Know More about Modern Statistics Usage or Importance in Business and Commercial Application

Modern Statistics Usage or Importance in Business
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Statistics involves various mathematical approaches of analysis, quantitative principles, collection and presentation of the data.

This practice utilizes all the data and information of something and tries to describe it meaningfully in tabular or graphical forms. It works for certain things like measuring the population or community, checking organization growth, checking business production, and estimating physical phenomenon like the weather.

Statisticians collect the data and examine it by using the correct quantitative model for a given situation. These approaches use the techniques of computer-based data analysis.

Statistics are commonly used in:

  • Estimation of environment affecting factors such as  Weather forecasting,
  • To evaluate the effectiveness of pharmaceuticals,
  • To measure the population,
  • To estimate demand in the economy,
  • In guessing the voting results in politics
  • To determine different warranties,
  • Improving the growth of a service
  • Analyzing  errors in experiments, and
  • Prediction of rising or fall of stock market prices.

Statistics subjects

Statistics subjects includeStatistical methods along with applied statistics. The former one includes different procedures that are used in the presentation along with analysis and interpretation of data.

This method will help in achieving desired goal. Applied statistics includes descriptive along with scientific approach. All these methods are playing an important role in studying the different subjects in statistics field. There are three types of study in statistics that will cover Observational along with experimentation and simulation.

Data gathered have to main characteristics which include Quantitative data that ill further carry discrete and continuous data.

No you will come to know about the importance of statistics and ho it has been applied to different fields. You will also get the best chance to explore its importance in daily life along with covering the main aspects in education.

Further you will also get the best chance to find out the difference in Statistics methods which have their important role itself. You will also get the best chance to explore its basic principles that plays an important role in the field of study. Statistics is very important as you will not solve any kind of problem universally. It deals as hole not individually.

Statistics and its Importance in Various Fields

Statistics are important for the discoveries related to science, to get the best decision ability, and make estimations. Statistics make you understand everything in detail.

Business involving Statistics

In business, statistics plays a very important role. For the growth of the business, the businessman has to be very accurate and use the smart technique while taking a decision. A businessman exactly knows what is more required in the economy.

He should know what customers demand the most and with that produce quantities with respect to the consumption. A Businessman uses the term statistics very efficiently to production according to the customers. Statistics uses its methods to check the quality of the manufactured products. It tells that statistical information is used in every business activities.

Statistics in an organization

  • Performance –

Statistics plays a significant in business performance. It helps to analyze the business performance at every step.

  • Different Scenarios –

Statistics not only deals with increasing productivity, but it also helps in making decisions for another department by selecting a specified software, systems, etc. 

  • Collecting Data-

Statistical tools help in collecting data to check the outcomes of the analysis is beneficial or not. With the collected data, comparisons can be easily seen if sales are less or more than the targeted sales.

  • Research –

Statistics in business also extends to the development of the product. It is a very important function as data is collected and tested. It is very important for the launch of a new variety of products in the market.

Statistics required while decision making in business

  • Main View–

Statistics helps in providing a wide view of the business while analyzing the sample population. It may reduce or increase the cost of the product with accurate information about the market. Statistics doesn’t require a great time.

  • Relationship –

With analyzation of data, the relationship can be established among variables such as the effect on sale due to the season or comparison between the discounts. A more detailed analysis of statistical data can reveal a lot of things such as behavior and customer preference.

  • Ensures Quality –

Lean Manufacturing and Six Sigma are most used statistical tools in business. Statistics ensure that for the business to produce limited goods and avoid wastage. It also increases the productivity of the workers.

In Mathematics

Statistics play a major role in mathematics as it’s a branch of applied mathematics. It is referred to as its own separate branch in math. Integration, algebra, and differentiation are some statistical techniques that we all use in math.

Statistics gives an understanding and description of a method. It helps in collecting quantitative data. It also helps in presenting complex data in the best graphic way for easy interpretation. Statistical methods help to make great mathematicians theories more accurate. By using dispersions, averages, and estimation, it provides you with conclusions.

In Economics

Statistics is the term on which the economy depends. They use statistics to gather information, test and analyze relationships like demand and supply, imports and exports. It is also used to find the inflation rate, national income account, and the per capita income.

Census Bureau is a real-world example of the combination of statistics with economics. They gather information and with collected data, they decide some political items.

In Accounting

Accounting is all about arithmetic, but we have to create account reports then statistics come to the major role. While checking and balancing accounts, accurateness is very important as these reports decide the actual growth or fall of the company. With statistics, you can create projections for the upcoming fiscal year.

In Banking

In Banks, statistics provide a variety of services. When someone deposits money in the bank, the bank earns a profit by further lending money to other people with some interest. With statistical techniques and approaches, bankers get the estimate of the number of people who will deposit their money with the number of people who have requested for loans. FDIC’s is the best example of statistical methods used in banking.

