Introduction to Basic Statistics

What is the simple definition of basic statistics?

Defin Basic Statistics

The practice or science of collecting and analyzing numerical data in large quantities, especially for the purpose of inferring proportions in a whole from those in a representative sample.

Statistics is a form of mathematical analysis that uses estimated models, representations and synopses on a given set of experimental data or real-life studies. Statistics studies methods to gather, review, analyze and draw conclusions from data. Some basic statistical measures include the following

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·        Mean

·        Regression analysis

·        Skewness

·        Kurtosis

·        Variance      

·        Analysis of variance

 What is Statistics?

 To defin basic Statistics, Statistics is the science concerned with developing and studying methods for collecting, analyzing, interpreting and presenting experimental data. Statistics is a highly versatile field; research in statistics finds applicability in virtually all scientific fields and research questions in the various scientific fields also motivate the new statistical methods and theories to be developed. In developing methods and studying the theory that underlies the methods statisticians draw on a variety of mathematical and analytical tools.

Two fundamental ideas in the field of statistics are uncertainty and variation. There are many situations that we encounter in science (or more generally in life) in which the outcome is uncertain. In some cases the uncertainty is because the outcome is not determined yet (e.g., we may not know whether it will rain or hot tomorrow) while in other cases the uncertainty is because the outcome has been determined already but we are just not aware of it now (e.g., we may not know whether we passed a particular exam).

Probability is a mathematical language used to discuss certain and uncertain events and probability plays an important role in basic statistics. Any measurement or data collection effort is subject to a number of sources of variation. By this we mean that if the same measurements are repeated over and over, then the answer is likely to be changed. Statisticians attempt to understand and control, if possible the sources of variation in any given situation.

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Types of Statistics

Statistics can be categorized into 2 types Descriptive Statistics and Inferential Statistics.

 

1. Descriptive Statistics: It is used for summarizing observations etc.

 

2. Inferential Statistics: It is used for interpreting the meaning of the descriptive statistics.

Importance of Statistics

1. Statistics makes the work simple & provides a clear picture on the work we do on daily basis.

 

2. The statistical methods help us to do research on different fields such as medicine, economics, business, social science and so on.

 

3. Statistics provides us with different types of organized data with the help of graphs, diagrams and charts.

 

4. Statistics come up as useful while we do critical analysis.

Importance of Statistics in Different Fields

Now statistics holds a central position in almost every field, including industry, commerce, trade, physics, chemistry, economics, mathematics, biology, botany, psychology, astronomy, etc., so the application of statistics is very wide. Now we shall discuss some important fields in which statistics is commonly applied.

(1) Economics

 Economics largely depends upon statistics. National income accounts are multipurpose indicators for economists andadministrators, and statistical methods are used as well as useful to prepare these accounts. In economics research, statistical methods and statistical models are used to collect and analyze the data and test hypotheses. The relationship between supply and demand is studied by statistical methods; problems such as imports and exports, inflation rates, and per capita income requires a good knowledge of statistics.

(2) Mathematics

Statistics plays a central role in almost all natural and social sciences. The methods used in natural sciences are the most reliable but conclusions drawn from them are only probable because they are based on incomplete evidence. Statistics helps in describing these measurements more precisely. Statistics is a branch of applied mathematics. A large number of statistical methods like probability averages, dispersions, estimation, etc., are used in mathematics, and different techniques of pure mathematics like integration, differentiation and algebraare used in statistics.

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(3) Banking

Statistics plays an important role in banking. Banks make use of statistics for a number of purposes. They work on the principle that everyone who deposits their money with the banks does not withdraw it at the same time. The bank earns profits out of these deposits by lending it to others on interest. Bankers use statistical approaches based on probability to estimate the number of deposits and their claims for a certain day.

(4) State Management (Administration)

Statistics is essential to a country. Different governmental policies are based on statistics. Statistical data are now widely used in making all administrative decisions. Suppose if the government wants to revise the pay scales of employees in view of an increase in the cost of living, and statistical methods will be used to determine the rise in the cost of living. The preparation of federal and provincial government budgets mainly depends upon statistics because it helps in estimating the expected expenditures and revenue from different sources. So statistics are the eyes of the administration of the state.

(5) Natural and Social Sciences

Statistics plays a vital role in almost all the natural and social sciences. Statistical methods are commonly used for analyzing experiments results, and testing their significance in biology, physics, chemistry, mathematics, meteorology, research, chambers of commerce, sociology, business, public administration, communications and information technology, etc. 

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