10 Applications of Statistics In Real Life

10 Applications of Statistics In Real Life

Statistics are a set of math equations used to analyze the happenings in the real world. When it’s used correctly, statistics can inform us of the trends of things that had happened in the past. It might also be used to predict the trends of things that might happen in future. There are several examples of its application in real life. Some of them are:

 

1. Forecast of weather

Do you watch the forecast of weather on TV? You’ll notice that weather forecasters talk a lot about weather models. Such computer models are usually built with the use of statistics that can compare previous weather conditions with that of the current weather. This can also be used to predict future weather.

2. Medical studies

Before prescribing any drug, scientists are compelled to show a statistically sound rate of effectiveness. Statistics are behind each and every medical study that you have heard about.

3. Emergency preparations

What happens when a forecast predicts that there are high chances of tornado occurrences at a specific region or a hurricane is going to strike a particular region soon?

The government takes emergency measures to evacuate people in that specific region. Emergency teams usually rely on statistics to inform then about the occurrences of danger.

4. Reporting diseases

You have surely heard about many diseases that are reported in the news in a statistical format. The reporter could have easily reported something like X% people have died from a specific disease, but it usually doesn’t happen. This is because a report made in such a format would not mean much to the viewers. When there’s an involvement of statistics, the news becomes much more meaningful.

5. Genetics

Many diseases are genetic in nature. Most of these diseases can be passed on to the children. Statistics play a critical role in determining the chances of the new baby being affected with the disease.

6. Political campaigns

Predictions are part and parcel of every major election. News organizations try to predict the winner from statistics. They also try to highlight the percentage of votes from statistics and also make their viewers aware of the same.

7. Insurance

If you have a car, you are required by law to go for an insurance of the same. The rate that is charged by the insurance company is based on statistics from all homeowners or drivers in your area.

8. Consumer goods

Many leading retailer chains keep a tab on their sales and shipments through statistics. Say, for example, Walmart. Walmart is one of the major retailers in the world.

Walmart uses statistics to calculate things like what to ship, when to ship to each store depending on the circumstances and demand. Like, if there’s a prediction of a hurricane in Place A, it’ll dispatch more and more of a specific product(X) to its associated stores in that location.

How do they realize that that specific product (X) is necessary and might bring in more revenue? They realize that through statistics on the basis of past records.

9. Stock Market

Stock analysts mostly use statistical computer models to forecast the happenings in the economy. This is extremely significant to predicts the rise and falls in the stock market.

10. Quality testing

Thousands of products are manufactured by companies every day. The companies also have to ensure one thing at the same time that a good quality item’s sold. For that, quality testing becomes necessary.

But the companies can’t test each and every product; can they? They test a handful number of products which they refer to as the sample. Such products are selected on the basis of statistics. If the sample passes the test successfully, the company assumes the fact that all items in the batch are good enough for public sales.

So you see that statistics do play an important role in your daily life. The subject also has some lucrative career prospects. So do pay special attention to this math topic in school. It might become an invaluable asset for you in future. With that, we’ll bring this article to a close. Hope you had a good read.

Sudipto Das

Sudipto writes technical and educational content periodically for wizert.com and backs it up with extensive research and relevant examples. He's an avid reader and a tech enthusiast at the same time with a little bit of “Arsenal Football Club” thrown in as well. He's got a B.Tech in Electronics and Instrumentation.
Follow him on twitter @SudiptoDas1993

Leave a Comment

Your email address will not be published. Required fields are marked *