Why statistics important?

Why statistics important and why we should study it?

Statistics is one of the most commonly used tools in everyday life. It is a tool inbuilt for anyone who can count and calculate. Many of our decisions every day or every hour are statistical calculations we do in our brain. We may not necessarily do it explicitly, but we make many decisions based on historical records, forecasts, and probability. That is statistics in action. It is such an influential academic and professional subject that it has found its way in almost all walks of life.

The following text will describe how we use statistics and probability, from simple decision-making to the most sophisticated forecasting tools and everything in between. Due to its broad applicability, statistics is a subject of choice for students worldwide. It opens the doors in terms of career opportunities. You may need an online statistics tutor to help you master statistics faster.

Statistics in professional streams

Theoretical statistics

It is the branch of statistics that involves descriptive methods, probability theory, model building, and inferences. For example, a researcher could use the tools of theoretical statistics to make predictions by conducting hypothesis testing and creating hypothetical models to assess the likelihood of different probable scenarios. The career roles for theoretical statisticians include market research analyst, cost estimator, statistics and probability teacher, insurance underwriter, and weather scientist.

Applied statistics

In contrast to pure statistics that deal with theoretical data and problems, applied statistics attempts to solve real-world situations. Companies, organizations, and governments face the challenge and the opportunity to make sense of big data. They understand that analyzing it can help determine and focus on problem areas yet unknown to them. The analysis can guide them to deploy their products and services more efficiently and sustainably. It can also lead to better innovation and improvisation.

Proper use of applied statistics can help:

• help form better public policies using demographic information
• support in the development of better pharmaceutical products, including potential life-saving drugs and procedures
• lead to better investment decisions
• guide better marketing and product development
• economists take steps to run and bolster the economy of nations smoothly

According to the applied statistics page of Michigan Technological University, businesses are increasingly recognizing the power of big data for their companies. It is causing a surge in demand for statisticians and professionals with advanced applied statistics skills, like data scientists and analysts. Projections indicate that it is a trend that will grow in the future.

Mathematical statistics

It uses probability theory and other mathematical methods like linear algebra and analysis to understand and help predict patterns of a wide variety of dynamic systems like weather patterns and societal trends.

Data mining

It is the branch of data analysis that uses large volumes of data to find patterns, correlations, and deviations and support data analytics. Statistics is the backbone of data mining, providing the methods and tools to collect, organize, analyze and present data. People skilled in statistics find employment opportunities in financial firms like hedge funds, investment banks, and private equity firms. They also work in the marketing sector, manufacturing industry, retail firms, and healthcare industry as data mining specialists or applied statisticians.

Machine learning

Statistical methods and resources are invaluable to the field of machine learning. Machine learning uses statistics to form predictive models. Probability plays a crucial role in formulating algorithms that utilize numerical, time-series, categorical, and descriptive data.

Machine learning is beginning to play a pivotal role in developing cutting-edge technologies in

• Recommendation engines for content, products, and services
• Supply chain management forecasting and optimization
• Fraud detection software
• Credit risk assessment
• Customer support with the automatic response using chatbots
• Career roles like ML researcher and data scientist are flourishing in the machine learning field for statistics professionals.

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Biostatistics

It is a fast-emerging field that applies statistical knowledge to many biology-related disciplines like environmental science, public health policy-making, modern medicine, diagnostics, and veterinary care. Biostatistics firms use statistical methodologies to accurately collect data, design unbiased clinical trials and studies and analyze the processed data to interpret and communicate the results.

Data and statistics are vital for decision-making and predictions for crucial indicators like infectivity, disease transmissibility, and drug and vaccine efficacy. Biostatisticians tackle issues in the areas of health and wellness, disease prevention and control, and even environmental metrics related to biology.

Statistics professionals work as biostatisticians, data analysts, research scientists, or faculty members in biostatistics and biotechnology. According to the Michigan Technological University, the future for biostatistics majors is bright, with excellent employment opportunities and rapid growth forecasted in the future.