Learning and working with statistics can be challenging, especially as the amount of data we have continues to skyrocket. In the last two years alone, the global population generated 90% of all the known data, and this pace is showing no signs of slowing. Quite the opposite.
Looking at a report of data creation each minute in the world, we find, on average, 46,740 pieces of new content on Instagram and 16 million new texts. It’s no wonder that fields like data analytics and data science have seen unstoppable job market growth.
This is why it is important to understand the different skill sets needed in data analysis. And how we use these skills in statistical analysis every day.
Probability and Inference in Everyday Life
Probability is one of the major foundations of applied statistics. Specifically, how probability uses Baye’s Theory when forecasting events. You can learn probability as it is a core part of any online statistics course.
Fair warning, though: if you’re curious about the theoretical and computational aspects of Bayesian probability, you’ll need math skills.
But this theorem's most important takeaway is what it emphasizes about the goal of statistics as a discipline. Namely, to find patterns and then, effective use of these patterns to make statistical predictions.
You hear the outcome of those predictions every day. Predictions that you use to ameliorate life, such as weather reports and maybe those from financial markets.
You don’t have to be a statistician or a researcher to analyse weather forecasts. Hypothesis testing forms the framework for these kinds of reports; frameworks built on a statistical software platform to study vast datasets.
Meteorologists use statistical inference to find patterns in weather data from previous years. They study this data and use statistical methods to inform their decision-making.
Deciding what you wear every day mirrors statisticians and their methodology of creating weather reports. But even without weather forecasts, populations use their powers of prediction to guess today's weather based on yesterday's conditions.
We also draw on our lifetimes of experience. We know a leaden sky will likely bring rain and when birds fly low to the ground, better have that umbrella ready.
Investors and businesses rely on statistics and mathematical analytics to analyse financial markets. Such individuals use financial data, business statistics and accounting principles to calculate risk before investing.
Businesses and governments deploy these strategies as well, using statistical estimation to make marketing and financial decisions.
When you learn statistics, you can apply these techniques across the full spectrum of economic activity. For instance, labour offices track unemployment statistics and governments track census statistics across all demographics. The next time you buy some over-the-counter medicine or fill a prescription, remember that quantitative data analysis also drives the pharmaceutical industry.
New drug trials call for collecting huge stacks of data and using statistical methods to study and analyse it all. Trials for new drugs, including marketing surveys, sampling a population, and forming hypotheses all result in new data. This field makes up an important branch of statistics called bio-statistics.
Professionals in this field study the data from these trials to find how effective the new drug is.
Marketing a new drug is a time-consuming process that demands careful data analysis. For this career alone, you might be interested in knowing more about studying data science.
And as you learn basic statistics, you'll be astounded at how much data you take in every day. Not just from your courses but from newspapers to your favourite media.
Learn About Your Economy In-Depth
Chances are you take in statistics daily. Do you read or listen to the news? Much of what drives those reports revolves around economics, statistics and risk. Econometrics, as this practice is called, is one of the most important cross-disciplinary subjects involving statistics.
This mix of economic statistics and risk uses economic data to model future economic policy decisions for governments and businesses. Economic data forms the core of econometrics which news media report on every day. Such reports range from agricultural and population data to a country’s budget information.
These measurements of growth include variables like income statements, dietary consumption, tax information and university graduation rates. All of these data points help agencies predict what the economic future will look like. Econometrics' main takeaway is that they have profound social ramifications.
In Australia, for example, government officials use econometrics when making decisions on this year's budget for government spending.
We see econometrics at work across a range of government offices. These statistics help officials decide the policies on health, using data such as weight, income and diet. These analyses help them make decisions about foods made in or entering Australia.
Customers and governments rely on statistical and economic analyses to make political and fiscal decisions. Understanding how governments use this data to shape policy and spending isn't hard.
But the general population needs this type of information, too. It would be so much easier for people to navigate financial crises if they understood government policies.
How to Use Statistics to Improve Everyday Life
If you’ve ever used a platform or device to help you manage your life, you are using statistics. We find the physical and financial benefits of using statistics in the effective analysis of our personal data.
Apps like Runkeeper and Mint, and wearables like Fitbit make this analysis simple. For example, many people want to make lifestyle changes to get healthier, which every marketing study shows happens around New Year's.
Studies report that having a platform geared towards an active lifestyle can help you keep resolutions related to your physical health. By using your own data, you can track your progress as you exercise to help you reach your fitness goals.
This also applies to people striving for health in other areas of their lives.
Statistics show an increase in downloads of healthy eating apps. These apps don’t just include meal plans and healthy recipe guides. They provide tools to help you lose, gain or maintain a healthy weight and lifestyle. Utilising statistics in this way shows how decision-making based on one's own personal data can help improve physical and mental health.
Budgeting apps have also proven effective when trying to make important personal changes. Such a platform uses individuals’ financial and bank information to keep track of expenses and analyse spending patterns. These apps are effective when making decisions on what to spend during the month or year.
But these kinds of analyses are even more impactful when trying to identify unhealthy spending behaviours. For example, your budgeting app might let you see that you spend 20% of your monthly income shopping sales.
You know by experience that you never have money for food at the end of the month. So you can make effective decisions based on this information that leads to healthier spending habits.
Have Fun When You Learn Basic Statistics
Using statistics doesn't just increase benefits to your personal life and well-being. When you learn statistics, you can better understand the world we live in. Statistics find applications across businesses, politics, and the population. If you learn even basic statistics, you'll come to more effective resolutions.
It’s also incredibly fun to learn about how various bodies use data. Especially when it comes to descriptive statistics like the amount of alcohol consumed in the US in 2006 was enough to fill Wembley Stadium five times. You can also use statistics to shed new light on ideas you’ve already formed about the population. For example, many people are under the impression those who don’t graduate and end up destitute should bear the risk of their decisions.
A bit of research into why the population from poorer areas don’t graduate at the same rates as wealthier regions paint a different picture. When you look into those numbers, you challenge the ways you formed your opinions.
When you learn basic statistics through a good data science course, you'll get an effective look at the bigger picture in situations you'd like to learn more about.
This captures the most important aspect of learning statistics. Discovering how data affects our lives leads to questioning the world around us in positive ways. Questioning the world around us will always increase knowledge and expand the ways we think.
It is important to remember that data, on its own, means nothing; a data scientist or statistician must interpret those data. They must put those numbers into some sort of context. They might use tools to visualise that in a report or graph form.
Then, customers will know what the data represent.
Interpreters are always biased, whether towards the businesses they work for, the government, or through their personal biases. No matter how hard interpreters try not to prejudice their work, the population must take every statistical report with a grain of salt.
After all, how many times have you made a decision based on a media report only to be caught out? This is why learning the difference between statistics and data science can be extremely beneficial.
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