statistics is a method of decision making in the face of uncertainty on the basis of numerical data and calculated risk. Explain with suitable illustration
Answers
Step-by-step explanation:
According to Chao, “Statistics is a method of decision-making in the face of uncertainty on the basis of numerical data and calculated risks.” Hence, statistics provides information to businesses which help them in making critical decisions. Further, in Industry, Statistics helps in the field of Quality Control.
Answer:
The world is full of uncertainty : accidents, storms, unruly financial markets, noisy communications. All activities are subject to uncertainty and managing uncertainty leads to better decision making which can only be done by managing statistical thinking . Statistical thinking is based on understanding and reducing variation which gives rise to uncertainty .The world is also full of data. Statistics is an approach for overall improvement by thinking and working towards organizing the numerical data and analysing it to draw useful inferences considering all the risks involved. Statistics is designed to organize infinite quantities of data obtained from various sources. Statistical measures can be used to summarize all these data sets. Data arranged in a meaningful way is known as information . Analysing the information helps us to draw useful inferences. Statistics is converting data into information , and conversely information into knowledge . Probabilistic modeling and the related field of statistical inference are the keys to analysing data and making predictions. Probability is method of quantifying uncertainty . Probability ranges between 0 (no chance) and 1 (certain) . But, probabilities greater than 0 and less than 1 indicate level of uncertainty of occurrence of event. Uncertainty in a variable is best expressed as probability distribution – probabilities of different possible values of variable.