Statistics are sets of mathematical equations that are used
to analyze what is happening in the world around us. You've heard that today we
live in the Information Age where we understand a great deal about the world
around us. Much of this information was determined mathematically by using
statistics. When used correctly, statistics tell us any trends in what happened
in the past and can be useful in predicting what may happen in the future.
Let's look at some examples of how statistics shape your
life when you don't even know it.
1. Weather Forecasts
Do you watch the weather forecast sometime during the day?
How do you use that information? Have you ever heard the forecaster talk about
weather models? These computer models are built using statistics that compare
prior weather conditions with current weather to predict future weather.
2. Emergency Preparedness
What happens if the forecast indicates that a hurricane is
imminent or that tornadoes are likely to occur? Emergency management agencies
move into high gear to be ready to rescue people. Emergency teams rely on
statistics to tell them when danger may occur.
3. Predicting Disease
Lots of times on the news reports, statistics about a
disease are reported. If the reporter simply reports the number of people who
either have the disease or who have died from it, it's an interesting fact but
it might not mean much to your life. But when statistics become involved, you
have a better idea of how that disease may affect you.
For example, studies have shown that 85 to 95 percent of
lung cancers are smoking related. The statistic should tell you that almost all
lung cancers are related to smoking and that if you want to have a good chance
of avoiding lung cancer, you shouldn't smoke.
4. Medical Studies
Scientists must show a statistically valid rate of
effectiveness before any drug can be prescribed. Statistics are behind every
medical study you hear about.
5. Genetics
Many people are afflicted with diseases that come from their
genetic make-up and these diseases can potentially be passed on to their
children. Statistics are critical in determining the chances of a new baby
being affected by the disease.
6. Political Campaigns
Whenever there's an election, the news organizations consult
their models when they try to predict who the winner is. Candidates consult
voter polls to determine where and how they campaign. Statistics play a part in
who your elected government officials will be
7. Insurance
You know that in order to drive your car you are required by
law to have car insurance. If you have a mortgage on your house, you must have
it insured as well. The rate that an insurance company charges you is based
upon statistics from all drivers or homeowners in your area.
8. Consumer Goods
Wal-Mart, a worldwide leading retailer, keeps track of
everything they sell and use statistics to calculate what to ship to each store
and when. From analyzing their vast store of information, for example, Wal-Mart
decided that people buy strawberry Pop Tarts when a hurricane is predicted in
Florida! So they ship this product to Florida stores based upon the weather
forecast.
9. Quality Testing
Companies make thousands of products every day and each
company must make sure that a good quality item is sold. But a company can't
test each and every item that they ship to you, the consumer. So the company
uses statistics to test just a few, called a sample, of what they make. If the
sample passes quality tests, then the company assumes that all the items made
in the group, called a batch, are good.
10. Stock Market
Another topic that you hear a lot about in the news is the
stock market. Stock analysts also use statistical computer models to forecast
what is happening in the economy.
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