Top 15 Points Showcasing The Importance of Statistics

The importance of statistics can be understood by the phrase that “statistics is a crucial part of our life.”

It is not an easy subject to understand and crack by the students.

But statistics is quite helpful in our day-to-day life.

The primary students use statistics to the MNC’s professionals in their daily life.

Statistics are used by the primary students to the MNC’s professionals in their daily life.

But some of the students are still looking for the best answer to why statistics is important?

Nowadays, statistics is playing a crucial role in developing the world.

Statistics are everywhere we can’t hide from statistics. There are many uses of statistics in our life.

The apps we use on our mobile devices are based on statistics. Psychology says the more you get good command over statistics, the more you get, the higher chances of success.

Therefore you need to know the importance of statistics before starting to learn statistics.

Let’s have a look at the importance of statistics in our daily life. But before we start, have a look at the meaning and definition of statistics.

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Meaning of Statistics

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Statistics is one of the oldest subjects in human history.

The majority of students think that it is a new discipline because it evolved after the evolution of math.

The reason is it is part of math. Ancient humans used statistics a lot in their daily life.

That’s the existence of statistics far before then what we think.

In the old era, statistics was considered as “Science Statecraft.”

Now let’s have a look at how the word statistics come into existence.

It is derived from the Latin word ‘status’ or the Italian word ‘statistica’ or the German word ‘statistik’ or the French word ‘statistique.’ All these mean a political state.

Definition of Statistics

Now let’s have a look at the definition of statistics. Statistics is all about the collection of data concerning states, i.e., historical and descriptive.

Nowadays, statistics has expanded, and it has a much broader meaning. It is now it is using all types of data and methods to analyze the data.

Check Your Knowledge About Statistics By Answering The Statistics Questions

Before understanding the importance of statistics, let’s take a quiz that helps you know statistics use much better.

Use the concepts of the mean (average), median, and mode. Let’s recall the definition and formulas.

Mean: It is the average of all the observations.

Median: It is the middle number that is sorted, a list of numbers, descending or ascending, and it can be more descriptive than the mean about the data sets.

Mode: It is the value, which appears maximum times in the given data.

Now, let’s check how much do you know about statistics:

What is the mean value of 10, 17, 16, and 17?

A) 16

B) 15

C) 17

Correct Answer: (B)

Explanation: Mean = {10+17+16+17}/4 = 60/4 = 15

Suppose the weight of 4 people is 85 pounds and another 8 people are 90 pounds, then what would be the total weight of all people together?

(A) 88.33

(B) 87.5

Correct Answer: (A)

Explanation: {(4*85) + (8*90)/12} = {(340 + 720)/12} = 88.33

What would be the median for the monthly rainfall from the data?

(A) 14

(B) 12

Correct Answer: (C)

Explanation: After rearranging the data, the details will be like 0, 12, 15, 19, 24. Now you can see that 15 is the middle value. That is why the median will be 15.

One of the class students has an average of 70% on his first 4 exams. How many marks will he need to score in his 5th exam so that his average score would be 75%?

(A) 80%

(B) 90%

Correct Answer: (C)

Explanation: {(70*4) + x} = 75*5 => (280 + x) = 375

=> x = 375 – 280 => x = 95

Find the mode of the 11 consecutive numbers 12, 7, 7, 8, 14, 21, 23, 7, 27, 7, 11.

(A) 12

(B) 7

Correct Answer: (B)

Explanation: You can see that 7 is repeated 4 times (maximum times). That is why the mode of the given series is 7.

Why Statistics is Important?

First let see the examples of the importance of statistics in daily life using predictions

In daily life, we make various predictions; for instance, we set the alarm to wake up in the morning when we think that we can not wake up in the early morning.
Here, we use the statistical predictions as we find that the number of times a person is unable to wake up in the morning. By analyzing the data, we come to a decision that we need to set up an alarm to get up in the early morning.

During the elections, various news reporters make predictions about which party has maximum chances of winning the elections. This prediction is made on the basis of political campaigns.
With the help of campaign statistics, news reporters are able to predict the result of the elections. The statistics are based on the previous and current scenario of the election.

With the help of statistical data, you can easily collect the relevant information that exists around you.
Thus, the internet is the key resource that helps the user collect relevant and accurate information.
But, it is a highlighted point that the fundamental lies behind the internet depend on mathematical as well as statistical concepts.

