Applications of Statistics
I. Importance and Benefits
• Statistics provides simple yet instant information on the matter it centers on.
• Statistical methods are useful tools in aiding researches and studies in different fields such
as economics, social sciences, business, medicine and many others.
• Provides a vivid presentation of collected and organized data through the use of figures,
charts, diagrams and graphs.
• Helps provide more critical analyses of information.
Statistics in School
o May be used to see how the students are performing collectively in their studies.
o Gives information about the school’s population change.
o Helps in processing certain evaluations and surveys given to help improve the
o Determine the relationship of educational performance to other factors such as
Statistics in Social Science
o Helps in providing the government more information about its citizens.
o Statistical results may initiate social reforms that would help benefit the standard of
o Aids in knowing which problems or matters are there to prioritize and give much
Statistics in Sports
o Gives a vivid summary of the events in a game with the help of well-tabulated scores
and other parameters.
Statistics in Science
o Endangered species of different wildlife could be protected through regulations and
laws developed using statistics.
o Epidemics and diseases are monitored with the aid of statistics.
o Helps in the evaluation of certain medical practices and the effectiveness of drugs.
Statistics, the scientific discipline that deals with the collection, classification, analysis,
and interpretation of numerical facts or data, was invented primarily in the nineteenth and
twentieth centuries in Western Europe and North America. In the eighteenth century, when the
term came into use, "statistics" referred to a descriptive analysis of the situation of a political
state-its people, resources, and social life. In the early nineteenth century, the term came to
carry the specific connotation of a quantitative description and analysis of the various aspects
of a state or other social or natural phenomenon. Statistical concept and statistical thinking
enable them to:-
Solve problems in almost any domain,
Support their decisions,
DIVISIONS IN STATIST ICS
Collecting Making Inference
Organizing Hypothesis Testing
Summarizing Determining relationship
Presenting Marking Predictions
FUNCTIONS OF STATISTICS
Statistics is used for various purposes. It’s used to simplify mass data and to make comparisons
easier. It’s also used to bring out trends and tendencies in the data as well as the hidden
relations between variables. All this helps to make decision making much easier. Let us look at
each function of statistics in detail.
1) Statistics simplifies mass data- the use of statistical concepts helps in
simplification of complex data. Using statistical concept, the manager can make
decisions more easily. The statistical methods help in reducing the complexity of the
data and consequently in the understanding of any huge mass of data.
2) Statistics makes comparison easier- Without using statistical methods and
concepts, collection of data and comparison can’t be done easily. Statistics helps
us to compare data collected from different sources. Grand totals, measures of
central tendency, measures of dispersion, graphs and diagrams, coefficient of
correlation all provide ample scopes for comparison.
3) Statistics brings out trends and tendencies in the data- After data is collected,
it’s easy to analyse the trend and tendencies in the data by using the various
concepts of Statistics.
4) Statistics bring out the hidden relations between variables- Statistical analysis
helps in drawing inferences on data. Statistical analysis brings out the hidden
relations between variables.
5) Decision making power becomes easier- With the proper application of
Statistics and statistical software packages on the collected data, managers can
take effective decisions, which can increase the profit in a business.
Characteristics of Statistics
Some of its important characteristics are given below:
Statistics are aggregates of facts.
Statistics are numerically expressed.
Statistics are affected to a marked extent by multiplicity of causes.
Statistics are enumerated or estimated according to a reasonable standard of accuracy.
Statistics are collected for a predetermine purpose.
Statistics are collected in a systemic manner.
Statistics must be comparable to each other.
Uses of Statistics
(1) Statistics helps in providing a better understanding and exact description of a
phenomenon of nature.
(2) Statistical helps in proper and efficient planning of a statistical inquiry in any field of
(3) Statistical helps in collecting an appropriate quantitative data.
(4) Statistics helps in presenting complex data in a suitable tabular, diagrammatic and
graphic form for an easy and clear comprehension of the data.
(5) Statistics helps in understanding the nature and pattern of variability of a phenomenon
through quantitative obersevations.
(6) Statistics helps in drawing valid inference, along with a measure of their reliability about
the population parameters from the sample data.
Some Further Uses of Statistics
Use Of Statistics:-
It is been observed that application and use of statistics has grown remarkably
three major areas business science and government. Government was using statistics from
the time of
emperor Akbar, but application of statistics are found in the areas of science and business
Various invention in science when got transformed to technology resulted in to
revolution. That was the time from when businesses started becoming complicated
numerous government regulations, increasing taxes, advancement in technology, labor
management of recourses; one of which is manpower and bottom line that is cutting
of cost and
maximization of profits. To understand the status of all these and to keep itself
needed data, its analysis and interpretation which has increased demand of statistics. To
strengths and weaknesses of its economy, government collects and analyses dada. All
economics like consumption, production, distribution, exchange etc. are described,
compared with the help of statistics. Thus it has also increased the demand for statistics.
In general it can be observed that growth of statistic, use of statistical methods in
fields have triggered development of science of statistics. The statistical techniques have
such an extent that the cost and time of collecting and analyzing data has gone down
to use of technology like computers and digitization; it has further reduced and made use of
(1) Statistics simplifies the marks of data: - It organizes and presents figure in such a way that
they start communicating meaning. At a glance representation, pictorial, diagrammatic
graphical presentation of data reduces complexity, increases attractiveness and
comparison. It also helps understanding irrelativeness.
