Now that you are familiar with the basic concepts of statistics, what are some examples
of when you have seen or heard statistics used in appropriately.
Statistics
Abstract
Statistics is applicable when dealing in mathematical comparisons, analysis and explanation of
data. Descriptive statistics is used to describe and categorize data. Causal statistics can be
experimental or observational studies. The major difference lies on how the overall experiment
or the study being conducted. These paper looks at the application of statistics in our daily lives,
its relevance and importance.
Introduction
Statistics refers to the measurement of a given sample that is used to analyze or estimate the
mathematical parameters of a population. For example the average score which is normally
referred to as the statistical mean is applied in examination results for example a score of 85% in
an examination of a possible total of a 100% in a class of 50 pupils. It can be concluded that each
pupil is most likely to score 85/100 and whoever does not score or get the 85% can be said to
have deviated from the statistical mean by a certain score or percentage that’s the standard
deviation.
Probability theory is applied in the determination of risks in business activities and also in daily
life applications. Governments apply probabilistic methods when regulating the environment
using pathway analysis which measures the environment’s well being. Methods that are
stochastic in nature are applied when choosing projects that affect the whole population. For
Statistics 2
example, when studying the ripple effect of oil in the countries located in the Middle East and
the perceived probability of conflicts arising out of some shared borders and the chances that a
war in that region is likely to affect the international oil prices. The concept of behavioral finance
came about as a result of its attempt to address such issues like the pricing, policies and its effect
on peace and conflict. It can be reasonably concluded that the discovery and application of
probability assessments has a major role to play in the modern society. It’s also important for
average citizens to understand how these probability assessments are arrived at or made and how
they contribute and affect reputations and key decisions especially in a democratic environment.
(Hand, 2004)
Probability is also applied when confirming the reliability of a product. Consumer products like
electronics and automobiles utilize the reliability theory in their designs to reduce the general
probability of the products rate of failure. The probability or rate of failure may be covered in the
warranty that comes with the purchase of the product. (Chance & Rossman, 2005)
The measures of the central tendency are the typical values for a particular probability
distribution and they are commonly referred to as the averages or the distribution centers.
These are the arithmetic mean, mode and the median. The mode is the value that appears
many times while the mean is value of the total measurements divided the number of the items.
The median is basically the figure in the middle when the data or the samples are ranked
according to their sizes. These applications can be applied when computing figures for literacy
levels in the society, employment status, exit polls, average temperatures or even heights of
students in a class.
To conclude, application of statistics in our daily lives touches all spheres of our existence and
its relevance and importance in our modern society cannot be overlooked.
Statistics 3
References
Chance, B. L. & Rossman, A. J. (2005) Investigating Statistical Concepts, Applications, and
Methods. Duxbury Press.
Hand, D. J. (2004). Measurement theory and practice: The world through quantification.
London, UK: Arnold.