Six Ways Statistics Are Part of Your Daily Life

Many students don’t realize why they have to take some form of statistics in their academic careers. Many adults don’t realize the importance of this discipline

The funny thing is that regular people use statistics more often than they realize. In fact, there are many ways that this subject comes into play on a daily basis.

What Do We Mean By Statistics

Technically, statistics is defined as the practice of collecting and analyzing numerical data. In other words, statistics is a way of organizing information in a way that makes sense and helps solve problems or answer questions.

Statistical problems start with a question. A marketing company might wonder which color people prefer for their homes. The second step is to collect data. This collection could happen through surveys, polls, studies, etc.

Once the data is collected, it is analyzed, and the results are provided. The marketing company might find that certain colors are more popular than others, thus helping them make better decisions about their products or services.

Statistics don’t necessarily have to be for business or academic purposes. They can also be valuable across multiple avenues of our daily lives. Here are six ways you might be surprised to learn statistics sneak into your life.

1. The Weather

Did you know that when you look at the weather forecast, you are looking at statistics in action? The news station, app, or website where you get your weather reports typically uses computers to come up with their forecasts.

The computers take current conditions and compare them with recorded seasons, conditions, etc. The result is a forecast that represents the probability of certain weather conditions. The 70% chance of rain report is what helps you remember your umbrella.

2. Sports

If you’ve ever listened to a sports announcer, you’ve noticed that they tend to have all kinds of crazy facts. For example, a certain basketball player may make a certain percentage of free throws during away games. Even a baseball player’s batting average is part of statistics.

Coaches love looking for trends when preparing to compete against another team. One football coach may see that their rivals throw on third down 80% of the time, so they may plan their defense appropriately.

3. Auto Insurance

If you drive a car, you have auto insurance. What you may not know is that your rates are often determined via statistics. Insurance companies look at the data collected from drivers, police reports, vehicle registration, and your personal driving history to determine risk.

The insurance company has to weigh how much to charge versus how likely they are to pay out for an accident. When your rates mysteriously go up or down, it’s simply because of statistics.

4. Politics

Thanks to the all-knowing power of the internet, 24-hour news networks, and endless content creators, more people are more aware of politics than ever before, especially during an election season. Politicians use poles to help know how they’re doing on the campaign trail or if their policies are favorable.

The next time you hear about the president’s approval rating or who is predicted to win an election, you’re looking at statistics in action.

5. Consumer Goods

You probably don’t realize how statistics impact your shopping habits. Think about it; you grabbed a particular tube of toothpaste because four out of five doctors recommend it or because your read a percentage of people have positive reviews.

More than just helping you make decisions, companies use statistical methods to determine which flavors of toothpaste are most popular, along with ensuring the product is safe and effective. In reality, everything you buy came to market through some kind of statistical analysis.

6. The Stock Market

Anyone who tries to make it big on the stock market relies heavily on statistical analysis. Day traders and stockbrokers look at data to make the best possible guesses on which companies are going to do well. They make decisions on these statistics in hopes of making serious gains.

On that note, even things like gambling are based on statistics. For example, every Texas Hold ‘Em player knows how to determine the odds that a certain hand will show up. This, in practice, is just another everyday use of statistics.