Completeness of data is necessary to ensure the accuracy of the observed data. Organizations may use financial statistics to prepare financial forecasts and help them with budget models for future years from an auditing angle; it may help the auditor to use sample to observe and interpret for a particular ledger or account and thus use the analyze whether proper controls are in place multi-national companies may use financial statistics to depict the expected results of the company in a particular period and accordingly plan ahead. Statistics is an important field of study because of its application in almost all walks of life. The data can be analyzed by simply having to look at the information provided and the manner in which it is arranged. Some of the potential characteristics that a statistic should include: Completeness refers to an indication of whether or not the data required to meet the information demand is available in the data resource. application of statistic in education Statistic is also applied in education for various purposes: - Reviewing education system - Thesis writing in Tertiary Education -Identify society's needs in education Reviewing Education System e.g. Business statistics is a specialty area of statistics which are applied in the business setting. Managing portfolios of financial investments requires a balance between risk and reward. For example, the population mean μ is found using the sample mean x̅. Measures of spread show how similar or different a set of values are and how they relate to each other. Forensic statistics is the application of probability models and statistical techniques to scientific evidence, such as DNA evidence, and the law. Test and Verification of Economic Theories or Principles or Hypothesis Economists have developed various theories and principles based on deductive reasoning in the areas of production, distribution, exchange, consumption, business cycles, taxation, etc. It is also used for preparing various kinds of reports for presentation to authorities, economists, stakeholders, or investors. Be it any business, banks, institution, individuals, economy, administration, anything; statistics play a very important role when one needs to make efficient decisions. To forecast your finances, you watch for trends, patterns, and relationships, determine the probability of these influencing a particular outcome, and use that to model your forecast. Probability and Statistics with Applications in Finance and Economics. It can be used for quality assurance, financial analysis, production and operations, and many other business areas. CFA Institute Does Not Endorse, Promote, Or Warrant The Accuracy Or Quality Of WallStreetMojo. They can be of either type – Confidence interval inferential or Hypothesis Inferential statistics. Robust covariances for … use statistical methods to analyze, evaluate, and summarize large volumes of data into a mathematical form that is useful. Also, it is pertinent to note that the manner of presentation of such statistics is equally important in aiding interpretation and usage of such statistical information. CAPM formula shows the return of a security is equal to the risk-free return plus a risk pre… The unknown population parameter is found through a sample parameter calculated from the sampled data. In contrast to "everyday" statistics, to not engender bias or unduly draw conclusions, forensic statisticians report likelihoods as likelihood ratios (LR). For example, assume a computer shop sells electronic devices, and out of the 1,000 electronic devices sold, 300 are laptops. With this data, one description of the data would be 30% of the sample represents laptops. They have already taken a basic course in statistics. Controllers apply their knowledge of statistics to develop the appropriate forecasts and analyses that promote the … Random experiment is of probabilistic nature. finance.yahoo.com.Wefirst use the daily and monthly data to illustrate descriptive statistical analysis and to establish a number of stylized facts about the distribution and time dependence in daily and monthly returns.
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