Probability and Statistics in Daily Life LESSON 3

Probability

It is branch of mathematics that deals with the likelihood or chance of different events occurring.

·        expressed as numbers between 0 and 1

Zero/0

represents impossibility

One/1

represents certainty.

Status

Latin word of “statistics and statistical” means political state.

Statistics

It is a mathematical science pertaining to the collection, analysis, interpretation or explanation, and presentation of data.

Data Collection

It refers to the systematic process of gathering information or facts to answer research questions or test hypotheses.

Quantitative Data

This is numerical and can be measured, such as heights, weights, and scores.

Qualitative Data

This is descriptive and categorical, such as colors, names, or types of objects.

Surveys and Questionnaires

A popular method for collecting data from large groups.

Interviews

Qualitative in nature, interviews allow for in-depth exploration of a subject but can be time-consuming and subject to interviewer bias.

Experiments

Controlled environments where variables are manipulated to observe their effect on other variables.

Observational Studies

Observing and recording behavior or events without manipulating variables

Secondary Data

Using existing data collected by other researchers or organizations, such as government census data or industry reports

Data Analysis

Once data is collected, it must be analyzed to extract meaningful insights.

Data Cleaning

This involves checking for missing, incomplete, or inconsistent data and addressing these issues

Descriptive Statistics

Summarizing the main features of a dataset using measures such as the mean, median, mode, range, variance, and standard deviation.

Inferential Statistics

Making predictions or inferences about a population based on a sample.

Visualization

 Graphical representations such as histograms, bar charts, and scatter plots are used to identify patterns, trends, or anomalies in the data.

Financial Risk

Evaluating assessment, opportunities, assessing creditworthiness (possibility of losing money).

Operational Risk

Identifying and mitigating potential disruptions to business processes, such as supply chain interruptions or technology failures (possibility of loss).

Environmental Risk

Assessing the potential impact of environmental factors on business operations, such as climate change or natural disasters (likelihood of hazard causing by environment).

Data-Driven Decisions

Probability and statistics provide a framework for making informed decisions based on data analysis. This allows us to move beyond intuition and rely on evidence to guide our choices.

Risk Management

Understanding probability helps us assess and manage risks effectively. We can use statistical techniques to identify potential risks, evaluate their likelihood, and implement strategies to mitigate them.

STRATEGIC PLANNING

Probability and statistics are essential tools for strategic planning allowing us to forecast future trends, analyze market opportunities, and develop effective plans to achieve our objectives.