Running Head: IMPORTANCE OF STATISTICS IN DAILY LIFE 1

IMPORTANCE OF STATISTICS IN DAILY LIFE

IMPORTANCE OF STATISTICS IN DAILY LIFE 2

Abstract

The given assignment of this week is related with the study of this 3 weeks of the statistics where

it includes three chapters i.e. Introduction and Data Collection, Describing Data: Frequency

Tables, Frequency Distributions, and Graphic Presentation and the last chapter that we read third

week is Describing Data: Numerical Measures. This paper also includes the asked question to be

solved, that is the solution of 4 problems which has asked to find the GM. Moreover, it includes

the real life examples of the concepts of statistics being applied in the business-world today. At

the end, I have concluded it with the ethical issues which might arise while performing the

statistics.
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30.) Solution,

For the given,

Value at the starting period = 14968000

Value at the ending period = 99000000

Now,

GM = 14√ 99000000/14968000 - 1

= 14√ 6.6141 - 1

= 0.1444

= 14.4%

Therefore, the GM annual increase for the period is 14.4%.

31.) Solution,

Given,

Value in 2000 = 172.2

Value in 2012 = 229.6

Now,

GM = 12√ 229.6 /172.2 – 1

= 12√ 1.33 – 1
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= 1.0240 – 1

= 0.024

= 2.4%

32.) Solution,

Given,

Value in 2002 = $635.2 million

Value in 2012 = $3788.0 million

Now,

GM = 10√ 3788.0 /635.2 - 1

=10√ 5.9634 – 1

= 0.1995

= 19.5%

33.) Solution,

Given,

Value in 1985 = 340213

Value in 2012 = 327577529

Now,

GM = 27√ 327577529 /340213 -1

IMPORTANCE OF STATISTICS IN DAILY LIFE 5

= 27√ 962.8611 - 1

= 0.28974

= 28.97

In the course of these three weeks, we studied three different chapters related to introduction and

data collection, describing data which includes frequency tables, frequency distributions, and

graphic presentation, and describing data which includes numerical measures. I will be

beginning with the summary of the first chapter.

Introduction and Data Collection:

Statistics is the branch of science which deals with the collection, analysis, and

interpretation of numerical data[ CITATION UCI \l 1033 ]. There is systematic study of

structure and processes. The process starts from collecting data, analyzing it and then

interpreting it. The entire function of statistics is to simplify complex data. There are two types

of statistics. They are inferential statistics and descriptive statistics.

Descriptive statistics is a method of organizing, summarizing, and presenting data in the

informative way. We have all the data, like how much inventory we keep? How many customers

come to our store? In which moth has it been more? On what day of the week it occurs more?

Which products are usually sold more at what point of time? On what are product sold more?

What kind of customers comes? All these questions based on data are answered by descriptive

statistics.

The statistics where we take a sample, or a small subset of a larger set of data and then

use that sample to draw inferences about the population as a whole is known as inferential
IMPORTANCE OF STATISTICS IN DAILY LIFE 6

statistics. For example, a student in the nursing program wanted to know the average starting

salary of the registered nurses. Since the student does not know the average starting salary of

registered nurses, she can take a random sample of registered nurses starting salaries and use a

confidence interval to estimate value.

Till this week, I learned that statistics is all about the methods of collecting the data; it

helps me in the process of doing the research activities. In my career, it will help me to analyze

and organize the data and information. It will be helping me to interpret the data and draw the

conclusion form the collected data or information. In this first chapter, I learned the importance

of statistics in our daily life, the types of statistics as explained above, the sources of data

(primary data and secondary data), and many more things.

Suppose if I am running a business an online cloud selling company and I want to send a

campaign to my customers. To a certain set of customers, I send a campaign, to others I do not

and I want to know whether the customers are going to buy based on campaign or not, if the

campaign was effective or not? How do I design that experiment? How do I figure out whom to

send, how many to send? To answer all these questions we need statistics.

Chapter 2: Describing Data: Frequency Tables, Frequency Distributions, and Graphic

Presentation:-

The second week, we learned the second chapter where we studied all about the describing data.

