AN INTRODUCTION TO STATISTICS
In today’s data world, you often heard about the word called ‘Statistics’. Some of them may know what it is and many of them may not know or may not have a clear picture on that. So to understand this, in this article we are going to see about ‘An introduction to Statistics’.
What is Statistics?
Statistics is a mathematical approach to collecting, organizing, summarizing, analyzing, and interpreting data for effective decision-making.
Simple Example:
You want the average mark or score of the class. You simply add all the scores of the students and divide by the total no. of students.
Application of Statistics:
Statistics are not only useful for solving small math problems. It applies in various fields and applications.
- Weather Forecasting:
Have you ever wondered, how do you get a correct weather report? Yes, it is because of statistics. There are some computer models built on the statistics concepts. These computer models compare prior weather with current weather to predict future weather.
2. Bank Loan:
Banks give many loans to their customers. They use statistical concepts to predict whether the customer is eligible for a loan or not, whether the customer repays his/her loan or not.
3. Financial Market:
Statistics are the key to how traders and businessmen invest and make money.
4. Medical Fields:
Before any drugs prescribed, the scientists must show the statistically valid effective rate.
5. Media:
News reporters make a prediction of the winner for elections based on political campaigns. Here statistics play a major role in predicting who will be your next Government.
6. Disease Prediction:
Doctors predict the disease based on statistical concepts.
Example:
If 70% — 80% of people have Cancer. The doctors are able to find the reason for Cancer says ‘Smoking’ using statistical concepts.
Mathematical Theories behind Statistics:
There are some mathematical concepts and theories behind Statistics. They are:
● Differential and Integral Calculus.
● Linear Algebra
● Probability Theory.
TYPES OF STATISTICS:
There are two types of Statistics. They are:
● Descriptive Statistics
● Inferential Statistics
Descriptive Statistics:
Descriptive Statistics is a way to organize, represent and describe a collection of data in a more informative way using tables, charts, graphs, summary measures.
Example:
● Which product sale is high?
● What is the average profit of the company?
● Which age group people liked our product?
● What is the overall performance of the student in the last 4 cat exams?
Inferential Statistics:
Inferential Statistics is a method that allows us to use information collected from the sample to make decisions, predictions, or inferences from a population.
Example:
● Taking the small subset of customer reviews to predict or draw conclusions about the performance of the product.
I hope that you find something valuable in this article. Thanks for your patient reading.
