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Statistics

“Statistics can be said as a science of collecting, classifying, presenting, analyzing and inpterpreation of numerical data. In it’s original terms it is a branch of applied mathematics specialized in numbers.”

But I would say that it is a game, a game of numbers. Like any other game it has certain rules based on which you reach to some conclusion and finally make the decision. And like a good player who knows each and every rule of his/her game, in the same fashion if someone wants to become a statistican then s/he should know the every basic rule of statistics to become a expert player in this game.

In general I would like to highlight some of the basic rules that I think are very important:

  1. Statistics is very prone to error if right approach and it’s assumptions are not followed. Therfore before making an experiment and afterwards decision making, one should ensure that all the assumptions related to that experiment and decision making have been followed.
  2. There are multiple ways in statistics to solve the one business problem but every problem is very specific in it’s nature and only one type of statistical method can be used to solve it therefore it is very necessary that you know very well about that problem and then accordingly use the right statistical approach to solve that problem.
  3. Because it deals with sample of numbers therefore there are always a high probability that the sample one has selected is baised and therefore not providing the right conclusion and that’s why we need to make sure that one has used the correct sampling method for the experiment. For Ex: If the Principal of a particular school is making a presentation about the school growth and in one slide he is showing the average growth of 1st division that the students got in last five years then there is a high probablity that s/he chooses the sample of those students which has the maximum number of 1st division students in that sample.
  4. After drawing the conclusions from the experiment one should always tell about the situations in which the experiment has been done to help the reader understand about what were the situations / samples that have been taken or selected to perform the expeirment so that if some reader is using that analysis in his/her decision making then s/he should be aware of all the situation and assumptions of experiment.

So far these are some of the situations that I’ve been experienced in my professional career. I hope to get some more when you will reply with your comments.

Thanks.

-Abhi

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