What Is The Importance Of Statistics In Daily Life?
The subject plays an important role in many spheres of life and has immense practical applications. For example, it is used to determine the following:
- Per capita income
- Unemployment
- Population growth rates
- Housing
- Schooling medical facilities
Business:
Statistics plays a very important role in business. A successful businessman must be very quick and accurate in decision making. He knows what his customers want; he should therefore know what to produce and sell and in what quantities. Statistics helps businessmen to plan production according to the taste of the customers, and the quality of the products may also be checked more efficiently by using applied mathematics methods. Thus, it can be seen that all business activities are based on statistical information. Businessmen will make correct decisions about the location of business, marketing of the products, financial resources, etc.
Economics:
Economics largely depends upon statistics. National income accounts are multipurpose indicators for economists and administrators, and statistical methods are used to prepare these accounts. In economics research, statistical methods are used to collect and analyze the data and test hypotheses. The relationship between supply and demand is studied by statistical methods; imports and exports, inflation rates, and per capita income are problems that require a good knowledge of statistics.
Mathematics:
Statistics plays a central role in almost all natural and social sciences. The methods used in natural sciences are the most reliable but conclusions drawn from them are only probable because they are based on incomplete evidence. Statistics helps in describing these measurements more precisely. Statistics is a branch of applied mathematics. A 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.
Banking:
Statistics plays a very important role in banking. Banks make use of statistics for a number of purposes. They work on the principle that everyone who deposits their money with the banks does not withdraw it at the same time. The bank earns profits out of these deposits by lending it to others on interest. Bankers use statistical approaches based on probability to estimate the number of deposits and their claims for a certain day.
State Management (Administration):
Statistics is important to a country. Different governmental policies are based on statistics. Statistical data are now widely used in making all administrative decisions. Suppose if the government wants to revise the pay scales of employees in view of an increase in the cost of living, and statistical methods will be used to determine the rise in the cost of living. The preparation of federal and provincial government budgets mainly depends upon statistics because it helps in estimating the expected expenditures and revenue from totally different sources. So, statistics are the eyes of the administration of the state.
Accounting And Auditing:
Accounting is impossible without exactness. But for decision making purposes, so much precision isn't essential; the decision may be made on the basis of approximation, known as statistics. The correction of the values of current assets is made on the basis of the purchasing power of money or its current value. In auditing, sampling techniques are commonly used. An auditor determines the sample size to be audited on the basis of error.
Natural And Social Sciences:
Statistics plays an important role in almost all the natural and social sciences. Statistical methods are commonly used for analyzing experiments results, and testing their significance in biology, physics, chemistry, mathematics, meteorology, research, chambers of commerce, sociology, business, public administration, communications and information technology, etc.
Astronomy:
Astronomy is one of the oldest branches of statistical study; it deals with the measurement of distance, and sizes, masses and densities of heavenly bodies by means of observations. During these measurements' errors are unavoidable, so the most probable measurements are found by using applied mathematics methods. For example, the distance of the moon from the earth is measured. Throughout history, astronomers are using statistical methods like method of least squares to find the movements of stars.