What is Statistics and its importance....

What Is Statistics?

Statistics is a branch of applied mathematics that involves the collection, description, analysis, and inference of conclusions from quantitative data. The mathematical theories behind statistics rely heavily on differential and integral calculus, linear algebra, and probability theory.

Understanding Statistics

Statistics are used in virtually all scientific disciplines, such as the physical and social sciences as well as in business, medicine, the humanities, government, and manufacturing. Statistics is fundamentally a branch of applied mathematics that developed from the application of mathematical tools, including calculus and linear algebra, to probability theory.

In practice, statistics is the idea that we can learn about the properties of large sets of objects or events (a population) by studying the characteristics of a smaller number of similar objects or events (a sample). Gathering comprehensive data about an entire population is too costly, difficult, or impossible in many cases, so statistics start with a sample that can be conveniently or affordably observed.

Statisticians measure and gather data about the individuals or elements of a sample and analyze this data to generate descriptive statistics. They can then use these observed characteristics of the sample data, which are properly called “statistics,” to make inferences or educated guesses about the unmeasured characteristics of the broader population, known as the parameters.

Importance of Statistics

Statistics is prominent in finance, investing, business, and a wide scope of sectors. Much of the information you see and the data you’re given is derived from statistics, which are used in all facets of a business.

• Statistics in investing include average trading volume, 52-week low, 52-week high, beta, and correlation between asset classes or securities.

• Statistics in economics include gross domestic product (GDP), unemployment, consumer pricing, inflation, and other economic growth metrics.

• Statistics in marketing include conversion rates, click-through rates, search quantities, and social media metrics.

• Statistics in accounting include liquidity, solvency, and profitability metrics across time.

• Statistics in information technology include bandwidth, network capabilities, and hardware logistics.

• Statistics in human resources include employee turnover, employee satisfaction, and average compensation relative to the market.