Instructions

What are the uses and abuses of Statistics in the real world? Give specific examples and provide
pieces of evidence. Upload your work here in the dropbox.
Uses:
Statistic has been a great use in real world. Statistics plays a vital role in every field of human activity.
Statistics helps in determining the existing position of per capita income, unemployment, population
growth rates, housing, schooling medical facilities and many more.

Here are some of the uses of statistic in real world:

1. Predictions

Statistic helps us to predict something that is going to happen in the future. How accurate this
prediction will depend on many factors. One particular approach is known as predictive inference, but
the prediction can be undertaken within any of the several approaches to statistical inference.
Inferential statistics are used to draw conclusions and make predictions based on the descriptions of
data.

2. Quality Testing

On our day-to-day basis, we conduct quality test to make sure that our purchase is correct and to make
sure that we get the best result from it. Statistical analysis in quality control is where statistical methods
are used to measure, monitor and maintain the overall quality of products. Over time, the results help
processes, such as manufacturing, ensure that the procedures will produce more specification-
conforming products, therefore creating less waste.

3. Weather Forecast

Statistic plays a major role in weather forecasting. The computer that is being use when forecasting is
based on the set of statistics functions. Statistical methods have been used to assess the potential
predictability of climate and weather, to develop schemes for initializing dynamical forecasting models,
for post-processing dynamical forecasts (both to remove biases and to add additional skill), and to
forecast future weather and climate.

4. Emergency Preparedness

As I've said earlier statistic can help to predict thus it can help to be prepared for any incoming
emergencies or disaster that may come. It also helps rescue teams to be prepared to rescue the life of
the people who are in danger.

5. Medical Field

With the use of statistic, we can know how many numbers of people are suffering from a certain disease
and how many of them have died from the same disease. The use of statistics allows clinical researchers
to draw reasonable and accurate inferences from collected information and to make sound decisions in
the presence of uncertainty. Mastery of statistical concepts can prevent numerous errors and biases in
medical research. Psychologist also use statistic, Statistics allow psychologists to present data in ways
that are easier to comprehend. Psychologists use the data they have collected to test a hypothesis.
Using statistical analysis, researchers can determine the likelihood that a hypothesis should be either
accepted or rejected.

6. Government

Government statistics are essential for a democratic government, and they serve to advance businesses
and the well-being of its citizens. Statistical agencies provide accurate, timely, and credible information,
which informs current and future policies. Official statistics provide trustworthy, invaluable insights into
the levels of employment, the incidence of crime, the economy, the health of the population and more.

7. Financial Market

Stock prices are calculated with the help of statistics. It helps the investor to make a decision to invest in
the particular stock. An investor can use statistics to perform research and analysis of the stock market
and determine how to improve the performance of an investment portfolio. Analysts and investors
collect data about companies, industries, sentiment, and market data on price and volume
before making a particular investment decision.

Reference: https://www.slideshare.net/StatAanalytica/top-10-uses-of-statistics-in-our-day-to-day-life

Abuses:
There are times when statistic is being abused. It can be intentional or unintentional. Data abuses
include the incorrect application of statistical tests, lack of transparency and disclosure about decisions
that are made, incomplete or incorrect multivariate model building, or exclusion of outliers.

Here are some of the causes:

1. Misleading Statistics

A data can be misleading sometimes, either intentional or unintentional. It is the misusage - purposeful
or not - of a numerical data. The results provide a misleading information to the receiver, who then
believes something wrong if he or she does not notice the error or the does not have the full data
picture.

In 2007, toothpaste company Colgate ran an ad stating that 80% of dentists recommend their product.
Based on the promotion, many shoppers assumed Colgate was the best choice for their dental health.
But this wasn’t necessarily true. In reality, this is a famous example of misleading statistics.
The ad suggested that dentists preferred Colgate over other toothpaste brands. But the survey asked
them to list several brands of toothpaste they would recommend. The data only showed that Colgate
was one of a number of different brands that dentists liked. Not quite the same claim. The Advertising
Standards Authority concluded the claim on Colgate posters was "misleading" after investigating the
phone survey behind the boast. It found the dentists surveyed were allowed to name more than one
brand

Reference: http://news.bbc.co.uk/2/hi/uk_news/6269521.stm

2. Misleading data visualization

This is a graph from the world of college football. They attempted to graph projected win totals. It can
be a misleading data visualization.

Reference: https://venngage.com/blog/misleading-graphs/

3. Biased samples

Unrepresentative samples, or biased samples, can occur when the means used to conduct the survey fail
to get an accurate representation of the overall population. One way on this is to ask misleading
questions can be intentional or unintentional. It can also be because one fails to understand the sample
that they need to survey. For example, a survey of high school students to measure teenage use of
illegal drugs will be a biased sample because it does not include home-schooled students or dropouts. A
sample is also biased if certain members are underrepresented or overrepresented relative to others in
the population.

Reference: https://en.wikipedia.org/wiki/Sampling_bias

4. Loaded questions

The answers to surveys can often be manipulated by wording the question in such a way as to induce a
prevalence towards a certain answer from the respondent. For example, in polling support for a war, the
questions:

Do you support the attempt by the US to bring freedom and democracy to other places in the world?

Do you support the unprovoked military action by the USA?

A better way of wording the question could be "Do you support the current US military action abroad?"
A still more nearly neutral way to put that question is "What is your view about the current US military
action abroad?" The point should be that the person being asked has no way of guessing from the
wording what the questioner might want to hear. The proper formulation of questions can be very
subtle. The responses to two questions can vary dramatically depending on the order in which they are
asked.

Reference: https://en.wikipedia.org/wiki/Misuse_of_statistics