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Statistics: Essential for Progress

Statistics is an ancient tool that has helped solve problems and understand the world. Until recently, statistics was seen as an esoteric field unrelated to society's needs in Latin America. However, perceptions are changing as more people recognize how statistics can benefit government, business, science, and everyday life. Statistics derives power from interacting with other fields like science, business, and research, adding value across many applications. Without statistics, the world would still exist but would be less comfortable and have a lower quality of life as statistics helps make better decisions under uncertainty.

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0% found this document useful (0 votes)
85 views2 pages

Statistics: Essential for Progress

Statistics is an ancient tool that has helped solve problems and understand the world. Until recently, statistics was seen as an esoteric field unrelated to society's needs in Latin America. However, perceptions are changing as more people recognize how statistics can benefit government, business, science, and everyday life. Statistics derives power from interacting with other fields like science, business, and research, adding value across many applications. Without statistics, the world would still exist but would be less comfortable and have a lower quality of life as statistics helps make better decisions under uncertainty.

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Janica
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Editorial

Innovaciencia 2015; 3(1): 1-2

A world without statistics?

As a practicing statistician, we frequently are asked questions like: What is the role of statistics
in our daily life? Why do we need statistics? What would the world be without statistics? Here
are some of my thoughts on these and related matters.

Statistics is an ancient tool which has been useful in solving problems of interest and
understanding the world we live in. Until recently, say 60 years ago, in Latin America there was
the wrong perception that statistics was an exoteric field that did not relate well to the needs of
our society. Also, it was incorrectly thought that statistics was a branch of mathematics of
interest only to people in academia. Fortunately, the perception is changing. These days, we
find more and more people interested on how and where one could use statistics to the
advantage of government, business, sciences, and day to day affairs. Careers and training in
statistics are becoming more common in our universities, and statisticians are beginning to play
an important role in our society.

Statistics derives its power from the positive impact that it can have when it interacts with
other fields like science, business, government, services, and research in general. There are
numerous well documented reports for the interdisciplinary added value due to the use of
statistics. The reports are on a wide range of applications from Physics (see, Mahon, B. “How
Science Got Statistics”, Significance, June 2015) to improving the quality of beer (see,
https://en.wikipedia.org/wiki/William_Sealy_Gosset). For a very interesting collection of
applications in México, see http://www.mundoestadisticacimat.mx/videos.

In principle the idea is to use statistics to make decisions based on uncertainty and limited
information. The first hurdle to overcome is to agree to the concept that basically there are no
predictable or repeatable processes. That variability is inherent on whatever we observe,
measure, or manufacture. Also, to understand that it is unrealistic to expect a complete control
of variability, if at all possible, at a reasonable cost. In making decisions under uncertainty
there are important considerations: The risk in simplistic terms is function of the probability
that the decision is incorrect and the cost due to the incorrect decision. If the risk is too high, it
might be the case that we should not assume the risk or take action to decrease the probability
or cost (or both) of an incorrect decision. Related, suppose that there is a business decision
which carries minor lasting economic repercussions in case of failure, other than the cost of

Cómo citar este artículo: Escobar, LA. A world without statistics?. Innovaciencia facultad cienc. exactas fis.
naturales. 2015; 3(1): 1-2
implementing it, but with great competitive advantages if it succeeds. The business
opportunity is a function of the probability of a successful decision and the benefits derived
from this decision. If the investment to try the new venture is low as compared to potential
business opportunity, why not try? In either case, getting a good estimate of the probability of
an incorrect (or correct) decision is in the realm of work where good statistics combined with
subject matter is paramount.

Interestingly, statistics thrives in moments of crisis. The need of quick response or


understanding of undesirable events has shown the important role of statistics in those
decision making situations. A few documented cases that come to mind are: the important
work of statisticians in breaking the Enigma code and the developing of the A-bomb during
World War II, the role of statistics in understanding the problem and finding adequate
treatments for HIV patients since this epidemiologic crisis emerged in the 1980s, understanding
the root cause for the Space Shuttle Challenger disaster in 1986, and the work of statisticians in
the non-destructive evaluation area caused by the current terrorist attacks. Of course, all these
examples are high end applications, but statistics is being used today for more mundane
purposes like: what is the remaining life of the battery of a pacemaker that a patient has worn
for a certain period of time or how to identify those students in their first college year with the
highest probability of abandoning their college education. Another important trait of statistics
is its evolving nature. It is a field in the making in the sense that the field is driven by change
and innovations (i.e., the discipline grows due to the needs of new problems to solve).

We have the challenge and opportunity of forging and building statistical curricula that is useful
for our future graduates. Where should we start? This is subject to debate. I am of the opinion
that it should be started at the high school level at the latest, but by all means all college
students should be exposed to some type of statistics education. Not everybody needs to be a
practicing statistician, but at the very minimum, individuals in decision making positions should
know when to use statistics or when to bring in statisticians into the decision making process.

Paraphrasing A. Gelman, what would be “A world without statistics?” Well, the world most
likely would have not disappeared, but we would not understand it so well, it would not be as
confortable, and the quality of life would not be as good.

Finally, for young generations interested in jobs for the future, the track record of statistics in
other countries anticipates that in Latin America statistics would be a promising career with
good job security, competitive salaries, and friendly working environments.

LUIS A. ESCOBAR
Professor of Statistics, Louisiana State University

Cómo citar este artículo: Escobar, LA. A world without statistics?. Innovaciencia facultad cienc. exactas fis.
naturales. 2015; 3(1): 1-2

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