Statistical data is one of the widely preferred information when it comes to predicting the future of a sector or an individual company. The use of this tool to predict the prospect of the company has been used for ages, and it never failed to deliver.
The correct use of data to get a clearer picture of the future helped the decision makers to make a better decision, which will prove to be feasible in the future.
Statistics have found its application in several sectors of our professions, and it delivered accurately almost every time. In some rare cases, the prediction provided after calculation failed due to lack of proper data or in some cases, improper data collection.
The statisticians who do the work of processing all these data and ends up with an appropriate conclusion are one of the rewarding jobs currently. The institutes which conduct such courses to prepare such statisticians always maintained a standard and never went below that. So, it is safe to say it is one of the most courses which are challenging to get your heads around, but once you master the subject, the world will be at your feet.
As the famous saying goes, a good statistician will never run out of a job as the demand for quality of statistician is present in every sector of our industry. One will be surprised to know, that leading environmental protecting organizations hire statisticians to get a mathematical statement regarding how far the environmental conditions have deteriorated in recent years.
The very concept of human evolution from a single cell organism got predicted by present-day biologists who used statistics to check the probability of all the outcomes. In this blog, we will talk about the importance of a statistician and how they can help to shape our future through calculations.
The use of statistical data to predict the future of our earth:
We all are well aware of the conditions of our surrounding environment and how steadily it is regressing with every passing day. Now, our readers will be surprised to know that back in the 70s when our world faced the massive industrialization boom due to globalization, the leading statisticians of that time predicted that there was a high possibility we could face a situation that we are currently living in.
Unfortunately, the data available during that time predicted that the present condition would set-in in the late 2020s; instead, it happened a few years early. During that time, the people in charge could not predict how far the damage could have possibly occurred by the rapid industrialization as they didn’t consider the exponential boom of industrial growth.
Now as per the prediction did back in the 70s, the statisticians stated that our earth would not be worth living after 2100 if we continue at this pace as several diseases will start occurring which will turn into a massive epidemic and wiping out the large population in one go.
Now, as per data provided by WHO or World Health Organisation in the year 2018, there were many reported cases of an outbreak of a disease which were previously unheard of.
The accurate prediction made regarding depleting non-renewable resources:
There are many several other cases where statistics played a leading role in predicting the conditions of our earth. A study done back in the early 2000s stated that the rate at which we are consuming fossil fuels, by 2090, we will run out of all non-renewable resources if we fail to find any alternative resources.
The study concluded their report by stating that currently, the resources available under the earth is not sufficient to meet the energy demand of the entire globe. The gap between the rate at which we are consuming the resources and the time it takes to form that resource under the earth is massive.
The report forced many leading oil companies to take notice and have a reality check. It forced many governmental research agencies to search for an alternative energy source. The use of water energy or wind energy was more conceptual until the report went public.
As the story went public, wheels got set in motion, and the leading energy researcher started finding a practical technique to use such resources which is in abundance. It’s another glowing example of how the use of mathematics by statisticians helped in reshaping our future. In countries like Norway, the government recently declared that they completed gave up on non-renewable resources as they became self-reliant to produce energy sufficient to meet the energy demand of the country.
Just a week back, the United Kingdom, went one week without using coal to produce electricity.
These small steps began when the alarming report produced by a group of able statisticians went public setting wheels on motion and forcing us to look beyond the current path. A statistical report produced by a group of mathematicians predicted that the ozone would get damaged entirely, making the earth vulnerable to Ultra violet rays.
Fortunately, due to reduced dependency on fossil fuels, which reduced Carbon dioxide production, the ozone layer started healing, and the hole has reduced in diameter by quite a bit in recent times.
The extensive use of statistical data to eradicate small pox and polio:
The use of statistics not only positively impacted our environment but also played a leading role in medicine. A few decades back, there were many general epidemic cases of smallpox and the likes of WHO worked tirelessly to change that scenario.
The World Health Organization used several statistical studies to tackle the disease zonal wise. The statistical data provided by the ten statisticians also predicted that by late 90s, the disease would get eradicated. Fortunately, the data proved to be right once again as WHO back in 2000 proudly declared that smallpox had got eradicated from the world.
