Importance of Statistics

Statistics plays a vital role in our daily life. Whatever activity you do, involves data and statistics. There is wide importance of statistics in our lives. Statistics is an appealing study to polish your discovery skills, learning, and assumptions.

Nowadays, statistics play an essential role in the development of the world. Every technology, such as artificial intelligence, big data, etc., is related to statistics or the study of statistics.

Hence, it is understandable that statistics revolve around us. We have seen various importance of statistics in various fields.

And many more. In this blog, we will discuss the importance of statistics in our daily lives. But before that, let’s dig into the concept of statistics.

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Meaning Of Statistics

Statistics is data collection, interpretation, and presentation used to calculate past results and make future decisions. It is the science of learning from the data collected.

You learn to use the correct method to collect the data, conduct a suitable analysis, and adequately present the output through statistics.

It is one of the oldest subjects in human history. As we all know, statistics is a part of mathematics, so most students think this is a new subject as it has developed after the development of mathematics.

In ancient times people used statistics a lot in their everyday lives. In the olden days, statistics were regarded as “science statecraft.” It is derived from the latest word “status,” or the Italian word “statistics,” the German word “statistic,” or the French word “statistic.”

All of these mean a political state.

Definition Of Statistics

“Statistics is the aggregate of facts affected to a marked extent by the multiplicity of causes, numerically expressed, enumerated or estimated according to reasonable standards of accuracy, collected systematically for a pre-determined purpose and placed in relation to each other.”

According to Prof. Horace Secrist

“Statistics are numerical statements of facts in any department of inquiry placed in relation to each other.”

According to A.L. Bowley

“Statistics are numerical statements of facts in any department of inquiry placed in relation to each other.”

Now that we have read both definitions, you can see that the definition given by Prof. Horace is more informative and thorough. It includes all the aspects that are considered in statistics.

Now that we know about statistics and its concept. Let’s dig into the importance of statistics in different fields.

15+ Importance Of Statistics In Different Fields

Following are the importance of statistics in different fields.

• Statistics Importance in Business
• Statistics Importance in Education
• Importance Of Statistics In Planning
• Statistics Importance in Nursing
• Statistics Importance in Research
• Statistics Importance in Psychology
• Importance of statistics in daily life
• Statistics in analyzing scientific data
• Statistics in Mathematics 
• Statistics in Economics
• Statistics in Government organizations
• Importance of statistics in Social Science, Trade
• Statistics important in research 
• In programming 
• Statistics In data science 
• Statistics in the Health Industry
• Statistics in Business Statistics
• Statistics In Weather Forecasting

Why is Statistics Important?

Statistics is an important term that helps people to make decisions quickly. All organizations, governments, business administrations, communities, etc., gather the statistical data in primary and secondary modes available around you. The collected data is beneficial for all of these classified decision-making criteria. 

Statistics is vital because it allows us to understand shared data sets’ general conventions and trends. Also, it can use for interpreting data and demonstrating conclusions from it to make forecasts about future possibilities and manners.

Following are the significant areas where has vital to use statistics.

Importance Of Statistics In Business Administration 

The best company in the world is American retail corporation Walmart, Apple, Saudi Aramco, Microsoft, China Petroleum & Chemical Corp. (SNP), Amazon, etc. Walmart’s Annual Revenue (Millions of US $) is given below.

Walmart Annual Revenue (Millions of US $)

Revenue of Walmart worldwide from the fiscal year 2012 to 2022(in billion U.S. dollars)

Image Source: Statista

Importance of Statistics in Planning

Suppose you are thinking about starting a business. You have the idea, and you want to execute it. To execute that idea, you must plan first. Planning includes the blueprint of all the actual actions in the future.

It means the major part of planning is the existence of statistics. Not only in a business plan but in any planning, you will need statistics. Without data, planning cannot be possible.

Statistics helps in planning in business, economics, government level, and even in an individual.

Planning is everything in the modern age. And almost every government and private organization use data to formulate its policy and do adequate planning.

As we mentioned earlier, statistics is about the collection of data. For making concrete plans, companies use data related to production, consumption, birth, death, income, etc. 

The data helps countries adequately plan what is vital to them-the best example of planning we see on the COVID-19 pandemic.

We have seen that the New Zealand Government had planned to fight against COVID-19, and they successfully managed the situation to get rid of COVID-19. This pandemic teaches the importance of statistics in our daily lives.

Importance of Statistics In Mathematics

Well, we all know that statistics is a part of mathematics. Statistics can’t function without mathematics.

Where there is data, mathematics and statistics automatically exist there. In other words, statistics depends entirely on related math. Suppose you want to determine the favorite fruit of the people of your city.

