Role of Statistics In Real Life
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.
The fields are:
•Business
•Economics
•Mathematics
•Banking
•State Management (Administration)
•Accounting and Auditing
•Natural and Social Sciences
• Astronomy
Business:
In business, in order for one to be successful, one must use statistics. By using statistics, he/she will then be able to find out the demand as well as the supply of the product/(s) which he/she is selling. By doing so, not only will he/she lose money, but his/her supply will also be able to meet the demand and thus the consumers will then be satisfied and will thus patronize them more often. Furthermore, he/she will also be able to know the consumers likes and dislikes. He/she will then be able to know
what is/are the best product/(s) to sell so as to gain the maximum profit.
For example, a company which sells diary products, will be able to use statistics as after selling for quite some time, based on the past sales records and with the help of statistics, they will be able to the know the demand of the customers and thus able to know the amount of supply that they should produce, so as to be able to meet the demand.
For example, a company which sells diary products, will be able to use statistics as after selling for quite some time, based on the past sales records and with the help of statistics, they will be able to the know the demand of the customers and thus able to know the amount of supply that they should produce, so as to be able to meet the demand.
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.
For example, a country gets information of the citizens' wages and finds the per capita income. With the per capita income that they get, they will be able to see if the country is doing well in terms of the well-being and the prosperity.
For example, a country gets information of the citizens' wages and finds the per capita income. With the per capita income that they get, they will be able to see if the country is doing well in terms of the well-being and the prosperity.
Mathematics:
By having statical representation, one will then be able to describe measurements more precisely. This is because, by plotting them into data representations, one is able to see the relationship in the data representations and thus able to describe the measurements well.
For example, one has results of how long a few cars takes to travel a certain distance. By plotting the results of the graph, one is then able to know which is the fastest car among the rest.
For example, one has results of how long a few cars takes to travel a certain distance. By plotting the results of the graph, one is then able to know which is the fastest car among the rest.
Banking:
The bankers use statistical approaches based on probability to estimate the numbers of depositors and their claims as well as the amount deposited and claimed for a certain day. Thus, they are then able to know what is the maximum amount they can use to borrow others/ to use for their own uses (their pay, the worker’s pay, the management of the bank), after borrowing the sum of deposited money to others and gaining money from the interest. This would then prevent the bank from losing money as well as losing other people’s money.
For example, in a day, a large sum of money is deposited into the bank, With the help of statical analysis, the bank is then able to know how to earn using that sum of money. Firstly, they would offer the depositors interests, with the rule that the longer the money is kept in the bank, the more money the depositors will earn. This would then entice the depositors to keep the money in the bank. With the money and time, the bank will then loan some of it to others, at a higher interest rate, with the rule that the longer they took to return the money, the more the money the borrowers will have to repay them. Thus, the bank will then earn profit. However, the bank needs to prevent money from totally being loaned from the bank as the bank needs back-up money just in case someone wanted their money to be withdrawn, otherwise, the bank might crash.
For example, in a day, a large sum of money is deposited into the bank, With the help of statical analysis, the bank is then able to know how to earn using that sum of money. Firstly, they would offer the depositors interests, with the rule that the longer the money is kept in the bank, the more money the depositors will earn. This would then entice the depositors to keep the money in the bank. With the money and time, the bank will then loan some of it to others, at a higher interest rate, with the rule that the longer they took to return the money, the more the money the borrowers will have to repay them. Thus, the bank will then earn profit. However, the bank needs to prevent money from totally being loaned from the bank as the bank needs back-up money just in case someone wanted their money to be withdrawn, otherwise, the bank might crash.
State Management (Administration):
By using statistics for a country, it will enable the government to know how to spend the money that they have.
For example,when part of the country is stuck by a natural disaster and needs supplies of necessary needs, the government will then have to put aside a sum of money for these people. With the help of the statistics, the government will then easily know what form of expenses should be cut down so as to cater to the needs of those who are the victims of the natural disaster.
For example,when part of the country is stuck by a natural disaster and needs supplies of necessary needs, the government will then have to put aside a sum of money for these people. With the help of the statistics, the government will then easily know what form of expenses should be cut down so as to cater to the needs of those who are the victims of the natural disaster.
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… With statistics, one will then be able to see the relationship of the different results of each experiment and thus able to discover something new.
For example, in an experiment of how fast a certain amount of substance evaporate in different temperatures. After collating the results and plotting them into a statical representation, one is able to find which temperature evaporates that substance the fastest and which temperature evaporates that substance the slowest. Furthermore, one will then be able to find the relationship and deduce a hypothesis or even a law.
For example, in an experiment of how fast a certain amount of substance evaporate in different temperatures. After collating the results and plotting them into a statical representation, one is able to find which temperature evaporates that substance the fastest and which temperature evaporates that substance the slowest. Furthermore, one will then be able to find the relationship and deduce a hypothesis or even a law.
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.
What Happens When Statistics Are Not Represented Properly And Thus Causing Tweak or Mislead Interpretation of Situation?
When this happens, the whole world will go topsy turvy as when scientists / geographers / mathematicians finds the wrong relationship between the results, trouble would occur as people would then have already believed them, considered it as a law, and even applied it to other experiments. When this happens, many experiments/studies will go wrong. It would not only take time to fix these wrong experiments/studies, but it will take a even longer time to make people believe the real law as they would have lost faith in the scientists/geographers/mathematicians. Soon, no more laws will be produced as no one would believe a word.
For example, when a scientist plotted his results in a statical representation wrongly, he might end up finding a wrong relationship. After announcing to the world of his discovery which in actual fact is wrong, many would have believed him and tried to apply his wrong discovery to other experiments/scenarios. There would of course, then be wrong results, and thus other scientist would then find out why. They would then find out that the discovery of that scientist is wrong and thus, many things will have to be edited, thus causing unnecessary stress and work.
Another possible occurrence would be that banks/businessmen will lose money as the demand ends up being higher then the supply or, the supply is higher than the demand (only applies to businessmen).
For example, if a businessmen plotted his findings of the demand of his consumers wrongly, he might end up buying more/less of the goods which would be sold to the consumers and thus, the businessmen would then lose customers of the supply was lower than the demand, causing the businessmen to lose business or the businessmen could lose money because the supply was higher than the demand and when the product has expired/is outdated, the businessmen would have a lot of the stock which no longer can be sold.
Another possible occurrence would be that banks/businessmen will lose money as the demand ends up being higher then the supply or, the supply is higher than the demand (only applies to businessmen).
For example, if a businessmen plotted his findings of the demand of his consumers wrongly, he might end up buying more/less of the goods which would be sold to the consumers and thus, the businessmen would then lose customers of the supply was lower than the demand, causing the businessmen to lose business or the businessmen could lose money because the supply was higher than the demand and when the product has expired/is outdated, the businessmen would have a lot of the stock which no longer can be sold.
References
• PARIS21 - OECD/DCD. (n.d.). Counting down poverty: The role of statistics in world development. Retrieved from http://www.paris21.org/sites/default/files/2532.pdf
- eMathZone.com. (n.d.). Importance of statistics in different fields Retrieved from http://www.emathzone.com/tutorials/basic-statistics/importance-of-statistics-in-different-fields.html
•BANK FOR INTERNATIONAL SETTLEMENTS. W a wijewardena: The role of statistics and challenges for statisticians . . Retrieved from http://www.bis.org/review/r090326e.pdf
•Tulle. (2008, October 9). The importance of statistics in our society Retrieved from http://voices.yahoo.com/the-importance-statistics-our-society-1938208.html?cat=41
