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The word statistics owes its origin to the German word statistik,
used to describe numerical information on economic, social,
political, cultural, or other characteristics of a nation state.
Statistics is the collection of data and its representation or
In today's world we are faced with situations everyday where
statistics can be applied. Statistics can be used to determine the
potential outcome of thousands of things where the human mind
alone wouldn't be able to. Statistics benefts all of us because we
are able to predict the future based on data we have previously
gathered. eing able to predict the future not only changes our
lifestyle but also helps us be more e!cient and e"ective.
#ith statistics we can determine how we will live a year from now,
ten years from now, and so on. It helps us make educated
decisions based on what we already know because of statistics.
Statistics a"ects our daily life every day. $esearchers use
statistics to advertise their products which in turn we the
consumer purchase. The price of the products we buy are
determined upon statistics which show the demand for the
product at that point in time and because of these statistics, we
the consumers pay a certain amount of money to buy the
%nother e&ample of how statistics a"ect me is in school. 'very
year statistics are looked over and the curriculums for the classes
I take are based on data collected in the past. The curriculums are
modifed and help the learning process.
#ith these statistics we are able to modify things to make them
more e"ective. This is why statistics is important in the frst place
( we can improve our lifestyle with statistics. If we know how
people have lived in the past and how we have evolved, we can
prepare for the future and live longer and evolve more e"ectively.
Statistical techni)ues are used to make decisions that a"ect our
daily lives. That is, they a"ect our personal welfare. *ere are a
few e&amples.
+ ,ne of the simple applications of statistics is to estimate the
number of fsh in a pond, using random sampling and suitable
statistical -hyper geometric. distribution.
+ Insurance companies use statistical analysis to set rates for
home, automobile, life, and health insurance. Tables are available
that summari/e the probability of an auto accident by a 01(year(
old female and a 01(year(old male. The di"erences in the
probabilities are revealed in the di"erences in their insurance
+ 2edical researchers study the cure rates for diseases, based on
the use of di"erent drugs and di"erent forms of treatment. 3or
e&ample, what is the e"ect of treating a certain type of knee
in4ury surgically or with physical therapy5 If you take an %spirin
each day, does that reduce your risk of a heart attack5
+ It plays a critical role in agriculture in deciding the plant varieties,
combination of fertili/er, pesticides, densities, soil )ualities, and
growth of output.
+ India6s statistics e&ploration started with anthropological
e&periment. #ithout the use of statistics, business and economics
cannot make proper planning and policy.
+ Stock 2arket7 %nother topic that you hear a lot about in the news
is the stock market. Stock analysts also use statistical computer
models to forecast what is happening in the economy.
+ 8erformance measurement in education, including I9, is a
statistical construct. :se of statistics in psychological behavior is
known as psychometry. '&amination of climate change and
environmental studies are e"ectively statistical data analysis of
weather and environment.
+ :sing this family could balance their e&penses with their average
+ 9uality Testing7 ;ompanies make thousands of products every
day and each company must make sure that a good )uality item
is sold. ut a company can't test each and every item that they
ship to you, the consumer. So the company uses statistics to test
4ust a few, called a sample, of what they make. If the sample
passes )uality tests, then the company assumes that all the items
made in the group, called a batch, and are good.
+ It is used in factories for the authorities to recogni/e whether the
benefts of the workers are continued or not.
+ 2ean, one of the comparing properties of statistics also helps
teachers to see the average marks of the students.
+ Statistics is also gives data to keep track of progress, ideal for
8ublic ,pinion<=oice, can be used to compare things such as
)uality, and may help in presidential elections too.
+ Statistics is also used in understanding ;onsumer ehavior - >eed
%nalysis for any product , even fnancial products., 8roduct
?esigning @ 8ricing, 8roduct ;ustomi/ation - segment specifc
products., 9uality ;ontrol - process as well as product )uality
control., 2arket $esearch, Seasonality<;yclic Issues.
In conclusion, statistics are a ma4or staple of our world today.
They are used in practically any situation and help improve our
overall lifestyle. Statistics change the way we think about
tomorrow and the way we live today and without them.