(2) Statistics presents facts in definite form: - The data collected is presented in numeral
so that it has preciseness while convening meaning. A statement made like cold is
is not a statistics, but when it is said that the temperature has increased by 2 0 C than
day it is statistics, because it precisely shows that cold has increased.
(3) Statistics facilities comparison: - The maximum use of statistic is for comparisons
finding out cause an effect relationship if at all they exist. The comparisons help
causes for change and also helps in finding what changes can occur in future. The green house
effect, depletion of ozone layer, global warming are examples where precisely statistics
predicted the changes and has also suggested that what could be the pressed benefits
remedies those are found out.
(4) Forecasting: - It is the important function of statistics which is best on relationships
which tried to predict future events. The most powerful tool for businesses and economics.
(5) Statistics helps formulate and test hypothesis:- It not only helps formulating and
hypothesis, but also infer from the same. It helps making rational decisions. It
measures and describes the effects of action and reactions. It tries to correlate pieces
isolated events or information to make meaning full picture.
When as a science statistics is providing all these benefits to a mankind the users of it
should also be experts. It is a double edged weapon. If it is rightly use it can prove extremely
useful, but if misused might be disastrous. It is the statistician who has to take care
presenting facts as they are and not manipulating them to suit the requirements. The
knowledge of statistical methods, careful investigation, collection and analysis of data should
be assured by them. There are certain limitations of statistics due to which many
misuse statistics. Remaining part of the article is the journey through all such misconcepts or
misuses of statistics.
Importance of Statistics in Different Fields
Statistics plays a vital role in every fields of human activity. Statistics has important role in
determining the existing position of per capita income, unemployment, population growth rate,
housing, schooling medical facilities etc…in a country. Now statistics holds a central position in
almost every field like Industry, Commerce, Trade, Physics, Chemistry, Economics,
Mathematics, Biology, Botany, Psychology, Astronomy etc…, so application of statistics is very
wide. Now we discuss some important fields in which statistics is commonly applied.
Statistics play an important role in business. A successful businessman must be very quick and
accurate in decision making. He knows that what his customers wants, he should therefore, know what to
produce and sell and in what quantities. Statistics helps businessman to plan production according to the
taste of the costumers, the quality of the products can also be checked more efficiently by using statistical
methods. So all the activities of the businessman based on statistical information. He can make correct
decision about the location of business, marketing of the products, financial resources etc…
(2) In Economics:
Statistics play an important role in economics. Economics largely depends upon statistics. National
income accounts are multipurpose indicators for the economists and administrators. Statistical methods are
used for preparation of these accounts. In economics research statistical methods are used for collecting and
analysis the data and testing hypothesis. The relationship between supply and demands is studies by
statistical methods, the imports and exports, the inflation rate, the per capita income are the problems which
require good knowledge of statistics.
(3) In Mathematics:
Statistical plays a central role in almost all natural and social sciences. The methods of natural
sciences are most reliable but conclusions draw from them are only probable, because they are based on
incomplete evidence. Statistical helps in describing these measurements more precisely. Statistics is branch
of applied mathematics. The large number of statistical methods like probability averages, dispersions,
estimation etc… is used in mathematics and different techniques of pure mathematics like integration,
differentiation and algebra are used in statistics.
(4) In Banking:
Statistics play an important role in banking. The banks make use of statistics for a number of
purposes. The banks work on the principle that all the people who deposit their money with the banks do
not withdraw it at the same time. The bank earns profits out of these deposits by lending to others on
interest. The bankers use statistical approaches based on probability to estimate the numbers of depositors
and their claims for a certain day.
(5) In State Management (Administration):
Statistics is essential for a country. Different policies of the government are based on statistics.
Statistical data are now widely used in taking all administrative decisions. Suppose if the government wants
to revise the pay scales of employees in view of an increase in the living cost, statistical methods will be
used to determine the rise in the cost of living. Preparation of federal and provincial government budgets
mainly depends upon statistics because it helps in estimating the expected expenditures and revenue from
different sources. So statistics are the eyes of administration of the state.
(6) In Accounting and Auditing:
Accounting is impossible without exactness. But for decision making purpose, so much precision is
not essential the decision may be taken on the basis of approximation, know as statistics. The correction of
the values of current asserts is made on the basis of the purchasing power of money or the current value of
In auditing sampling techniques are commonly used. An auditor determines the sample size of the
book to be audited on the basis of error.
(7) In Natural and Social Sciences:
Statistics plays a vital role in almost all the natural and social sciences. Statistical methods are
commonly used for analyzing the experiments results, testing their significance in Biology, Physics,
Chemistry, Mathematics, Meteorology, Research chambers of commerce, Sociology, Business, Public
Administration, Communication and Information Technology etc…
(8) In Astronomy:
Astronomy is one of the oldest branch of statistical study, it deals with the measurement of distance,
sizes, masses and densities of heavenly bodies by means of observations. During these measurements errors
are unavoidable so most probable measurements are founded by using statistical methods.
Example: This distance of moon from the earth is measured. Since old days the astronomers have been
statistical methods like method of least squares for finding the movements of stars.