(i) Statistics in Planning

Statistics is one of the crucial parts of planning. Without statistics, the plan can’t be possible.

Statistics helps to do planning in business, economics, government level, and even a person.

It has been noticed that 63% of people plan their activity a year or less in advance.

In the modern era, planning is everything.

And almost every governmental organization, as well as a private one, is using statistics to formulate their policy and to do adequate planning.

As I mentioned earlier, statistics is all about the collection of data.

To do solid planning, companies use the data related to production, consumption, birth, death, income, and so on.

Statistics help the countries do adequate planning that is crucial for them—the best examples of planning we see on COVID 19 pandemic.

We have seen that the Government of New Zealand has created the plan to fight against COVID 19, and they have successfully handled the situation to get rid of COVID 19.

This pandemic shows the importance of statistics in our daily life.

(ii) Statistics in Mathematics

Statistics is an essential part of mathematics. In other words, it is related as well as entirely depends upon mathematics.

Suppose you want to calculate which is the favorite fruit of your city persons?

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

The increasing use of mathematics and statistics is building new ways for the development of statistics, i.e., known as Mathematical statistics.

Statistics is an essential branch of mathematics. Applied mathematics is a part of statistics that is specialized in data.

Statistics is an essential branch of mathematics. Applied mathematics is a part of statistics that is specialized in data. Computational mathematics is based on advanced statistics.

Therefore it is crucial for programmers to learn statistics along with math.

Apart from that, statistics is also crucial for business mathematics.

There are lots of statistics concepts that are applicable in business and accountancy.

(iii) Statistics in Economics

Whenever you are going to study statistics, you would also learn statistics.

Statistics and Economics are interrelated with each other.

It is impossible to separate them. The development of advanced statistics has opened new ways to extensive use of statistics for Economics.

Almost every branch of Economics uses statistics, i.e., consumption, production, distribution, public finance.

All these Economic branches use statistics for comparison, presentation, interpretation, and so on.

Income spending problems on and various sections of the people. National wealth production, demand, and supply adjustment, the effect of economic policies.

All these indicate the importance of statistics in the field of economics and its various branches.

Basically, the government uses statistics in economics to calculate its GDP and Per capita Income.

For example, the below graph is the gross domestic product of the services, during the worst of the bust.

(iv) Statistics in Social Science

Statistics are also useful in statistics.

You may know that social phenomena are affected to a marked and extent by a factor’s multiplicity. In social science, the variation in observations from time to time, object to object, and place to place.

Statistical tools of regression and correlation analysis are used in social science to isolate these factors’ effects in every tested observation.

Statistics are also used to conduct social surveys.

The social survey uses Sampling techniques and estimation theory.

Actually, these are the most powerful tools for conducting a social survey.

Sociology is a crucial part of social studies.

Statistics is also playing a critical role in sociology. It helps in studying mortality, fertility, population growth, and so on.

(v) Statistics in Trade

Trade without statistics is pretty tough and can be overwhelming for traders.

It helps the trades to make wise decisions in uncertain situations.

We know that business is full of risks and uncertainties; anything can happen at any stage.

The below graph, defines the international trade per capital of the selected countries. This is how statistics help in determining the trades of the specific country.

That’s why it is crucial to forecast every step in business.

Our record helps us to do forecasting efficiently and effectively.

We take all the recent statistics into account to predict future situations for the company.

Remember that statistics are just a number, we have to anticipate them carefully; otherwise, it can be a reason for the failure of the business.

We can anticipate all these aspects with the help of statistics.

It also helps in determining the prices of various products.

At last, statistics help in running the business smoothly.

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

(vi) Statistics in Research Work

Research work is all about statistics. The research worker’s job is to present the data before the community.

The research worker uses statistical methods to solve particular problems under differing conditions.

Statistics are the basics of every research activity. In other words, research can’t be possible without statistics.

The below-mentioned chart is all about the animals used in a research by Pain /Anesthesia category.

The researcher should have excellent statistics skills to be a good researcher. It helps to keep the interest of the researcher in the research work or data research work

(Vii) Statistics in Programming

You may not be aware that statistics is playing a crucial role in programming.

Nowadays, most of advanced programming is based on statistics.

Most of the Python developers are learning statistics to enhance their careers in Python programming.

And did you know that? Statistics is the foundation of artificial intelligence and machine learning.

You can’t get good command over these technologies without the help of statistics.

It also helps you to improve your programming logic.

