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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. II. Examples 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 school’s system. o Determine the relationship of educational performance to other factors such as socioeconomic background. 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 living. o Aids in knowing which problems or matters are there to prioritize and give much attention to. 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. o Ans:- STATISTICS- 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, Reduce guesswork. DIVISIONS IN STATIST ICS Statistics Descriptive Inferential Statistics Statistics 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 study. (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 because of 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 latter on. Various invention in science when got transformed to technology resulted in to industrial revolution. That was the time from when businesses started becoming complicated because of numerous government regulations, increasing taxes, advancement in technology, labor problems, and 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 healthy businesses needed data, its analysis and interpretation which has increased demand of statistics. To evaluate the strengths and weaknesses of its economy, government collects and analyses dada. All branches of economics like consumption, production, distribution, exchange etc. are described, correlated, 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 various fields have triggered development of science of statistics. The statistical techniques have improved to such an extent that the cost and time of collecting and analyzing data has gone down drastically. Due to use of technology like computers and digitization; it has further reduced and made use of statistics more structured. (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 or graphical presentation of data reduces complexity, increases attractiveness and facilitates comparison. It also helps understanding irrelativeness. (2) Statistics presents facts in definite form: - The data collected is presented in numeral forms so that it has preciseness while convening meaning. A statement made like cold is increasing is not a statistics, but when it is said that the temperature has increased by 2 0 C than previous day it is statistics, because it precisely shows that cold has increased. (3) Statistics facilities comparison: - The maximum use of statistic is for comparisons and finding out cause an effect relationship if at all they exist. The comparisons help finding 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 has predicted the changes and has also suggested that what could be the pressed benefits by the remedies those are found out. (4) Forecasting: - It is the important function of statistics which is best on relationships and 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 testing hypothesis, but also infer from the same. It helps making rational decisions. It understands measures and describes the effects of action and reactions. It tries to correlate pieces of 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 of presenting facts as they are and not manipulating them to suit the requirements. The sound 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 people 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. (1) Business: 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 it. 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.
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