What is the importance of statistics?


Quick Answer

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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Full Answer

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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