It includes the frequency tables, graphic presentations, and frequency distributions. After

studying this chapter I was helped to search the more things about the statistics. In this chapter, I

learned how to use the graphs and charts and how to summarize the data in the graphical form.
IMPORTANCE OF STATISTICS IN DAILY LIFE 7

Pie chart, also sometimes known as pie graphs are used to illustrate the proportion or ratio (2:3)

of data as part of a whole / group. Bar graphs are used to represent nominal data on an interval

scale and to make comparisons. Grouping is used when the data we have I very large and the

groups are called class intervals. Similarly, histogram uses vertical contiguous bars to represent

frequency, so we use this once we have frequency distributions. The contiguous part means our

bar should always be touching.

Frequency polygon is a graph where we use lines that cannot connect to points plotted for the

frequencies at the class midpoints. So rather than vertical bars or anything like that, we just

connect some lines. And the other important thing here is this should start and end on the x-axis.

In the same way, the graph which represents the cumulative frequency rather than just the

frequency is known as ogive. It starts as similar to frequency polygon in sense that we plot the

cumulative frequency and then connect the dots. However, it also starts on the x-axis but it does

not end on the x-axis. So that is one difference between ogive and frequency polygon.

The learning of this second chapter helped me to understand that collecting the data is not

enough; we need to have prior knowledge about describing the data, using the frequency

polygons, tables, graphs, which will help us in the process of decision making. For example, I

am working in ABC Company which is a clothing industry; here I must have the good

knowledge about the categorical and quantitative data to analyze the given data in order to be a

successful sales data analyzer.

Chapter 3: Describing Data: Numerical Measures:-

The third chapter that we learned is all about the central tendency, mea, median and mode,

variance, standard deviation, measure of dispersion. As we have studied mathematics from the
IMPORTANCE OF STATISTICS IN DAILY LIFE 8

school level, we know that mean is the average of the given data sets, median is the point which

divides the data sets in two equal parts. It is the central point whereas mode is the highest

repeated value in a data set. In a data set, we can find more than one mode, but we cannot find

more than one mean and median. For example, in ABC Company, in order to calculate the profit

and tax rate, we use median because median gives the perfect tax according to the total income

and profit of the organization.

The measure of dispersion follows the measure of central tendency. So the common measures of

dispersion are standard deviation and variance. Dispersion is the degree of variation in the data.

It helps to determine the spread of values from a measure of central tendency. It helps to excess

the extent to which values in a distribution differ from the average of the distribution.

In this chapter we also learned about the ethical issues in statistics. There should be truth and

honestly in collecting, summarizing, analyzing and interpreting the data. It should be valid and it

should be reliable. It should be unbiased not supporting a particular age, race, and religion.

Conclusion

Hence, in this three weeks I learned many things about statistics where I got to know that we

have to be very careful while collecting the data and analyzing it. I learned to present the data in

graphical way and these chapters taught me about the histograms, why mean is important than

median, the importance of mean, median and mode. It taught me to convert the raw data into

continuous class interval.

References:

Lind, D. A., Marchal, W. G., & Wathen, S. A. (2015). Statistical Techniques in Business and

Economics (16th Ed.). New York: Mc Graw hills.

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Statisticians, T. A. (2017, 10 1). The Importance of Teaching Ethics in Statistical Consulting

Courses. Retrieved from Amstat: http://news.amstat.org/blog/2017/09/01/ethics-2

Brownlee, J. (2018, June 27). what-is-statistics. Retrieved September 16, 2018, from

machinelearningmastery: https://machinelearningmastery.com/what-is-statistics/

Statisticshowto. (n.d.). descriptive-statistics/pie-chart. Retrieved September 16, 2018, from

statisticshowto: http://www.statisticshowto.com/probability-and-statistics/descriptive-

statistics/pie-chart/

UCI Department of Statistics . (n.d.). Retrieved from What is Statistics? - Department of

Statistics - UCI: https://www.stat.uci.edu/what-is-statistics/