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Deviation statistics: difference between the realization of a variable and some value (e.g., mean). Statistics of the deviation distributions consist of standard deviation, average absolute deviation, median absolute deviation , maximum absolute deviation.
- Example 1: Weather Forecasting
- Example 2: Sales Tracking
- Example 3: Health Insurance
- Example 4: Traffic
- Example 5: Investing
- Example 6: Medical Studies
- Example 7: Manufacturing
- Example 8: Urban Planning
Statistics is used heavily in the field of weather forecasting. In particular, probability is used by weather forecasters to assess how likely it is that there will be rain, snow, clouds, etc. on a given day in a certain area. Forecasters will regularly say things like “there is a 90% chance of rain today between after 5PM” to indicate that there’s...
Retail companies often use descriptive statisticslike 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.
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% probabi...
Traffic engineers regularly use statistics to monitor total traffic in different areas of a city, which allows them to decide whether or not they should add or remove roads to optimize traffic flow. Also, traffic engineers often use time series analysisto monitor how traffic changes throughout the day so they can optimize the behavior of traffic li...
Investors use statistics and probability to assess how likely it is that a certain investment will pay off. For example, a given investor might determine that there is a 5% chance that the stock of company A will increase 100x during the upcoming year. Based on this probability, they’ll decide how much of their portfolio to invest in the stock.
Statistics is regularly used in medical studies to understand how different factors are related. For example, medical professions often use correlationto analyze how factors like weight, height, smoking habits, exercise habits, and diet are related. If a certain diet and overall weight is found to be negatively correlated, a medical professional ma...
Statistics is often used in manufacturing to monitor the efficiency of different processes. For example, manufacturing engineers may collect a random sampleof widgets from a certain assembly line and track how many of the widgets are defective. They may then perform a one proportion z-testto determine if the proportion of widgets that are defective...
Statistics is regularly used by urban planners to decide how many apartments, shops, stores, etc. should be built in a certain area based on population growth patterns. For example, if an urban planner sees that population growth in a certain part of the city is increasing at an exponential rate compared to other parts of the city then they may dec...
Statistical inference is the process of using a sample to infer the properties of a population. Statistical procedures use sample data to estimate the characteristics of the whole population from which the sample was drawn. Scientists typically want to learn about a population.
- Biology. Hypothesis tests are often used in biology to determine whether some new treatment, fertilizer, pesticide, chemical, etc. causes increased growth, stamina, immunity, etc.
- Clinical Trials. Hypothesis tests are often used in clinical trials to determine whether some new treatment, drug, procedure, etc. causes improved outcomes in patients.
- Advertising Spend. Hypothesis tests are often used in business to determine whether or not some new advertising campaign, marketing technique, etc.
- Manufacturing. Hypothesis tests are also used often in manufacturing plants to determine if some new process, technique, method, etc. causes a change in the number of defective products produced.
Mar 25, 2024 · Inferential Statistics Examples. Sure, inferential statistics are used when making predictions or inferences about a population from a sample of data. Here are a few real-time examples: Medical Research: Suppose a pharmaceutical company is developing a new drug and they’re currently in the testing phase.
Sep 4, 2020 · When you have collected data from a sample, you can use inferential statistics to understand the larger population from which the sample is taken. Inferential statistics have two main uses: making estimates about populations (for example, the mean SAT score of all 11th graders in the US).
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Jul 17, 2022 · In this article, we’ll explore inferential statistics examples in real life. Making Inferences About a Population From a Sample. We can use samples to glean reliable information about an entire population if we know the population’s mean and standard deviation for the variable we’re interested in.
