A Short Trip Into Statistics
Wherever numbers come into the picture, statistics play a very important role. Statistics and mathematics go hand in hand. One can never supersede the other and statistics is purely analytical in nature. When we say that statistics is analytical in nature, we mean that it analyzes data and makes inferences. Statistics in a way simplifies data as it gets together all the data in the study and then gives it a very cumulative approach trying to make it understandable by one and all.
Statistics again can be broadly broken up into two different subtopics. Firstly, exploratory statistics and secondly confirmatory statistics. Exploratory statistics mainly deals with the exploration of data and their qualitative attributes towards it. On the other hand, confirmatory statistics deals with assumptions and inference.
Again statistics can be further broken down into descriptive statistics and inferential statistics. What descriptive statistics tell you is the information that is already prevalent in the form of bar diagrams, charts, and other similar forms of pictorial representation. On the other hand, inferential statistics deals with the inference that goes behind the assumptions. This involves analysis of data over a very long period of time.
Statistics works with models and therefore when one works with models the pattern differs time and again. This mostly depends on the type of model in play and how it functions. For example, there are parametric, non-parametric, linear, and non-linear models. Not to forget that all these types of models have their different way of approaches and calculations behind them. Working with models, statistics are used every day in everyone’s life. Right from businessmen to shopkeepers, from students to workers, all apply statistics in some way or the other. Some use mathematical models while others use descriptive ones. Fields like geo-physics and climate study use statistics to a very wide level. Finding the population in an economy (demographic studies), which is one of the most essential data for any country, is also done with the help of statistics. Medicine, biology, and to an extent even psychology use statistics in their approach. The forex market and the stock market traders and all financial institutions make widespread use of statistics while calculating risks and returns.
Thus statistics has a very wide approach in any sector. Statistics generate employment and also help people with their figures. Whether it is in banks, organizations, universities, or anything at any level, statistics do play a major role everywhere. Statistics without numbers cannot be thought of and thus to be good in statistics one has to be good in mathematics. Statistics has made life simpler for many and it has simplified life which would otherwise be very hectic and cumbersome. Statistical tools have emerged over the years and are continuing to emerge as life evolves. Though these tools seem complex and are at times, they have surely made working easier. Imagine life without Excel!
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