Top 3 Applications of Statistics

In this article, we will learn how statistical process are performed in different sectors.

There are three kinds of lies – Lies, Damned Lies, and Statistics.

Statistics is the branch of mathematics that transforms data into meaningful results. It deals with data collection, analysis, interpretation, presentation, and organization. Here the data could be qualitative as well as quantitative. 

It is used in many sectors like Business (Finance), Healthcare, Engineering, Environmental Science, and Social Science to make information-based decisions.

In this article, we will explore how statistics is used in 3 different sectors with the help of real-life scenarios.

Application of Statistics

How is Statistics Used in Business?

Problem Statement: Let a skin-care company wants to launch a new moisturizer. But before that, the company wants to ensure that the moisturizers meet customer needs, preferences, and the product’s pricing.

Now, let’s see how the statistical process will be performed.

Marketing Research: The company has to launch a survey (or conduct market research), which involves the collection and analysis of data on customer behavior, preference, and attitude. This data is used to develop marketing strategies and decide about product design, pricing, and distribution.

Sales Forecasting: Statistics is used to forecast future sales based on the above survey, historical data, seasonal patterns, etc. This will help to make decisions about inventory management, production planning, and resource allocation.

Quality Control: Statistical quality control methods are used to monitor quality and to identify defects or production problems. This will help to improve the production process and to ensure that products meet customer experience.

Financial Analysis: Statistics is used to identify financial data trends and predict future financial performance. This will help to make decisions about investment strategies.

A/B Testing: A statistical method compares the effectiveness of different marketing strategies or product designs. This will help to determine which strategy or design is more effective.

How is Statistics Used in Healthcare?

Problem Statement: A pharma company has developed a drug to treat Covid. To ensure the effectiveness, safety, and efficiency of the drug company have to conduct a clinical trial of the drug. Explain what the different statistical processes the company will have to perform.

Study Design: The company has to design a clinical trial (based on the regulatory requirements) and use statistical methods to determine the sample size needed to detect a meaningful difference between the treatment and control groups.

Data Collection: Data is collected from the clinical trial patients. Statistical methods are used to ensure the consistency and accuracy of the data.

Data Analysis: The collected data is analysed to determine the drug’s effectiveness and potential side effects.

Regulatory Approval: Once the data analysis is done, the company uses the statistical evidence and results of data analysis to support the safety and efficiency of the data in the regulatory approvals.

Post-marketing Surveillance: After the approval of the drug, the company continues to collect the data to improve the efficiency of the data. Statistical methods are used to monitor the performance and to identify the potential risks.

How is Statistics Used in Healthcare?

Problem Statement:

Let a group of scientists want to find the relationship between income and happiness. They decided to conduct a survey to collect data on individuals’ income and happiness levels.

List the statistical process that scientists have to follow to get the output.

Sample Design: Design a sampling plan to ensure that the collected sample will best represent the population. Statistical methods are used to determine the sample size and ensure the data’s randomness.

Survey Design: A set of questionnaires to collect data on income and happiness. Statistical methods are used to ensure the reliability and validation of the data.

Data Collection and Analysis: Statistical methods are used to ensure the consistency and accuracy of the data, and then the operations are performed to find the patterns and trends in the collected data.

Inference and Generalization: Inferences are made from the samples to the population. Statistical methods are used to assess the level of uncertainty in the finding.

Conclusion

In this article, we have briefly discussed the application of statistics in three different sectors: Business, Healthcare, and Social Science with the help of scenarios. Hope you will like the article.

Happy Learning!!