IMPORTANCE OF STATISTICS

Term Paper Title	IMPORTANCE OF STATISTICS
# of Words	877
# of Pages (250 words per page double spaced)	3.51

IMPORTANCE OF STATISTICS

Statistics is the science of collecting, organizing, and interpreting numerical facts, which we call data. Data bombards us in everyday life. Most of us associate statistics with the bits of data that appear in news reports: baseball batting averages, imported car sales, the latest poll of the president's popularity, and the average high temperature for today. Advertisements often claim that data show the superiority of the advertiser's product. All sides in public debates about economics, education, and social policy argue from data. Yet the usefulness of statistics goes far beyond these everyday examples.

The study and collection of data are important in the work of many professions, so that training in the science of statistics is valuable preparation for a variety of careers. Each month, for example, government statistical offices release the latest numerical information on unemployment and inflation. Economists and financial advisors as well as policy makers in government and business study these data to make informed decisions. Doctors must understand the origin and trustworthiness of the data that appear in medical journals if they are to offer their patients the most effective treatment. Politicians rely on data from polls of public opinion. Market research data that reveal consumer tastes influence business decisions. Farmers study data from field trials of new crop varieties. Engineers gather data on the quality and reliability of manufactured products. Most areas of academic study make use of numbers, and therefore also make use of the method of statistics.

We can no more escape data than we can avoid the use of words. Just as words on a page are meaningless to the illiterate or confusing to the partially educated, so data do not interpret themselves but must be read with understanding. A writer can arrange words into convincing arguments or incoherent nonsense. Similarly, you can manipulate data to be compelling, misleading, or simply irrelevant. Numerical literacy, the ability to follow and understand numerical arguments is important for everyone. The ability to express oneself numerically, to be an author rather than just a reader is a vital skill in many professions and areas of study. The study of statistics is therefore essential to a sound education. We must learn how to read data, critically and with comprehension; we must learn how to produce data that provide clear answers to important question; and we must learn sound methods for drawing trustworthy conclusions based on data as well as acquire ability to effectively communicate valid conclusions. Statistics teaches you how to gather, organize, and analyze data, and then to infer the underlying reality from these data. It is a powerful intellectual method that is applied in many contexts and most disciplines....

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