Richmond L.

Alas MATHECO – AEC2

Though all of the types of math in economics are important, I think the statistics
plays a major role in economics because statistics helps in the study of market structure
and understand the different economic problems. After a better understanding of the
economic problems, statistics also help in solving those issues by formulating
appropriate economic policies. As statistics is a mathematical study that focuses on the
collection, sorting and analysis of sets of data it allows a mathematician/economist to
assess a population represented within the data. Every economics branch takes the
help of statistics to prove different economic theories. One can also establish a
mathematical relationship with the help of statistics. Economists can present the facts of
economics precisely and they can also determine the cause-and-effect relationship
between different data sets with the help of statistics. Statistics also help in formulating
different economic laws such as the Law of Demand, Law of Supply, Elasticity of
Demand, Elasticity of Supply, etc., it is also important to take note that an economy
faces different economic problems such as unemployment, poverty, and so much other
economic problems, with the help of statistics, and the help of different techniques and
tools, help an economy in understanding and solving these economic problems
efficiently. Statistics also help a business in the production planning process to ensure a
proper balance between the supply and demand for a good or service offered by the
firm. Different statistical techniques help a business in the analysis of purchasing power,
consumer wants, pricing, population, etc., to understand the potential of the target
market for their service or product. I conclusion, I the reason why I think the study of
statistics is the most important type of math in economics because without it, an
economy could not rise, or it can even collapse.