Why should you use historical data when making managerial decisions?

Historical data are organized data that describes the figures and facts about the day to day processes of a business. For example, in a retail establishment, the number of sales each day will be recorded in order to gather data about the performance of the business. These data will then be transformed to become relevant information after being processed and formatted to fit its intended purpose.

Analyzing the historical data of businesses is crucial in formulating company decisions because it supplies the manager or business owner with essential data that it needs to make accurate and informative decisions that the company requires in order to make the business successful.