**Applications of statistics :**

Among various applications of statistics, let us confine our discussions in the following fields.

Now, let us discuss the application of statistics in the above fields in detail.

Modern developments in Economics have the roots in statistics. In fact, Economics and Statistics are closely associated.

Time Series Analysis , Index Numbers, Demand Analysis etc. are some overlapping areas of Economics and statistics. In this connection, we may also mention Econometrics – a branch of Economics that interact with statistics in a very positive way.

Conducting socio-economic surveys and analysing the data derived from it are made with the help of different statistical methods.

Regression analysis, one of the numerous applications of

statistics, plays a key role in Economics for making future projection of demand of goods, sales, prices, quantities etc. which are all ingredients of Economic planning.

Gone are the days when the managers used to make decisions on the basis of hunches, intuition or trials and errors.

Now a days, because of the never-ending complexity in the business and industry environment, most of the decision making processes rely upon different quantitative techniques which could be described as a combination of statistical methods and operations research techniques.

So far as statistics is concerned, inferences about the universe from the knowledge of a part of it, known as sample, plays an important role in the development of certain criteria.

Statistical decision theory is another component of statistics that focuses on the analysis of complicated business strategies with a list of alternatives – their merits as well as demerits.

In this age of cut-throat competition, like the modern managers, the industrialists and the businessmen are expanding their horizons of industries and businesses with the help of statistical procedures.

Data on previous sales, raw materials, wages and salaries, products of identical nature of other factories etc are collected, analysed and experts are consulted in order to maximise profits.

Measures of central tendency and dispersion, correlation and regression analysis, time series analysis, index numbers, sampling, statistical quality control are some of the statistical methods employed in commerce and industry.

Even though we have various applications of statistics, there are some limitations too.

Now, let us look at the limitations of statistics.

Before applying statistical methods, we must be aware of the following limitations :

1. Statistics deals with the aggregates. An individual, to a statistician has no significance except the fact that it is a part of the aggregate.

2.
Statistics is concerned with quantitative data. However, qualitative
data also can be converted to quantitative data by providing a numerical
description to the corresponding qualitative data.

3. Future projections of sales, production, price and quantity etc. are possible under a specific set of conditions. If any of these conditions is violated, projections are likely to be inaccurate.

4. The theory of statistical inferences is built upon random sampling. If the rules for random sampling are not strictly adhered to, the conclusion drawn on the basis of these unrepresentative samples would be erroneous. In other words, the experts should be consulted before deciding the sampling scheme.

After having gone through the stuff given above, we hope that the students would have understood "Application of statistics".

Apart from the stuff given above, if you want to know more about "Application of statistics", please click here

Apart from the stuff given on this web page, if you need any other stuff in math, please use our google custom search here.

HTML Comment Box is loading comments...

You can also visit our following web pages on different stuff in math.

**WORD PROBLEMS**

**Word problems on simple equations **

**Word problems on linear equations **

**Word problems on quadratic equations**

**Area and perimeter word problems**

**Word problems on direct variation and inverse variation **

**Word problems on comparing rates**

**Converting customary units word problems **

**Converting metric units word problems**

**Word problems on simple interest**

**Word problems on compound interest**

**Word problems on types of angles **

**Complementary and supplementary angles word problems**

**Trigonometry word problems**

**Markup and markdown word problems **

**Word problems on mixed fractrions**

**One step equation word problems**

**Linear inequalities word problems**

**Ratio and proportion word problems**

**Word problems on sets and venn diagrams**

**Pythagorean theorem word problems**

**Percent of a number word problems**

**Word problems on constant speed**

**Word problems on average speed **

**Word problems on sum of the angles of a triangle is 180 degree**

**OTHER TOPICS **

**Time, speed and distance shortcuts**

**Ratio and proportion shortcuts**

**Domain and range of rational functions**

**Domain and range of rational functions with holes**

**Graphing rational functions with holes**

**Converting repeating decimals in to fractions**

**Decimal representation of rational numbers**

**Finding square root using long division**

**L.C.M method to solve time and work problems**

**Translating the word problems in to algebraic expressions**

**Remainder when 2 power 256 is divided by 17**

**Remainder when 17 power 23 is divided by 16**

**Sum of all three digit numbers divisible by 6**

**Sum of all three digit numbers divisible by 7**

**Sum of all three digit numbers divisible by 8**

**Sum of all three digit numbers formed using 1, 3, 4**

**Sum of all three four digit numbers formed with non zero digits**