The Importance of Statistics in Many Different Fields

 

The Role of Statistics in Mathematics

It should seem obvious that statistics plays a key role in

mathematics considering it’s a branch of applied mathematics.

However, statistics is in more than just its own separate branch of

math. You can find statistical techniques in integration,

differentiation, and algebra, and you can find those in statistics as

well.

Much of math is based on probability and theories, and statistical

methods help make those mathematical theories that much more

accurate. Using averages, dispersions, and estimation allows you to

come up with conclusions that are closer to the real answer than

just taking a wild guess.

Examples of Statistics in Mathematics

Here are a few examples of statistics used in math:

 There is an 80% chance that in a room full of 30 people that at

least two people will share the same birthday.

 Find the range of the graph.

 Find the mean, median, and mode.

As you can see, some of these are basic mathematics skills you

might remember from elementary school. These are used in

statistics.

The Role of Statistics in Economics

Much of economics depends on statistics. Economists use statistics

to collect information, analyze data, and test hypotheses.

Relationships between supply and demand and imports and exports

are found using statistical information. The same can be said for

figuring out the inflation rate, the per capita income, and even the

national income account. A good example of statistics and

economics in the real world would be the Census Bureau and the

information they collect and use to decide many other political

items.

The Role of Statistics in Accounting

Accounting involves mostly basic arithmetic, but when it comes to

creating accounting reports, statistics plays a key role. When

balancing and checking accounts, exactness is very important, but

when using those reports to decide how well the company is doing

and the trends within the business. You can also use statistics in

accounting to create projections for the next fiscal year.

The Role of Statistics in Banking

Banks use statistics for a great number of the services they offer. A

bank works on the idea that someone will deposit their money and

not withdraw all of it later on. They earn their profit by lending

money to others with interest, and the money they use is the money

other people deposit.

Bankers use statistical approaches to estimate the number of

people who will be making deposits compared to the number of

people requesting loans. A great example of statistics used in

banking is the FDIC’s own quarterly publication called Statistics

on Banking.

The Role of Statistics in Management and

Administration

A nation’s government runs on statistics. They use statistical data

to make their decisions regarding any number of things. Most

federal and provincial budgets are designed upon statistical data

because it’s the most accurate data available when estimating

expected expenditures and revenue.

Another great example of statistics in the government is figuring

out whether or not to raise the minimum wage due to a rise in the

cost of living. Statistical data gives the government the best idea

regarding whether or not the cost of living will continue to rise.

The Role of Statistics in Astronomy

It is impossible to take out a ruler and measure the distance of the

Earth from the sun. Unless, of course, you somehow manage to

invent a suit that can survive the temperatures of the sun and

design a ruler long enough to measure such a distance. However, it

would likely take you a very long time to measure such a distance

anyway.

Instead, astronomers use estimates and mathematical theories to

devise their best guess to just how far items in the universe are

away from each other. This is why when you read a news report that

a star will likely be going supernova “any day now,” you have to

understand that “any day now” could mean tomorrow, a year from

now, or even ten thousand years from now.

The Role of Statistics in the Natural and

Social Sciences

Biology, physics, chemistry, meteorology, sociology,

communication, and even information technology all use statistics.

For many of these categories, the use of statistics in that field

involves collecting data, analyzing it, coming up with a hypothesis,

and testing that hypothesis.

In biology, the use of statistics within that field is known as

biostatistics, biometry, or biometrics. Biostatistics often involves

the design of experiments in medicine, online pharmacy,

agriculture, and fishery. It also involves collecting, summarizing,

and analyzing the data received from those experiments as well as

the decided results. Medical biostatistics is a separate branch that

deals mainly with medicine and health.

Physics uses probability theory and statistics dealing mainly with

the estimation of large populations. In fact, the phenomenological

results of thermodynamics were developed using the mechanics of

statistics.

There are further examples of statistics in these sciences fields

including analytical chemistry, which involves the presentation of

problems in data analysis and demonstrating steps to solve them.

Meteorology uses statistics in stochastic-dynamic prediction,

weather forecasting, probability forecasting, and a number of other

fields.

Sociology uses statistics to describe, explain, and predict from data

received. Like many of the sciences, communication uses

statistical methods to communicate data received. Information

technology also uses statistics to predict particular outcomes.

-By Amruta Goudar , 1-Bvoc analytics

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