Similar studies were done to tackle the polio disease, which was prevalent among kids leading to permanent deformity in the future. The statistics and probability were often radically used during the research phase and the development of a particular vaccine.
The other instance where statisticians played a leading role was when they predicted that due to changing climatic conditions, there would be a widespread increase of unheard of diseases helping WHO prepare beforehand to some extent in tackling the changed scenario.
The leading role played by qualified statisticians when it comes to making government policies:
These were the few cases where statistics played a leading role to protect our environment and our health. Now, we will study about the use of statistics and probability used by the government before making any policy.
A progressive government who is searching for ways to improve the living of its citizen will always look for implementing new systems. Unfortunately, it is not possible for the government to predict the aftereffect it will have on its citizen if the new policy gets underway.
In cases such as these, they often hire statisticians to predict the success of a policy or scheme. The statistician will collect data from different part of the country and use his skills to conclude. Now, the report will contain pieces of information such as which region will have a positive impact and which part of the country will affect negatively.
The final report will also have mention of areas which will remain unaffected once the scheme gets introduced. Now, once the government gets their hands on this report, it will check the ratio of positive impact to negative and accordingly enter the policy into force. The method of using statisticians before launching a new system is one of the safest and gets used widely across the globe.
The US government, while introducing a healthcare scheme, extensively used statistical data to ensure that the people who will come under the project will get positively impacted.
The government often used statistical data to keep track of the rise of unemployment in the country and how much it will rise or fall if the current situation remains unaltered. The data on unemployment is very important for the government as a country with less percentage of unemployment is a peaceful country.
The government uses statistical data to keep track of the natality and mortality rate as it helps the government to calculate the GDP of the country. The law enforcement department often used statistics to keep track of the crime activity in different parts of their country, making it one of the most sought after profession across the world.
How the insurance agencies use statistical data to decide premium for an insurance plan:
The leading Insurance policy making firms extensively and exclusively uses statistics to calculate the success of the insurance plan before introducing it in the market. As the insurance agencies is a privet-owned organization whose sole objective will always remain to make a profit yearly.
Now, suppose XYZ insurance agency is thinking of introducing a home insurance plan for its people residing in a location named ‘A.’ Now, the region in question is well within the area of active volcanic eruption diameter.
The firm will within a year go bankrupt if all the houses under their insurance become a victim of the eruption. In such cases, the agency hires a statistician to calculate all the data collected from the area and predict the feasibility of a plan.
In some favorable circumstances, XYZ may charge a very high premium from the people of this region to insure their home, and in some extreme cases, they scrap the plan entirely of home insurance for that region.
Similarly, in the case of health insurances, statistical data are used to decide the premium or in some cases, whether the individual is suitable enough for the company to insure. A man in his late 50s will find it hard to get protected as statistically the probability of him falling ill is quite high. Some agencies take a higher premium amount and financially safeguard the person, and some agencies simply decline the application.
The need of statisticians at Multinational Companies:
Even a multinational company looking to expand its business in foreign land hires a statistician to have a reality check of their said plan. The statistician using extensive calculation can help the company to get a clearer picture regarding how successful the move of expansion will be in some foreign land.
For example, if McDonald’s decides to launch its retail chain in a country where 70% of the population is vegan, the brand will face a massive loss of revenue and will be forced to scrap their plan in further expansion in the country.
Instead of facing such enormous losses, if they had done proper market research and used statistician to check the success of their expansion plan, they would have been better off than they currently find themselves in.
The future looks bright for our aspiring statisticians:
It is quite evident, that the need for statisticians and the use of statistics is widespread across all the sectors of our profession. A statistician plays a leading role in sending a satellite to space to check the possibility of getting clean water in some interior land, and it is one of the indispensable professions in the current scenario.
So, a student who aspires to be a statistician in his life should strengthen his will rock solid as a statistician can never go out of a job even in a market suffering from massive unemployment.
Author’s Bio:
When we talk about statistics, the first person that crosses our mind is Nancie L Beckett, who is regarded as the founding father of the department of statistics at the University of London. He played a significant role in the early development of statistics in the country. His significant contribution in the field is chi-square test and often gets credited for establishing the disciple called mathematical statistics. He was one of the ardent followers of eugenics which was considered controversial, especially during that time.