In Astronomy

It is quite funny to take out a ruler or tape for measuring the distance of the Earth from the different planets. Actually, astronomers don’t use a ruler; they take an estimate, and use some mathematical theories to get an approximate guess.

Benefits of Statistics for Students

Whenever we have to perform some analyses, statistics is the main tool. Everyone should know the terms and concepts of statistics in order to get analytical results. Without statistics, it could not be possible to take the best decisions on the collected data for a project.

Students study statistics to get the best way to conduct research. Statistics help to develop thinking skills both analytical and critical. With this, students get to understand well to use critical thinking and analytic skills before making a decision. It also changes students thinking abilities in a more logical way. It helps in constructing a framework to understand social problems. While understanding statistics it will develop the fundamental skills in the students which are important to evaluate the results sections.

Types of Statistics

There are 2 types of statistics which cover down descriptive and inferential statistics. Each of these types will perform specific purpose, which is best to achieve special goal. Descriptive statistics helps in describing data along with its summarizing part.

Students will come across with numerical measures including average, standard deviation and correlation. Inferential statistics on the other side will help you in examine the relationship between few variables.

Special predications are also made about the different types of variables which may relate to larger populations. This is also one of the main types of basic statistics helps in describing the happening of population within the data set.

It will also help in interpretation of data. Descriptive statistics are used to explain the data set of population that has been studied for interpretation. Measures of central tendency are also one of the main parts of the descriptive statistics that will help in capturing the trends within the set data. It will cover down different expressions like mode along with median and mean. Mode refers the common value that tells us age about the different population at work. Median refers the middle range of the data.

 Apart from that measure of spread Will also plays an important role here it describes how the data is distributed. It will also relate with each other including

  • The range along with covering its values those are present in the whole data.
  • It will also cover frequency distribution that defines how many times the particular values are occurrence of the data set.
  •  Subgroups along quartiles are formed within the data set and the values are divided in to 4 equal parts.
  •  It will also cover don variance that will help in illustrating about the existence of the data that has been spread.
  •  It will also cover don standard deviations that help in illustrating the data that has been spread. It will relate to mean also.
  •  Measures of spread can also be represented through tables along with pie and bar charts. Histograms are also used in understanding the different trends in data.

Inferential Statistics

Inferential statistics helps in creating the relationship between different variables that are in a data set created as sample. It helps in making predictions and how it can be used for larger populations. When we are talking about the quantitative aspects like social sciences, most applications that are used is of inferential statistics. 

It is not like descriptive statistics as it will help in measuring everything that would be more expensive in nature. It is best to measure in a group that Will further helps in researching rather than to measure single or individual unit. Both play an important role in an economy.

Effectiveness of Statistics

They are important as it will help in analyzing the data rather that considering the different ways that will help in answering the different scientific questions. If the data is collected properly that it will help in planning out the different things effectively.

Statistics Rules that are basic in Nature

 The results from data are divided into 4 levels of measurement that will cover down

  • Ordinal data
  • Nominal data
  • Numeric data that will cover down Interval data along with  ratio data

Main functions of Statistics

  • It provides good understanding to the users
  • Helps in providing effective planning in the field of study
  • Helps in collecting quantitative data easily.
  • Helps in converting complex data into suitable manner in the form of tabular and graphic form.
  • Helps in drawing valid conclusion from facts and figures.

Thus all the important functions are performed by the statistics.

 Limitations of Statistics

 There is some limitation in statics which everyone should know

  • Ignorance of Qualitative Aspect-

In statistics, there is an ignorance of qualitative aspect that cannot be converted into quantitative aspects. The areas which cannot be study will cover down health along with riches and intelligences. Today it has been used for universal activities.

  • Ignorance of individual items-

It will deal universally and will not take individual alone for calculation of any item.

  • Laws are not exact

Some of the laws are not exact which are unable to show exact results.

  • Average results are true

Only some of the results are true in Statistics which tends to be average in nature. Statistics deals with average which is made up of individual item those are different from others.

Thus the above blog will help you in providing important information regarding Statistics and you will come to know different branches of it. Apart from that you will also get the best chance to study its 2 main types which are different from one another.

Author Bio

Emma McCoy is a well-known author. She is into teaching for a number of years now. She uses current methods of pedagogy to teach the students. Emma McCoy is a professor of statistics, faculty of natural sciences and Department of Mathematics. Her research interests are Time Series, Computational statistics and Wavelets.  She believes that only education alone is the key to welfare of the society, globally. You can contact her for the best guidance. She is the experienced online tutor who has vast knowledge on the statistics. She has done M.S. in Statistics from Hult International Business School. Through her unique teaching technique students gain clarity on the subject.  For more information about her, you can find it here http://wwwf.imperial.ac.uk/~ejm/