Statistics is the discipline that concerns the collection, organization, analysis, interpretation, and presentation of data. In applying statistics to a scientific, industrial, or social problem, it is conventional to begin with a statistical population or a statistical model to be studied.
What Is Statistics?
Statistics is a branch of applied mathematics that involves the collection, description, analysis, and inference of conclusions from quantitative data. The mathematical theories behind statistics rely heavily on differential and integral calculus, linear algebra, and probability theory. Statisticians, people who do statistics, are particularly concerned with determining how to draw reliable conclusions about large groups and general events from the behavior and other observable characteristics of small samples. These small samples represent a portion of the large group or a limited number of instances of a general phenomenon.
The two major areas of statistics are known as descriptive statistics, which describes the properties of sample and population data, and inferential statistics, which uses those properties to test hypotheses and draw conclusions.
Some common statistical tools and procedures include the following:
- Descriptive
- Mean (average)
- Variance
- Skewness
- Kurtosis
- Inferential
- Linear regression analysis
- Analysis of variance (ANOVA)
- Logit/Probit models
- Null hypothesis testing
KEY TAKEAWAYS
- Statistics is the study and manipulation of data, including ways to gather, review, analyze, and draw conclusions from data.
- The two major areas of statistics are descriptive and inferential statistics.
- Statistics can be used to make better-informed business and investing decisions.
