Concept of Statistics & How it is Essential in our Daily Life

The Numerical statements of facts in connection with any field of human experience are called statistics.

For example, the production statistics of a factory over the past years, the statistics of birth, date of a country when it was founded and so on.

The term statistics means aggregation of the scientific methods, which deals with collecting, presenting, and analyzing numeric data.

29th June is marked as the Indian Statistical day to remember Professor Prasanta Chandra Mahal Nobis's significant contribution in the field of statistics who was the founder of the Indian Statistical Institute (ISI), which has made a remarkable contribution to the statistical field in our country.

There is hardly any sphere of human activity where statistics is not playing its role.

Statistical tools and techniques are applicable in several fields, namely, economics, business and industry, education, psychology, biology, and agriculture.

The article will list a few fields where statistics is recognized as a primary tool to perform any task.

1. Government 

Statistical data are essential in various government departments like railway, finance, and transport for making an effective development scheme.  

The government requires periodical data about population, education, and crime to frame the policies in various fields.

The five-year plan of our country is formulated and executed with the help of requisite statistical data.

2. Economics

Different crucial problems in economics are solved by using only statistical methods.

For example, the determination of national income and eradication of unemployment are based on relevant statistical data.

The application of statistical techniques in a theoretical economic method is called econometrics.

3. Weather prediction and performance prediction in sports 

Statistical techniques help forecast the future trend.  

Statistical experts can analyze the weather, depending on the past data of the weather condition using proper statistical tools. Statistics is widely used in sports activity by analyzing a player's performance level.

They collect and research the previous data of different attributes like runs, wickets, bowling speed.  

Based on this, they can predict a player's performance in the upcoming matches.

Statistical analysis of the past data predicts the future performance trend of players.

4. Business and management

Statistics is indispensable in fields like market research, financial analysis, production planning etc.

Analysis of time series data helps business personnel study the general pattern of business to make a well-informed decision.

Life insurance companies make their premium plan depending on the statistical concept of finding life expectancy and mortality rates.

Manufacturing companies apply statistical methods to maintain the quality of products.

5. Science and education

Some laws of physical science and biology entirely depend on statistical concepts.

Analysis of variance and design of experiments are used to choose the best fertilizer in agriculture.

Statistical techniques like factor analysis and item analysis are applied to determine the efficiency and validity of different tests used in education and psychology.

This article has briefly represented the use of statistics in various fields in our daily life.

Studying statistics will open many doors of career for the students in later life.

The bright career in Data analytics, data science entirely depends on the concept of statistics.