Uses of Statistics

Top 9+ Uses of Statistics in Our Daily Life-You Should Know

Are you searching for uses of statistics? If so, this blog will be beneficial to you.

Let us start with the basic meaning of statistics. Then we will jump to other essential areas, such as the types of statistics and characteristics of statistics uses of statistics in different fields.

Everyone studies statistics in their schooling. Statistics is the extended version of mathematics. We can represent theoretical data in 

Statistics is a branch of applied mathematics that involves collecting, describing, analyzing, and drawing conclusions from quantitative data.

Statistics is a field that looks at all parts of data. Statistical knowledge helps you choose the right method to obtain the data and use the samples in the right way to analyze the data to get good results. In short, statistics is a very important tool that helps people make decisions based on data.

To get to the bottom of this, let’s discuss it.

What is the meaning of statistics?

Statistics is a branch of applied mathematics that involves collecting, sorting, interpreting, analyzing, and drawing conclusions from numerical and categorical data and facts to present them logically.

Characteristics of statistics 

  • A group of facts that have been gathered in a systematic way for a certain purpose.
  • Clearly affected by a large number of causes.
  • Written in numbers.
  •  Estimated or listed with a fair amount of accuracy.
  • To put one thing in relation to another.

Types of statistics

Descriptive Statistics 

Descriptive statistics uses the data to describe the population. They do this by making graphs, tables, or numerical calculations.

Inferential Statistics

Inferential statistics make predictions and inferences based on a sample of data from the whole population.

Applied statistics

Use those methods and techniques that can be used to solve specific problems in real-world situations. Methods like sample surveys, quality control, index numbers, etc., may be used.

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Inductive statistics

 This section covers the methods and techniques that are used to figure out what a certain thing is based on random observations. Extrapolation is one of the methods that might be used.

Analytical Statistics

Analytical statistics uses techniques and methods that help figure out how variables work together. This study uses correlation, regression, association, and attributes.

Mathematical statistics

Mathematical statistics studies how different mathematical theories and methods can be used to make new statistical methods. Integration, differentiation, trigonometry, matrix, etc., are all used.

Uses of Statistics 

 Here is the list of the top 9+ uses of statistics: 

1. Business

  • In business, statistics are very important. To be successful in business, a person must be able to make decisions quickly and correctly. He knows what his customers want, so he should know what to make and sell and how much to make and sell.
  • Statistics help business owners plan production based on what their customers want. They can also use statistics to check the quality of their products more efficiently. So, it’s clear that all business activities are based on statistical information. Businessmen can make good choices about where to do business, how to market their products, how to use their money, etc.

2. Economics

  • Statistics play a big role in economics. National income accounts are useful for economists and government officials in many ways, and statistical methods are used to make them. 
  • Statistical methods are used to collect and analyze data and test hypotheses in economics research. Statistics are used to study the relationship between supply and demand. Problems like imports and exports, inflation rates, and per capita income require a good understanding of statistics.

3. Natural Science And Social Science

  • Statistics is an important part of almost all of the natural and social sciences. The methods used in natural sciences are the most reliable, but the conclusions that can be drawn from them are only likely because they are based on incomplete evidence.
  • Statistics help to give more accurate descriptions of these measurements. Statistics is a type of math that is used in the real world. Statistics uses a lot of pure math techniques like integration, differentiation, and algebra, and mathematics uses a lot of statistical methods like probability averages, dispersion, estimation, etc.
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4. Banking

  • In banking, statistics is very important. Statistics are used in several ways by banks. They are based on the idea that only some people who put money in the bank take it out simultaneously. 
  • The bank makes money on these deposits by lending them to other people and charging them interest. Bankers use probability-based statistical methods to guess the number of deposits and claims for a given day.

5. State Management (Administration)

  • Statistics are important for every country. Statistics are used to make different policies for the government. Now, most administrative decisions are made with the help of statistics. Imagine that the government wants to change the pay scales of its workers because the cost of living has gone up. 
  • Statistics will be used to figure out how much the cost of living has gone up. Statistics are a big part of how federal and provincial budgets are made because they help predict how much money will come in and how much will be spent. So, statistics are the eyes of the people who run the government.

6. Bookkeeping and audits

  • By being exact, accounting is possible. But for making a decision, you can use that much accuracy. You can make a decision based on statistics, which are estimates.
  • The purchasing power of money or its current value is used to adjust the values of current assets.
  • Often, sampling techniques are used in auditing. Based on the chance of error, an auditor chooses the sample size to check.

7. Science 

  • Statistics is a very important part of almost all natural and social sciences. Statistics are often used to test the significance of experiment results in biology, physics, chemistry, mathematics, meteorology, research, chambers of commerce, sociology, business, public administration, communications, information technology, etc.

8. Astronomy

  • Astronomy is one of the oldest fields of statistics. It uses observations to figure out how far away things are, how big they are, how heavy they are, and how dense they are. 
  • During these measurements, mistakes can’t be avoided, so statistical methods are used to find the most likely measurements.
  • Example: This is how far away the moon is from the earth. Astronomers have used statistical methods like the method of least squares for a long time to figure out how the stars move.
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9. Digital Marketing

Applied statistics is a major force in changing how marketing is done today. With the rise of “big data,” companies are collecting a huge amount of information about their customers. Proactive companies use this information to predict sales, find out what customers are interested in, and measure how well their marketing efforts are working. Using statistics in everyday life gives you a strategy that is highly targeted and based on data.

Paid search managers, who work for advertisers, keep an eye on ad campaigns based on key performance indicator targets and baselines. They also look at data to keep improving the performance of a campaign. SEO experts help businesses figure out how to read and understand website analytics.

10. Social Media

The rise of social media has made it possible for many people and organizations to connect through a complicated set of technologies. Statistics experts discuss what goes on behind social media screens in the Netflix movie “The Social Dilemma.” The documentary says that everything people do online is “being watched.”

Social media managers track both free and paid traffic to social media profiles and look at the data to get more followers, get more people to interact with them, and get more sales. Companies use the information to do things like microtargeting, measuring trends, and keeping an eye on competitors.

Conclusion

This blog has given information about what statistics are and the uses of statistics. What are statistics, and how can they be used? This blog is beneficial for you. Please tell us other uses of statistics in the comment section.

Frequently Asked Questions 

Q:1 What does n mean in statistics?

N usually stands for the number of people in a group. n usually stands for the size of the sample.

Q:2 Why do we need statistics?

People use statistics to plan and budget their finances, and organizations use statistics to make decisions about their financial policies. Banks use statistics to reduce risk in lending, look at what’s going on in the financial market, and predict how economic crises will affect the economy.

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