what is statistics: Definition, Types, and Aspects of statistics
Statistics is a field of mathematical analysis combining linear algebra, calculus involving differential equations, probability theory, and other related disciplines to understand data better. It operates off the premise that data collection in a limited sense can be useful in summarizing and forecasting information about a much wider population.
Means, medians, modes, standard deviations, coefficients of variance, and sample tests are useful statistical tools. A mathematical formula is used to interpret raw financial data in a numerical format. Statistics are used in a wide range of industries, including science, government, manufacturing, population, psychology, banking, and financial markets.
what do you mean by statistics?
In Latin, statisticus means the study and description of politics, which is how statistics got its etymological definition. A state or country’s statistics came into the English language more recently from the German word “statistik.”. The applications of statistics go far beyond evaluating statistics about a country’s or state’s demographics.
What Is the Importance of Statistics?
Applied mathematics is a broad discipline that includes statistics, and it has numerous applications in real life. From a small representative sample of data, computer science professionals, businesspeople, social scientists, and government officials can draw conclusions about the whole population.
Statistics can provide as incisive a degree of insight as possible since it’s almost always impossible to gather data about a whole group.
The purpose of statistics is to compile a conclusion based on a systematic analysis and interpretation of raw data. There is a numerical format to these reports. Their concise presentation makes them easy to read and understand. At a glance, they should be understandable.
Portfolios, investments, and assets are included in financial data in a numerical format. Mathematical formulas are used to interpret historical and present data. Information and requirements are taken into account when forecasting.
The use of statistics
In various sectors and verticals, statistics play an important role in decision-making. Among its applications of it are marketing, e-commerce, banking, finance, human resources, production, and information technology. Data mining, medicine, aerospace, robotics, psychology, and machine learning are other fields in which this mathematical discipline has played an important role in research.
Statistics also play an important role in decision-making in the economics, government, and public sectors. A few examples of its uses include public surveys, weather forecasts, sports scoring, and budgeting.
Why do we need statistical analysis?
Analyzing data, or statistics identifies patterns and trends, removes bias, and informs decisions. Data collection and analysis are important parts of business intelligence, and trend reporting is an aspect of it.
In addition to identifying high-performing product lines, identifying underperforming sales representatives, and gaining an insight into how various regions of the country perform, businesses can benefit from statistical analysis.
The use of statistical analytic tools can help with predictive modeling. The purpose of statistical analysis tools is to provide business owners with more information rather than just simple trend predictions that can be affected by a number of factors outside of their control.
Types of Statistics
- Descriptive statistics and inferential statistics are both types of statistics. A descriptive statistic summarizes data, whereas an inferential statistic explains what is described in a descriptive way. There is a large-scale use for both of them. Additionally, descriptive statistics can lead to inferential statistics.
In general, statistics can be categorized into two categories.
1. Descriptive Statistics
2. Inferential Statistics
1. Descriptive Statistics:
Describing statistics involves summarizing data. Various parameters like Mean and standard deviation are used for summarizing the population sample. The purpose of descriptive statistics is to organize, represent, and explain a set of data using charts, graphs, and summary measures.
Histograms, pie charts, bars, and scatter plots are typical ways of presenting data in tables and graphs. A descriptive statistic is just that: descriptive and does not need to be normalized beyond the data that was collected.
2. Inferential Statistics:
Descriptive statistics are interpreted in Inferential Statistics. Following the collection, analysis, and summarization of the data, we use Inferential Statistics to describe the meaning of the data. According to inferential statistics, trends in a sample can be generalized to a larger population based on the probability of them occurring in the larger population. Analyzing inferences using inferential statistics allows us to test hypotheses, investigate relationships between variables, and predict population trends. A valid generalization can be made by using inferential statistics, i.e., making conclusions and inferences from a sample.
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