In: Statistics and Probability
As you think about the nature of hypothesis testing, making inferences from samples, respond to the quote below. Include in your response an assessment of the benefits of this approach and the drawbacks of this approach.
Statistics may be defined as "a body of methods for making wise decisions in the face of uncertainty."
Please write clear !
according to W.A. Wallis and H.V. Roberts statistics is a body of methods for making wise decisions in the face of uncertainty
we know that in statistics we make inference and estimate value of parameters or in other words we think about a possible outcome with some uncertainty . results by any method of statistics are not perfect.i.e. results obtained with the help of any method of statistics can not exactly equal to true results .estimated results are always different from exact result . i.e. result drawn from inference always contain some uncertainty in it .
due to this uncertainty in results drawn , we always have risk in accepting that the result is true or accepting drawn results of inference . this risk can be minimized but can not be eliminated.
hence benifits of application of statistics in face of uncertainty is that it is used to make a idea about future results , in thus case we can prepare ourself to be ready for upcoming problems . it also used for prediction about future values ,for example in stock market we predict future values of stocks by inference .
and disadvantage is that there is always some uncertainty in results drawn from inference .
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