Statistics are a huge part of daily life and can be see in the daily routine of life regularly. Here are 5 examples of where statistics can be seen daily.
The Stock Market
Even though we may not see the stock market on a daily basis, it is a major influencer on the performance and environment of our economy. Stock analysts and financial professionals use statistics regularly to predict, model, and understand how the economy is performing and where there could be potential risks or major rewards. If you watch the news or a show talking about the stock market, you will see a lot of references to statistical analysis and financial data crunching to back the information they are sharing. This is a great example of how statistics affects our overall economy.
Each morning when you wake up and ask Alexa (or Google!) for the weather forecast, she is sharing with you a prediction that was made using detailed weather models and predictive analytics from years of historical data collected on the weather during the season or time of year. Meteorologists are charged with helping to record and analyze this information to make more informed weather predictions. As our ability to create computer programs that can effectively analyze all the data we have on weather quickly, meteorologists are able to make more accurate weather predictions based on the historical outcomes of the past.
When an insurance company decides to insure your home, your car, or even your life, they are utilizing a multitude of statistical sources to know what risk you present to them and how much they should charge you for that coverage. Based on your age, gender, location, and a lot of additional factors, they can know the risk of them having to pay a claim regarding your property based on the historical data they have collected on millions of other customers requiring coverage. Insurance is very statistically based and for good reason as they are on the line for paying off large sums of money if anything were to happen to you or your property.
The Medical Field
This one is a bit more broad because statistics comes into play in just about every aspect of medicine. From drug trials to the likelihood of a procedure being successful, healthcare organizations and insurance companies collect tons of data in order to know how to predict the outcome of a medical decision. In addition, statistics provide insight into specific disease states so that physicians and researchers can focus on the right pieces of a disease to help people in the future who are affected by it. Statistics is a great tool to ensure that professionals are focusing their efforts on the diseases that are affecting the most people or a medication that could change millions of lives.
Store Inventory (Supply Chain)
Organizations like Amazon and Walmart use statistics to ensure their supply of products and goods meet the demand of their clients. By collecting detailed data on every item that is bought, shipped, and potentially returned, they know how much inventory they need in a certain city or location of the world to meet the demand. They also know which items are most popular for specific demographics which also supports their marketing efforts to increase their overall sales. So, not only are they saving money by closely watching their supply chain, but they are able to use the same information to bring more revenue in the door. Statistics are on both sides of the supply and demand equation.
We hope you learned a little bit about where statistics can be seen in your daily life! Please share our post on Pinterest or Facebook if you liked it!