# Why is problem analysis important?

Just like you can't fight with anyone without knowing about them. Problem analysis helps you identify difficulties, obstacle,...you must face with when solving problem.

### Problem identification and analysis?

Problem identification and analysis is a participatory diagnostic methodology that involves focused research on discovering problems and understanding the relationship between the cause and effect of an identified problem. Accurate problem identification relies on gathering and analyzing data systematically at both the individual and environmental levels. Then the analysis continues that tries to determine the next step.

### Why ratio analysis is important?

Ratio analysis does two things, immediately. The first thing is it allows the company to compare itself with other like companies. If management feels things aren't going well, they can help pinpoint the problem through comparing their ratios with other companies. They may have several ratios that are comparable, but a couple which are way off. That might be where the problem is. Also, ratio analysis may help by comparing your company with prior periods…

### What is the Statistical Cycle?

The cycle is used to carry out a statistical investigation. It has five stages to it: Problem, Plan, Data, Analysis and Conclusion. The problem section is about formulating a statistical question. what data to collect, who to collect it from and why is it important. The plan section is about how the data will be gathered. The data section is about how the data is managed and organised. The conclusion section is about answering the…