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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 May be used to see how the students are performing collectively in their studies. Gives information about the schools population change. Helps in processing certain evaluations and surveys given to help improve the schools system Determine the relationship of educational performance to other factors such as socio economic background.

Statistics in Social Science Helps in providing the government more information about its citizens. Statistical results may initiate social reforms that would help benefit the standard of living. Aids in knowing which problems or matters are there to prioritize and give much attention to.

Statistics in Sports Gives a vivid summary of the events in a game with the help of well-tabulated scores and other parameters.

Statistics in Science Endangered species of different wildlife could be protected through regulations and laws developed using statistics. Epidemics and diseases are monitored with the aid of statistics. Helps in the evaluation of certain medical practices and the effectiveness of drugs.

Statistics are sets of mathematical equations that are used to analyze what is happening in the world around us. You've heard that today we live in the Information Age where we understand a great deal about the world around us. Much of this information was determined mathematically by using statistics. When used correctly, statistics tell us any trends in what happened in the past and can be useful in predicting what may happen in the future. Let's look at some examples of how statistics shape your life when you don't even know it. 1. Weather Forecasts Do you watch the weather forecast sometime during the day? How do you use that information? Have you ever heard the forecaster talk about weather models? These computer models are built using statistics that compare prior weather conditions with current weather to predict future weather. 2. Emergency Preparedness What happens if the forecast indicates that a hurricane is imminent or that tornadoes are likely to occur? Emergency management agencies move into high gear to be ready to rescue people. Emergency teams rely on statistics to tell them when danger may occur.

3. Predicting Disease Lots of times on the news reports, statistics about a disease are reported. If the reporter simply reports the number of people who either have the disease or who have died from it, it's an interesting fact but it might not mean much to your life. But when statistics become involved, you have a better idea of how that disease may affect you. For example, studies have shown that 85 to 95 percent of lung cancers are smoking related. The statistic should tell you that almost all lung cancers are related to smoking and that if you want to have a good chance of avoiding lung cancer, you shouldn't smoke. 4. Medical Studies Scientists must show a statistically valid rate of effectiveness before any drug can be prescribed. Statistics are behind every medical study you hear about. 5. Genetics Many people are afflicted with diseases that come from their genetic make-up and these diseases can potentially be passed on to their children. Statistics are critical in determining the chances of a new baby being affected by the disease. 6. Political Campaigns Whenever there's an election, the news organizations consult their models when they try to predict who the winner is. Candidates consult voter polls to determine where and how they campaign. Statistics play a part in who your elected government officials will be 7. Insurance You know that in order to drive your car you are required by law to have car insurance. If you have a mortgage on your house, you must have it insured as well. The rate that an insurance company charges you is based upon statistics from all drivers or homeowners in your area.

8. Consumer Goods Wal-Mart, a worldwide leading retailer, keeps track of everything they sell and use statistics to calculate what to ship to each store and when. From analyzing their vast store of information, for example, Wal-Mart decided that people buy strawberry Pop Tarts when a hurricane is predicted in Florida! So they ship this product to Florida stores based upon the weather forecast. 9. Quality Testing Companies make thousands of products every day and each company must make sure that a good quality item is sold. But a company can't test each and every item that they ship to you, the consumer. So the company uses statistics to test just a few, called a sample, of what they make. If the sample passes quality tests, then the company assumes that all the items made in the group, called a batch, are good. 10. Stock Market Another topic that you hear a lot about in the news is the stock market. Stock analysts also use statistical computer models to forecast what is happening in the economy. 11. Seasonal Sports Statistics Sports statistics and the understanding and manipulation thereof, can make or break a person's wallet. Thousands of dollars can be lost on the basis of a point spread. Statistics is the bread and butter of the sports world. 12. Living Statistics Living statistics would accomplish stats like Cost of Living, Employment Rate, Crime Rate among many other things.

13. Crime Statistics Statistics are used in regards to crime rates, increases and decreases of recidivism, and many other ways. 14. Political Statistics As in sports, the ability to use statistical analysis in a positive fashion and use them to get your message across is career makers and career enders. A good political statistician can, for all intents and purposes, 'write his own ticket

Statistics form a key basis tool in business and manufacturing as well. It is used to understand measurement systems variability, control processes for summarizing data, and to make datadriven decisions. In these roles, it is a key tool, and perhaps the only reliable tool. Some fields of inquiry use applied statistics so extensively that they have specialized terminology. These disciplines include: Actuarial science Applied information economics Biostatistics Business statistics Data mining Engineering statistics Environmental Statistics Epidemiology Geography and Geographic Information Systems Psychological statistics Quality Social statistics Statistical literacy Statistical modeling

Statistical surveys Chemo metrics (for analysis of data from chemistry) Structured data analysis (statistics) Statistics in various sports, particularly baseball and cricket

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 etcin 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. Uses of Statistics Everyday, there are many statistical reports in the media. Those reports are presented according to the nature of the data in different types of graphs, such as (a) Pie chart (b) Broken line graph (c) Histogram / bar chart (d) Stem-and-leaf diagram

Abuses of Statistics (a)Using Average to mislead people For example, a company has five cars with prices: $22000, $33000, $80000, $100000 and$108000. The manager claims that the average price of the cars is$68 800. Customers may think that the prices of the cars in this company are around$70000, but actually there are only two cars with prices under $70000 The above case shows that an average can be misleading when used to represent a data set. (b) Misinterpreted Percentage Sometimes, the statistical information presented in the media is also unclear or misleading. For example, the marketing department of a computer software company asked ten of its customers about the performance of the new software company asked ten of its customers about the performance of the new software. Since nine of ten of the customers said the software was good, the company claimed that over 90%of the customers were satisfied with the performance of the software. (c) Misrepresentation of data by Graph It is common that statistical data can be represented by different graphs which may give different impressions to readers.

The data represented by the above three graphs are the same but if we use different scales to draw the graphs, they will give different impressions to the readers or even mislead them.