The user gives transitional statistics for the programming task: The data is switching from Editor to Command Window.

If you do a daily practice of statistics, then you will enhance your programming logic.

Statistics is widely used in some of the most popular programming languages i.e., Java, Python, Swift, C, and C++.

(VII) Statistics in Big Data and Data Science

As we know that statistics are widely used in data analytics and data science technologies.

But it is the foundation of Big data technologies too.

Big data is nothing without the data, and data is useless without statistics.

Thus Big Data technology totally depends on statistics.

We use the statistics at the initial stage of Big data on the raw data sorting.

Then we use it in other stages when we use Python programming in Big Data.

We use Python in statistics to perform all primary functions of this technology

(IX) Statistics in the Health Industry

Statistics is playing its part in the health industry. It helps the doctor to take and manage the data of their patients.

Apart from this, WHO is also using statistics to generate its annual report about the health of the world’s populations.

Due to statistics, the medical scientist has invented lots of vaccines and anti tode to fight against major diseases.

We have seen that in this COVID 19 Pandemic, the statistics are playing a crucial role in analyzing how much patience is all around the world, which region has the most number of cases, and much more.

(This is the chart updated on 1 March 2021 of Corona patients)

Once the Covid-19 vaccine was developed, the government decided to vaccinate the people of their country. Below is the statistical data that define the number of people vaccinated in a particular country (till 1 March).

Because of the statistical data, the government easily checks the number of people vaccinated in their country.

All this happening is all because of statistics.

(X) Statistics in Business Statistics

Business is dependent on statistics. Almost every business uses business statistics to perform its day to day operations.

But here in this blog, we are talking about the importance of statistics.

The statistics are used for showing the numbers of small business owners.

Statistics are crucial for the business to make future decisions.

They collect the data and process their customer’s data with the help of statistics.

And then take the decision from that data to make changes in their strategies and policies.

Apart from that, the R & D department of any business relies on statistics.

They used the recent statistics to develop new products and services for business.

It helps them to make a decision about the latest product and services.

And the company can take the calculative risk on the launch of the product or services.

Besides, businesses also use it to calculate their profit, their employee salary, and so on.

COVID 19 Pandemic also increases the use of statistics in business.

Now the company is working to minimize its loss in this Pandemic duration.

Each large organization uses business statistics and utilizes various data analysis tools.

For instance, approximating the probability and seeing where sales can be headed in the future.

Several tools are used for business statistics, which are built on the basis of the mean, median, mode, bell curve, bar graphs, and basic probability.

These can be employed for research problems related to employees, products, customer service, and much more.

Businesses can successfully rely on the things that are working and what is not.

Besides this, statistics are widely used in consumer goods products.

The reason is consumer goods are daily used products.

The business uses statistics to calculate which consumer goods are available in the store or not.

They also used stats to find out which store needs the consumer goods and when to ship the products.

Even proper statistics decisions are helping the business to make massive revenue on consumer goods.

(XI) Government

The importance of statistics in government is utilized by making judgments about health, populations, education, and much more.

It may help the government to check out what education schedule can be beneficial for students.

The below-mentioned statistics are used by the US government to check the employment ratio of their states.

What is the progress report of high school students using that particular curriculum?

The government can assemble specific data about the population of the country using a census.

(XII) Education

The beneficial importance of statistics in education is that teachers can be considered supportive as researchers during their classrooms to recognize what education technique works on which student and know the reason.

They also need to estimate test details to determine whether students are working expectedly, statistically, or not.

There are statistical studies about student achievement at all levels of testing and education, from kindergarten to a GRE or SAT.

(XIII) Statistics in weather forecasting

You have noticed that several people are habitual of watching weather forecasts before any urgent event or going to the office and so on.

You might ever think that how do the forecasters get the information about the weather.

It is just because of the computer models built on basic and advanced statistical concepts.

The computer models compare the previous weather forecasting data to the present weather to foretell the future weather situation.

(XIV) Statistics in Insurance

Each person wants to invest their money to get health and wealth insurance.

Several persons have invested in insurances related to home, medical, or any other insurance.

Depending on the individual applications, most businesses are using statistical models to measure and identify the risk of the insurances.

Therefore, statistical figures help people know which is the most relevant and effective health insurance could be and which is the best company for them.

(XV) Statistics for quality test

A person can use the statistical concepts for quality control and quality testing.

Companies make various products daily, and there is always a priority to sell excellent quality items.

