Statistics is a science that could be scary for many or perhaps unfamiliar. Others may think it is a mathematical science only for people who love numbers. Statistics is a science present in our daily lives, and behind almost all of the products or services we use or purchase on a daily basis. Without statistics, many aspects of our everyday life couldn’t be possible.
During college, I had to take the required statistics class three times since the theories and models did not make sense to me. When I discovered its practical uses and benefits in the real world, I loved it. Today, I know statistics are used to understand the world around us, make evidence-based decisions, and predict events or behaviors. The world would not function without statistics.
Let’s take a peek at some of the practical benefits and uses of statistics in our daily life:
Weather forecasting: Did you know that it is based on statistics? Some models built on prior weather, plus current weather conditions, predict whether we will have sunny days, snow, or rain.
Insurance: All insurance companies use statistics to predict the probability of getting into a car accident, getting a sick, or needed a repair on a house. They predict the risk of giving insurance. Also, do you know what an actuary is? They are a business professional who uses statistics to estimate the likelihood of future events. Actuaries work in insurance companies, and their models and predictions are essential to the industry.
Medicine: Statistics are at the center of all clinical studies. Before any drugs or vaccines are approved, researchers and scientists use statistics to validate their effectiveness. In addition, doctors predict the probability of getting or curing a disease based on statistics.
Internet: Internet searches and marketing targeting are based on statistics and mathematics concepts. Today, the internet provides a large amount of information, and it is analyzed with statistical models.
Finance: statistics are the primary input to help traders decide how to invest.
Our industry, market research, relies heavily on statistical models. It is used to design quantitative projects and analyze the information to help answer our clients’ questions:
It helps calculate sample size needed for quantitative research.
We use it to validate conclusions between different consumer groups, time periods, products tested, or brands.
It gives the correlation between two different variables, and it helps us answer questions such as: will the ice cream sales increase if the temperature increases? Will soda sales decrease if the price increase? Will consumers prefer an airline company if the loyalty program changes?
Using factor analysis, we can create segments or consumer groups with similar behaviors, thinking, or preferences. It allows companies to design better products, campaigns, and media plans.
No matter whether you are familiar or not with statistics, I invite you to be aware about the benefits and its significance in our daily life. I’m sure that the next time you check the weather, look for an insurance quote, or take medicine, you will be conscious about how statistics help make sense of our lives.
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