Purpose of Statistics

Purpose of Statistics:

Statistics is the science of gaining knowledge from data. You can collect data in the correct manner, perform detailed analyses, and effectively present the results if you have statistical knowledge. Statistics is an important part of how we make scientific discoveries, make data-driven decisions, and make predictions. Statistics helps us to gain a much deeper understanding of a subject.

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Hence, statistics teaches people how to make intelligent and accurate conclusions about a larger population by analysing a small and limited sample of data. The following are the main reasons why studying statistics is important in today’s world:

• Statistics guides in the comprehension and precise description of a natural phenomenon.

• In any field of study, statistics plays a vital role in the proper and efficient planning of a statistical inquiry.

• Statistics helps a lot in the collection of relevant quantitative data.

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• Statistics supports in the presentation of complex data in a clear and understandable tabular, diagrammatic, and graphic format.

• Statistics, through quantitative observations, guides in understanding the nature and pattern of variability of a phenomenon.

• Statistics aids in drawing valid inferences from sample data, as well as providing a measure of their reliability about population parameters.

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• Statisticians help you learn from data and navigate common issues that can lead you to inaccurate conclusions.

• Given the growing importance of data-driven decisions and opinions, it is essential that you be able to critically evaluate the quality of the analyses that others present to you.

• Most of us have some type of insurance, whether it is home, motor, travel, health or other types of insurance. Many companies use statistical models to calculate the risk of providing insurance based on an individual application.

Read Also: Application of Statistics in Business & Management

(Source – Various books of college library)

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