Final answer:
Business analytics leverages tools such as Cost Benefit Analysis to weigh marginal costs against benefits, assisting managers in making more informed decisions. Understanding and interpreting data using statistics is a key aspect in modern business environments, providing the foundation for analytical decision-making processes.
Step-by-step explanation:
Business analytics uses a variety of tools and techniques to help managers make better decisions. One essential tool is Cost Benefit Analysis, which compares the marginal costs against marginal benefits.
Costs include money, effort, and other sacrifices, while benefits are the gains in terms of money, time, experience, and other improvements from a decision.
This T-shaped chart analysis allows decision-makers to put a value on inputs and outputs of a decision that aren't generally quantifiable.
Furthermore, in the context of modern businesses, the availability of vast information empowers business analytics.
Having the skill to understand and interpret numerical data or observable facts is fundamental, enabling informed conclusions about consumers' preferences, voters' behaviors, or any other business-related decisions.
Statistics and statistical models play a key role in this process, not for mere calculations—which can be done using technology—but for a deep understanding of the data to inform decision-making confidently.