Good decisions often start from good information. This is true within the business world
as well. Some examples include:
- Warranties: Should you offer a warranty on your product? If so, how long should
you make the warranty? What percent of your product will break before the
warranty expires?
- Production: What is the expected demand for your product for next quarter?
How much should you produce given the expected demand?
- Quality: Does the machine you use produce a high quality product? Are the
specifications (e.g. length of ruler) close to the desired specifications and how
close?
- Market Research: Who are your present customers? What are their attributes?
What do your customers and the customers of competing products think of
your product?
- Churn: What is the churn rate of your customers, and how often are they
switching from your company to another for the same service?
- Risk Models: What is the risk of extending credit to an individual? What are
the odds he/she will pay?
- Response Models: To whom should you mail for a mail out campaign, and who
is most likely to respond?
- Etc.: Much, much, more.