The volume of data that businesses generate is overwhelming. Companies use statistical tools to extract relevant information and actionable insights from this data. Today's states of the art analytical tools are equipped with powerful features that support efficient data analysis and real-time presentation. Statistical tools empower companies to find associations and patterns in huge datasets. Some of the popular statistical tools used by companies include R, QlikView, SAS Business Analytics, etc.
The analysis of consumers' behavior helps businesses understand the criteria consumers use to buy, use and discard products and services. Companies often study the mental responses and feelings a consumer has towards their products. Consumer behavior is a vast subject that draws ideas from a plethora of sciences like psychology, economics, biology, history, chemistry, etc. Marketers often use insights from consumer behavior to explain the factors that influence the buying decisions of consumers.
Applied Econometrics and Forecasts
Applied econometrics is a concept that is used to create quantitative models that are used in economics and business at large. These models allow business managers to make sound forecasts and decisions. Applied econometrics focuses on developing complex but reliable time series methods, Bayesian models, and estimation techniques. It is a subject that is applied in several fields such as assessment in education, operations management, financial forecasting, and modeling, etc.
Business managers rely on intelligence and insights from data to make informed decisions. Optimization is one of the powerful methods that help managers make critical decisions. It can be divided into preemptive and prescriptive analytics. Today, several software packages have been built and customized to handle complex and convoluted optimization models. These systems are used in portfolio optimization, supply-chain management, and operations.