Below is the statistical information that you get by using the mean of the mathematical data.

The increasing use of mathematics and statistics leads to new ways of developing statistics, known as mathematical statistics. It is a crucial branch of mathematics. A

pplied mathematics is a role of statistics that is specialized in data.

So programmers need to learn statistics along with math. In addition, statistics are also crucial for business mathematics.

Importance of Statistics In Economy

As we discussed above, statistics is the activity of collecting, analyzing, interpreting, and presenting data.

Statistics play a vital role in understanding economic data such as prices, demand, income, etc.

Statistics help to calculate many factors related to the economy as a whole such as GDP, Per capita income, etc.

The development of advanced statistics has opened new avenues for the widespread usage of statistics for economics. Every branch of economics uses statistics, i.e., production, consumption, public finance, and distribution.

All these economic branches use data for comparison, interpretation, presentation, etc.

Problems of income expenditure on different sections of the people, national wealth production, supply adjustment, demand, and the impact of economic policies. All these intimate the importance of statistics in economics and its different branches.

Importance of Statistics In Social Science

Statistics are also helpful in social science. You are probably aware that an assortment of factors primarily influences social events. In the social sciences, observations vary from time to time, from object to object, and from place to place.

The statistical tools of regression and correlation analysis are used in the social sciences to isolate the effect of these factors in each tested observation. Statistics are also used to manage social surveys.

The social survey uses sampling techniques and estimation theory. Indeed, these are the most powerful tools for conducting social surveys. Sociology is an essential part of social studies.

Statistics is also playing an essential role in sociology. It helps in studying fertility, mortality, population growth, etc.

Importance of Statistics In Trade

Trading refers to the activity of buying and selling goods and services. Trading is a very old activity. It has been going on for many centuries.

Trading without statistics is tough and can be overwhelming for traders.

It helps traders to make wise decisions in uncertain situations. We know that business is fraught with risks and uncertainties; anything can happen at any level. The below graph defines international capital trade towards selected countries.

Thus statistics help in determining the businesses of a specific country.

Hence it is essential to predict every move in trading. Our record helps us to forecast efficiently and effectively. We consider all recent data to predict future conditions for the company.

Remember that figures are just numbers; we have to estimate them carefully; otherwise, it may be a reason for the loss of the business.

We can estimate all these aspects with the help of statistics. It also helps in setting the prices of various products. Lastly, statistics help the business run smoothly.

It also helps to reduce uncertainty; thus, it helps in the success of the company.

Importance of Statistics in Research Work

Research work starts with collecting data. Data collection means statistics are involved there.

Research work is all about statistics. The job of the research worker is to present the data to the community. The research worker uses statistical techniques to solve particular problems in different situations.

Statistics are the basics of each research activity. In other words, research cannot be possible without statistics. The chart below is about animals used in research in the pain/anesthesia category.

To become a good researcher, the researcher must have excellent statistical skills.

This research work or data helps maintain the researcher’s interest in the research work.

Importance of Statistics In Programming

Programming is the technical aspect of data and research.

You might not be aware that statistics plays an important role in programming.

Nowadays, most advanced programming is based on statistics. Most Python developers are learning statistics to enhance their careers in python programming. And did you know? Statistics is the basis of artificial intelligence and machine learning.

Many programmers give statistics very important to get a smooth hand on programming.

To conquer the programming world, you must learn statistics first because statistics is the basis of programming.

If you practice statistics daily, you will enhance your programming logic. Statistics are widely used in some of the most popular programming languages, i.e., Java, Python, swift, c, and c++.

Importance of statistics In Big Data & Data Science

Big data is a new thing in this era of digitalization. Everything revolves around data nowadays.

But if you have collected big data, you must need statistics to interpret that data, as we know that statistics are used in data analysis and data science technologies.

But it is also the foundation of big data technologies.

Big data can be handled with the help of formulas and theories of statistics. Without statistics, it is impossible to interpret the output from big data.

Importance of Statistics In the Health Industry

Nations have big populations, so many health-related issues can be tracked by collecting data. Government makes so many national health decisions with the help of statistics.

The biggest example is the great pandemic we faced. The government was able to collect the data and make big medical decisions.

Medical science has invented many vaccines and anti-toads to fight against major diseases based on statistics.

We have noticed that in this COVID-19 pandemic, statistics play a vital role in analyzing how much patience there is across the world, which region has the highest number of cases, and much more.

Importance of Statistics In Business

Business means trading. Buying and selling goods and services involves lots of numbers around it. Almost every company does business statistics to perform its day-to-day operations.

Statistics are essential for businesses to make future decisions.

