The field of applied mathematics known as statistics is concerned with the systematic collection, classification, interpretation, and analysis of numerical and categorical data, facts, and conclusions.
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Functions of Statistics in Real Life
Because numerical expressions are convincing, one of statistics’ most important tasks is to present broad statements in a precise and definite manner. It is always more convincing to present facts in precise, quantifiable terms than to make sweeping statements. Statistics make facts clear and precise, which makes it easier to understand what is being said.
Statistics not only helps to break down a lot of data into a few important numbers, but it also clearly shows facts. In a way, statistical methods distill the mass of data into meaningful overall information. As a result, a record of the individual incomes of the entire population cannot provide a precise estimate of India’s income situation. However, everyone can easily recall the figure of per capita income.
Figures frequently lack meaning unless they are compared to other figures of the same type. For instance, unless the number is compared to the number from last year, the statement that the number of job seekers on the live register of Employment Exchanges was 12.33 million at the end of March 1995 is meaningless. The number of job seekers at the end of March 1995 was 12.33 million, an increase of 14.1 percent from the previous year’s 10.81 million, giving the statement a much deeper meaning. A better understanding of the significance of a collection of figures is made possible by providing a suitable device for the comparison of data statistics.
4. Putting Your Hypothesis to the Test:
New theories and the formulation and testing of hypotheses benefit greatly from statistical methods. Hypotheses such as whether a particular coin is fair, whether chloromycetin is effective in curing typhoid, whether the credit squeeze is effective in preventing price increases, whether students have benefited from the additional coaching, and so forth, can be evaluated with the right statistical tools.
Organizational plans and policies are typically developed far in advance of their implementation. When formulating plans and policies that are suitable, it is very helpful to know future trends. Predicting what will happen in the future is made easier with statistical methods. For instance, the Cement Corporation must be aware of the anticipated demand for the year if it is to determine how much cement it should produce in 1996. It might make a guess and use its subjective judgment. However, a more effective strategy would be to conduct a statistical market survey or analyze the sales data from previous years to gather the information needed to estimate the volume of sales for the coming year.
6. The Making of Policies
The fundamental information needed to develop effective policies is provided by statistics. For instance, determining how much crude oil was imported in 1997 might be necessary. The decision would be based on the anticipated demand for oil in 1997 and anticipated internal production. The decision regarding imports cannot be made with any degree of accuracy because there is a lack of information regarding the estimated demand for oil and domestic production.
In addition to the aforementioned functions, statistics also predict the phenomena’ future course of action. With the help of statistics, we can make estimates for future policies. Based on the rate at which the population has grown in the past, we can estimate the demand for goods in 2005. Similarly, if a businessperson is aware of the market’s trends, he or she can profitably exploit the situation. Policymaking for the future is aided by statistics.
8. Making decisions:
We can formulate favorable policies with the assistance of statistics. In 2007, how much food must be imported? It is dependent on the 2007 food production and food demand. We are unable to estimate the number of imports without knowing these factors. The government develops policies regarding housing, food grains, and other areas based on the forecast. However, the setup as a whole will be affected if the forecasting is incorrect.
9. It Expands Knowledge
Statistics allow people to expand their horizons, so when they go through various statistical procedures, they expand their knowledge pattern. It also increases his capacity for thinking and reasoning. Additionally, it aids in his rational conclusion.
10. To Measure Uncertainty
Although the future is uncertain, various authorities in all phenomena around the world are aided by statistics in making accurate estimations by collecting and analyzing a variety of data. As a result, there may be less uncertainty. Regression, interpolation, and time series analysis are used to create trend behaviors from the past as part of the forecasting process.