How is statistics important in Economy and economic planning?
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The following quote from the World Bank provides a good starting point to the sub-topic: “Why do statistics matter? In simple terms, they are the evidence on which policies are built. They help identify needs, set goals, and monitor progress. Without good statistics, the development progress is blind: policy makers cannot learn from their mistakes, the public cannot hold them accountable”.
Statistics is a mathematical science involving the collection, analysis, and interpretation of data, as well as the effective communication and presentation of results relying on data. Through application of various tools and techniques in statistics, the raw data becomes meaningful and generates the information for decision making purpose. Statistics is very important when it comes to the conclusion of research. Statistical methods and analyses are often used to communicate research findings and give credibility to research findings and conclusions. It is important for the users of research to understand statistics so that they can be informed, evaluate the credibility and usefulness of information, and make appropriate decisions.
Today, statistical methods are applied in most of the fields that involve decision making, for making accurate inferences from arranged data. Evidence-based policy has been defined as an approach which “helps people make well informed decisions about policies, programmes and projects by putting the best available evidence at the heart of policy development and implementation” (Davies, 1999). Different evidence based policies of the government are based on statistics. For instance, statistics holds a central position in fields like industry, commerce, trade, economics, biology, astronomy, etc., hence application of statistics is very wide.
Specialties have evolved to apply statistical theory and methods to various disciplines. For example, Econometrics is a branch of economics that applies statistical methods to the empirical study of economic theories and relationships; Business analytics is a rapidly developing business process that applies statistical methods to data sets to develop new insights and understanding of business performance and opportunities; Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries, etc. Further, the use of modern computers has expedited large-scale statistical computations, and has also made possible new methods that are impractical to perform manually. Statistics continues to be an area of active research, for example on the problem of how to analyse big data.
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Statistics is a mathematical science involving the collection, analysis, and interpretation of data, as well as the effective communication and presentation of results relying on data. Through application of various tools and techniques in statistics, the raw data becomes meaningful and generates the information for decision making purpose. Statistics is very important when it comes to the conclusion of research. Statistical methods and analyses are often used to communicate research findings and give credibility to research findings and conclusions. It is important for the users of research to understand statistics so that they can be informed, evaluate the credibility and usefulness of information, and make appropriate decisions.
Today, statistical methods are applied in most of the fields that involve decision making, for making accurate inferences from arranged data. Evidence-based policy has been defined as an approach which “helps people make well informed decisions about policies, programmes and projects by putting the best available evidence at the heart of policy development and implementation” (Davies, 1999). Different evidence based policies of the government are based on statistics. For instance, statistics holds a central position in fields like industry, commerce, trade, economics, biology, astronomy, etc., hence application of statistics is very wide.
Specialties have evolved to apply statistical theory and methods to various disciplines. For example, Econometrics is a branch of economics that applies statistical methods to the empirical study of economic theories and relationships; Business analytics is a rapidly developing business process that applies statistical methods to data sets to develop new insights and understanding of business performance and opportunities; Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries, etc. Further, the use of modern computers has expedited large-scale statistical computations, and has also made possible new methods that are impractical to perform manually. Statistics continues to be an area of active research, for example on the problem of how to analyse big data.
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