Question

Respond to the following in a minimum of 175 words:

Explain the real world applications of Statistics and provide a detailed example.

Answer 1

Some of the real-world applications of Statistics are:

1. Understanding customer behavior using summary statistics.

2. Predicting sales using Time Series Analysis.

3. Finding an association between voters and candidate's support through the Chi-Square test.

4. Testing the quality of a process using Statistical Process Control.

5. Understanding the performance of NBA players using summary statistics.

6. Testing the effectiveness of drugs using hypothesis testing procedures.

7. Forecasting weather using Time Series Analysis.

8. To find the average performance of a class of students.

9. To find the average income of an employee in a company.

10. Predicting loan approval using Logistic Regression.

A detailed example is as written below:

Suppose a manufacturer of noodles in the USA wants to know whether the machine they have installed in the manufacturing unit is producing enough noodles or not. So, for this, they ask their engineers to give them the specification limits for one hour of production of noodles and the specification limits provided by the engineers are 1000 kilograms to 1350 kilograms. Now they randomly select 5 hours of produced noodles for 30 days and then average each of those 5 hours production and create an x-bar chart. Then check whether the average production lies within the control limits calculated by the x-bar chart procedure and falls between specification limits or not. If the average production goes outside the control limits then they conclude that the machine is producing enough noodles otherwise not.

This is a real-world application of an x-bar Control Chart.

Good luck with your studies!!!