Q:

What is the importance of statistics?

A:

Quick Answer

Statistics is the study of numerical information, which is called data. People use statistics as tools to understand information. Learning to understand statistics helps a person react intelligently to statistical claims. Statistics are used in the fields of business, math, economics, accounting, banking, government, astronomy, and the natural and social sciences.

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Full Answer

Businesses use statistics to find customer preferences, check the quality of products, market products, estimate costs and make decisions. Statistics help make mathematical theories more accurate. Economists use statistics to find the relationship between supply and demand, the relationship between imports and exports, the inflation rate, the per capita income, and the national income rate. Accountants use statistics to see how well a company is doing, discover trends and create projections for the next year. Bankers use statistics to estimate the number of people depositing money versus the number requesting loans. The government uses statistics federally and locally to make budgets, set the minimum wage and discover the cost of living. Astronomers use statistics to estimate the distance between objects in space and the timing of interstellar events. People working in the natural and social sciences use statistics to form theories on what they're studying, whether it's estimating large populations, predicting the weather or studying the human brain.

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Related Questions

  • Q:

    What is the role played by statistics in research?

    A:

    Statistics as a form of scientific discipline plays an important role in research because it enables the researcher to develop accurate and reasonable inferences from relevant data collections. In this way, the researcher is able to make more informed decisions rather than facing uncertainties. This is particularly important in the area of medical research and can help to prevent or minimize biases and errors.

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  • Q:

    What is variance in statistics?

    A:

    Variance measures how the data in a given variable distribution are spread relative to the mean. Operationally, it is the average squared distance from the mean and is calculated by the square root of the standard deviation. Conceptually, it indicates how much variation is within a given sample.

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  • Q:

    Why do we use statistics?

    A:

    According to San Jose State University, statistics helps researchers make inferences about data. Instead of just using raw data to explain observations, researchers use various statistical analyses to derive predictions and trends from large data sets. Scientists and professionals use statistics in a variety of disciplines and fields, including biological sciences, political science and engineering.

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  • Q:

    What are some examples of descriptive statistics?

    A:

    Descriptive statistics are statistics that describe the central tendency of the data, such as mean, median and mode averages. Variance in data, also known as a dispersion of the set of values, is another example of a descriptive statistics. Greater variance occurs when scores are more spread out from the mean. Descriptive statistics summarize data.

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