Answer to Question #151284 in Accounting for atuhe Raymond

Question

In recent years it has become increasingly evident that statistics and statistical methods have provided the businessman with one of his most valuable tools for decision-making. Even though they are extremely useful in taking decisions, they are not a perfect substitute for commonsense. A businessman must, therefore combine the knowledge of the business environment in which he operates and its technological characteristics with a heavy dose of commonsense and ability to interpret statistical methods. Discuss

Answer 1

Statistical methods are no substitute for common sense. In some cases statistical data should not be believed blindly, because the real processes in business environment may differ from some theoretical or statistical view. That's why every businessman should check the statistical data if it is interpreted correctly using the common sence.