But the companies do not have enough time to analyze which product the target market wants.

For such things, the company relies on the statistical data that is collected from the surveys.

Statistics: Things That Actually Count Differently!

Two major portions show how statistics data helps to know the different situations and interests of the people.

Mortgage interest rates in the United Kingdom (UK) from March 2000 to February 2022, broken out per type of mortgage

The 10-year fixed mortgage rate was at its lowest in February 2022, at 2.2%. Mortgage rates have been falling in the United Kingdom since 2009, which is excellent news for first-time house purchasers and those remortgaging their homes. However, when inflation rose, the Bank of England began progressively raising the bank rate in 2022. This leads to an increase in mortgage rates. Although the increase has a negative impact on borrowing rates, it is also expected to reduce home demand and limit the price growth seen since the outbreak began.

In 2020 and 2021*, the percentage of US people who were concerned about several areas of their lives, including COVID-19.

According to the research, in 2021, 64% of individuals were concerned about COVID-19, down from 75% in 2020. In 2020 and 2021, this statistic shows the percentage of American adults concerned about several areas of their lives,

including COIVID-19.

Future Trends in Statistics: Artificial Intelligence and Big Data

In the future, statistics will be closely linked to emerging technologies like artificial intelligence (AI) and big data. These technologies will revolutionize the field by allowing the analysis of large volumes of data and revealing hidden patterns. Here are the key points about the future trends in statistics:

Artificial intelligence and big data will enable the analysis of large amounts of data.
These technologies will uncover hidden patterns and generate insights on an unprecedented scale.
As data grows exponentially, statistics will become increasingly important in extracting meaningful information.
Statistics will play an important role in making sense of complex systems by analyzing the vast and diverse data available.
Integrating artificial intelligence and big data will enhance the accuracy and efficiency of statistical analysis.
The future of statistics lies in leveraging these technologies to get valuable insights and to drive data-informed decision-making.
The combination of statistics, AI, and big data will help in advancements in various fields, from healthcare to finance and beyond.
Embracing these future trends in statistics will lead to more effective problem-solving and improved outcomes across industries.

As we move forward, the symbiotic relationship between statistics, artificial intelligence, and big data will reshape how we gather, analyze, and interpret information.

What Jobs Uses Statistics?

Here are some of the jobs that uses statistics which are as following:

1. Data Analyst

Data analysts use statistics to gather, analyze, and interpret data to support decision-making in various industries.

2. Statistician

Statisticians specialize in designing research studies, collecting data, and analyzing it to draw meaningful conclusions.

3. Market Research Analyst

Market research analysts uses statistical techniques to analyze consumer data, market trends, and competitive landscapes.

4. Quality Control Analyst

Quality control analysts employ statistical methods to monitor and improve product and process quality in manufacturing and other industries.

5. Epidemiologist

Epidemiologists study patterns and causes of diseases in populations using statistical methods to inform public health interventions.

6. Financial Analyst

Financial analysts depend on statistics to analyze financial data, evaluate investment opportunities, and forecast market trends.

These are just a few examples of jobs that depend on statistics. Statistics is a versatile field that finds applications in various industries and sectors, including healthcare, finance, marketing, research, and more. The demand for professionals with statistical expertise continues to grow as organizations recognize the value of data-driven decision-making.

Conclusion

Now we have gone through the importance of statistics in our daily life. Statistics is playing a crucial role in making our lives better. It might be clear now why statistics is important.

The majority of students think that why statistics is important? I might get a solid answer with this blog post. At last, I would also like to say that statistics is not an easy subject to crack.

The students need determination and concentration to crack the statistics homework.

But if they find some difficulty, then they can take the help with statistics assignment from our experts.

Frequently Asked Questions

Q1. What is the importance of statistics in students?

We all know that statistics refers to the presentation analysis, collection, and interpretation of data or massive information. Statistics is considered very important in education because it allows for collecting, analyzing, and interpreting the data. Moreover, it also allows drawing a general conclusion.

Q2. What jobs use statistics?

The major jobs in statistics are:
1. Financial analyst.
2. Software engineer.
3. Business analyst.
4. Database administrator.
5. Market researcher.
6. Cost estimator.
7. Statistician.
8. Economist.

Q3. What are the fields of statistics?

There are two main branches of statistics, and these are inferential and descriptive statistics. Both of them are applied to the scientific analysis of massive data. Both of these have their own importance to learn and use.