They collect their customer’s data and process that data with the help of statistics. Then decide from that data to make changes to your strategies and policies.

Also, the R&D department of any business depends on the data.

They use recent data to develop new products and services for the business. It helps them to make decisions about the latest product or services.

Importance of Statistics In the Government Sector

Government has to make many decisions related to different sectors of the nation. Different sectors are education, health, population, etc.

All the decisions related to these sectors are made through data collection and interpretation, which means statistics are the basis of these decisions. Census is a great example of statistics being used by the government.

Importance of Statistics In Education

The practical importance of statistics in education is that teachers can be helpful as researchers during their classes to identify which learning techniques work on students and what causes it.

Teachers must also estimate test details to determine whether students are doing as expected statistically. There are tests and statistical studies about student achievement at all levels of education, from kindergarten to the GRE or SAT.

Statistics are very important in making decisions regarding the educational system of a particular nation or school.

Statistics Importance In Insurance 

The best insurance company in the world is Berkshire Hathaway, Allianz, China Life Insurance, Ping An Insurance, etc. But from all of these, the best insurance company in the world is Berkshire Hathaway. The average revenue o this company is 276.1 billion USD. Let’s know the average revenue of all of these companies.

Statistics Important In Everyday Life

Also, Statistics are essential in our daily life. A day of our life starts with statistics. For example, if you want to wake up early in the morning, you will set the alarm as per your prediction.

Also, many people use statistics in their daily life to make conclusions and decisions in budgeting and financial planning, while statistics in financial policy conclusions direct communities.

Moreover, banking institutions use statistics daily to lower risk in analyzing activity and lending operations.

On the other hand, the importance of statistics in the financial market’s daily life is that its best to forecast economic issues.

Statistics Important In Analyzing Scientific Data

Statistics is also important in analyzing scientific data.

All the collected statistics help you use the appropriate ways to gather the data, effectively offer the consequences, and use the proper analyses.

Statistics is a vital function behind how we make decisions based on data, make predictions, and make scientific discoveries.

What Are The 5 Uses Of Statistics?

Following are the 5 uses of statistics are given below.

• The first use of statistics is that it helps in planning almost everything.
• Statistics help in understanding the wonders of nature.
• It helps in the decision-making process.
• Statistics are most helpful in containing quantitative data.
• Statistics help in the diagnosis of diseases in the medical field.

9+ Best Books Of Statistics 

Here are the best books for statistics.

1. Statistics by Robert S. Witte and John S. Witte
2. Barron’s AP Statistics by Martin Sternstein, Ph.D.
3. Statistics for Business and Economics by James T. McClave, P. George Benson, and Terry T Sincich 
4.  Naked Statistics: Stripping the Dread from the Data by— Charles Wheelan
5. OpenIntro Statistics by David M Diez, Christopher D Barr, and Mine Çetinkaya-Rundel 
6. Statistics in Plain English by-Timothy C. Urdan
7. The Complete Idiot’s Guide to Statistics (Idiot’s Guides) by— Robert A. Donnelly Jr., Ph.D.
8. Head First Statistics: A Brain-Friendly Guide by Dawn Griffiths
9. Student Study Guide to Accompany Statistics Alive! 2e by Wendy J. Steinberg 2nd ed. Edition by— Wendy J. Steinberg
10. Statistics Done Wrong: The Woefully Complete Guide 1st Edition by Alex Reinhart

Why are Statistics An Inseparable Partner Of Research?

There are many questions students want to know the correct answer to. These questions are;

1. Why do Statistics matter in research? 
2. Why does a Researcher need Statistics?
3. Why is Statistics important to research?
4. Why are Statistics important in research?

In research, statistics play the leading role. If you put it concisely, statistics fill the crucial gap between information and knowledge. You can describe your research story with valid reason and coherently. With the help of pertinent statistics, you can make the perfect intent of an immense amount of data.

Moreover, statistics let us conclude a data collection, usually called the “Science of Data.” It can help good forecast consequences, such as what concert you might want to watch next on you. It can also support people in every industry to answer their business operation questions or research their favorite topic.

Are you ever wondered what the difference between research and statistics is? Want to know about it? If yes, here’s a distinction between both of them.

Also, most research studies outcome in an extensive volume of raw data, which must be appropriately reduced so that the same can be grazed and used for additional analysis.

Conclusion 

Now we understand the importance of statistics in our daily life. Statistics play an essential role in improving our lives. Now it may be clear why statistics are crucial. Most of the students think that why is statistics important? I can get a solid answer with this blog post, and I would also like to say that cracking statistics is not an easy subject. Students need determination and concentration to crack statistics homework. If you need statistics assignment help from our experts, then contact us.

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