Statistics refer to facts or observations that are suitable for numerical expression.
Examples: Exchange rates in the money market, unemployment and inflation figures, number of births, deaths, marriages, etc.
Descriptive (Applied) Statistics
This deals with the methods of illustrating the mass of data in order to provide more precise information that is capable of being readily assimilated or used in decision making This part provides a clear and useful description of the data.
Inferential (or Mathematical) Statistics
This is concerned with methods of refined analysis used in estimations generalization or reaching decisions based on sample observation using the theory of probability.
Inferential statistics provide a useful tool for the analysis of business and economic problems.
Uses of Statistics
- Decision-Making: The primary purpose of statistics is to facilitate the decision-making process
- Planning: The estimates provided through statistical analysis that is essential to the government and the industry alike when they are formulating plans for the future.
- Forecasting: Figures have been universally accepted as a guide to effective management.
- Quality Control: Statistical techniques are extensively employed in industries to control the quality of products to ensure that poor quality of products are not sent into the markets.
The Importance of statistical Data in Specific Areas
- Business: Almost every aspect of business makes use of statistical data.
- Stock Control: Floating the right amount of stock is of utmost importance.
- Market and Marketing Research: Statistical data helps gauge the market in order to make decisions affecting what to sell, in what quantities, when, and where to sell what.
- Forecasting: Statistical data are needed for better assessment of the economic situations when forecasting future prospects.
- Industry: The production of marketing goods of adequate and acceptable quality presents serious problems to the industry.
- Insurance: There are some important factors that enable the financial risks of an insured item to be correctly assessed.