why do we need statistics in our daily life

Note: John Sall, co-founder and Executive VP of, discussed why statistics matters on the occasion of the International Year of Statistics in 2013. SAS was a participant in. Sall is the chief architect of JMP. How is statistics essential to everyday life? Most people don't realize how essential statistics is. Daily life is surrounded by the products of statistics. You brush your teeth. The fluoride in the toothpaste was studied by scientists using statistical methods to carefully assure the safety and effectiveness of the ingredient and the proper concentration. The toothpaste was formulated through a series of designed experiments that determined the optimal formulation through statistical modeling. The toothpaste production was monitored by statistical process control to ensure quality and consistency, and to reduce variability. The attributes of the product were studied in consumer trials using statistical methods. The pricing, packaging and marketing were determined through studies that used statistical methods to determine the best marketing decisions. Even the location of the toothpaste on the supermarket shelf was the result of statistically based studies. The advertising was monitored using statistical methods. Your purchase transaction became data that was analyzed statistically. The credit card used for the purchase was scrutinized by a statistical model to make sure that it wasn't fraudulent.


So statistics is important to the whole process of not just toothpaste, but every product we consume, every service we use, every activity we choose. Yet we don't need to be aware of it, since it is just an embedded part of the process. Statistics is useful everywhere you look. Why now? What's new about statistics? Statistics is an emergent discipline that has rapidly adapted to current challenges. In today's era of big data -- where the computer and network are everywhere and everything can be measured -- you need statistics to make that data useful. To learn how a process behaves, you need to conduct experiments. And now we have ways of designing those experiments so that you learn the most from a limited number of experimental runs. To estimate the models, you need tools to refine and validate the models, and the state of the art has much improved for this in the last few years. Also we have much better tools to use the models to optimize processes and make them robust with respect to variation. -- like JMP -- becomes the interface to harness statistical methods. Statistics is not easy, and using the computer can be a challenge. So we view our job as making the experience, the workflow, of analyzing data as easy, as comfortable and as powerful as possible. Do we really trust statistics? Different statistics say different things.


Statistics must be used responsibly. You need good data, and enough of it. Controlled experimental data is best. Selection and confounding biases can easily corrupt the analysis if you don't pay attention to the process that created the data. When you go about doing statistics yourself, you need to learn the problems that can happen. You need to think through the analysis carefully. Some of us learn statistics as part of our education. Some of us learn on the job. Some of us still have a lot to learn. The Statistical methods. Learning how to use them responsibly. Statistical software as the tools of analysis. Using statistical professionals to help us out when needed. What is the purpose of the International Year of Statistics? The purpose of the is to focus awareness of the importance of statistical methods in our world. Statistics has played an increasingly important role in science, in industry, in health and in business. For the past few decades, people have increasingly learned to collect and use data, perform designed experiments, to use evidence instead of intuition to make decisions. With the computer and network revolutions, data is now easy to collect and store. And with modern software, it is comparatively easy to analyze, even when you have a lot of data.
Why statistics are important in our life? Statistics are the sets of mathematical equations that we used to analyze the things.


It keeps us informed about, what is happening in the world around us. Statistics are important because today we live in the information world and much of this informationвs are determined mathematically by. It means to be informed correct data and statics concepts are necessary. To be more specific about the importance of statics in our life, here are 10 amazing reasons that we have heard on several occasions. 1) Everybody watches weather forecasting. Have you ever think how do you get that information? There are some computers models build on statistical concepts. These computer models compare prior weather with the current weather and predict future weather. 2) Statistics mostly used by the researcher. They use their statistical skills to collect the relevant data. Otherwise, it results in a loss of money, time and data. 3) What do you understand by insurance? Everybody has some kind of insurance, whether it is medical, home or any other insurance. Based on an individual application some businesses use statistical models to calculate the risk of giving insurance. 4) In financial market also statistic plays a great role. Statistics are the key of how traders and businessmen invest and make money. 5) Statistics play a big role in the medical field. Before any drugs prescribed, scientist must show a statistically valid rate of effectiveness.


Statistics are behind all the study of medical. 6) Statistical concepts are used in quality testing. Companies make many products on a daily basis and every company should make sure that they sold the best quality items. But companies cannot test all the products, so they use statistics sample. 7) In everyday life we make many predictions. For examples, we keep the alarm for the morning when we donвt know that we will be alive in the morning or not. Here we use statistics basics to make predictions. 8) Doctors predict disease on based on statistics concepts. Suppose a survey shows that 75%-80% people have cancer and not able to find the reason. When the statistics become involved, then you can have a better idea of how the cancer may affect your body or is smoking is the major reason for it. 9) News reporter makes a prediction of winner for elections based on political campaigns. Here statistics play a strong part in who will be your governments. 10) Statistics data allow us to collect the information around the world. The internet is a devise which help us to collect the information. The fundamental behind the internet is based on statistics and mathematics concepts. To know more about the statistics take online math help. Hope these 10 everyday reasons help you to understand the importance of statistics.

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