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What is the importance of statistics?

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Statistics is the study of numerical information, which is called data. People use statistics as tools to understand information. Learning to understand statistics helps a person react intelligently to statistical claims. Statistics are used in the fields of business, math, economics, accounting, banking, government, astronomy, and the natural and social sciences.

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What is the importance of statistics?
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Businesses use statistics to find customer preferences, check the quality of products, market products, estimate costs and make decisions. Statistics help make mathematical theories more accurate. Economists use statistics to find the relationship between supply and demand, the relationship between imports and exports, the inflation rate, the per capita income, and the national income rate. Accountants use statistics to see how well a company is doing, discover trends and create projections for the next year. Bankers use statistics to estimate the number of people depositing money versus the number requesting loans. The government uses statistics federally and locally to make budgets, set the minimum wage and discover the cost of living. Astronomers use statistics to estimate the distance between objects in space and the timing of interstellar events. People working in the natural and social sciences use statistics to form theories on what they're studying, whether it's estimating large populations, predicting the weather or studying the human brain.

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Related Questions

  • Q:

    Why is sampling important?

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    Sampling, in statistics, is a method of answering questions that deal with large numbers of individuals by selecting a smaller subset of the population for study. One of the most prevalent types of sampling is random sampling.

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  • Q:

    What is judgment sampling?

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    Judgment sampling is a method in statistics and quantitative research for non-randomly selecting subjects for study from a population by selecting according to the opinion of an expert. It is a biased method that is useful when some members of a population make better subjects than others. The nature of judgment sampling makes data derived by this method harder to generalize and prone to an increased chance of misrepresentation.

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  • Q:

    What is the importance of statistics in people's daily lives?

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    People use statistics daily for weather forecasts, predicting disease, preparing for emergencies, medical research, political campaigns, tracking sales, genetics, insurance, the stock market and quality testing. Statistics lends credibility to these industries and makes it easier to track different things in the industry.

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  • Q:

    What is the importance of standard deviation?

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    Standard deviation is a measure of variation in data. It allows comparison between two or more sets of data to determine if their averages are truly different. For example, if the average salaries in two companies are $90,000 and $70,000 with a standard deviation of $20,000, the difference in average salaries between the two companies is not statistically significant.

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