I’m pretty sure each and everyone of us actually asked ourselves deep down: why do we learn statistics-what’s the point of studying this?
Just like the field of Maths, many ponder on the existence of the real-world applications that Statistics topics has to offer to its graduates.
Below, we’ll show you their significance and how you’re able to apply them hands on in real life!
1) Data Description in Sales Tracking
Retail companies often use descriptive statistics such as the mean, median, mode, standard deviation, and interquartile range to track the sales behavior of certain products.
This gives companies an idea of how many products they can expect to sell during different time periods and allows them to know how much they should keep in inventory.
2) Probability in Health Insurance
Health insurance companies often use statistics and probability to determine how likely it is that certain individuals will spend a certain amount on healthcare each year.
For example, an actuary at a health insurance company might use factors like age, existing medical conditions, current health status, etc. to determine that there’s a 80% probability that a certain individual will spend $10,000 or more on healthcare in a given year.8
3) Probability Distribution in Scoring That Best Seat
Have you noticed in sporting events, a lot of seats can be left empty in the best seating area? Actually, those are for season ticket holders.
Through probability, we can build a model to predict when a season ticket holder might not show up for the game, where those seats can be upgraded to any sporting fan by charging an additional fee and hence association can profit from it.
It will be a win-win situation for both a fan who is supposed to sit in a faraway place and for the association that made money out of empty seats.
4) Hypothesis Testing in Clinical Trials
In a hypothesis testing, an analyst tests a statistical sample, with the goal of providing evidence on the plausibility of the null hypothesis.
Hypothesis tests are often used in clinical trials to determine whether some new treatment, drug, procedure, etc. causes improved outcomes in patients.
For example, suppose a doctor believes that a new drug is able to reduce blood pressure in obese patients. To test this, he may measure the blood pressure of 40 patients before and after using the new drug for one month.
5) Permutation & Combination
Arranging people, digits, numbers, alphabets, letters, and colours are examples of permutations. Not many people know that it is applicable in communication networks. Routing different permutations on a network for performance evaluation is a common problem in these fields.
Many communication networks require secure transfer of information, which drives development in cryptography and network security . This area has recently become particularly significant because of the increased use of internet information transfers.
Combinations, on the other hand, can be the selection of menu, food, clothes, subjects as well as routes. As a mailman or a courier, combinations are highly useful for finding the shortest way to deliver packages and parcels to their recipients.
National Statistics Competition 2022
If you’re able to understand the above and are interested in the world of statistics, do join in National Statistics Competition 2022!
The School of Mathematical Sciences and Mathematical Sciences Society of Universiti Sains Malaysia, in collaboration with Persatuan Sains Matematik Malaysia (PERSAMA), will be organizing the National Statistics Competition 2022 (NSC 2022) on the 3rd September 2022 (Round 1) and 24th September 2022 (Final Round – Round 2).
It is open to Malaysian youths who are aged 17-21,aiming to cultivate the interest of students towards Statistics, as well as to encourage and enhance their critical thinking skills.
Pre-university students (STPM, Matriculation, Foundation, A-Levels, etc.), Diploma students as well as undergraduates are able to sign themselves up for a game of statistics and wits.
The competition’s registration will be opened from 1st June 2022 till 14th August 2022 with a participation fee of RM20. Do grab the chance to win prizes worth RM1500 and above by registering yourself now at https://bit.ly/usmnsc2022!
The topics involved are: wait for it… Data Description, Probability, Probability Distribution, Hypothesis Testing, and Permutation & Combination!
For more information, please visit the NSC Facebook page: https://www.facebook.com/USMnsc/ or official website: https://sites.google.com/view/nationalstatisticscompetition/
For registration inquiries, please contact Miss Joyce Chua (017-2954833) or Miss Liau Ling Yee (016-8692853) or email email@example.com. For inquiries concerning the event itself, please do not hesitate to contact Miss Sydney Lim (010-3722634) or Mr Chua Jing Ting (019-4880978).
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