: Learn about data mining by reading the article at UCLA Anderson School of Management.

Trend analysis

Trend analysis is a statistical method that gives users the ability to take historical data and predict future income rises and falls for various businesses. For stock investors who want to determine rises and falls in the market, this is best the statistical method to use. Besides finance, this method predicts upcoming trends, including fashion and healthcare.

I recommend: Learn more about trend analysis at WiseGEEK.

Discriminant function analysis

Learn about the membership of certain groups and predict how these people will function in specific circumstances by using discriminant function analysis. This statistical method examines people by analyzing things, including gender, age and health, to determine how people will react to certain factors based on demographic information and comparisons.

I recommend: Explore the various uses of discriminant function analysis at StatSoft.

Factor analysis

When you collect and then analyze the information of a large number of variables, either with surveys or other means, and then create scores from the collected information, you are using factor analysis. You can use the collected information in further analysis. Once you gather this information, you will need to compile it and analyze it to determine future trends.

I recommend: Social Research Methods offers an introduction to factor analysis that explains its uses and applications.

Predictor variable

A predictor variable is a variable that you use to forecast outcomes based on gathered information. One example of this would be using weight charts to determine the possibility of health problems in obese individuals. Demographic information is one way of gathering predictor variable information to determine upcoming financial upswings and falls. Many law enforcement organizations use predictor variables to determine crime rates.

I recommend: Read the information about predictor variables and discover how they predict crime rates at Net Industries.

Business forecasting

Business forecasting uses business knowledge to create a consistent and reliable image that predicts future trends. With this information, businesses can make necessary adjustments in areas such as sales or customer care to ensure continued success. This statistical method can forecast revenue increases so that companies can better plan their financial futures.

I recommend: E-forecasting.com provides information detailing how you can use business forecasting. It explores the opportunity of using online resources to improve business forecasting.

Statistics can be a valuable tool for many corporations to study in a myriad of industries. Everything from a restaurant calculating and comparing food waste, to a construction site calculating comparative material costs all fall under the roof of business statistical analysis. Learning how to use these statistics in the right manner can really streamline operations and enhance the bottom line of many businesses.

Take the time to familiarize yourself with the statistics that should be studied for your industry or company. Here are some helpful resources to get you started. Think of this tutorial as "statistics and statistical methods for beginners."

1. Go to websites that provide an overview of statistics, how they are calculated and how they are used in business.

2. Take a course or seminar to help understand the statistics process.

3. Learn about statistics software by getting a demo and testing out the various applications on the software.

Action Steps
The best contacts and resources to help you get it done

Find places where statistical method theory is discussed

There are many websites and locations on the Internet that discuss statistical theory and statistics methods for businesses. Topics that will be covered range from calculating the health of employees for insurance coverage, to productivity analysis, to cost analysis and much more. Read up on the basics for business statistical analysis and see how it might be incorporated to your business.

I recommend: Visit the websites for Stats Net Base and the National Institute of Statistics in Technology. Both websites provide cursory information and a general overview of statistics and statistical methods.

Understand more about a particular statistics method by taking a course or seminar

While you may certainly take statistics courses at colleges or universities, there are also many companies throughout the United States that provide statistics seminars or short courses for business professionals. These courses teach businesses how to gather and implement statistical data into the day-to-day of their company's operation.

I recommend: The company Statistical Designs holds seminars throughout the country teaching business owners how statistics may be integrated into their business. The company ATI also holds statistical courses.

Find statistics software that might be right for your company

There are many software companies that provide targeted statistics software solutions for a myriad of industries. Everything from risk management, to clinical reporting, to safety analysis and more are the types of applications found in these software products. The data is then analyzed by the program and certain suggestions are made on how to improve the operations of a given company.

I recommend: Both of the software companies SPSS and TIBCO provide software solutions for statistical methods in business. Take the time to demo their software and see how it might be integrated into your corporation.