03.19.2022

10 Reasons We Couldn't Live Without Statistics

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Statistics Help to Forecast Economic DevelopmentsThe discipline of mathematics known as statistics is concerned with the gathering, organization, analysis, and interpretation of sets of numerical data.

In the contemporary era of machine learning and big data, you'll frequently hear people talking about the Information Age, which represents a period in which we know a lot about our world as a result of the vast data that is available.

Much of this data was based on statistics and mathematical modelling. Statistics, when utilized appropriately, can be leveraged to identify how the trends that were observed in the past can be used to forecast what will occur in the future.

Let's take a look at some examples of how statistics can influence your life without you even realizing it. Here are ten reasons why we couldn't live without statistics.

 

1. Statistics can help us understand disease risk and the spread of viruses

In the era of COVID-19, we are all too familiar with how statistics concerning the spread of an illness are frequently broadcast on newscasts. The use of statistics to report important information about diseases and viruses can help us understand the risk to our own lives and the extent to which we may be impacted.

For instance, according to statistics, smoking is responsible for 85 to 95 percent of lung cancers. The figure quite clearly informs us that a significant amount of lung cancers are caused by smoking. As such, if you wish to reduce your chance of contracting lung cancer, you should make sure you avoid smoking.

 

2. Statistics help us to predict the weather

It is commonplace for people to look at weather forecasts, especially if they are planning an important event, holiday, or agricultural task. But how do meteorologists produce the weather models that forecasts are based on? These computer models are created by comparing previous weather conditions to present weather circumstances in order to forecast future weather. This involves statistical analysis of historical data.

 

3. Statistics help us understand genetics

Many people have diseases that are caused by their genetic makeup, and these disorders can be passed on to their offspring. Statistics are essential in calculating the likelihood of a new infant contracting the condition.

 

4. Statistics can help us ensure disaster preparedness

What if a storm is on its way or tornadoes are expected? Emergency management services shift into high gear in preparation for individuals to be rescued. Statistics are used by emergency response teams to predict when danger may arise.

 

5. Statistics help to forecast economic developments

Stock market developments are frequently reported in the news. Statistical computer models are often used by stock analysts to estimate what will happen in the economy and central banks to implement appropriate measures.

 

6. Statistics inform elections

When there is an election, news media consult their models in order to determine who will win. Candidates use polls to plan where and how they will campaign. Statistics have a role in determining who your elected politicians will be.

 

7. Statistics help us understand what medications are safe

Before a medicine can be administered, scientists are required to demonstrate a statistically valid rate of efficacy. Every medical study you hear about will, ultimately, be underpinned by statistics.

 

8. Statistics help forecast demand

Supermarkets and retailers maintain track of everything they sell and use analytics to choose what to ship to which shop. For instance, Costco's analysis of shopping data may reveal that people in San Francisco buy more hot chocolate when rain is expected. As such, based on the weather forecast (thank you, statistics), they will ensure their San Francisco stores are well stocked when rain is anticipated.

 

9. Statistics are used to determine insurance premiums

You will undoubtedly be aware that having auto insurance in place is necessary by law before you can drive your vehicle. If you have a mortgage on your home, it must also be insured. The rates that insurance companies charge are calculated using information from all drivers and homeowners in your region.

 

10. Statistics ensure quality products

Every day, hundreds of items are manufactured, and each firm must ensure that a high-quality product is marketed. However, a corporation cannot test every item it sends to you, the customer. As a result, the corporation uses statistics to examine only a small portion of what they produce, referred to as a sample the sample passes quality checks, the corporation operates on the assumption that all of the products created in the batch are acceptable.

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